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Logistics Sector
The transport and logistics sector contributes around 18.2% to GDP and more than 5.7% to the country's overall employment. The value addition in the sector grew by nearly 5% in 2023. Modernization of infrastructure and regional connectivity has been a priority area of the government as envisaged in the Pakistan Vision 2025.
International transport is connecting Pakistan via its border crossings, ports and airports to its neighboring countries and further abroad. Pakistan’s economy relies on these international connections, including a large Pakistani workforce in the Gulf States that fly in and out. In addition,there is a growing emphasis to increase trade with the Central Asian region therefore making the logistics sector a choice of local as well as foreign investors.
AREAS TO INVEST
INCENTIVES
- Custom Duty Exemption on import of Aircraft & related items.
- No Sales Tax on supply/import of goods for setting up workshops and Greenfield airports.
- Exemption from Advance Tax on import of Aircraft & related items.
- No Custom duties on import of Ships, other floating and specialized crafts.
- Zero percent Sales Tax on supply, repair, spare parts for ships.
- Sales tax exemption on import of containers for cargo transportation.
- Exemption of Advance Tax up to 2030 on import of Ships and other floating crafts.
- Tax credit available for ship building business.
- Presumptive Taxation for ships/vessels flying Pakistani flag.
- Shipping industry allowed to avail Long Term Finance Facility.
- Customs duty exemption on Imports for warehousing & transshipment businesses at Gwadar Free Zone Area.
- Low Tax rate on Income from Freight related Services.