Protections and Facilitations for Foreign Investors: Legal Perspective under Pakistani Laws

Abstract

Foreign investment is essential for every country’s survival and prosperity. It encourages societal welfare programs by boosting career possibilities, raising extra income, lowering poverty, promoting commerce, and expediting the country's economic progress (Waheed & Ghumman). Pakistan is indeed the world's fifth most populated nation with more than two hundred million people (Countries in the world by population, 2021). Each of its commercial industry, especially renewable energy, infrastructural facilities, agricultural production, textiles, spin, mines, petroleum, and gas, is accessible to foreign investors. International investors are able to invest directly in any field, and there are no restrictions on the amount of money they can bring in or take out. Pakistan's government wants to attract foreigners to boost investment initiatives in the country. Pakistan serves as a gateway for overseas companies aiming to develop their business in Central Asia. Keeping in view the importance of investment, specific laws are being made to promote foreign investment over time. This research aims to analyze the nature of laws and regulations available in Pakistan dealing with the protection and facilities of foreign investment. It will explore the safeguards provided under Pakistan's laws and regulations and the extent to which Pakistan provides ease of doing business to foreign investors. It will further elaborate the risks involved in the way of investors. Finally, some practical suggestions and recommendations will be made to improve the protection regime.