EXECUTIVE SUMMARY

The frst thing that comes to many peoples mind when they hear Pakistan is
terrorism, and they end up drawing conclusions from it. What they fail to
consider is its fast-growing economy, hospitable people, breathtaking sites
and rich culture. This report has been created just for this ery purpose. !t
e"plores the many aspects of the country, and outlines why trade and
inestment should be carried out there.
The report is diided into # sections$
%. & country profle, outlining all the necessary general information about
Pakistan
'. & political and legal analysis, describing the legal framework and
political enironment
(. & cultural analysis, which goes into in-depth detail of the countrys
culture
). &n economic profle, which proided an analysis of the countrys
economy
*. &bsolute and +omparatie &dantages, a section deoted to proiding
insight into the adantages of Pakistan
,. -ultinational +ompanies, which highlight the -.+s of the country
#. /ummary and +onclusion, which lists all the reasons why one should
inest in Pakistan
We hope we hae done a good job in proiding an e"tensie country analysis
of Pakistan. 0f course, we also wish that you enjoy reading the report as
much as we enjoyed preparing it. 1opefully, this report will be successful in
attracting inestors.
%
COUNTRY PROFILE
Location
Pakistan 2o3cially !slamic 4epublic of Pakistan5 is a country in /outh &sia. !t
is bordered by countries such as &fghanistan and !ran in the west, !ndia in
the east and +hina in the northeast. !t has a %6), kilometer coastline
alongside the &rabian /ea and the 7ulf of 0man in the south. 0ther
countries like Tajikistan and 8angladesh share a close pro"imity to Pakistan
as well.
'
Figure 1: Map o! Pa"itan
Ma#or Citie
!slamabad is the countrys capital. The most important cities are$
(
%. 9arachi, which is the largest city
'. :ahore, the second largest city
(. -ultan
). Peshawar
*. ;uetta
The urban population is appro"imately (,< of the total population 2'66=5,
and the annual rate of change of urbani>ation is (< 2'66*-'6%6 est.5
C$i%ate
Pakistani climate mainly consists of four seasons$
a cool and dry winter, starting at ?ecember and lasting till @ebruary
a hot and dry spring, from -arch to -ay
summer or monsoon season, from Aune to /eptember
the withdrawing monsoon of 0ctober and .oember
The beginning and length of these seasons diBer slightly in arious locations.
@loods and droughts are not unusual in Pakistan, as the country got hit by a
Cood ery recently. The amount of rainfall also dramatically aries from year
to year. !n the northern part of the country, people e"perience snowfall and
the weather can be characteri>ed as temperate in the northwest.
Nationa$ F$ag o! Pa"itan Ta&$e 1: Nationa$ S'%&o$
o! Pa"itan

Figure (: F$ag o! Pa"itan
The Cag, as can be seen aboe is green and white in colour. The left side is the
ertical white which acknowledges the role of the religious minorities. & white
)
E%&$e% @aith, Dnity,
?iscipline
Ant)e% ;aumi Tarana
Ani%a$ -arkhor
*ir+ +hukar
F$o,er Aasmine
Tree +edrus
deodara
Sport @ield hockey
-re /halwar
9amee>
crescent and star are centered on the Cag on the green part and they symboli>e
Pakistan as a -uslim nation, because they are customary !slamic symbols.
*
Minera$ an+ Reource
&mong Pakistans most abundant natural resources are land and natural gas
reseres. &ccording to the +!& World @actbook, Pakistan had ').)< of arable
land in '66*.
The top ffteen minerals of Pakistan include$
%. &luminium 2#) million tons of reseres5
'. !ron 0re 2E6(.) million tons5
(. +opper 2-ore than %=='.* million tons5
). +hromite 0re
*. Finc G :ead 2-ore than '(.#' million tons5
,. +oal 2%=* billion tons5
#. 7ypsum G &nhydrite 2*-, billion tons5
=. Phosphates 2?olomitic-%) million tonsH /iliceous 0res-%' million
tons5
E. 4ock /alt 2,66 million tons5
%6. /olar /alt
%%. -agnesite 2%% million tons geological and ( million tons
mine able reseres containing acceptable ),< - )#< magnesium
o"ide5
%'. :imestone for lime 2 &nnual production is =,E# -etric tons5
%(. 9aolin 2+hina +lay5 2 &nnual production is ,%,)6( metric
tons5
%). .atural /tones as 8uilding -aterials 27ranite-)%)6
million tonsH -arble and 0ny"-%,6.' million tons5
%*. 7emstones 2Imerald, 4uby, Pink Topa>, Peridot, 7reen
4uby5
Popu$ation .ro,t)
&s of Auly '6%6, Pakistans population stood at %##,'#,,*E). !t is the si"th
most populous country in the world. The '6%6 estimate of the population
growth rate is %.*%(<. We can see from the table in the ne"t page that while
the population has been increasing, the growth rate has been plummeting
2from '.EE< in %E=( to %.E< in '66), and the current %.*%(<5. This is
,
largely due to changing social alues, increased awareness and also better
family planning.
