Policies and Regulations of Pakistan
Policies and Regulations of Pakistan
5.1.2 Trade regulations
Major laws and regulations related to trade in Pakistan include Company Law, Trade Organization Law, Trade Monopoly and Restriction Law, Customs Law, Anti-dumping Law and Anti-Hoarding Law, etc.
5.1.3 Relevant provisions of trade administration
【Import Commodity Management】
The government of Pakistan classifies export products as prohibited, restricted, price restricted and general. The export of some prohibited commodities needs to obtain the permission of relevant government departments, and the export of restricted commodities needs to meet the relevant requirements stipulated by the government. Due to the rampant smuggling activities, Pakistan's export control to Afghanistan is quite strict, with special regulations to regulate it.
Imported products are classified into prohibited, restricted and general categories. There are more than a dozen categories of prohibited goods, including those that violate Islamic teachings. The import of restricted goods shall meet the relevant requirements stipulated by the government.
In addition to complying with relevant laws, you should pay close attention to the new fiscal year trade policy issued by the government at the beginning of each fiscal year for the latest regulations and the latest information on commodity tariff rates. Official website of Pakistan Ministry of Commerce: www.commerce.gov.pk
5.1.4 Inspection and quarantine of import and export commodities
The import and export inspection and quarantine of animals and plants in Pakistan is the responsibility of the Ministry of Food Safety of Pakistan. The main laws are the Animal (Import and Export Animals and Products) Quarantine Act of Pakistan and the Plant Quarantine Act of Pakistan.
【Animal Quarantine】
The Department of Animal Quarantine under the Ministry of Food Safety of Pakistan is responsible for animal quarantine. Importers of poultry, beef and mutton, dairy products and animal feed are required to apply to the department for animal quarantine, and only after obtaining the relevant quarantine certificate before allowing import.
【Plant Quarantine】
The Plant Protection Division of the Ministry of Food Safety of Pakistan is responsible for plant quarantine. The import and export of rice, wheat, flour, grains, fruits, vegetables, plant seeds, cotton and other commodities shall be subject to statutory quarantine inspection, and relevant quarantine certificates shall be issued.
5.1.5 Customs management
The Customs and Excise Department is under the Federal Revenue Board of Pakistan (FBR). The administration of import and export commodities shall be carried out in accordance with the “Customs Law”,” Import and Export Law” and “Customs Rules”. Tariff rates on goods are subject to annual adjustment. To protect the needs of domestic industries, the government of Pakistan can impose anti-dumping duties and regulatory duties on imports. For more information, please visit the website of the Federal Revenue Board of Pakistan (www.fbr.gov.pk).
5.2 Foreign investment regulations
5.2.1 Investment regulations
According to “Pakistan's Foreign Private Investment (Promotion and Protection) Act 1976”, the “Economic Reform Promotion and Protection Act 1992” and the Preferential Investment Policy of Pakistan, all sectors of the economy of Pakistan are open to foreign investment, with the exception of restricted areas of investment, foreign investment enjoys the same treatment as domestic investors and 100% foreign ownership is allowed. There is no minimum investment limit.
【Industry restrictions】
The five areas under the investment policy of Pakistan are: weapons, high explosives, radioactive materials, securities, coinage and liquor production (except industrial alcohol). In addition, since Pakistan is an Islamic country, foreign companies are not allowed to engage in recreational activities such as nightclubs, dance halls, cinemas, massages and baths.
【Encouragement policies】
Foreign investors in Pakistan enjoy preferential policies such as equipment import tariff, initial depreciation deposit, copyright technology service fee and so on.
5.2.2 Provisions on investment methods
Foreign investors can invest in Pakistan by means of greenfield investment or mergers and acquisitions. The registration, management and listing of companies will be undertaken by the Securities and Exchange Commission of Pakistan (SECP). In Pakistan, the forms of entities that foreign investors can establish include: Company Limited by shares, Single Member Company, Company Limited by Guarantee, Unlimited Company, representative office and branch.
【Foreign capital merger and acquisition (M&A)】
The Mergers and Acquisitions Bureau of the Competition Commission of Pakistan is responsible for reviewing acquisitions of companies' shares or assets. The Mergers and Acquisitions Bureau has an Acquisitions and Mergers Facilitate Office (AMFO) to provide guidance on potential mergers and acquisitions in an advisory capacity, but the advice provided is non-binding. In addition, the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan also assume some regulatory responsibilities.
