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  • Adam Malewski

    It is fun to get involved in this expat community with so many great and helpful people. Settling in Pakistan was much easier than we expected.

Employment in Lahore

Local Economy

As of 2008, the local economy of Lahore had a GDP (PPP) of $40 billion, with a predicted growth rate of almost 6%. As the second largest city in Pakistan, and the capital of the Punjab region, Lahore is one of the country’s main economic hubs, and contributes a great amount to the overall economy of Pakistan, estimated at almost 15%. The main economic sector in Lahore is industry, and the city is known as the industrial belt of Pakistan.

Lahore’s industrial output is made up of a mix of traditional trades like carpet making and other textiles, as well as emerging industries like software production and computer assembly. The service sector is also a major part of Lahore’s economy, with banking, finance, real estate, telecommunications, and social and cultural services the main employers. Expatriates working in Lahore tend to do so in telecommunications, software, information technology, or finance.

Work Permits for Lahore

In Pakistan you are not required to apply for a work permit separately from your visa, as the two are considered as one document, called a work visa. This work visa entitles you to work in Lahore for a stipulated period of time, usually determined by the length of your employment contract. For many expatriates, this will be for one year, after which time they will need to reapply for the permit or have it renewed, depending on their particular circumstances.

In most cases, your employer will take care of the application for you, and as such it is advised that expatriates wanting to work in Lahore find employment before attempting to get a work permit. You will need to provide a number of documents for the application, including your employment contract, identification, a medical certificate, and the details of your employment history.

Taxation in Lahore

Expatriates working in Lahore will be required to pay income tax on their earnings. Pakistan has a progressive, sliding scale tax system, which means that the total amount that you earn in the fiscal year determines the amount of income tax you will be required to pay. The income tax rates for expatriates working in Lahore for 2014 were as follows:

  • 400,000–750,000 PKR — 5% of the income exceeding 400,000 PKR
  • 750,000–1,400,000 PKR — 17,500 PKR + 10% of the amount exceeding 750,000 PKR
  • 1,400,000–1,500,000 PKR — 82,500 PKR + 12.5% of the amount exceeding 1,400,000 PKR
  • 1,500,000–1,800,000 PKR — 95,000 PKR  + 15% of the amount exceeding 1,500,000 PKR
  • 1,800,000–2,500,000 PKR  —  140,000 PKR + 17.5% of the amount exceeding 1,800,000 PKR
  • 2,500,000–3,000,000 PKR — 262,500 PKR  + 20% of the amount exceeding 2,500,000 PKR
  • 3,000,000–3,500,000 PKR — 362,500 PKR + 22.5% of the amount exceeding 3,000,000 PKR
  • 3,500,000–4,000,000 PKR — 475,000 PKR + 25% of the amount exceeding 3,500,000 PKR
  • 4,000,000–7,000,000 PKR — 600,000 PKR + 27.5% of the amount exceeding 4,000,000 PKR
  • In excess of 7,000,000 PKR — 1,425,000 PKR + 30% of the amount exceeding 7,000,000 PKR

Expatriates working in Lahore earning under 400,000 PKR do not pay income tax.

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