investmen in pak

8/10/2019 Investmen in Pak

1/29

Investment in PakistanIntroduction

Investment in Pakistan is a booklet prepared by Asif Associates to provide information onnumber of subjects relevant for investment planning or doing business in Pakistan. Thisbooklet provides a summary of the rules, regulations and tax laws applicable in Pakistan.Although covering many relevant areas, it cannot be exhaustive, and it is not designed toprovide the complex and detailed information re uired for decision!making in relation toinvestments.Pakistan is fast adapting to the challenges of globali"ation as an emerging market. Itseconomy was able to weather severe storms in #$%&&'!&(. Pakistan is a land abundant inbusiness opportunities for investors awaiting eager exploration of markets as well asidentifying and mitigating inherent business risks. This guide o)ers an introductory overviewof key investment determinants and considerations pertaining to investing in Pakistan,drawing from *P+ -s diversi ed experience in Pakistan.

/egulatory #rameworkPakistan-s investment policy has been formulated to create an investor!friendly environmentwith a focus on further opening up the economy and marketing the potential for directforeign investment. 0arious incentives have been o)ered to attract foreign investmentincluding full repatriation of capital, capital gains, dividends and pro ts. #urthermore,according to various economic commentators, Pakistan has the most liberal investmentpolicy regimes and public!private partnership frameworks in the entire 1outh Asian region.

2egal protection to investment

#oreign investment in Pakistan is fully protected by following Acts3 #oreign Private Investment 4Promotion 5 Protection6 Act, 7(89. Protection of :conomic /eforms Act, 7((%.

Investment policies

In order to protect and stimulate investment 4both local 5 foreign6 in Pakistan, speci cinvestment policies and procedures have been designed for individual sectors. Investmentpolicies speci c to the major sectors operating in the country are summari"ed belowwhereas policies in general are given in the table at the end of this chapter3

Agriculture

1alient features for ;orporate Agriculture #arming 4;A#63


2/29


3/29

As per the #oreign :xchange /egulations, any foreign investor can invest in shares securities listed on 1tock :xchanges in Pakistan, and can repatriate pro ts dividendsor disinvestment proceeds. The investor has to open a 1pecial ;onvertible /upeeAccount with any bank in Pakistan, in order to

+ake such portfolio investments.

IT 5 Telecom 1ector 1peci c licenses are re uired from respective authorities e.g. in order to start the

cellular operation network, a license needs to be obtained from Pakistan Telecommunication Authority.

:nergy 4Power, E applicable on import of plant, machinery 5e uipment not manufactured locally for power generation projects whilst "eropercent customs duty applies on plant, machinery and spares imported by powergeneration projects under nuclear and renewable energy sources like solar, wind,micro!hydel bio!energy, ocean, waste!to!energy, hydrogen cell etc.

#or power projects above >&+J one!window support to be provided at the federallevel.

#or projects below or up to >&+J support to be provided at the respective provinciallevel.

/oyalty will be payable at the rate of 7%.>E of the value of petroleum at the eldgate.

2ocal petroleum companies are encouraged to establish joint ventures with foreignconcerns.

Import of e uipment related to the petroleum 5 re ning sectors allowed onconcessionary rates.

The lube industry has been deregulated.

Fanking

The 1FP, the ;entral Fank of the country was established in 7(='. In addition to monitoringthe implementation of Fanking ;ompanies


4/29

The Fanking ;ompanies 9 specifyvarious regulations, some of which are speci ed below3

;apital and reserve re uirement ;ash reserve 2i uid assets Assets outside Pakistan Annual accounts and audit /emittance of pro ts Cumber of branches.

Prudential regulations

The 1FP has introduced speci c Prudential /egulations for ;orporate ;ommercial Fanks,1mall and +edium :nterprises #inancing, ;onsumer #inancing, +icro #inanceFanks Institutions and Agriculture #inancing.

The Prudential /egulations cover four categories vi". /isk +anagement, ;orporateovernance, *$; and Anti +oney 2aundering, and


5/29

Investment Vehicles;hoice of vehicle

#oreign companies can choose between setting!up a liaison oKce, branch oKce orincorporate a Pakistani company as either its wholly owned subsidiary or joint venture with aPakistani overseas partner.

2iaison oKce 42


6/29

by the F


7/29

Fusiness!persons and investors from any of the F02 listed countries will also begranted a thirty!day landing permit on arrival at any airport in Pakistan.