【Involving law】
The major laws concerning the safety of foreign mergers and acquisitions, investment and mergers and acquisitions of state-owned enterprises, anti-monopoly, and concentration of operators are “the Competition Law of 2010”, “the Competition (Merger Control) Regulations of 2007”, “the Listed Companies (Substantial Acquisition of Voting Shares and Acquisitions) Regulations” of 2008 and "the Investment Commission Ordinance of 2001”. “The Companies Act 2017” is one of the most significant reforms to Pakistan's legal system to date.
【M&A process】
The main procedures and procedures of foreign M&A are as follows:
(1) Signing the memorandum of understanding between potential buyers and sellers;
(2) Obtain approval from the Securities and Exchange Commission of Pakistan (SECP) and relevant authorities;
(3) Financing, legal and commercial procedures: such as obtaining approval from the Pakistan Investment Board, High Court, Privatization Board, etc.;
(4) Evaluate the value and negotiate the price;
(5) Signing sales and purchase agreements.
The main procedures and formalities that specifically involve a public offer of another company through the stock market are as follows:
(1) The Board of directors of the Company discusses and approves the draft acquisition;
(2) Notify the stock exchange;
(3) Stock evaluation;
(4) Prepare the draft merger plan;
(5) Calculate the share exchange ratio on the basis of stock valuation;
(6) To inform the Securities and Exchange Commission of Pakistan (SECP) and relevant authorities of the merger plan;
(7) The board of directors of the company determines the acquisition framework, the share exchange ratio, the submission of the application to the High Court, etc.;
(8) Notify the stock exchange;
(9) Obtain a no-objection letter from the creditor (not required but which will positively affect the judgment of the High Court);
(10) Application to the High Court;
(11) Approval by the High Court;
(12) To issue notices to shareholders and creditors in accordance with the Company Law;
(13) To convene meetings of shareholders and creditors;
(14) Submission of a draft memorandum to the High Court;
(15) Determine the final M&A plan;
(16) Filing a High Court notice with the company registration Authority;
(17) Reorganize the board of directors and complete the registration procedures of corresponding companies;
(18) Determine the date of stock transfer;
(19) To announce the transfer of shares;
(20) Transfer of shares;
(21) The board of directors of the Company approves the allocation and issuance of shares.
5.2.3 Infrastructure model regulations
Pakistan is one of the developing countries that has embraced the PPP model. The development of PPP has played a positive role in the development of public infrastructure in Pakistan, such as electricity, telecommunications, ports and social services. In May 2016, the federal government of Pakistan issued the “Act on the Management of Public-Private Partnership (PPP) Model”, which sets out a relatively clear legal framework and management system for the PPP investment model, sorts out the rights and obligations between the government, enterprises and consumers, and forms a relatively standardized PPP management model.
Foreign companies such as the UK, Norway and Japan as well as Pakistani companies have successfully launched PPP projects in Pakistan. Currently, the main PPP projects still on the drawing board in Pakistan include the Punjab grain storage, the Faisalabad and Lahore sewage treatment plants, the Lahore Nishthar Park Sports Complex project and the Faisalabad parking lot and shopping mall.
5.3 Corporate Taxation
5.3.1 Tax system and institutions
Table 5-3: Tax System of Pakistan
Tax System | Content |
Basic Tax Law | The tax system mainly consists of the “Income Tax Ordinance” 2001, the “Income Tax Rules” 2002, the “Sales Tax Act” 1990, the “Federal Excise Tax Act” 2005, the “Sindh Service Sales Tax Act” 2011, the “Punjab Service Sales Tax Act” 2012, and other provincial service Sales tax regulations. In addition, Pakistan's Economic Coordination Committee can grant tax breaks to specific taxpayers or groups through Statutory Regulatory Orders (SROs). The effect of such deductions is beyond the tax code. |
Major Taxes | Tax revenue in Pakistan is divided into federal tax (national tax) and provincial tax (local tax), among which the federal tax revenue accounts for about 90% of the total national tax revenue. |
Competent Authorities | Federal taxes are administered by the Federal Inland Revenue Service (FBR), under which there are branches such as Inland Revenue, Customs, and Taxpayer Audit, etc.. The Internal Revenue Service (IRS, which collects income, sales, and federal excise taxes), has three Large Taxpayer units (in Karachi, Lahore, and Islamabad) and 18 Regional Tax offices across the country. The Customs Bureau has 25 branches throughout the country. Provincial taxes are managed by local tax bureaus and finance departments. In addition to a small part of the tax is handed over to the federal government, the rest is used as provincial development funds. The AJ&K region is not constitutionally federal, so it has the Inland Revenue Department of AJ&K under the AJ&K Council to collect income and sales taxes and other local taxes. The tax office is also under the jurisdiction of the FBR, and a certain proportion of the national tax revenue goes to the AJ&K government, and the rest goes to the federal government. |
5.3.2 Major taxes and tax rates
【corporate income tax】
The scope of taxation includes business income, rental income, capital gains, salary income and income from other sources. The tax rate was 35% before fiscal year 2014, and then decreased by 1% each fiscal year, and fixed at 30% after fiscal year 2018. For resident entities and non-resident entities with permanent establishment (PE) in Pakistan, the general method of levy is based on the net taxable income, and the cost of PE and the apportionment of the overseas headquarters shall be deducted. Non-resident enterprises may choose the final tax mechanism for income from construction, installation and similarly prescribed projects, which is a fixed percentage of gross income tax payable without any other deductions.
