Pakistan Bilateral Investment Treaties (BITs) 2026: Countries List, Protection for Investors & Reform

Pakistan bilateral investment treaties guide with protection shield and treaty scroll

When a foreign company invests in Pakistan, what protects its money? One answer is a bilateral investment treaty (BIT). Pakistan was the first country in the world to sign one, and it still has dozens. This guide explains what a BIT is, which countries Pakistan has signed with, how many are in force and why the government wants to reform them.

Quick facts: First-ever BIT: Pakistan and Germany, 25 November 1959 • 53 BITs with 48 countries, as reported • BOI is the negotiating agency • Reform under way, using a new template

What Is a Bilateral Investment Treaty?

A BIT sets the terms and conditions for investment by the nationals and companies of one country in another. Governments sign BITs to give foreign investors protection and facilitation, which is meant to make investing abroad less risky and to attract foreign direct investment.

In Pakistan, the Board of Investment (BOI) is mandated to negotiate and finalise agreements for the protection and promotion of investment with other countries. This comes from Section 9(m) of the Board of Investment Ordinance 2001. To see the rules investors work under at home, read our guide to the Pakistan investment regime

Pakistan Pioneered the BIT

The world's first BIT was signed between Pakistan and Germany on 25 November 1959. Reports say most of Pakistan's later BITs were signed in the late 1980s and the mid-1990s.

Countries with BITs on the BOI List

The BOI's page lists these 32 countries and organisations with which Pakistan has bilateral investment agreements:

Australia • Bahrain • Bosnia • China • Denmark • France • Germany • Iran • Japan • Kazakhstan • Korea • Lebanon • Mauritius • Romania • Singapore • Sri Lanka • Sweden • Switzerland • Tajikistan • Turkey • UAE • UK • Uzbekistan • Portugal • Spain • Netherlands • BLEU (Belgium-Luxembourg Economic Union) • Italy • Laos • Oman • Syria • Kuwait

The BOI page notes that, for the date a treaty enters into force after ratification, you should contact the BOI's legal wing. A treaty that has been signed is not always in force.

How Many BITs Are in Force?

Reports give different counts depending on the source and the date:

Source (as reported)	Breakdown of the 53 BITs
Dawn, October 2021 (BOI secretary)	32 in force, 16 signed but not in force, 5 terminated
Daily Pakistan analysis	29 in force, 16 signed but not in force, 6 terminated
BOI strategy as reported by Business Recorder	53 BITs with 48 countries; 16 signed only; 23 ratified BITs past their initial 10, 15 or 20 years; 9 more ratified BITs; 1 terminated by Indonesia in 2016

Because counts change when treaties are ratified, renegotiated or terminated, check with the BOI or UNCTAD's investment policy hub for the latest numbers.

Why Pakistan Wants to Reform Its BITs

Arbitration exposure: investor-state dispute provisions have exposed Pakistan to international arbitration. A BOI strategy reported by Profit said seven cases went to ICSID and three to the Permanent Court of Arbitration, with Pakistan paying billions of dollars in compensation.
A global trend: the BOI has noted that many countries are rethinking their BITs, and some have terminated them.
A new template: Pakistan has developed a new BIT template, with help from UNCTAD, meant to allow and protect genuine and sustainable investment while safeguarding the state. Reports say contracts signed by state enterprises would be vetted by the Ministry of Law and Justice and routed through the BOI.
Renegotiate first: the BOI's plan is to offer partner countries renegotiation on the new template and to consider termination only if they decline.

Status check needed: Reports say the federal cabinet deferred the BOI's BIT strategy, and that no termination decision had been put into action. I could not confirm the current position, so check the BOI or recent news before relying on any claim that a treaty has ended.

Frequently Asked Questions

What is a bilateral investment treaty?

A treaty between two countries that sets the terms for investment by the nationals and companies of one country in the other, usually including protection for investors.

Which was the first BIT in the world?

The one signed between Pakistan and Germany on 25 November 1959.

Who negotiates Pakistan's BITs?

The Board of Investment, under Section 9(m) of the Board of Investment Ordinance 2001.

How many BITs has Pakistan signed?

Reports say 53 BITs with 48 countries. Some are in force, some were signed but never ratified, and some have been terminated, so the exact in-force count depends on the source and date.

Why is Pakistan reforming its BITs?

Mainly because of arbitration cases brought by foreign investors and the compensation that followed. Pakistan is developing a new template to replace the older treaties.

Related Guides on Our Blog

For video guide, view this video

Disclaimer: This article is general information based on the Board of Investment's published country list and on news reports. It is not legal or investment advice. Treaty status changes, so confirm the latest details with the BOI BITs page, UNCTAD's Investment Policy Hub and a qualified adviser before relying on any treaty.

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