Govt to Give Tax Exemptions to UAE Companies Investing in Pakistan

The government is likely to grant tax exemptions of approximately Rs. 25 billion to United Arab Emirates (UAE) based companies on investment in Pakistan.

Sources in the Federal Board of Revenue (FBR) told ProPakistani that work on tax exemptions has been started. Total tax exemptions, which are estimated to be given for a period of three to five years, could be around Rs.20 to 25 billion.

The sources have further said that government could give tax exemptions on imported machinery, imported parts, and income tax.

The companies are expected to invest in multiple sectors, including healthcare, agriculture, and energy infrastructure. Apart from this, investments could also be made in digital communication, gas, and alternative energy resources.

Recently, the UAE government announced that its public companies will invest $1 billion in Pakistan in different sectors.  The planned investment is expected to boost the fast depleting forex reserves of Pakistan.