【Sales tax】
Pakistan's federal government abolished the value-added tax in the 1990s and replaced it with a sales tax. As of July 2008, the sales tax rate is 16%-21%. Both imported goods and goods produced in Pakistan are subject to sales tax. Some goods are exempt from sales tax, mainly on computer software, medicines and unprocessed agricultural products. The vast majority of sales are taxed at 16%, known as the General sales tax (GST).
【Federal Consumption Tax】
Imported goods and goods produced in Pakistan are subject to GST as well as services such as insurance, advertising, mail delivery and accounting. Tax rates range from 5% to 100%t, including 20% for communications services and 10% for banking and insurance services. Some goods and services are exempt from federal consumption taxes.
【Tariff】
The tariff rate of most goods is 5%-35%, which can be found on the website of the Federal Board of Taxation of Pakistan (the second phase protocol of the China-Pakistan Free Trade Agreement will take effect on January 1, 2020). The two sides will apply zero tariff to 75% of the total number of respective tariff items, and apply partial tariff reduction of 20% to 5% of other products of respective tariff items. The list of goods and reduced tax rate can log on to query: http://fta.mofcom.gov.cn/
【Digital Tax】
In 2019, the Federal Revenue Commission of Pakistan decided to impose a 30% digital tax on Pakistani digital goods, which applies to both local enterprises and foreign-invested enterprises.
【Carbon Emission Tax】
Due to Pakistan's weak industrial base, the government is concerned about the impact of carbon emission tax on the development of local industries, so there is no carbon emission tax at present.
5.4 Provisions on Special Economic Zones
5.4.1 Laws and Regulations on Special Economic Zones
In 2012, the Pakistani government promulgated the “Law on Special Economic Zones of 2012”, which stipulates that the government, the private sector and public-private partnerships may establish special economic zones.
【Main preferential measures】
(1) Developers in the special economic zone and enterprises in the special zone are entitled to 5-year and 10-year enterprise income tax exemption respectively;
(2) One-time tariff reduction for machinery and equipment used in the establishment of the special zone and enterprises in the special zone;
(3) The minimum area of the special economic zone is 50 acres without the maximum area limit;
(4) Provide convenient infrastructure;
(5) Preferential policies of special economic zones are protected by law and may not be revoked at will.
For details see (https://invest.gov.pk/sez#gallery-1).
In 2019, the Pakistani government issued a presidential decree on preferential tax exemption policies for the Gwadar Free Zone, granting a 23-year tax holiday for customs, income tax and value-added tax to development and operation companies and enterprises in the free zone.
【Main preferential measures】
(1) Free zone development enterprises enjoy 40 years of management rights; 20-year sales and income tax exemption;
(2) Enterprises engaged in export-related industries in the free zone are exempt from tariff, sales tax and income tax for 23 years.
5.4.2 Introduction to Special Economic Zones
At present, the special economic zones that have been approved or are under construction in Pakistan include Rashaka Ishu Economic Zone, M3 Industrial City and Tabki Special Economic Zone.
