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Foreign Private Investment (Promotion and Protection)Act, 1976

ACT XLII OF 1976

An Act to provide for the promotion

and protection of foreign private investment in Pakistan

The following Act of Parliament received the assent of the president on 4th June, 1976 and is hereby published for general information:–

Whereas, it is expedient to provide for the promotion and protection of foreign private investment in Pakistan and for matters ancillary thereto.

It is hereby enacted as follows:-

1. Short tile, commencement and application. (1) This Act may be called the Foreign Private Investment (Promotion and Protection ) Act, 1976.
(2) It shall come into force at once.
(3) It shall apply to all industrial undertakings in Pakistan having foreign private investment established with the approval of the Federal Government after the first day of September, 1954:
Provided that nothing in this Act shall be in derogation of any facilities or protection specifically sanctioned by the Federal Government to foreign private Investment in the case of a particular industrial undertaking or a class of industrial undertakings or such facilities or protection as may be available to foreign private investment under a bilateral investment treaty.

2. Definition. (1) In this Act, unless there is anything repugnant in the subject or context, –
(a) ‘foreign capital’ means investment made by a foreigner in an industrial undertaking in Pakistan’
(i) in the form of foreign exchange, imported machinery and equipment, or
(ii) in any other form which the Federal Government may approve for the purpose;
(b) ‘foreign private investment’ means investment in foreign capital by a person who is not a citizen of Pakistan or by a company incorporated outside Pakistan, but does not include investment by a foreign Government or agency of foreign Government.
(c) ‘industry undertaking’ means an industry, undertaking or establishment engaged in the production, distribution or processing of any goods, the providing of services specified in this behalf by the Federal Government or the development and extraction of such-mineral resources and products as may be specified in this behalf by the Federal Government.
(2) Words and expressions used but not defined in this Act shall have the same meanings as in the Companies Act, 1913 (VII of 1913).

3. Field for foreign private investment. The Federal Government may consistent with the national interest, for the promotion of foreign private Investment, authorise such investment in any industrial undertaking—
(a) which does not exist in Pakistan and the establishment whereof, in the opinion of the Federal Government, is desirable; or
(b) which is not being carried on in Pakistan on a scale adequate to the economic and social needs of country; or
(c) which will contribute to-
(i) the development of capital, technical and managerial resources of Pakistan;
(ii) the discovery, mobilization or better utilization of the national resources;
(iv) increasing employment opportunities in Pakistan; or
(v) the economic development of the country in any other manner.

4. Approval of foreign private investment. Where the Federal Government sanctions an industrial undertaking having foreign private investment, it may do so subject to such conditions as it may specify in this behalf.

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