Ta&$e (: Popu$ation Statitic 1/012(334
Ot)er -e%ograp)ic Fact
Po5ert' Rate 6US718(9 a +a':: ')< 2@J 6*G6, est.5
*irt) Rate: '*.6E birthsG%,666 population 2'6%6 est.5
-eat) Rate: #.6, deathsG%,666 population 2Auly '6%6 est.5
In!ant Morta$it' Rate: ,*.() deathsG%,666 lie births 2'6%6 est.5
Li!e E;pectanc' at &irt): ,*.,' years for total population 2'6%6 est.5
Literac' Rate 6peop$e o5er t)e age o! 19 ,)o can rea+ an+
,rite:: )E.E< for total populationH male$ ,(<H female (,< 2'66* est.5
Et)nicit': Punjabi )).,=<, Pashtun 2Pathan5 %*.)'<, /indhi %).%<, /ariaki
=.(=<, -uhajirs #.*#<, 8alochi (.*#<, other ,.'=<
Re$igion: -uslim E*< 2/unni #*<, /hia '6<5, other 2includes +hristian
and 1indu5 *<
#
Ai+ Recei5e+
Pakistan has always been heaily dependent on aid, mainly from the World
8ank 2W85 and the !nternational -onetary @und 2!-@5. 8eing a deeloping
nation, the aid is used for economic stability and social deelopment.
Pakistan has also receied a considerable amount of foreign aid from the
Dnited /tates of &merica and the Dnited 9ingdom.
Pakistan has mainly followed some structural adjustment policies 2/&Ps5 from
the World 8ank. !-@ policies hae mainly been targeted at shaping the
economy. !-@ helped Pakistan in to rely less on foreign debt. !t led Pakistan
to adopt a ery stringent fscal policy during the Iconomic +risis of '66=,
when the country had to seek out more than K%66 billion to aoid going
bankrupt. The country adopted an !-@ /tandby &rrangement in '66= to
correct their balance of payments troubles.
Pakistan has been receiing a lot of support worldwide because of the
catastrophic Cood which hit the country in '6%6. D.!+I@ Cew in %66 metric
tons of emergency relief containing health kits, nutrition supplies, midwifery
kits and tarpaulins
&s for D/&, it has gien out military and economic aid, along with support for
the elections. KE billion dollars were gien to the country through D/&!? in
'66, by the !nternational @oundation for Ilectoral /ystems for the
installation of a computeri>ed electoral rolls system. D/&!?, D.?P and a
number of other organi>ations hae also put a lot of eBort in helping to train
election o3cials. @rom '66' to '6%6, Pakistan receied an estimated K%=
billion in military and economic aid, and it was further increased by K( billion
when President 8arack 0bama came into power.
&s for the Dnited 9ingdom, they hae assured to gie out L,,* million from
'66E till '6%(.
Cri%e
The incidence of crime is present in Pakistan like all other countries. 1oweer
the crime rate in Pakistan is lower compared to other major industriali>ed
nations, namely the Dnited /tates of &merica.
The number of crimes reported has Cuctuated at best. Till '66', it generally
took a decreasing pattern. 1oweer, it increased from '66' onwards. /ince
=
the war of &fghanistan, the presence of guns and other types of arms hae
greatly increased as access to them is Muite easy. ?rug tra3cking, person
tra3cking and domestic iolence are major forms of crime as well. There has
generally been a positie trend in terms of acid and stoe iolence. The
number of acid burn ictims shot down to %' in '66E from '' in '66*, while
the number of stoe burn ictims dramatically fell to ' in '66E from %= from
'66*.
T'pe o!
5io$enc
e
(339 (33< (33= (330 (33/
Aci+
*urn
Victi%
(( 1( 1/ (1 1(
Sto5e
*urn
Victi%
10 1= 13 13 (
Ta&$e 1: Aci+ Vio$ence Statitic
Co%%unication S'te%
&mong the chief communication deices are the telephone, cell phones and
the !nternet.
The telecommunications industry in the country has been booming in recent
years. Pakistan ranks E
th
in the world for its aailability of mobile cellular
lines. &s of '66E, it had E%.)) cellular lines. !n '66=, there were ).*), f"ed
telephone lines in use.
&round E6 percent of Pakistanis lie in areas where there is cell phone
network coerage and more than *6< of all Pakistanis hae access to a cell
phone. To help build up network fber systems are being put up throughout
the country. The accessibility of f"ed-line telephones has gone up only
slightly from '666 to '66E. &lso, in rural parts, it is Muite hard getting a
f"ed-line serice.
E
The amount of foreign and local inestment in land lines and cellular lines
has increased spectacularly. The telephone system consists of microwae
radio relay, coa"ial cable, fber-optic cable, cellular, and satellite networks.
