Punjab readies proposal on business activities by foreigners

Federal govt has sought recommendations from all provinces to regulate transactions made by non-citizens

LAHORE: In line with directives from the centre, Punjab authorities have started preparing their recommendations on regularising the sale and purchase of property and companies by foreign nationals, The Express Tribune has learnt.

As part of its efforts to widen the tax net, the federal government has been studying ways to monitor and regulate business activities carried out by foreign companies and non-native individuals in the country.

According to officials, the interior ministry sent directives to all provinces in this regard, seeking their input on the matter. The Punjab government, they confirmed, has already worked out the initial draft of its proposals.

Per the recommendations, the provincial government has proposed to lease properties to foreign national for a specific period instead of giving them property ownership.

Punjab has also suggested the federal government to adopt separate land-leasing policies for industrial, commercial, residential and agricultural land in order to find out which foreign citizens are in possession of how many residential and commercial lands in different cities so that they could be taxed accordingly.

Sources within the Punjab government also revealed that all foreign nationals and companies must also undergo a security clearance before property is being leased to them. The government of Pakistan has directed the provincial governments to send their recommendations to the ministry of interior before February 15 so that a formal regularisation process can take place.

Sources at the department of interior Punjab told The Express Tribune that recommendations are being prepared on a priority basis, adding that the foreign security office of the interior department has a complete record of all foreigners living in Pakistan.

Shedding light on the ongoing move, the additional secretary of the Punjab home department said that they are in touch with the department of law so that the final recommendations are also concrete from a legal standpoint before they are sent to the federal government.

Government sources also said that several agencies and law enforcement departments have expressed reservations over allowing foreign nationals to purchase of property in Pakistan, however, the federal government is taking steps to bring them into the tax net.

Owing to multiple power projects that are currently underway in Pakistan, together with the various other projects taking place under the China-Pakistan Economic Corridor (CPEC), the number of foreign nationals in Pakistan has increased over the years. As a result, many foreign nationals have shown interest in purchasing property in different parts of the country.

In November last year, the Senate Standing Committee on Law and Justice held a discussion over the Constitution (Amendment) Bill, 2019 (insertion of Article 253A) regarding permission to foreigners to purchase land in any part of Pakistan.