Table 5-4: Major Special Economic Zones of Pakistan
The name of the special Zone | Location | Type of industry |
Bin Qasim SEZ Special Economic Zone | Sindh Province | Motorcycle Assembly and Manufacturing, Re-Rolling, Chemical Processing, Auto Parts and PET Bottles, Textile, Mixing Industry |
Korangi Creek SEZ | Sindh Province | Pharmaceutical, Packaging, Paint Chemicals, Warehousing, Air Conditioning, Clothing, Auto Parts. |
Khairpur SEZ | Sindh Province | Non-Food, Agriculture, Food Processing, Light Engineering |
Dhabeji SEZ | Sindh Province | Steel, Chemical Industry, Machinery Manufacturing, Textiles |
Quaid-e-Azam Apparel Park | Punjab Province | Textile and Cotton Processing |
M-3 Industrial City | Punjab Province | Textiles, Engineering and Construction, Chemical, Pharmaceutical, Electronics, Food and Beverage and IT Information Technology |
Allama Iqbal Industrial City Zone | Punjab Province | Textile, Leather, Garment Manufacturing |
Value Addition City | Punjab Province | Textile, Packaging, Pharmaceutical, Engineering, Chemical, Industrial Processing, Information Technology |
Rashakai SEZ | Cape Province | Household Appliances, Machinery and Equipment, Food Processing, Textile Processing |
5.4.3 Introduction to Export Processing Zones
【Preferential measures for export processing zones】
The Pakistani government encourages foreign enterprises to invest and set up factories in export processing zones. The policies of each industrial zone are flexible and there is no uniform preferential policy. There are 21 Export Processing Zones in Pakistan (6 have been built). You can find relevant policies on the official website of the Export Processing Zone Authority (https://epza.gov.pk/). Preferential measures include:
(1) Land can be developed at preferential prices within 30 years;
(2) Import machinery, equipment and materials are exempt from tax;
(3) Not restricted by national import regulations;
(4) Not subject to foreign exchange control regulations;
(5) Capital and Profits can be remitted back smoothly;
(6) No sales tax will be levied on the electricity and gas used in the park
- Allow duty-free vehicles under certain conditions;
(7) Can sell no more than 20% of the products in the domestic market;
(8) Under certain conditions, you may own a duty-free car.
The Government of Pakistan encourages the establishment of enterprises in export processing zones using local raw materials and Labour resources for export purposes, including the following sectors: Electronics Industry, Information technology, clothing and knitwear, construction machinery, pharmaceuticals, seafood processing, leather products, fruit and agricultural products processing, carpets, furniture and wood products, handicrafts, jewellery, complete equipment and machinery, sporting goods, stuffed toys, medical equipment and other industries.
【Main Export Processing Zone】
Now, Pakistan has Karachi Export Processing Zone, Sialkot Export Processing Zone, Risalpur Export Processing Zone, Saindak Export Processing Zone, Dudda Export Processing Zone, Gujranwala Export Processing Zone, etc. Metallurgical Corporation of China has entered Shandak Export Processing Zone and Duda Export Processing Zone, while there are fewer Chinese-funded enterprises in other export processing zones.
(1) Karachi Export Processing Zone. The Karachi Export Processing Zone is the first export processing Zone established in Pakistan and it is also the largest processing zone in Pakistan so far. The Karachi Export Processing Zone is adjacent to the Landhi industrial zone in Karachi and is less than 18 km from the modern Karachi International Airport (Quaid-e-Azam Airport), 20 km from Chachim seaport and 35 km from the highly modern Karachi port. The Karachi Export Processing Zone (Phase I and Phase II) covers a total area of 305 acres with better infrastructure; The third phase, now under construction, is 80 acres.
(2) Sialkot Export Processing Zone. Located in Sambrial, Punjab Province, the Processing Zone is a joint venture between the National Export Processing Zone Authority and Punjab Small Industries Corporation. It covers an area of 238 acres and is home to a wide range of high-tech industries such as surgical instruments, sporting goods, leather clothing and jewelry processing.
(3) Risalpur Export Processing Zone. Located in NWFP, 50 km from Peshawar and near the Mardan junction on the Islamabad-Peshawar highway, the Processing zone covers 200 acres. The zone has the advantage of direct access to Central Asian markets via land via Afghanistan. Due to its advantages in raw materials and cheap labor, The processing zone has the potential to develop commercial activities and mineral, fruit and vegetable processing industries, as well as carpet and furniture industries.
