Two mega foreign investment projects worth $23 billion to kick off in Pakistan
Balochistan, the largest province of Pakistan in terms of land area, possesses abundant natural resources that make it an ideal destination for foreign direct investment (FDI). This injection of foreign capital is crucial to support Pakistan's struggling economy. Despite its immense potential, Balochistan has lagged behind in development, limiting the nation's access to the province's wealth in marine resources, mining, agriculture, oil, gas, and more.
Efforts are currently underway to address the province's law and order situation by engaging political forces, promising a brighter future for Balochistan's residents and Pakistan as a whole. Recent economic developments have brought optimism, particularly with Saudi Arabia's commitment to establish a massive oil refinery through a government-to-government investment model.
The Saudi-Pakistani Memorandum of Understanding outlines a substantial $15 billion investment, expected to create over 200,000 job opportunities. Furthermore, Saudi Arabia has pledged an additional $8 billion for the mining sector in the province.
Prior to this initiative, both Saudi Arabia and China had been actively investing in various Balochistan sectors, such as the development of Gwadar Port and an airport.
The Balochistan Board of Investment and Trade (BBoIT) is keen on attracting foreign investments, offering up to 100% foreign ownership permission and encouraging foreign real estate developers to launch ventures without restrictions. Companies can freely engage in foreign equity investments, share sales, ownership transfers, and profit repatriation without hurdles.
Balochistan's business-friendly environment extends to online registration, branch office establishment for foreign companies, and robust provisions for recognizing and enforcing foreign arbitration awards. Guarantees against nationalization and expropriation are in place, alongside a well-established framework for protecting intellectual property rights.
Additionally, bilateral investment treaties with 47 countries provide work visas for technical and managerial personnel, ensuring a smooth investment process without the burden of double taxation. These initiatives hold the promise of transforming Balochistan into a thriving hub of economic activity that benefits both the province and Pakistan at large