In Pakistan, rules and regulations for land acquisition is a provincial subject hence applicable procedures vary from province to province. Generally, Foreigners can own land with the permission of the Federal Government and respective Provincial Governments. All sectors and activities are open for foreign investment unless specifically restricted for reasons of national security and public safety.
As you know, Pakistan enjoys great strategic location making it one of the countries having huge potential for economic growth. This attracts a lot of foreign investors and lenders who like to establish and maintain business relations with Pakistan. Pakistan receives considerable FDI from across the globe including Asia, Europe, America, Africa and Australia. The annual report of World Bank 2017-18 stated that, total number of registered companies in Pakistan are 11,370. These companies are indicating a growth of 37% over the corresponding year.
How foreigners can invest in Pakistan real estate?
Traditionally, foreigners living in Pakistan have always felt discouraged to buy property in Pakistan and prefer renting it out no matter what the duration of their stay is. This is primarily because of the cumbersome procedures which can take several months to complete. The World Bank’s report regarding Pakistan improving its position in ease of doing business countries is a welcome change in this regard. However, there is still a lot that needs to be done in order to attract investment in real estate sector, which is one of the highest potential industries of Pakistan. Therefore, the government of Pakistan must look into making easy, the procedures in order to attract foreign investment in real estate sector of Pakistan. Detailed process has been discussed under, which any foreigner needs to go through to buy or rent property in Pakistan;
- An employment letter from the company where they are working currently. Following things must mentioned;
- Nature of their job
- The duration of their employment
- Contact details of the company.
- A copy of their passport. Copy of a valid visa with six recent, passport size photographs
- They are also required to submit a copy of the landlord/realtor’s CNIC
- Additionally, the owner of the property in question also needs to submit attested copies of proof of ownership
- Last but not the least, the law requires a contract to be drafted in the name of the occupant of the property. In case, a new tenant occupies the property, he’s legally required to get a new contract otherwise strict legal action would be taken against the land owner
With recent improvements in law and order situation of the country one would expect more investment to come in the country, hence the time is right to make processes and laws friendlier and attract maximum possible investment.