How Foreigners Can Invest In Pakistan Property?

How Can Foreigners Invest In Pakistan Property

Foreigners who work and reside in Pakistan can buy or rent properties or invest in Pakistan property; however, the government needs them to complete certain legal formalities with the investment board and the Pakistan Trade Development Authority.

In Pakistan, land acquisition rules and regulations are a provincial issue, and therefore the relevant procedures differ from province to province. In general, with the permission of the Federal Government and respective provincial governments, foreigners can own property. Unless expressly limited for purposes of national security and public safety, all industries and activities are open to foreign investment.

Considering that, this article focuses on the importance and features related to real estate.  Foreigners can surely invest in Pakistan’s property. It is a safe and seamless process.

Can Foreigners Invest In Pakistan Property

Yes of course. The detailed procedure to invest in Pakistan property in which every foreigner needs to go through to buy or rent property in Pakistan has been addressed in this article.

To say the least, the whole process is overwhelming and prohibits foreigners from investing in real estate in Pakistan. The government’s refusal to allow foreigners to freely purchase and sell property in Pakistan under the pretext of security issues is quite hollow as our own security system has many deficiencies.

In most situations, the government itself is deemed responsible for promoting elements that bring the stability of Pakistan on the line (a recent example being the expansion of the American Consulate in Islamabad that has alarmed national defense institutes).

Requirements For Investment In Real Estate In Pakistan

Foreigners who wish to rent or purchase property must also send the following documents to the Department of Home Affairs. You must have to follow these points to invest in Pakistan property:

  • An employment letter from the organization with which they currently work. Must discuss things afterward;
  • The essence of their jobs
  • Their period of employment
  • Business contact info.
  • A copy of the passport. Copy of a valid visa with six recent photos, passport size
  • They are also expected to show a copy of the CNIC of the landlord/realtor
  • Additionally, the owner of the property in question must also show authorized copies of the proof of ownership
  • Last but not least, the statute demands that a contract be drawn up in the name of the property’s owner. In case a new occupant occupies the house, he is legally required to obtain a new contract or there will be strict legal proceedings against the landowner

Violation of the above protocol to invest in Pakistan property may result in prosecution of the landlord, the tenant, or both.

To say the least, the whole process is overwhelming and prohibits foreigners from investing in real estate in Pakistan. The government’s reluctance to let foreigners in Pakistan openly buy and sell a property is due to security concerns.

Things To Keep In Mind When You Invest In Pakistan Property

Beware if not compliant with the procedures to invest in Pakistan property:

  • Visa cancelation and punishment until the foreigner’s deportation;
  • The proprietor of the building shall not be authorized to rent or sell the land for five years.
  • Investigation and indictment of both the owner of the real estate business and the agent for the house.

Summing It Up: Investment In Property In Pakistan Is Absolutely Safe

As you know, Pakistan enjoys a great strategic location which makes it one of the countries with enormous economic growth potential. This draws many foreign investors and lenders interested in developing and sustaining business ties with Pakistan. Pakistan receives significant FDI from all over the world including Asia, Europe, America, Africa, and Australia. World Bank Annual Report 2017-18 reported that there are 11,370 total registered companies in Pakistan. These firms show a 37 percent rise over the previous year.

Traditionally, foreigners staying in Pakistan have always been discouraged from buying a property in Pakistan, and tend to rent it out regardless of the length of their stay. This is partly due to the tedious processes that can take several months to complete.

A welcome shift in this regard is the study by the World Bank on Pakistan improving its role in the ease of doing business countries. But a lot still needs to be done to draw investment in the real estate market, which is one of Pakistan’s highest potential industries. Therefore, Pakistan’s government must consider making the procedures for attracting foreign investment in property in Pakistan.

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