Glossary

Pakistan investment terms, in plain English

Every acronym and regulator you'll run into while investing in Pakistan — defined simply, with a link to the official source. Hover any underlined term across the site to see its definition inline.

AMLAnti-Money Laundering: The body of Pakistani law requiring banks and businesses to verify customer identity, monitor transactions, and report suspicious financial activity.
Authorized Dealer bank: A commercial bank specifically licensed by the State Bank of Pakistan to deal in foreign exchange — the mandatory intermediary for foreign investment inflows, share registration, and profit repatriation.
BOIBoard of Investment: Pakistan's national investment-promotion agency — a one-window facilitation point for foreign investors on permits, visas, and utility connections.
CAFCorporate Agriculture Farming: A government policy category letting companies — including foreign-owned ones — lease or acquire land and farm it commercially at scale, with up to 100% foreign equity permitted.
CPECChina-Pakistan Economic Corridor: A large bilateral infrastructure and investment program linking China's Belt and Road Initiative to Pakistan, covering energy, transport, and several of the country's special economic zones.
EOBIEmployees' Old-Age Benefits Institution: Pakistan's mandatory social-insurance and pension scheme. Registered employers must contribute on behalf of their employees.
Equity Investment Certificate: SBP's confirmation that a foreign shareholder's shares were purchased on a 'repatriable basis' — the document that legally protects an investor's right to send dividends and sale proceeds abroad later.
FBRFederal Board of Revenue: Pakistan's national tax authority. It issues your company's tax number (NTN) and administers income tax, sales tax, and customs duty.
FDIForeign Direct Investment: Capital a foreign entity invests directly into a Pakistani business — as opposed to buying shares on the stock market — tracked and published by the State Bank of Pakistan.
Gwadar Free Zone: A CPEC-linked free trade zone around Gwadar Port offering a 23-year income-tax holiday, sales-tax and duty exemptions, and 99-year land leases for port-linked and manufacturing investment.
JVJoint Venture: A business formed by two or more parties — for example a foreign investor and a local Pakistani partner — who share ownership, control, and the profit or risk of a jointly operated company.
LEAPSECP's digital registration portal: SECP's online platform for company name reservation, incorporation, and statutory filings — most company registrations in Pakistan are now completed entirely through it.
NADRANational Database and Registration Authority: Pakistan's civil-registration agency, which also runs the national online visa system that all foreign investor visa applications go through.
Negative list: The short list of sectors — arms and ammunition, high explosives, radioactive substances, currency and mint, and consumable alcohol — where foreign investment is restricted. Nearly every other sector is open to 100% foreign ownership.
NOCNo-Objection Certificate: Official written clearance from the relevant government authority — for example a development authority approving a housing scheme — confirming there's no legal objection to a transaction or activity. Which body issues it depends on the sector.
NTNNational Tax Number: The unique tax ID FBR issues to every registered company or individual. You need an active NTN to open a business bank account or file taxes in Pakistan.
PEPPolitically Exposed Person: Someone who holds, or has held, a prominent public role — a head of state, senior official, or senior state-company executive — and is subject to enhanced anti-money-laundering screening by banks as a result.
PTAPPakistan Technical Assistance Programme: A Ministry of Economic Affairs scheme, running since the 1950s, offering scholarships and technical training to citizens of partner developing countries, including several African nations.
RDARoshan Digital Account: A State Bank of Pakistan initiative letting overseas Pakistanis and eligible foreign nationals open a fully online, freely repatriable Pakistani bank account from abroad.
SBPState Bank of Pakistan: Pakistan's central bank. It regulates foreign exchange and must register any foreign shareholding on a repatriable basis before profits or capital can legally be sent abroad.
SECPSecurities and Exchange Commission of Pakistan: The federal regulator that registers every company in Pakistan and oversees the corporate sector and capital markets. Company incorporation happens through SECP's LEAP portal.
SEZSpecial Economic Zone: A designated industrial zone offering a 10-year income-tax holiday and duty-free capital-goods imports, aimed mainly at manufacturing and export businesses.
SIFCSpecial Investment Facilitation Council: A civil-military 'one-window' council, chaired by the Prime Minister, created in 2023 to fast-track major foreign investment approvals in priority sectors like energy, agriculture, mining, and IT.
Special Foreign Currency Account: A bank account, opened with an Authorized Dealer bank, that lets a foreign investor bring capital into Pakistan and later move dividends or capital back out without needing prior approval for each transaction.
STZSpecial Technology Zone: A designated zone for IT and technology companies offering a 10-year tax holiday (through 2035) plus full foreign-currency retention, run by the Special Technology Zones Authority.