The Federal Board of Revenue (FBR) has called for facilitating foreign professionals/companies/firms/institutions in opening their branch offices in Pakistan. Sources told Business Recorder here on Saturday that Director General Board of Investment (BOI) Sohail Ahmad has sought viewpoint of different ministries including FBR and Securities and Exchange Commission of Pakistan (SECP) on the proposal of requirement of contract agreement for setting up branch offices by the foreign companies in Pakistan.
The procedure had been formulated back in 1963 and now the Prime Minister Office has desired that the Board of Investment (BOI) should look into the requirement of contract agreement for setting up branch office by a foreign company. Official sources confirmed that the FBR wanted to encourage policies for attracting investments and opening of branch offices in Pakistan. It is against any such idea of imposing restrictions on foreign companies.
According to the DG BOI, Finance Division had submitted a summary to the Cabinet on September 2, 1963 for control on opening a branch office by a foreign company in Pakistan. It was aimed at to control foreign exchange remittances and repatriation to reduce expenditure of foreign exchange. In this regard, it was proposed in the summary to streamline the opening of branch offices by foreign professionals/companies/firms/institutions in Pakistan. It was further desired to regulate the opening of branch offices by foreign professionals/companies/firms/institutions by laying down that such companies should obtain the prior permission before starting to operate in Pakistan. At that point in time, it was considered appropriate for this department to exercise controls on the opening of offices and branches by foreign professionals/companies/firms/institutions in Pakistan.
A non-Pakistan person/ firm/company or corporation would had not qualify for the remittances abroad of income and profits unless permitted by the Department of Investment Promotion and Supplies to open a Branch Office in Pakistan. At that time, the State Bank of Pakistan had to allow exchange facility for remittance only in respect of the parties which had obtained permission of the Department of Investment Promotion and Supplies. Accordingly, the Department of Investment Promotion and Supplies devised the procedure and application forms for branch office by foreign companies which required provision of agreement with a local entity for opening branch office. Department of Investment Promotion and Supplies issued various press notices from 1966 to 1968 to apprise foreign firms/persons of the procedure for opening branch office in Pakistan.
Now, Prime Minister Office has desired that the BOI should look into the requirement of contract agreement for setting up branch office by a foreign company. All concerned i.e. Miniseries of Finance, Defence and Interior, SBP, FBR and SECP are requested to furnish views/comments in the matter, the DG BOI added.
Comments
Comments are closed.