!nternet users hae also been increasing. !n '66E, there were some %=.*
million users. That makes Pakistan the '6
th
country in the world, in terms of
the number of !nternet users. @or a deeloping nation, that is Muite
signifcant. The growth of !nternet is a positie deelopment. !n '66=, there
were around '',,'(, !nternet hosts.
Sport
The national sport in Pakistan is feld hockey. 1oweer, cricket remains to
dominate as the most popular and watched sport. /Muash is another sport
Pakistanis are good at.
The Pakistani cricket team has won the World +up in %EE' and was runners-
up in %EEE. &mong their other signifcant achieements are winning the '66E
!++ World Twenty'6 +up and being runners up in the ery frst Twenty'6
World +up in '66#. @amous Pakistani cricketers include Wasim &kram, WaMar
Jounis and /hoaib &khter 2who is also nicknamed the 4awalpindi I"press for
being one of the fastest bowlers in cricket5.
/ome famous Pakistani sMuash players include Aahangir 9han and Aansher
9han, who hae won the World 0pen a couple of times.
Pakistan has also participated in the /ummer 0lympics in field hockey, bo"ing,
athletics, swimming and shooting. &t the 0lympics Pakistan has mostly
e"celled in 1ockey. They hae also won the 1ockey World +up four times.
Pakistan has won %6 medals in the 0lympics, ,% at the +ommonwealth
7ames and %=% at the &sian 7ames.
%6
Figure 1: A cric"et %atc) &et,een Autra$ia an+ Pa"itan
%%
POLITICAL AN- LE.AL ANALYSIS
Con5entiona$ $ong !or%$ !slamic 4epublic of Pakistan
Con5entiona$ )ort !or%$ Pakistan
Loca$ $ong !or%$ Aamhuryat !slami Pakistan
Loca$ )ort !or%$ Pakistan
For%er$ West Pakistan
The 7oernment of Pakistan is a federal parliamentary system, with an
indirectly-elected President as the 1ead of /tate and +ommander in +hief of
the &rmed @orces, and an indirectly-elected Prime -inister as the 1ead of
7oernment. The Presidents appointment and term are constitutionally
independent of the Prime -inisters term. 0n /eptember ,, '66=, the
Ilectoral +ollege 2composed of the /enate, the .ational &ssembly, and the
four Proincial &ssemblies5 chose &sif &li Fardari as the eleenth President of
Pakistan for a fe-year term. The Prime -inister is usually the leader of the
largest party in the .ational &ssembly and is assisted by a cabinet of
ministers drawn from both chambers of the federal legislature. The current
Prime -inister is Jousaf 4a>a 7illani of the Pakistan Peoples Party, who took
o3ce on -arch '*, '66=.
Po$itica$ &ac"groun+
Pakistan has been ruled by both democratic and military goernments. The
frst decade was marred with political unrest and instability resulting in
freMuent collapses of ciilian democratic goernments. @rom %E)# to %E*= as
many as seen Prime -inisters of Pakistan either resigned or were ousted.
This political instability pa ed the way for Pakistans frst military take oer.
0n 0ctober #, %E*= Pakistans ciilian and frst President !skander -ir>a in
collaboration with 7eneral -ohammad &yub 9han changed Pakistans
constitution and declared -artial :aw.
7eneral &yub 9han was the president from %E*= to %E,E, and 7eneral Jahya
9han from %E,E to %E#%, Austice 9han 1abibullah 9han -arwat elected frst N
second +hairman /enate of Pakistan seeral times -r. 9han /ahib acted as a
President !slamic 4epublic of Pakistan, with Fulfkar &li 8hutto as the frst
ciilian martial law administrator. +iilian, yet autocratic, rule continued from
%'
%E#' to %E## under Fulfkar &li 8hutto, but he was deposed by 7eneral Fia-
Dl-1aM. 7eneral Fia was killed in a plane crash in %E==, after which 8ena>ir
8hutto, daughter of Fulfkar &li 8hutto, was elected as the Prime -inister of
Pakistan. /he was the youngest woman eer to be elected the 1ead of
7oernment and the frst woman to be elected as the 1ead of 7oernment
of a -uslim country. 1er goernment was followed by that of .awa> /harif,
and the two leaders alternated until the military coup by 7eneral Pere>
-usharraf in %EEE. /ince the resignation of President 4afM Tarar in '66%,
-usharraf has been the President of Pakistan.
.ation-wide parliamentary elections were held in 0ctober '66', with the
P-:-; winning a plurality of seats in the .ational &ssembly of Pakistan, and
Fafarullah 9han Aamali of that party emerging as Prime -inister. Aamali
resigned on Aune ',, '66). P-:-; leader +haudhry /hujaat 1ussain became
interim P-, and was succeeded by @inance -inister and former +itibank Oice
President /haukat &>i>, who was elected Prime -inister on &ugust '#, '66)
by a .ational &ssembly ote of %E% to %*%.