Jork visa procedures Jork visas are granted subject to a constructive plan to train Pakistani personnel to

take over the technical and managerial responsibilities over a reasonable period of time.

The multiple!entry work visa is issued for a period of one year or up to the date of expiry of the applicant-s passport, whichever is earlier. The concerned Pakistani+ission abroad will grant work visas to the applicant, whereas extension in work visais endorsed by the /egional Passport million in tangible assets and H1?&.%> million 4ore uivalent in major foreign currency6 in cash on a non!repatriable basis, and by ful lling theconditions of the Pakistan ;iti"enship 2aw. Investment on a non repatriablebasis means that the amount is brought to Pakistan through normal banking channels,converted into Pakistan /upees, and never remitted back.

#oreign exchange regulations

#oreign exchange dealings are regulated under the #oreign :xchange /egulation Act, 7(=8.#oreign currencies are made available to persons companies doing business in Pakistan forall purposes under rules which have been clearly de ned by 1FP. There are no restrictions onavailability of foreign currency for imports 4except for import of banned items or for importsfrom Israel6. Fusiness houses can buy foreign currencies for all other commercialtransactions like payments for export claims, commission payment to foreign agents onexports, royalty, franchise technical fees and dividends 4as subse uently described in

detail6,software licenses maintenance support fee, advertisement abroad in newspapersand maga"ines, business travel etc.

#oreign investment in Pakistan enjoys full protection and repatriation facilities. The #oreignPrivate Investment 4Promotion and Protection6 Act, 7(89 provides guarantees for repatriationof foreign investment to the extent of original investment, pro ts earned on suchinvestment, and appreciation of capital. The important foreign exchange regulationspertaining to foreign investment are covered in detail hereon.


8/29

Issuance of share certi cates to foreign investors

1FP has given general permission to non!residents to purchase shares of Pakistanicompanies uoted on the stock exchange irrespective of the nature of their business, andshares of those private companies which are engaged inmanufacturing, power generation and approved segments of service sectors. This facility isavailable to the following categories of non!residents, subject to payment being made inforeign currency and the price being not less than break!up value as certi ed by a practicing;hartered Accountant in the case of unlisted shares and the market price in case of uotedsharesG

A Pakistan national resident outside Pakistan A person who holds dual nationality including Pakistan nationality, whether living in

or outside Pakistan A foreign national, whether living in or outside Pakistan A rm 4including a partnership6 or trust or mutual fund registered and functioning

outside Pakistan, excluding entities owned or controlled by a foreign government.

/emittance of dividend

;ompanies are re uired to nominate a bank through which they would like to makeremittance of dividends to non!resident shareholders. E of net sales. The initial period forwhich such fees will be allowed should not exceed ve years.

#inancial sector/emittance of royalty franchise and technical fee or

commission service charges for the nancial sector may be allowedby the 1FP, on case!to!case basis, in respect of foreign collaborator-sbranded nancial products services. The one!time lump sum up!frontroyalty technical fee franchise fee should not exceed H1?>&&,&&&.;ontinuing payments should not exceed &.%>E of customers billing.

#oreign currency borrowing for plant and machinery


9/29

Private foreign currency loansPrivate sector entrepreneurs are permitted to obtain foreign

currency loans from banks nancial institutions abroad, parentcompanies of the multinationals and as suppliers- credit, not involvinggovernment guarantee, for nancing foreign currency cost of theprojects covered by the government-s industrial and investmentpolicies. The repayment period of such loans credit should not be lessthan ve years. 2oan agreements and repayment schedules areregistered with 1FP which enables banks to allow remittance of interestand loan installments, after deduction of applicable tax, without furtherapproval of 1FP.

&E or more foreign share holding, or >&E or more directors of foreign nationality6 are allowed to contract foreign currency loans from banks nancial

institutions abroad or from their B< or from other overseas branches associates abroad formeeting their working capital re uirements, subject to the conditions that the repaymentperiod should not exceed twelve months and the interest should not exceed 7E over 2IF


10/29

There is no restriction on residents and non!residents on bringing in, and holding foreigncurrency. Bowever, there is a ceiling of H1? 7&,&&& on taking foreign currency out of Pakistan.

#oreign currency accounts 4#;A6;ompanies and individuals are allowed to maintain foreign currency accounts with banks inPakistan with minimum regulations.

2ocal borrowings by foreign controlled companies 2ending to foreign controlled companies for working capital Authori"ed ?ealers are

allowed to grant /upee loans and credits to foreign controlled companies for meetingtheir working capital re uirements.