(4) Saindak Export Processing Zone. The Sandak Export Processing Zone, a special zone based on the Sandak Copper Mine, which was officially approved for establishment on August 6, 2003. The processing zone is located in the Chagai district of Balochistan province and covers an area of 1284 acres.
The Shandak Copper and gold mine is now being leased and operated by the Metallurgical Corporation of China, employing 1,500 local people.
(5) Duddar Export Processing Zone. Duda Export Processing Zone is a special zone based on Duda Lead and zinc mine, which was officially approved and established on August 6, 2003. The processing zone is located in the Lasbele district of Balochistan province and covers an area of 1,500 acres. The Duda lead-zinc mine is now being leased and operated by Metallurgical Corporation of China.
(6) Gujranwala Export Processing Zone. 3 km from Gujaranwala to Lahore highway, covering 113 acres.
(7) TUWAIRQI STEEL MILL Export Processing Zone, near Port Qasim, covering 220 acres.
5.4.4 Gwadar Free Zone
Gwadar Port Free Zone is Pakistan's first free zone, covering about 923 hectares, including two areas in the north and south. At present, the construction of the starting area of the free zone has been completed, mainly relying on the existing wharf, to carry out commodity sales, transit, trade, fishing products processing, stone processing, transportation machinery and equipment manufacturing, metal processing and other commercial services, enterprises in the park have started to invest and build factories, and have been put into use.
5.4.5 Regional preferential policies
On the basis of the national preferential investment policies, the provinces and regions of Pakistan have also formulated corresponding preferential investment policies. Take the case of provinces Punjab and Sindh.
(1) Punjab Province: Punjab Investment and Trade Board (www.pbit.gop.pk) is the investment management agency of Punjab Province. For enterprises investing in Punjab province, the main preferential policies include: 100% foreign ownership is allowed; The appointment tax instruction system, where the taxpayer makes a detailed statement of all transactions and the Inland Revenue Department gives specific tax advice based on the information provided by the taxpayer; A 5% tariff on parts and components that cannot be produced or purchased in the province; Zero sales tax on machinery imports; A first depreciation rate of 50% of the cost of plant, machinery and equipment; Zero tax rate for raw materials used for export processing.
(2) Sindh Province: Sindh Investment Board (www.sbi.gos.pk) is the investment management body of Sindh Province. For enterprises investing in Sindh province, the main preferential policies include: setting up industrial parks and export processing zones to provide corresponding preferential policies for enterprises; Various financing methods, such as credit schemes and self-employed financing schemes, are provided to meet the financing needs of small and medium-sized enterprises.
5.5 Labor and employment laws
5.5.1 Core contents of the Labor (Movement) Act
The origins of Pakistan's Labour laws can be traced back to the legislative system inherited from India during the period of partition. Since Pakistan's independence, the government has introduced a number of Labour policies.
【Provisions on Employment Contract in Labor Law】
The industrial and commercial employer shall sign an employment contract with the employee, which shall specify the nature of employment, the term of employment, the position, the salary and benefits. If there is no contract for housekeeping or short-term employment, the court shall determine the employment relationship according to the facts in case of a dispute.
【Working hours】
Young people aged 14-18 who have applied by themselves or their guardians and obtained a physical examination certificate that they are fit for work may be employed to engage in non-heavy labor. Their working hours shall not exceed 7.5 hours per day, 42 hours per week, part-time jobs and night shifts shall not be allowed (the time period of night shifts shall be announced by provincial governments); Employees over the age of 18 who work no more than 9 hours a day and no more than 48 hours a week; Working hours should be reduced during Ramadan.
【Paid leave】
Employees are entitled to two weeks of paid leave per year (6 weeks for maternity), 10 days of personal leave (full pay), 16 days of sick leave (half pay), 13 days of public holiday (full pay), and other vacation days temporarily prescribed by the government. Employees who work on public holidays are entitled to double pay and time off. According to the agreement, employees can take two months off work for the Hajj. When employees of enterprises with more than 10 employees participate in the social security plan, employers are required to contribute 7% of the participating employees' salary.
【Social Security Fund】
(1) To prepare the fund, the employer and the employee shall pay 8.33% of the employee's monthly salary respectively;
(2) Workers' welfare fund is 2% of income (income above 10,000 rupees);
(3) Worker profit participation fund is 5% of profit before tax;
(4) Old age benefit, the employer pays 6% of the worker's minimum wage, the employee pays 1% of the minimum wage.