!n the 0ctober '66' general elections, the Pakistan -uslim :eague 2;5 2P-:-
;5 won a plurality of .ational &ssembly seats with the second-largest group
being the Pakistan Peoples Party Parliamentarians 2PPPP5, a sub-party of the
PPP. Fafarullah 9han Aamali of P-:-; emerged as Prime -inister but resigned
on ', Aune '66) and was replaced by P-:-; leader +haudhry /hujaat
1ussain as interim Prime -inister.
Po$itica$ partie an+ $ea+er
&wami .ational Party or &.P P&sfandyar Wali 91&.QH 8alochistan .ational
Party-&wami or 8.P-& P-oheem 9han 8&:0+1QH 8alochistan .ational Party-
1ayee 7roup or 8.P-1 P?r. 1ayee 8&:0+1QH 8alochistan .ational Party-
-engal or 8.P-- P/ardar &taullah -I.7&:QH Aamaat-i !slami or A! P;a>i
1ussain &1-I?QH Aamhoori Watan Party or AWPH Aamiat &hle 1adith or A&1
P/ajid -!4QH Aamiat Dlema-i !slam @a>lur 4ehman or AD!-@ P@a>lur 4I1-&.QH
Aamiat Dlema-i !slam /ami-ul 1&; or AD!-/ P/ami ul-1&;QH Aamiat Dlema-i
Pakistan or ADP P/hah @aridul 1&;QH -uttahida -ajlis-e &mal or --& P;a>i
1ussain &1-I?QH -uttahida ;aumi -oement or -;- P&ltaf 1D//&!.QH
.ational &lliance or .& P7hulam -ustapha A&T0!Q 2merged with P-:5H
.ational Peoples Party or .PPH Pakhtun 9hwa -illi &wami Party or P9-&P
P-ahmood 9han &+1&9F&!QH Pakistan &wami Tehrik or P&T PTahir ul ;&?4!QH
Pakistan -uslim :eague or P-: P+haudhry /hujaat 1D//&!.QH Pakistan
-uslim :eague-@unctional or P-:-@ PPir P&7&40QH Pakistan -uslim :eague-
%(
.awa> or P-:-. P.awa> /1&4!@QH Pakistan Peoples Party Parliamentarians or
PPPP P8ilawal 8hutto F&4?&4!, chairmanH &sif &li F&4?&4!, co-chairmanQH
Pakistan Peoples Party-/1I4P&0 or PPP-/ P&ftab &hmed 9han /1I4P&0QH
Pakistan Tehrik-e !nsaaf or PT! P!mran 91&.QH Tehrik-i !slami P&llama /ajid
.&;O!Q
0ther political entities include military 2most important political force5H
ulema 2clergy5H landownersH industrialistsH small merchants.
A+%initrati5e +i5iion
Pakistan is subdiided into ) proinces, ' territorie, and % capital territory.
Iach proince has a Proincial &ssembly, a directly-elected legislature.
-embers are elected for fe-year terms. Iach &ssembly elects a +hief
-inister, who then selects the ministers of his or her cabinet. The proincial
goernments are 8alochistan, !slamabad +apital Territory, 9hyber-
Pakhtunkhwa,Punjab and /indh. The Pakistani-administered portion of the
disputed Aammu and 9ashmir region consists of two administratie entities$
&>ad 9ashmir and 7ilgit-8altistan.
In+epen+ence: %) &ugust %E)# 2from 8ritish !ndia5
Contitution: %' &pril %E#(H suspended * Auly %E##, restored (6
?ecember %E=*H suspended %* 0ctober %EEE, restored in stages in '66'H
amended (% ?ecember '66(H suspended ( .oember '66#H restored on %*
?ecember '66#H amended %E &pril '6%6
Lega$ Ana$'i
:egal system of Pakistan is based on Inglish common law with proisions to
accommodate PakistanRs status as an !slamic stateH accepts compulsory !+A
jurisdiction with reserations. Politics of Pakistan has taken place in the
framework of a federal republic, where the system of goernment has at
times been parliamentary, presidential, or semi-presidential. !n the current
parliamentary system, the President of Pakistan is the largely-ceremonial
head of state, the Prime -inister is head of goernment, and there is a multi-
party system. I"ecutie power is e"ercised by the goernment. :egislatie
power is largely ested in the Parliament.
%)
E;ecuti5e &ranc)
Pakistan has been under the inCuence of its military almost since it was
founded. The !ntelligence agencies hae a huge role in the politics since the
beginning in making and breaking the political parties. The president, in
keeping with the constitutional proision that the state religion is !slam, must
be a -uslim. Ilected for a fe-year term by an Ilectoral +ollege consisting of
members of the /enate and .ational &ssembly and members of the
proincial assemblies, the president is eligible for reelection. 8ut no
indiidual may hold the o3ce for more than two consecutie terms. The
president may resign or be impeached and may be remoed from o3ce for
incapacity or gross misconduct by a two-thirds ote of the members of the
parliament. The president generally acts on the adice of the prime minister
but has important residual powers.