2ending to foreign controlled companies for capital expenditure #oreign controlledcompanies engaged in manufacturing are allowed to obtain /upee loans for meetingcapital expenditure re uirement from banks, development nancial institutions andother nancial institutions or by issuing Participation Term ;erti cates, etc. Bowever,other foreign controlled companies re uire special permission to obtain medium andlong!term /upee loans.

2oans against guarantees of non!residents

Authori"ed ?ealers have general permission under the #oreign :xchange /egulations togrant /upee loans to their clients 4including foreign controlled companies6 againstguarantees of non!residents guarantees received from banks functioning abroad subject tocompliance with the Prudential /egulations of 1FP.


11/29

;ompany 2aw

Types of Fusiness :ntitiesFusiness activities may be carried out through a company, modaraba, branch, partnership orsole proprietorship. ;ompanies incorporated in Pakistan and branches or liaison representative oKces of foreign companies are regulated by the ;ompanies


12/29

All the shares are vested with single member, however, he she is re uired to nominate twoindividuals, one of whom shall become nominee director in case of death of the singlemember and the other shall become alternate nominee director to work as nominee director

in case of non!availability of the nominee director.1ingle!+ember ;ompany is re uired to appoint a uali ed company secretary and to write1+;O in addition to Private 2imited with its name.

Public company

A public company can be formed by three members or more. It is entitled to commencebusiness after obtaining a commencement of business certi cate from the /egistrar of ;ompanies.

A public company does not have restrictions with regard to maximum number of membersand transferability of the shares. A public limited company should have a minimum of threemembers. Public companies have the option to get their securities listed on a stockexchange.

A company cannot be listed unless it has made a public issue which is subscribed by at least>&& members. Bowever this is applicable for listing of shares. #or listing of securities otherthan shares, minimum number of members is three. A listed company may buy back its ownshares subject to conditions speci ed in the ;ompanies


13/29

have at least three directors in case of an unlisted company and seven in case of a listedcompany. All directors must be natural persons.

Chief executive

All companies are re uired to appoint a ;hief :xecutive


14/29

D #ollowing companies are re uired to have their accounts audited by a ;harteredAccountantG

a public company a private company, which is a subsidiary of a public company, orG a private company having a paid!up capital of P*/ million or more.

D The rst auditor is re uired to be appointed by the directors within 9& days from the dateof incorporation and thereafter in each A + of the company.D A public listed company shall ensure that its half!yearly nancial statements are subject tolimited scope review by statutory auditors.

Circulation & submission of accountsD :very company shall send a copy of the audited accounts, directors- and auditor-s reportsto all members at least %7 days before A + and shall keep a copy at the registered oKce of the company for the inspection of the members of the company during a period of at least%7 days before that meeting.D A listed company shall, simultaneously with dispatch of the aforementioned accounts andreports, send ve copies to 1:;P, the stock exchange and the registrar.D 2isted companies are re uired to submit three copies and other companies are re uired tosubmit two copies of annual accounts along with reports and documents re uired to beannexed to /egistrar of ;ompanies within & days from the date of A +.D In case of a private limited company having share capital not exceeding P*/8.> million,there is no re uirement to submit annual nancial statements to /egistrar of ;ompanies.D Hnder the code of corporate governance, all listed companies shall publish and circulateuarterly un!audited nancial statements along with ?irectors- review on the a)airs of thelisted company for the uarter.

#iling re uirements

The ;ompanies


15/29

monthly returns by companies and tracking of complaints, etc. The system will also aim toreduce undue paper work and improve various processes within 1:;P.


16/29

TaxationIncome tax

The Income Tax


17/29

Pakistan at any time in the year or if it is a Provincial overnment or a 2ocal overnment inPakistan.

Association of personsAn association of persons is considered resident for a tax year if the control and

management of its a)airs is situated wholly or partly in Pakistan at any time in the year.

Beads of income

Total income of a taxpayer can be charged to tax under any of the following heads3 1alary Income from property Income from business ;apital gains Income from other sources

1alary

1alary received by an employee in a tax year, other than exempt salary, shall be chargeableto tax in that year under the head 1alaryO. #or the purposes of computing salary liable totax, the value of per uisites, allowances and bene ts are determined in accordance with theprescribed rules. 1alary income is subject to a progressive tax rate depending on theuantum of salary, ranging from &.>&E to %&E.

