Regional Hub
PortsKarachi, Bin Qasim and Gawadar ports are the entrance points into the region. Unfortunately, these un-quantifiable natural resources had not been transformed into effective multinational regional hub points for creation of regional headquarters.
Currently, tax incentives for regional headquarters are provided by many jurisdictions including Singapore, Malaysia and the Philippines. In Singapore, a wide range of tax and other initiatives are in place to promote financial services including asset management services. These include tax exemptions and concession on trading and fee income made by financial services companies and fund management companies.
Tax incentive scheme is also available to encourage businesses to undertake high value added peripheral services to support financial institutions. All these measures are meant to encourage financial institutions to set up their operations in Singapore.
Given Pakistans geo strategic location coupled with natural ports, investors would be more willing to set up their regional headquarters in Pakistan in serving their investment in Central Asian Republics and Afghanistan subject to the provision of specific tax incentives for regional headquarters.
Attracting such new investments in regional headquarters would provide jobs and to maintain prosperity. Government should come up with to provide Pakistan the competitive edge by providing concessionary tax rates Half of existing tax rates for regional headquarters activities which are of substantial scale and are of the nature of investment, general and financial management and marketing with a broad geographic coverage of CARs.
Article courtesy of Muhammad Ashraf
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