C)ie! o! tate: President &sif &li F&4?&4! 2since E /eptember '66=5
>ea+ o! go5ern%ent: Prime -inister /yed Jousuf 4a>a 7!:&.! 2since '*
-arch '66=5
Ca&inet: +abinet appointed by the president upon the adice of the prime
minister
E$ection: the president elected by secret ballot through an Ilectoral
+ollege comprising the members of the /enate, .ational &ssembly, and the
proincial assemblies for a fe-year termH election last held on , /eptember
'66=. &ny person who is a -uslim and not less than )* years of age and is
Mualifed to be elected as a member of the .ational &ssembly can contest
the presidential electionH the prime minister selected by the .ational
&ssemblyH election last held on ') -arch '66=.
Legi$ati5e &ranc)
The bicameral federal legislature consists of the /enate 2upper house5 and
.ational &ssembly 2lower house5. &ccording to &rticle *6 of the +onstitution,
the .ational &ssembly, the /enate and the President together make up a
body known as the -ajlis-i-/hoora 2+ouncil of &disers5.
PakistanRs democracy has no recall method. 1oweer, past goernments
hae been dismissed for corruption by the PresidentRs inocation of &rticle *=
of the +onstitution. The PresidentRs power to dismiss the Prime -inister and
dissole the .ational &ssembly was remoed by the Thirteenth &mendment
and partially restored by the /eenteenth &mendment.
%*
Senate: The /enate is a permanent legislatie body with eMual
representation from each of the four proinces, elected by the members of
their respectie proincial assemblies. There are representaties from the
@ederally &dministered Tribal &reas and from !slamabad +apital Territory.
Nationa$ Ae%&$': -embers of the .ational &ssembly are elected by
uniersal adult suBrage. /eats are allocated to each of the four proinces,
the @ederally &dministered Tribal &reas, and !slamabad +apital Territory on
the basis of population. .ational &ssembly members sere for the
parliamentary term, which is fe years, unless they die or resign sooner, or
unless the .ational &ssembly is dissoled.
E$ection: /enate - last held on ( -arch '66E 2ne"t to be held in -arch
'6%'5H .ational &ssembly - last held on %= @ebruary '66= with by-elections
on ', Aune '66= 2ne"t to be held in '6%(5
?u+icia$ &ranc)
The judiciary includes the /upreme +ourt, proincial high courts, ?istrict N
sessions +ourts, +iil and -agistrate courts e"ercising ciil and criminal
jurisdiction. /ome federal and proincial courts and tribunals such as
/erices court, !ncome ta" N e"cises court, 8anking court and 8oards of
4eenueRs Tribunals are as well established in all proinces.
Supre%e Court: The /upreme +ourt has original, appellate, and adisory
jurisdiction. The +hief Austice of the /upreme +ourt is appointed by the
presidentH the other /upreme +ourt judges are appointed by the president
after consultation with the chief justice. The chief justice and judges of the
/upreme +ourt may remain in o3ce until age si"ty-fe$ now ,= years and
this is also another clause of seenteenth amendment.
Pro5incia$ @ >ig) Court: !n eery proince, there is one 1igh +ourt.
+urrently all four proinces Punjab, /indh, 9hyber-Pukhtoonkawah and
8alochistan hae 1igh courts, respectiely called :ahore 1igh +ourt, /indh
1igh +ourt, Peshawar 1igh +ourtand 8alochistan 1igh +ourt. &fter the
approal of %=th +onstitutional &mendment in &pril '6%6, a new 1igh court
is established at @ederal +apital !slamabad with the name of !slambad 1igh
+ourt.
T)eocratic $a,
/ince !slam is the state religion, the President of Pakistan must be a -uslim.
There is also presence of @ederal !slamic or /haria +ourt, which ensures
%,
conformity with !slamic laws. The +ourt also enforces hudood laws -ajority of
seats in the .ational &ssembly are resered for -uslims. 1oweer there is a
proision for non--uslims as well 2about *<5. There are -inistry of Fakat and
Dshr and -inistry of 4eligious &Bairs.
Figure 4: Ai! A$i Aar+ariB Prei+ent o! Pa"itan
%#
CULTURAL ANALYSIS
Race
=6< of the inhabitants in Pakistan are +aucasoid, %=< are &ustraloid-.egroid
and the remaining '< are -ongoloid.
The Pashtuns, 9ashmiris, 8alochis, Punjabis, and /indhis, -uhajirs, /eraikis and the
?ardic tribes are usually of the +aucasoid race. The &ustraloid-.egroid people are
known as Sheedi and they lie along the -akran coast. &s for the -ongoloids, they
typically are of +entral &sian descent.
The aerage Pakistani has dark hair and dark eyes, is of aerage to aboe aerage
height and has arying skin tones 2lightly tanned, olie and fair5. 1oweer, light
coloured hair and eyes can also be found, mostly amongst people liing in the
.orth.