#oreign source income

If an individual, due to his employment becomes resident in Pakistan and his presence in

Pakistan is for a period or periods not exceeding three years, his foreign income will not betaxed unless this income is derived from a business established in Pakistan or it is brought orreceived in Pakistan.

#oreign source income of a resident 4who is a citi"en of Pakistan but was not resident in anyof the four tax years preceding the tax year in which he became resident6 shall be exemptfrom tax for two years, that is to say, in respect of the tax year in which he became residentand the next following tax year.

Any foreign source salary received by a resident individual is exempt from tax if theindividual has paid foreign income tax in respect of the salary. Any foreign source salaryearned by an individual 4who is a citi"en of Pakistan6 during the tax year in which he leavesPakistan and remains abroad is exempt from tax.

Income from property

Income from property includes rent received or receivable, other than exempt rent, by theowner of land or a building as a consideration for the use or occupation of the said property.

Income from businessIncome from business or profession is taxed under the following regimes3

Cormal Tax /egime 4CT/6


18/29

#inal Tax /egime 4#T/6Normal tax regimeHnder the CT/, taxable income of the taxpayer is determined after reducing the relatedallowable expenses out of which some of the important allowable expenses are discussedbelow3

Depreciation allowance The &E.

First ear Allowance !F A"#$A of (&E of cost, in lieu of the initial allowance of >&E is allowed on plant, machinery ande uipment installed and used by any industrial undertaking set up in speci ed rural andunderdeveloped areas or installed for generation of alternate energy by an industrialundertaking set up anywhere in Pakistan.

IntangiblesAn amorti"ation deduction is allowed for the cost of intangibles having useful life of morethan one year, used wholly or partly for deriving income from business.

#ead o$ce expenditureBead oKce expenditure is allowed to a non!resident operating through a branch in Pakistan.

This expense is generally allowed in the ratio of Pakistan turnover to global turnover of theentity.

Apportionment of expenses The rules provide that expenditure incurred for a particular class of income can only beallocated to that class. #urther any common expenditure incurred for deriving more than onehead of income shall be allocated to each class in the same proportion, which the grossreceipts from that class of income bear to the total gross receipts from all classes of income.

%ax liability The standard tax rate for companies is >E. Jhereas, a small company, as de ned in theE.Final %ax egime !F% "Hnder the #T/, the tax deducted or collected at source is deemed to be nal tax in respectof income from sources chargeable under #T/. The amount chargeable to tax on grossreceipt basis cannot be reduced by3

Any deductible allowanceG or 1et!o) of any lossG or Any tax credits available under the


19/29

Jhere a non!resident person receives any Pakistan!source royalty or fee for technicalservices, tax at the rate of 7>E shall be charged on the gross amount of royalty or technicalfee. Bowever, the following receipts are not chargeable under #T/3D Any royalty, where the property or right giving rise to the royalty is e)ectively connected

to a permanent establishment in Pakistan of the non!resident personD Any fee for technical services, where the services giving rise to the fee are renderedthrough a permanent establishment in Pakistan of the nonresident personDAny royalty or fee for technical services, which is exempt under the


20/29

Tax deducted from payments made to service providers does not fall under #T/. 1erviceincome of companies continues to be assessed under the CT/, while for non!company casestax so deducted is treated as minimum tax.

Income from pri,es and winnings

The gross amount of every pri"e on a pri"e bond is subject to withholding tax at 7&E,whereas gross amount of winning from a raRe, lottery, pri"e on winning a ui", pri"e o)eredby companies for promotion of sale, or cross word pu""le is subject to withholding tax at%&E.

-oods transport business The tax collected at the time of collecting motor vehicle tax shall be nal tax on the incomeof the owner of the goods transport vehicle from plying, or hiring out of such vehicle.

.ro/erage & commission income Tax shall be deducted or collected at 7&E from gross amount of brokerage 5 commission,which would be considered as nal discharge of tax liability.

*ervices to an exporter 0 export houseIncome of a resident person arising on account of rendering providing of services, such asstitching, dyeing, printing, embroidery, washing, si"ing and weaving to an exporter or anexport house is subject to tax at &.>&E.

Insurance 0 re+insurance premiumInsurance re!insurance premium received by a non!resident insurance reinsurancecompany from a Pakistani insurance company is taxable at >E of gross amount thereof.

