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Pakistan Moves to Lift Investment Curbs in Bid to Attract Foreign Capital

Pakistan is easing regulatory restrictions in an effort to revive foreign direct investment, as authorities seek to address longstanding barriers that have constrained capital inflows and trade activity.

Speaking at the My Karachi Climate Matters Conference, Federal Minister for Board of Investment Qaiser Ahmed Sheikh said reforms are under way to simplify Federal Board of Revenue regulations and remove 'unnecessary measures' that have hindered investment.

The government is also revising frameworks overseen by the State Bank and the Securities and Exchange Commission to improve the business climate. These steps, the minister indicated, are aimed at encouraging greater participation from foreign investors while facilitating domestic enterprise.

A key part of the strategy involves offering incentives and infrastructure support. Around 6,000 acres of land in Bin Qasim have been earmarked for industrial use, with authorities prepared to allocate plots for new ventures. Investors are also being encouraged to utilise a 10-year tax exemption designed to stimulate industrial activity.

Officials are positioning the industrial sector as central to economic expansion, urging businesses to capitalise on the available facilities. The broader policy direction reflects an attempt to align investment promotion with wider economic reforms undertaken under the International Monetary Fund programme.

Alongside economic measures, the minister highlighted environmental priorities, calling for the expansion of mangrove forests along coastal areas and emphasising the need for tangible progress in tackling pollution. Climate-related concerns were discussed alongside investment policies at the conference, reflecting the growing intersection between environmental sustainability and economic planning.

The remarks suggest a renewed policy focus on reducing regulatory friction and improving incentives, as Pakistan attempts to strengthen its appeal to foreign capital while navigating structural economic challenges.