5.5.2 Provisions for foreigners to work locally
The Pakistani government has no restrictive requirements on the entry of foreign labor to work in the country, only stipulates that foreign technical and managerial personnel to work in Pakistan, should be invited by the company formally registered in Pakistan, apply to the Board of Investment in Pakistan (BOI) and apply for a work visa through the diplomatic agencies of Pakistan after the recommendation, the visa period is 2 years.
Pakistan and China have signed a mutual visa exemption agreement. People holding official and ordinary official passports can enter the country visa-free, but they need to apply for residence and stay visas from the Immigration and Passport Bureau under the Ministry of Interior of Pakistan within three months after entering the country. Those who intend to enter the controlled areas of Pakistan (such as Pakistan-controlled Kashmir, etc.) for work need to apply for a permit from the Ministry of Interior. In addition, foreigners should be registered at the local police station as soon as possible.
To apply for a work visa, please refer to the BOI website: boi.gov.pk/Services/ServiceProcessWizard.aspx
5.6 Rules for foreign enterprises to acquire land/forestland in Pakistan
5.6.1 Main contents of Land Law
【Land Policy】
There are three main types of land systems in Pakistan: private landlord ownership, Ryotwari ownership, and state ownership. Among them, private landlord ownership is the main system, the landlord owns a large amount of land, and then lease the land in pieces; The latter two kinds of land ownership belong to the state, among which the Ryotwari ownership is due to the fact that Sindh province has a small population and a large amount of land, and the state calls on farmers to go and cultivate the land. For the farmers who cultivate the land, it is close to owning and can be inherited and transferred.
After Pakistan's independence in 1947, the government successively promulgated the “Land Reform Act” in 1959, the “Land Leasing Reform Amendment” in 1972, and the “Land Reform Provisions” in 1977, all three times achieving benign land reform. In the 1980s and 1990s, the Musharraf government intensified the implementation of the “Land Leasing Reform Amendment (1972)”.
Each provincial government of Pakistan has formulated its own land policies. Different provinces have slightly different regulations on land lease, sale, development and acquisition. For details, please refer to the following website:
Punjab Investment Board:www.pbit.gop.pk
Sindh Investment Board: www.sbi.gos.pk
Government of Baluchistan:www.balochistan.gov.pk
Cape Provincial Investment Board:www.investinkpk.org.pk
5.6.2 Provisions on the acquisition of land by foreign-funded enterprises
Pakistan has no special laws regarding the acquisition of commercial and operational land by foreign investors. Because local subsidiaries of foreign investors are considered to be local companies in Pakistan, the acquisition of land by setting up a subsidiary does not require Home ministry approval.
According to the law of Pakistan, there is no concept of fully private land in Pakistan. All land is simply owned by the government. Private property rights in land are only leases with a maximum term of 99 years.
Under the rule of prohibiting permanent retention in accordance with article 14 of the “Property transfer Law”, It shall not be stipulated in the contract that the land lease contract shall be automatically renewed upon expiration, except where it can be demonstrated that a permanent transfer is in the interest of the public and the majority.
5.7 Regulations on the participation of foreign-funded companies in local securities trading
Foreign-funded companies participating in securities trading in Pakistan should open a special account (SCRA) convertible into Pakistani rupee and conduct trading operations through qualified dealers, which the SCRA account funds are required by law to come from outside the country. The relevant provisions of the can see the “listed company law” (www.secp.gov.pk/laws/acts/) and Pakistan stock exchange related introduction page:
https://www.psx.com.pk/psx/resources-and-tools/investors/investing-on-psx-from-overseas
5.8 Environmental protection regulations
5.8.1 Environmental protection management department
The environmental regulatory authority of Pakistan is the Ministry of Environment. The Ministry of Environment formulates relevant environmental protection policies in accordance with Pakistan's Environmental Protection Law. Under the Ministry of Environment, the Environmental Protection Bureau (www.environment.gov.pk) is responsible for the implementation of environmental laws and regulations, together with provincial environmental departments, and provides technical support for the enactment of regulations by the Ministry of Environment.
5.8.2 Major environmental laws and regulations
Pakistan has established a relatively complete environmental protection legal system with the “Pakistan Environmental Protection Law (1997)” as the core, mainly including the “National Environmental Quality Standard”, the provincial Sustainable Development Fund committee system, the industrial pollution fee (calculation and collection) system, the national drinking water, environment, demolition and sewage policies, the national strategy of clean Development Mechanism, and the national strategy of clean Development Mechanism. Clean air projects, environmental impact assessment procedures, industry-specific environmental guidance projects and checklists, etc.