Su&cu$ture
There arent that many subcultures in Pakistan, since it is mainly an !slamic
state. 1oweer, the small religious minorities can be treated as a subculture.
They hae their own distinctie traditions, norms and beliefs stemming from
their diBerent religions.
Et)nic .roup
?iBerent ethnic groups dominate diBerent areas of Pakistan. The breakdown
is as follows$
Iast$ the Punjabis, 9ashmiri and /indhis
West$ 8aloch and Pashtun
.orth$ ?ardic and Tajik
%=
Figure 9: -itri&ution o! et)nic group
Socia$ Cu$ture
Pakistan being an !slamic nation is dominated by the basic !slamic alues,
traditions and norms.
The society can be termed as conseratie. 1ospitality, respecting elders
and other family alues are ery important. & common gesture among
Pakistanis is the salaam, where one greets upon meeting others by saying
Assalama Laikum. 1oweer, this only applies to -uslims. &lso consumption
of alcohol is strictly prohibited and wearing reealing clothes is shunned.
+onersations regarding se" are seen as taboo. !t is also a norm for
Pakistanis to take a gift when isiting ones house, the gift usually being
sweets, Cowers etc. !n business enironments, an eBort should be made to
be punctual for meetings but the person should also prepare for haing to
wait.
&nother important feature of Pakistani society is its hierarchy. This class-
based system mainly focuses on income and social status to distinguish
among the members of the society. The rise of the middle class has been
signifcant, almost nearing (6 million, from which %# million belong to the
upper and upper middle class and who earn an aerage income of K%6,666.
-ost festials which are celebrated in Pakistan are religious by nature,
although there are a few national festials too. &mong the most important
festials are$
4amadan, the holy month-long fasting period
%E
Iid celebrations, which obsere the passing of 4amadan and the
sacrifce of the ery important prophet of !slam, Prophet !brahim
-ilaad un .abi, a celebration of the Prophet -uhammads 2P8D15
birthday
8asant, a pre-!slamic festial commemorating the beginning of spring
!ndependence ?ay
?efense ?ay Parade, where the Pakistani army e"hibits arms to the
general public
The basic family structure is also diminishing. Pakistanis traditionally had a
joint family system, howeer that is breaking down because of social and
economic di3culties. .ow more and more the nuclear family is becoming
dominant.
Language
Pakistan can best be seen as multilingual, where speaking of almost ,6
languages is practiced. Drdu is the national language and Inglish is the
o3cial language used in legal and business transactions. The breakdown of
languages amongst the population are as follows$
Punjabi )=<,
/indhi %'<,
/iraiki 2a Punjabi ariant5 %6<,
Pashtu =<,
Drdu =<,
8alochi (<, 1indko '<,
8rahui %<,
Inglish, 8urushaski, and other =<
Re$igion
The state religion is !slam. E*< of the population are -uslims, among which
#*< are /unni and '6< are /hia. 1induism 2%.=*<5, +hristianity 2%.,<5,
/ikhs 26.66%<5 and the remaining other religions 28uddhism, Audaism5 form
the minority.
'6
E+ucation
Iducation in Pakistan consists of fe leels$
Primary 2grades one to fe5
/econdary 2grades si" to eight5
1igh 2grades nine to ten5
!ntermediate 2grades eleen and twele5
Dniersity 2undergraduate, graduate and adanced degrees5
The constitution says that it is the states responsibility to proide free
primary education. &nother form of secondary school system can be found in
some priate schools, where the curriculum is f"ed and monitored by the
+ambridge !nternational I"aminations. Dnder this system, students take
0rdinary :eel 20 :eel5 and &danced :eel 2&5 e"ams. The goernment is
also trying to promote Inglish medium education to all schools throughout
the country.
Dniersities, once upon a time were ery rare in Pakistan, haing had only
one at the time of independence. 1oweer, now there are more than %(6
uniersities, among which most are public uniersities. /ome notable
uniersities of Pakistan, which hae made world rankings, are .ational
Dniersity of /cience and Technology, ;uaid-e-&>am Dniersity and
Dniersity of 9arachi.
&nother form of educational institution, the madrassah also e"ist in Pakistan.
They generally proide free education and residential facilities to those
students who come from the lower classes of the society. 1oweer they hae
been subject to much criticism, mainly related to issues about terrorism.
Iducation in Pakistan has been prospering. &s the graph below shows,
literacy rates hae been rising.
'%
Figure <: Literac' Rate o! Tota$ Popu$ation !ro% 1/91 to (330
Viua$ Art
Painting: Pakistani popular folk art consists of the ehicle art. /ome
famous painters include Dstad &llah 8aksh, &ja> &nwar, !smail 7ulgee, Aamil
.aMsh and /adeMuain.
Arc)itecture: Pakistani architecture has been inCuenced by four periods$
pre-!slamic, !slamic, colonial and post-colonial. 1oweer there are touches of
other periods too.