+inimum tax based on turnover

If no tax is payable or paid by a resident company for a tax year or the tax payable or paidby the company for a tax year is less than &.>E of the amount representing the company-sturnover from all sources for that year, the aggregate of the company-s turnover for the taxyear, shall be treated as the income of the company and shall be taxed as in the followingtable3

:xemptions have been provided to certain companies from the applicability of minimum tax.#urthermore, minimum tax paid can be carried forward for set o) against future tax liabilityfor three tax years, immediately succeeding the tax year for which the amount was paid.

Treatment of previous years- losses

2oss under a head of income, except speculation loss and capital loss, can be set o) againstincome under any other head only for that year in which loss was sustained. In case of abusiness loss, which cannot be fully set o) in a tax year, it can be carried forward up to sixtax years immediately succeeding the tax year in which the loss was rst computed.Fusiness losses can be carried forward inde nitely for industrial undertaking set up in :xport

Processing Sones. #oreign losses can be set o) only against foreign income.Hnabsorbed tax depreciation and initial allowance on tangible assets and unabsorbedamorti"ation on intangibles can be carried forward to succeeding years, until completely seto).

In case of speculation and or capital losses, unabsorbed losses can be carried forward up tosix tax years and can only be adjusted against income from the same head in which the losswas sustained and not against income under any other head.


21/29

roup relief

A subsidiary company may surrender its assessed loss, excluding capital loss, for the taxyear 4other than brought forward losses and capital losses6 to its holding company or itssubsidiary or between another subsidiary of its holding company 4collectively referred to asgroup-6 provided that the holding company shall directlyhold at least3

>>E of the subsidiary-s share capital, where one of the group companies is listed, or 8>E of the subsidiary-s share capital, where none of the group companies is listed.

2oss surrendered by the subsidiary may be claimed by the holding company or anothersubsidiary for set o) against its business income in the tax year and the following two taxyears subject to the conditions speci ed in the


22/29

In computing income from other sources, a deduction shall be allowed for any expenditurepaid by the person in the year to the extent to which the expenditure is paid in derivingincome chargeable to tax under this head.

+odes of payment of taxA taxpayer makes payment of tax at four stages, i.e.

deduction at source 4withholding tax6 advance payment of tax on uarterly basis payment of tax along with the return of total income payment of tax on demand as a result of amendment in assessment.

Jithholding of tax

Hnder the


23/29

#or reali"ation of arms length transaction, ;ommissioner may distribute or allocateincome or tax credit between associates in the manner he deems t.

/eclassify transaction between related parties by applying the appropriate methodsfor tax avoidance or following the criteria of substance over form.

Ignore transactions having no substantial impact. Thin ;apitali"ation.

The concept of thin capitali"ation has been brought in Pakistan tax legislation so as to refrainforeign companies from injecting debt instead of e uity in their subsidiaries formed inPakistan. Thin capitali"ation rules apply to #oreign ;ontrolled /esident ;ompany 4#;/;6, thatis a resident company in which >&E or more of the underlying ownership is held by a non!resident person 4either alone or together with an associate6 other than the nancialinstitution or banking company.

Jhere foreign debt to foreign e uity ratio of a #;/;, at any time during a tax year, exceeds37, pro t on debt paid by the company in that year on the part of the debt exceeding 37ratio will not be allowed as deduction, while computing income of the #;/;. This rule is alsoapplicable to the Pakistan branch of a foreign company.

Thin capitali"ation is inapplicable if interest on foreign debt is chargeable to tax under the


24/29

undertaking in any of these categories uali es to be taxed separately from otherbusiness operations, if such business undertaking is carried out as a result of anagreement with the overnment.

Indirect Taxes1ales tax

1ales tax law is governed by the 1ales Tax Act, 7((& 4the Act6. It generally operates in 0alueAdded Tax 40AT6 mode. In certain cases, xed sales tax and upfront value addition sales taxschemes are in place, where no input output tax adjustment is generally admissible. Thescal policies and taxation measures are annually announced in accordance with the policiesof the overnment. The #F/ is the regulatory authority. overnment organi"ations, recipientof taxable advertisement services and persons registered with large taxpayer units are alsoentrusted with responsibility to withhold sales tax against the purchases of taxable goodsand services from speci ed suppliers service providers.

1ales tax is charged at 79E of the value of taxable supplies or services made by a registeredperson in the course or furtherance of any taxable activity carried on and on goods importedinto Pakistan. Bigher rates of sales tax are also applicable at 7'.>E and %7E on speci edtaxable supplies.

Two conditions are essential to create a charge of sales tax3 Taxable supply Taxable activity.

Taxable supply means supply of any goods, other than those, which have been exempted.1upplies made by an importer, manufacturer, wholesaler, dealer, distributor or retailer arecovered under this term.

