Proposed Investment Incentives & Support Mechanisms
The Government of Khyber Pakhtunkhwa, in collaboration with FAO, offers a comprehensive incentive framework to reduce investment barriers and accelerate aquaculture commercialization.
Tax & Fiscal Incentives
Import Duty Exemption
Full exemption on aquaculture equipment, hatchery gear, processing machinery & feed production equipment. Approval: 2–4 weeks.
Sales Tax (GST) Exemption
Fish seed, feeds, medicines, equipment & processing inputs exempt from sales tax.
Income Tax Holiday
3–5 year tax holiday for new businesses (min. PKR 5M investment). Accelerated depreciation (50% year 1) & 5-year loss carry-forward.
Export Incentives
5–10% export rebate, duty drawback on inputs, and export credit guarantee for processed fish products.
Credit & Financing Incentives
Subsidized Credit Facility
- PKR 2–50 million, scaled by project size
- 5–7% interest (vs. 12–15% market rate)
- 5–10 year repayment, 1–2 year grace period
- Only 50–75% collateral required
Equity Grant (Small-Scale Farmers)
- Up to 30% of project cost (max PKR 1.5M)
- Non-repayable
- Requires farmer training completion
Loan Guarantee Scheme
- 60–80% of loan value guaranteed
- 1–2% annual guarantee fee
- Covers commercial banks & microfinance
Infrastructure Development Incentives
Shared Water Infrastructure
Government covers 50–70% of intake/reservoir/distribution costs — cuts individual farm costs 30–40%.
Hatchery Support
40% capital subsidy + 30% equipment subsidy for hatcheries (min. 5M fry/year capacity).
Processing Facility Support
35% capital subsidy, 25% equipment subsidy, 40% cold-chain subsidy (min. 20 tonnes/day).
Roads & Electricity
Government-funded access infrastructure to designated aquaculture zones.
Gender & Social Inclusion
- Women farmers: up to 40% equity grant, preferential credit access
- Youth (18–35): up to 35% startup grant + mentorship
- Marginalized groups: up to 50% enhanced equity grant, simplified procedures
Environmental Incentives
- Sustainable certification: 50% subsidy (ASC or equivalent)
- Biodiversity conservation: up to PKR 500,000/farm
- Climate-smart tech: 40% subsidy on water harvesting & renewable energy
Incentive Summary
| Incentive | Beneficiary | Amount/Rate | Duration |
| Import Duty Exemption | All businesses | 100% | Ongoing |
| Sales Tax Exemption | All businesses | 100% | Ongoing |
| Tax Holiday | New (>PKR 5M) | 3–5 yrs | Limited |
| Subsidized Credit | Farmers & SMEs | 5–7% interest | 5–10 yrs |
| Equity Grant (General) | Small farmers | Up to 30% | One-time |
| Equity Grant (Women/Youth) | Women & youth | Up to 35–40% | One-time |
| Infrastructure Subsidy | Collective projects | 50–70% | One-time |
| Training Support | All farmers | 100% | Ongoing |
| Export Incentive | Exporters | 5–10% rebate | Ongoing |
Check Your Eligibility
Processing typically takes 4–8 weeks. Required documents include business registration, TIN, feasibility study, and land/water rights proof.
Contact the KP Fisheries Department