@rom the %
st
century +I onwards, 7reek, Persian and 8uddhist inCuences
resulted in the growth of the 7reco-8uddhist style. The 8uddhist temple,
Takht-i-8ahi in 9hyber-Pakhtunkhwa is an e"ample of that. This era reached
its peak during the culmination of the 7andhara style. The tomb of the /hah
4ukn-i-&lam in -ultan also shows oB the Persian touches of Pakistans
architecture. Ien the -ughal style can be obsered 2which was obiously
left behind during the -ughal era5 in 8adshahi mosMue and the fortress of
:ahore with the famous &lamgiri 7ate. The onset of !slam has greatly
shaped the countrys architectural landscape. &lthough the country now has
moed on to picture-less !slamic architecture. /ome of the popular
monuments, which hae made the D.I/+0 Tentatie World 1eritage /ite list
are the tombs of 8ibi Aawindi, 8ahaRal-1alim and Aalaluddin 8ukhari.
''
Entertain%ent
Literature:
Pakistani literature is aailable in most of the languages spoken in the
country 2e.g Drdu literature, Inglish literature etc.5
The literature in this country mainly started oB after %E)#, when
Pakistan got its independence
:yric poetry, religious and mystical materials were mainly popular
before the %E
th
century
Things changed in the colonial period, when local literary fgures,
inspired from the western literature of reali>ed diersifed into diBerent
topics and telling forms
1oweer, now short stories are among the most-liked form of literature
The national poet is -uhammad !Mbal
0ther well-known poets include @ai> &hmed @ai>, /hah &bdul :atif,
9hawaja @arid
Figure =: Mu)a%%a+ IC&a$B Nationa$ Poet o!
Pa"itan
Per!or%ing Art:
Pakistani music is of diBerent types
Qawwali and Ghazal are the more traditional forms while modern styles
include remi"es of customary Pakistani music with Western music
@ilm music, Drdu and Punjabi pop music are Muite popular too
.usrat @ateh &li 9han is a ery famous Pakistani musician
?iBerent types of folk dances are popular in diBerent locations of the
country such as bhangra and luddi are famous in Punjab, dhammal in
'(
suf shrines, khattak in 9hyber- Pakhtunkhwa, jhumar among the
/eraiki and 8alochis etc.
The flm industry in Pakistani is known as :ollywood
?rama and theatre are based on a ariety of themes
Figure 0: A %an p$a'ing a itar
Figure /: A Da$a) %an +ancing
Me+ia:
')
&s of '66,, there were '6 teleision broadcast stations 2* of them
public, %* priate5
!n '66,, radio broadcasting stations included &- (%, @- ,=, shortwae
.&
Pakistan 8roadcasting +orporation &nd Pakistan Teleision +orporation
2PTO5 were the main media outlets
Cuiine an+ -re
The national dress for both men and women is the shalwar kameez. !t is
basically made up of a long tunic, baggy trousers and a long piece of fabric
called the dupatta 2for women only5.
Pakistani food is mainly a mi" of -iddle Iastern, !ranian, &fghan, north west
!ndian, and Turkish cuisine, which symboli>es the ariety of cooking styles
across the regions and also the countrys history. The main dish is usually a
curry, with or without the presence of meat and egetables and lentils.
Proincial attractions include karahi, biryani and tikka eaten with naan,
chapati and rti.
Figure 13: La)ori *ee! Dara)i
Figure 11: Pe)a,ari Naan
'*
.$o&a$iEation
The 9earnyG@P 7lobali>ation inde" ranked Pakistan *, in the whole world.
1oweer between '66)-'66,, the rankings fell by %6 spots. -any
transnational companies, like -c?onalds, Pi>>a 1ut etc. hae put together
their franchises in Pakistan. & lot of Pakistanis also emigrate to the West and
the -iddle Iast. -ost of the Pakistanis in the Iuropean region 27ermany, D95
belong to the working class, but Pakistanis in &ustralia and .orth &merica
2D/&, +anada5 are professionals. These workers greatly help the local
economy through remittances.
Figure 1(: Mc-ona$+F in La)ore
',
Figure 11: Foot&a$$ titc)ing
>o!te+eG Ana$'i
%. Power ?istance$ Pakistan ranks high in this area, with a score of *6.
This is not surprising gien the hierarchical society of the country. This
shows that power is distributed uneMually and ineMuality e"ists from
the bottom up.
'. !ndiiduality$ Pakistan has a low score in this aspect of the analysis,
about %6. This is again true of a country where collectiism is mainly
faoured. !n an indiidualist society, indiiduals take care of
'#
themseles and dont really rely on others. They make themseles the
frst priority. +ollectiism is the total opposite. Pakistan is a country
where collectiist ideals like sticking to groups, seeking support from
others and loyalty are important and are present as well.
(. -asculinity$ 1ere the country has a score of about **, which is Muite
high. This shows gender ineMuality and that the general Smasculine
alues of being assertie and competitie are more important.