Taxable activity means any economic activity carried on by any person, whether or not forpro t, and inter!alia includes an activity carried on in the form of business, trade ormanufacture and involves the supply of goods, rendering of services or both.

Sero ratingoods exported outside Pakistan are charged to sales tax at the rate of "ero percent. ;ertainspeci ed goods and persons as provided under various noti cations are also charged tosales tax at the rate of "ero percent. An exporter supplier in respect of "ero!rated suppliesis entitled to claim refund of input tax paid against taxable purchases.

:xemptions1ixth 1chedule to the Act enlists goods, which are exempted from the levy of sales tax onimport or supply or both stages. In few cases, these exemptions are subject to certainspeci ed conditions. In respect of exempted goods the supplier is not entitled to claimrefund for input taxes paid./egistration#ollowing persons engaged in making taxable supplies in Pakistan 4including "ero ratedsupplies6 in the course or furtherance of any taxable activity, are re uired to be registeredunder the Act3


25/29

A manufacturer having annual turnover from taxable supplies exceeding P*/> millionduring the last twelve months or whose annual utility 4electricity, gas and telephone6bills during the last twelve months exceeds P*/8&&,&&&

A retailer having annual turnover for the past twelve months exceeding P*/> million An importer A wholesaler including dealer and distributor.

+anufacturers and retailers having annual turnover below the above!mentioned thresholdsare not re uired to be registered and therefore, are not re uired to charge sales tax onsupplies made by them. There is no threshold for importers, wholesalers, distributors ordealers and service providers.+aking of taxable supplies without obtaining registration, tantamount to tax fraud andexposes the supplier to penal actions under the Act.

?etermination of tax liabilityA registered person is entitled to claim input tax paid on goods used or to be used fortaxable supplies made by him against output tax liability. Bowever, the #ederal overnmentis empowered to specify goods in respect of which input tax cannot be claimed. In certaincases, a registered person is not allowed to adjust input tax in excess of (&E of the outputtax arising in a reporting month. Bowever, excess input tax can be carried forward to nexttax period and shall be refunded in accordance with the speci ed time limits, if it remainsunadjusted in consecutivetax periods.

/eturns:very registered person is re uired to furnish a monthly sales tax return on or before 7'thday of the month, following the tax period, provided that the payment of tax due is made by7>th day of the following month. Tax period has been de ned as a period of one month.

1ales tax on services

1ales tax has been imposed on certain services. These services have been brought undersales tax net through Provincial . enerally #:? is charged on the value or retail price basis, however it ischarged on some items on the basis of weight or uantity. Sero!percent #:? rate isapplicable for exported good or speci ed goods. The goods which are subject to levy of #:?inter!alia include edible oils, aerated water and concentrates, tobacco 5 cigarettes, cement,

lubricants 5 fuel oils, li ue ed gases, perfumes 5 toiletries, greases, viscose staple bre,transportation vehicles, etc.

The services liable to levy of #:? inter!alia include advertisements, air!travel, domestic air!cargo, shipping agents, telecommunication, insurance, non!fund services of banks andnancial institutions, terminal 5 port operators, franchise services, and services provided byproperty developers or construction contractors. The standard rate of #:? is 79E which isapplicable in 0AT mode.


26/29

Bowever, di)erent rates are applicable for levy and payment of #:? on franchise andtelecommunication services.

1pecial excise duty1pecial excise duty 41:?6 is applicable at uniform rate of 7E on goods produced ormanufactured in Pakistan and goods imported into Pakistan, which is levied in addition to#:?. Bowever, 1:? is not chargeable on wholesale, distribution or retail stage. A list of goods or categories of persons is provided under an excise noti cation, which is exemptfrom levy of 1:?. These goods persons inter!alia include all agricultural produce, edible oilsand fats, P


27/29

2abour 2awsIndustrial /elations


28/29

and pay to it, >E of its pro ts every year. A worker-s share in the fund depends on thecategory of his average monthly salary.

Industrial and ;ommercial :mployment 41tanding


29/29

Bealth and safety measures, etc.

JorkmenMs ;ompensation Act, 7(%Hnder this Act, the employer is liable to pay compensation to workers for accidents arisingout of and during the course of employment. The rates of compensation for death,permanent total disablement, permanent partial disablement and temporary disablementhave been given in the Act. The amount of death and permanent disablement grant isP*/%&&,&&&.

investmen in pak

Documents