In the November/December 2017 issue of the Asia-Pacific Tax Bulletin, the author discussed the search for tax policy to improve taxpayer compliance in Pakistan. In this article, the author continues his enquiry, examining tax policy to boost investment in Pakistan. He evaluates the tax credit regimes in the Income Tax Ordinance 2001 available to companies, which are intended to encourage investment in plant and machinery, listing on a registered stock exchange and establishing industrial undertakings. The article explains the practical difficulties that have been encountered by companies as a result of contradictory statutory provisions and when excess tax credits arise, and discusses how they are overcome.