Specific content can inquire on the www.environment.gov.pk/info.htm and www.moenv.gov.pk/.
5.8.3 Basic Points of environmental Laws and Regulations
(1) Soil conservation.
Promoting organic farming; Preventing land degradation; Comprehensive prevention and control of pests and diseases to prevent the indiscriminate use of chemical fertilizers and pesticides; Implementation of “The National Action Plan against Land Desertification and Weathering”; Establish the state control desertification fund; We will encourage the development of an ecologically harmonious crop system.
(2) Forest protection.
Implementing forest protection policies; Protection remnant and special forest ecosystems; Encourage the conservation and restoration of endangered ecosystems; Replace wood burning in the form of natural gas, solar energy, and small hydropower; We will strengthen research on existing forests and increase the strength of scientific and technological personnel.
(3) Prevention and control of air pollution.
To develop and implement indoor and outdoor air quality standards; To ensure the reduction of the discharge of harmful substances according to law; Upgrade fuel specifications; Elimination of two-stroke motor vehicles; Improving the efficiency of public transport between major cities; To develop non-motor traffic in urban areas; Encouraging advanced technologies for ozone protection; We will speed up the legislation of the national Clean Air Law.
(4) Water body protection.
Additional water supply and treatment installations; Establish a water quality monitoring system; Improve the technological level of urban and rural rainwater utilization; Encourage the reclamation of groundwater in arid and semi-arid areas; Improve the water metering system to avoid mixing industrial water with urban water; Monitoring the flow of fresh water into the ocean; Establishment of surface water division standard; Implementing a phased plan to upgrade clean water quality; We will speed up the legislation of the Water Body Conservation Law and the formulation of relevant standards.
【Standards for handling or compensation for pollution accidents】
A fine of up to 1 million rupees can be imposed, and a daily fine of 100,000 rupees can be imposed during the accident period; Those who have criminal records of such crimes may also be sentenced to fixed-term imprisonment of not more than two years; Shut down or confiscate its factories and equipment; Forcing them to compensate the victims and restore the environment, etc.
5.8.4 Relevant provisions of environmental assessment
Pakistan has developed a relatively complete “Environmental Impact Assessment (EIA) process”, which makes EIA a prerequisite for the approval of development projects and details the overall practice, it includes specific EIA methods for public consultation, sensitive special areas, large thermal power projects, chemical manufacturing enterprises, housing construction and urban development, industry, roads, waste discharge, oil and gas exploration and production and other industries. The EIA work is carried out by the Environmental Protection Bureau under the Ministry of Climate Change and provincial environmental departments.
The EIA application shall be submitted directly to the executive department by the enterprise according to the requirements of different industries, and the application fee and time shall vary according to the industry situation. Specific evaluation content and procedures, fees, time and other inquiries can be found: www.environment.gov.pk/desc.php?page=polices
Environmental Protection Agency contact information is as follows:
Tel: 0092-51-9250858
Fax: 0092-51-9250715
Location: Pak-EPA, Plot # 42, Street # 06, H-8/2, Islamabad
5.9 Oppose commercial bribery regulations
At present, there is no special anti-commercial bribery law in Pakistan, but other laws directly or indirectly involve the provisions and penalties for commercial bribery:
【The Criminal Code of 1860】Mainly provides for crimes against persons, property and the state.
【anti-Corruption Act of 1947】 The main regulation of civil servants bribery and other corruption.
【Federal Investigations Act of 1974】 The Federal Investigation Agency (FIA) was created by this Act. One of its main functions was to investigate "white collar crime", bribery and corruption, with specialized courts.
【The National Accountability Act 1999】Mainly penalizes illegal gains from accepting commissions or kickbacks, and confiscates public funds that have been embeded or misappropriated by public servants.
Corrupt practices include blackmail, extortion, solicitation, bribery, bribing foreign officials, abuse of power and money laundering. The penalty is up to 14 years in prison, with intensive Labour, a fine or confiscation of property.
5.10 Provisions on contracting projects by foreign enterprises
5.10.1 Licensing system
The management of Pakistan's contract engineering market is relatively loose foreign contract engineering enterprises only need to register with the Pakistan Engineering Council (PEC) to enter the Pakistani market, in principle, foreign natural persons are allowed to contract projects locally.
