Market Briefing : Islamic Republic of Pakistam

ECONOMIC SITUATION

Islamic Republic of Pakistan, with Islamabad as its capital, is located in South Asia and borders India, Afghanistan, Iran and China. It is a rapidly developing country, with GDP growth maintaining an annual average rate of 7% from 2003 to 2007. Agriculture, manufacturing and the service sectors are the three pillar industries which support economic growth. The agriculture and manufacturing sectors contributed to twofifths of the economy while the service sector made up the rest of the real GDP growth.

Islamabad, capital of Pakistan	Jinnah International Airport in Karachi is the largest international airport in Pakistan Economic	BUILD ASIA, an InternationalHousing, Real Estate and Construction Industry Show was held at Karachi Expo Centre

BUSINESS OPPORTUNITIES

Insurance Industry
With the gradual expansion of the service sector, the insurance industry is developing swiftly. According to statistics provided by the Securities and Exchange Commission of Pakistan (SECP), the national revenue from insurance reached US$1.11 billion by the end of 2007, showing an increase of 20% compared to the same period the previous year. The total assets of the insurance industry were US$5.26 billion an increase of 51% year on year. In order to facilitate the development of the insurance sector, the Pakistan government relaxed restrictions on foreign investors and now allows them to completely own a company. As foreign insurance companies have much more experience and a comprehensive investment network, the government believes that this relaxation of the rules will improve the levels of the whole industry and introduce a more advanced business model.

Construction Industry
While the economy is developing steadily, industry, commerce and tourism are slowly catching up. Therefore, the government is actively involved in the development of infrastructure projects and plans to invest 100 billion Rupees (about US$1.45 billion) for improving existing roads and constructing highways as part of the future Five-Year Plan.Meanwhile, several major cities like Islamabad, Lahore and Karachi are planning to construct various symbolic landmarks such as luxurious residential areas, high-rise office buildings and superb hotels. Islamabad is also planning to construct a new international airport. The Pakistan government is also opening aits construction market to encourage overseas construction companies to invest in the country.

Electricity Industry
In order to solve the problem of insufficient electricity supplies and to guarantee a sustainable economic growth, the government has drawn up a medium to long term plan for the development of the electricity industry. The first step is the development of hydro-electricity. As Pakistan has a favourable geographic advantage, it is feasible to build large and medium size hydro-electric dams on the main rivers in Pakistan. It is estimated that the capacity will be increased from 6.46 million kilowatts to 32.66 million kilowatts by 2030. In addition, the extensive desert region located in southern Pakistan is rich in inexhaustible sustainable energy like wind and solar power. The government plans to build two 700-thousand-kilowatt wind power stations in Baluchistan and Sindh provinces so as to achieve the goal of generating renewable energy which will add up to 5% of the total electricity output by 2030.

MAJOR WEBSITE RECOMMENDATION:

• TRADE DEVELOPMENT AUTHORITY OF PAKISTAN
  http://www.epb.gov.pk/v1/index.php
  Governmental organisation responsible for promoting trade development in Pakistan, it provides comprehensive information for exporters and foreign buyers, including trade policies, profiles of Pakistan’s product, database of foreign buyers and trade exhibitions.
• FEDERAL BUREAU OF STATISTICS, GOVERNMENT OF PAKISTAN
  http://www.statpak.gov.pk/depts/fbs/aboutus/aboutus.html
  Official statistical organisation, the Pakistani Federal Bureau of Statistics is in charge of the compilation and production of correct and up-to-date statistical products.
• PAKISTAN INTERNATIONAL CHAMBER OF COMMERCE
  http://www.pakchamber.com/Default.htm
  The mission of Pakistan International Chamber of Commerce is to facilitate trade and industry development and provide assistance to the Pakistani communities living around the world. PakChamber.com is the first and only business portal of its kind outside Pakistan, which promotes direct dialogue on bilateral economic issues between Pakistani Business Community and business sectors in other nations.

Source: World Economic Forum – The Global Enabling Trade Report 2008, http://www.weforum.org/
CIA-The World Fact Book – Pakistan, https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

Source:
Federal Bureau of Statistics, Government of Pakistan, http://www.statpak.gov.pk/depts/index.html
CIA-The World Fact Book – Pakistan, https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html
Main Export Commodities: textiles, rice, leather goods, sports goods, chemicals, carpets and rugs
ain Imports Commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Source: CIA-The World Fact Book – Slovakia https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html

Source: Ministry of Commerce of the People’s Republic of China, http://www.mofcom.gov.cn/

Source: The Statistics and Census Service http://www.dsec.gov.mo/ Note 1 : Exports = Domestic Exports + Re-exports

SOURCE:

• The Ministry of Foreign Affairs of the People’s Republic of China
  http://www.fmprc.gov.cn/chn/default.htm
• The Ministry of Commerce of the People’s Republic of China
  http://www.mofcom.gov.cn/
• The Economic and Commercial Counsellor’s office of the Embassy of the People’s Republic of China in the Islamic Republic of Pakistan
  http://pk.mofcom.gov.cn/index.shtml
• Macao Statistics and Census Service
  http://www.dsec.gov.mo/c_index.html
• The World Factbook
  http://www.cia.gov
• Federal Bureau of Statistics, Government of Pakistan
  http://www.statpak.gov.pk/depts/fbs/aboutus/aboutus.html