SBP Makes It Simpler for Global Food Chains to enter Pakistan, providing a major boost for the country’s food industry. The revised regulations by the State Bank of Pakistan simplify franchise agreements and enhance ease of doing business in Pakistan. Local investors now have higher flexibility in payments, enabling faster foreign brand entry and encouraging investment in Pakistan food market.
Under the updated franchise fee structure, local outlets can remit up to $250,000 as an initial payment to foreign food chain outlets in Pakistan. Previously, the limit was only $100,000. Additionally, recurring royalty payments can now reach 8% of net local sales, up from 5%, under RFT agreements (Royalty, Franchise, Technical Service). These changes make it easier for global food chains to expand operations and benefit local investors.
The new rules also apply to the service sector, agriculture, and infrastructure projects, providing clear guidelines for recurring net local sales remittance. Banking regulator policies are designed to attract foreign investors, increase employment in the food sector, and drive overall food industry growth in Pakistan. Analysts expect foreign brand entry in Pakistan to rise, creating more competition and innovation in the market.
Several established international food brands have already opened outlets, employing nearly one million workers in restaurants and hotels. The policy ensures smoother local investor payments while supporting regulatory compliance and market dynamics.
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SBP Makes It Simpler for Global Food Chains to enter Pakistan, boosting investment, franchise agreements, and food industry growth.