5.10.2 Prohibited Areas
Foreign contractors are not allowed to undertake projects in Pakistan involving weapons, high explosives, radioactive materials, securities printing and minting, liquor production (except industrial alcohol), etc., unless special approval is obtained from the government.
5.10.3 Bidding method
In the construction and management of large projects, the Pakistani government and relevant departments mostly hire companies from developed countries such as Europe and the United States as project consultants, use and learn from the technical standards and project management mechanism of western countries, and the operation is relatively standardized. According to Pakistani law, contractors for large projects should be determined by international open bidding, and the proportion of projects implemented by EPC, PMC and funded contracting is increasing year by year. In addition, the government actively encourages investors to participate in project construction through BOT, BOOT and PPP (public-private partnership).
5.11 Provisions on the protection of intellectual property rights
5.11.1 Laws and regulations on intellectual property protection
In 2015, the Ministry of Commerce of Pakistan issued “The Strategic Trade Policy Framework 2015-2018”, which added an intellectual property department within the Ministry of Commerce to promote the innovation and production of market-oriented and tradable knowledge products. At the same time, the Intellectual Property Organization of Pakistan is also under the administration of the Ministry of Commerce of Pakistan. The main functions of WIPO Pakistan are:
(1) To administer and coordinate government systems on about the intellectual property protection;
(2) To administer intellectual property institutions established by the State;
(3) Improve the national awareness of intellectual property protection;
(4) To recommend relevant intellectual property protection policies to the federal government;
(5) To ensure the effective protection of intellectual property rights through the designated intellectual property protection and enforcement agency.
Pakistan's intellectual property legislation system includes the Trademark Law, Patent Law, design Law, copyright law, Integrated Circuit Law, etc., as well as the relevant implementation rules of the above laws. For details, please visit the website of Intellectual Property Organization of Pakistan at: www.ipo.gov.pk
5.11.2 Relevant provisions on penalties for intellectual property infringement
【Trademark】
Whoever illegally uses a registered trademark or provides forged documents and materials for registration shall be sentenced to fixed-term imprisonment of not less than three months but not more than two years and shall also, or shall only, be fined not less than 50,000 rupees; Whoever illegally uses a registered trademark twice shall be sentenced to fixed-term imprisonment of not less than half a year but not more than three years and shall also, or shall only, be fined not less than 100,000 rupees; Whoever passes off an unregistered trademark as a registered trademark shall be sentenced to fixed-term imprisonment of one month not exceeding the first half year and shall also, or shall only, be fined 20,000 rupees.
【Patent】
Whoever provides forged documents and materials for registration, or whose patent relates to military secrets, or applies for a patent abroad without the permission of his own government, shall be sentenced to fixed-term imprisonment of not more than two years and shall also, or shall only, be fined not more than 20,000 rupees; A fine of up to 5,000 rupees for those who make false reports; A fine of 25,000 rupees for the first time and 100,000 rupees for each subsequent time for those unregistered patent agents; A fine of up to 5,000 rupees shall be imposed on those who pass off non-patented products as patented products.
【Design】
Whoever illegally uses a registered design or provides forged documents and materials for registration shall be sentenced to fixed-term imprisonment of not more than two years and shall also, or shall only, be fined not more than 20,000 rupees; A fine of 1,000 rupees is imposed for passing off an unregistered design as a registered design.
【Copyright】
Whoever, without the permission of the copyright owner, uses his work by means of adaptation, translation or other means, or makes or sells pirated audio-visual products, shall be sentenced to fixed-term imprisonment of not more than three years and shall also, or shall only, be fined 100,000 rupees; Whoever provides false materials to register his copyright, or makes or sells a work whose signature is fake, shall be sentenced to a term of imprisonment of not more than two years and shall also, or shall only, be fined 100,000 rupees.
5.12 Main ways to resolve commercial disputes and applicable laws
Business disputes in Pakistan can be settled through legal channels. If there is an arbitration clause in the contract, it may apply to the agreed arbitration institution for arbitration. If there is no arbitration clause, a lawsuit may be brought to a court with jurisdiction, and the applicable law shall be determined according to the specific circumstances of the contract. In specific operation, major business contracts mostly stipulation arbitration clauses, and arbitration is selected in local, Singapore, London and other places.
