What Foreign Investors Need to Know About Setting Up in Pakistan's Energy Sector

Pakistan's energy sector continues to attract significant foreign investment, but navigating the regulatory landscape requires careful planning and experienced local counsel.

Choosing the Right Structure

Foreign investors typically establish a locally incorporated holding company to hold project assets, a structure that facilitates financing arrangements with local and international banks while complying with Pakistan's foreign investment regulations.

Regulatory Approvals

Energy projects require approvals from multiple regulatory bodies, and coordinating these approvals in the correct sequence is critical to avoiding costly delays. Working with counsel experienced in navigating provincial and federal procurement laws can significantly streamline this process.

Financing Considerations

Project finance for energy investments in Pakistan often involves a combination of local and international lenders, requiring careful structuring to satisfy the requirements of all parties involved while remaining compliant with foreign exchange regulations.

How We Help

Our Projects, Infrastructure & Energy team has advised numerous foreign investors on structuring their entry into Pakistan's energy market, working alongside banks and government bodies to bring projects to fruition.