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1. What is the applicable legislation? Pakistan is a federation in which certain subjects are devolved to the provinces, while others remain under the legislative competence of the federal government. Following the 18th Amendment to the Constitution of 1973, the Federal Legislative List identifies the subjects on which the federation is competent to legislate, with other matters legislated by the provinces. The scope of this Q&A is limited to the overall investment regime applicable to foreign investors, with a primary focus on federal legislation. Sectoral and provincial laws may apply in addition to those referenced below, and it is pivotal to obtain professional advice tailored to the nature of the investment being made. Pakistan’s investment policy framework is generally open to foreign investment and, subject to sector‑specific prohibitions/restrictions and licensing requirements, foreign investments do not generally undergo pre‑screening and approval merely because they are foreign. The main laws are as follows: Foreign Exchange Regulation Act 1947 (FERA): regulates payments and dealings in foreign exchange...