In Pakistan, the land is a provincial matter, and each province's land acquisition laws are different. In general, any foreign national who has obtained approval from the relevant province administration and the Federal Ministry of Interior is permitted to purchase land to the extent of their financial means. Also, a foreigner may own land if their company is registered with the Securities and Exchange Commission of Pakistan (SECP).
Foreigners living in Pakistan are typically deterred from renting or purchasing real estate here in that they must go through a drawn-out and tedious process that might take months to accomplish. The process is covered in depth in the post that follows, along with the reasons why the government has to loosen it up in order to encourage foreign investment in the real estate sector of Pakistan.
Conditions to Buy Property in Pakistan
The government places upper limitations on investment in industries other than the media, banking, agriculture, and aircraft. For investing in stock ownership in all the allowed sectors, there is no specified "minimum" sum. All industries, except those listed in the top limit, allow foreigners to obtain 100% foreign ownership.
Also Read: How Can Foreigners Buy Property in Dubai
Foreign investors retain the right to repatriate their funds, including any profits or dividends, in the original currency of the nation from which the investment was made, as stated in the sixth clause of the Foreign Private Investment Act of 1976 for the promotion and protection of investment and the procedural requirements outlined in the State Bank of Pakistan's (SBP) Foreign Exchange Manual 2002.
Foreigners may designate authorized banks or dealers to carry out the repatriation of profits, revenues from the sale of investments, or dividends through a legitimate banking channel. To withdraw their dividends and sales proceeds from their portfolio investments, foreigners must create a Special Convertible Rupee Account (SCRA) in any local bank. Individuals are permitted to invest in any security listed on the Pakistan Stock Exchange. According to the SBP and SECP laws, foreigners may borrow money on the domestic market based on the Debt-Equity Ratio.
Documents Required for Buying a Property in Pakistan
The following documents must be provided to Pakistan's home department by foreigners who want to rent or purchase property there.
1. A letter of employment from the company they are currently employed with, including the type of their position, the length of their employment, and the employer's contact information.
2. A copy of their passport and a copy of a visa that is currently valid, each with six recent passport-size photos.
3. They must also provide a copy of the CNIC of the landlord or real estate agent.
4. The disputed property's owner must also provide attested copies of ownership documentation.
5. The law mandates that a contract be written in the name of the occupant of the property.
Benefits of Foreign Investment in Pakistan
Pakistan has been getting a steady influx of foreign investment from Asia, America, Australia, Africa, and Europe for the past ten years. The SECP recorded 1,949 new company registrations in July 2021, bringing the overall number to 147,842. The construction and real estate industry has received the most registrations. Finally, the government guarantees the best treatment possible for foreign investment to promote FDI. The Protection of Economic Reforms Act of 1992 and the Foreign Private Investment (Promotion & Protection) Act of 1976 both provide international investors "No Less Favourable" treatment than domestic investors in a comparable environment. So it is rightly said that it is the ideal time to invest in Pakistan's real estate due to expanding investment opportunities.
