Karachi, January 21, 2025 – Pakistan has provided a massive income tax exemption amounting to Rs 91 billion to foreign individuals and entities during a single tax year. This move highlights the country’s strategy to attract foreign investment and strengthen international partnerships. According to the Federal Board of Revenue (FBR), the tax exemption was granted to agencies of foreign governments, foreign nationals, and other non-resident persons approved by the Federal Government. These exemptions were made under Clause 75 of the Second Schedule of Pakistan’s Income Tax Ordinance, 2001. Sources within the FBR disclosed that this exemption was specifically applied during the tax year 2022-23. Under this clause, any profit on debt and capital gains earned by foreign government agencies or non-resident individuals—on debt instruments approved by the Federal Government—are exempt from taxation. The FBR has stated that these exemptions are part of Pakistan’s broader efforts to encourage foreign collaboration and investment in critical sectors such as infrastructure, energy, and finance. By granting such tax relief, Pakistan aims to position itself as a favorable destination for international investments, ensuring that foreign governments and entities find the economic climate conducive to their operations. While this measure reflects Pakistan’s commitment to fostering global partnerships, it has…