Pakistan offers permanent residency to foreign investors

Pakistan has announced a permanent residency scheme for foreign nationals willing to invest in the country, a development shared by Federal Minister for Information and Broadcasting Fawad Chaudhry via Twitter on Saturday.

“In line with the new National Security Policy, through which Pakistan declared geo-economics as core of its national security doctrine, the government has decided to allow permanent residency scheme for foreign nationals,” the tweet said.

"The new policy allows foreigners to get permanent resident status in lieu of investment," Fawad added.

A number of countries including Turkey, Dominica, St Kittis Nevis, St Lucia offer residency to foreigners in exchange for investment, whereas countries including Spain, Portugal, and Greece offer residency permits.

The scheme comes as Pakistan looks at generating foreign exchange inflow to tackle a widening current account deficit on account of a high import bill, which creates greater demand for the dollar and puts pressure on the rupee.

Pakistan’s trade deficit widened by 106.4% during the first half (July-December) of the current fiscal year 2021-22 and reached $25.478 billion compared to $12.344 billion during the same period of 2020-21, revealed the Pakistan Bureau of Statistics (PBS) data.

On the other hand, Pakistan also struggles to attract foreign investment in the country. Net Foreign Direct Investment (FDI) dropped a massive 39% in the month of November at $136 million, down from $223 million in October 2021, revealed State Bank of Pakistan (SBP) data.

Cumulatively, Pakistan fetched FDI amounting to $797.7 million during July-Nov of FY22 as against $710.3 million in the same period of the previous fiscal year (FY21), an increase of $87.4 million or 12% YoY.

Meanwhile, the announcement comes after Prime Minister Imran Khan on Friday launched the National Security Policy.

"We have prepared a multi-dimensional national security policy with consensus and effort would be that all the departments and public should move in one direction to deal with all the challenges," he said, adding that he was happy that he was able to finally convince all the provinces for providing universal health insurance to every family.