It is a matter of major importance to the authorities in Pakistan to expedite the development of the Thar coal resource as quickly as possible. With this in mind the Government has announced various fiscal incentives to promote investment and development of the Thar Coal Field. The major items are:
The Government of Pakistan introduced a Power Policy entitled “Policy for Power Generation Projects 2002” which, inter alia, focused on the use of indigenous resources including coal for power generation. The Power Policy 2002 is designed to attract international investment into Pakistan for the development of indigenous resources including coal for power generation. The International Investment Treaties also provide that international investment has the same protection in law as does domestic investment.
The State Bank of Pakistan (SBP), the Pakistani Central Bank, has regulations in place for providing foreign exchange for the remittance out of Pakistan of loan repayments (interest and capital), repatriation of investment in equity, and dividends released in local currency. Oracle and its subsidiaries are duly registered with SBP.
The UK entered into bilateral Investment Treaty with Pakistan in 1994, offering protection against unjustified expropriation and, where justified, the timely payment of compensation. Restrictions shall not be placed on remittance out of Pakistan.