Development of Agribusiness Enterprises - Asian Productivity ...

Highlights of Investment Policy, 1997
The new Investment Policy, announced on 21 November 1997, comprises three parts:
policies, incentives and facilitation. The following measures have been taken in these three
areas.
1. Investments
Foreign private investment in the manufacturing sector is already allowed on a 100percent
foreign equity basis.
2. Policies
Repatriation of foreign investments is now allowed in the agriculture, services,
infrastructure and social sectors.
3. Incentives
To keep Pakistan competitive in international markets, the following incentives have
been implemented:
(a) Priorities
The manufacturing sector has been prioritized in four categories: (i) value-added or
export industries; (ii) hi-tech industries; (iii) priority industries; and (iv) agro-based
industries.
(b) Tariffs
Tariffs on imported plant, machinery and equipment are zero rated for agro-industry.
(c) Tax Relief
A first-year allowance is allowed for each of the above categories.
Facilitation
In order to provide support services and utilities under one umbrella and remove
procedural and operational bottlenecks, a range of reformative measures have been taken.
These measures include establishment of national industrial zones, and development of
transport and communication infrastructure.
BIBLIOGRAPHY
Board of Investment, 1999. Pakistan Investment Policies – 1999, Islamabad.
Ministry of Finance, 2000. Economic Survey of Pakistan, 1999-2000, Islamabad.
Ministry of Food, Agriculture and Livestock, 2000. Agricultural Statistics of Pakistan 1998-
99, March 2000, Islamabad.
----------, 1997. Agriculture in Pakistan – Analytical Overview, Islamabad.
Planning and Development Division, 1994. “Eighth Five-Year Plan”, June 1994. Islamabad.
----------. “Three-Year Development Program 2000-2003", Islamabad.
Small and Medium Enterprises Development Authority. SMEDA Prospective 1999, Ministry
of Finance, Islamabad.
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