). Dncertainty &oidance$ This area is represented with Muite a high score
of nearly =6. This represents a society acceptance for uncertainty and
agueness. Dsually a high score means societies arent that fond of
challenges and they enforce tough laws and rules to get rid of such
situations.
*. :ong-Term 0rientation$ Pakistan has irtually no score in this section.
This means that Pakistan is basically a country with a short-term
orientation that has sticks to tradition and performs the necessary
social duties. This again is reCected in the conseratie Pakistani
society.
ECONOMIC PROFILE
Tren+ in .-P
Pakistan has been e"periencing an increase in its 7ross ?omestic Product
in terms of purchasing power parity since '66#. !t has been steadily rising
from K)'%.E billion in '66# to K)(#.* billion in '66= and K))E.( billion in
'66E. 8ased on these fgures Pakistan is the '#
th
largest economy in the
world.
!n accordance with the o3cial e"change rate, the 7?P of Pakistan in '66E
was K%,=.* billion dollars.
!n terms of the real growth rate, 7?P has been declining since '66=. !t fell
to '.#< in '66E from (.#< and ,< in '66= and '66# respectiely.
1oweer, the 7?P per capita has been increasing. !t rose from K'*66 in
both '66# and '66= to K',66 in '66E.
'=
Figure 14: .-P Tren+ &'
Pro5ince
E;port an+ I%port Partner
Pakistan mainly e"ports to the following countries 2'66E estimates5$
D/ %*.=#<,
D&I %'.(*<,
&fghanistan =.)=<,
D9 ).#<,
+hina ).))<
Their chief import partners include 2'66E estimates5 $
+hina %*.(*<,
/audi &rabia %6.*)<,
D&I E.=<, D/ ).=%<,
9uwait ).#(<,
-alaysia ).)(<,
!ndia ).6'<
E;port an+ I%port Co%%o+itie
Pakistan mainly e"ports te"tiles 2garments, bed linen, cotton cloth, yarn5,
rice, leather goods, sports goods, chemicals, manufactures, carpets and
rugs.
'E
-ainly petroleum, petroleum products, machinery, plastics, transportation
eMuipment, edible oils, paper and paperboard, iron and steel, tea constitute
the import commodities.
E;port an+ I%port Statitic
I"ports$
K%=.)) billion 2'66E est.5
K'%.'' billion 2'66= est.5
K%.=' billion 2Aune '6%6 est.5
!mports$
K'=.)# billion 2'66E est.5
K(=.'' billion 2'66= est.5
K(.'' billion 2Aune '6%6 est.5
(6
Foreign -irect In5et%ent
The table below proides information regarding @?! inCows in Pakistan.
Year .reenHe$+
In5et%ent
Pri5atiation
Procee+
Tota$ F-I Pri5ate
Port!o$io
In5et%ent
'66%-6' (*# %'= )=* -%6
'66'-6( ,'' %#, #E= ''
'66(-6) #*6 %EE E)E -'=
'66)-6* %,%,% (,( %,*').66 %*(
'66*-6, %,E=% %,*)6 (,*'%.66 (*%
'66,-6# ),=#(.'6 ',, *,%(E.,6 %,='6
'66#-6= *,6%E.,6 %((.' *,%*'.=6 %E.(
'66=-6E (,#%E.E6 - (,%#E.E6 -*%6.(
Aul-Aune-%6 ','6*.#6 - ','6*.# *=#.E
Total (3B<0/843 (B0398(3 ((B/99833 (B4348/3
Ta&$e 9: F-I InIo, in Pa"itan !ro% (331 to (313
The general trend in @?! until '66= was Muite faorable as Pakistan saw
improements in inCows. 1oweer, it started declining from '66= onwards,
but this is due to the worldwide recession. That has hit all the countries
pretty badly. The fact that despite the global recession, a deeloping country
like Pakistan is still receiing and of substantial amounts is a good sign.
@?! outCows and other economic indicator statistics are gien on the table in
the ne"t page.
(%
In+icator
(331
23(
(33(2
31
(331234
(334
239
(3392
3<
(33<2
3=
(33=2
30
(3302
3/
6?u$'2
?une
(313:
Trade
8alance 28illio
n K5
%.' %.6, (.'= ,.'% %'.%% -%(.*( -'6.#) -%#.6( -%.)
@oreign
!nestment
outCow
)#* ='6 E''
%,,#
#
(,=#' =,)%#
*,%E(.6
6
',,,*.6
6
',%)%.'
6
7?P 7rowth
(.,6
<
*.%6< ,.)6<
=.)6
<
,.,6< #.66< *.=6< '.%6< ).%6<
Ta&$e <: Econo%ic In+icator
&s can be seen, Pakistan maintained a surplus on its account from '66% to
'66,. @rom then on, the defcit began appearing, and in Muite a signifcant
amount too. 1oweer, we can see how it managed to drastically lower it in
'6%6. This current balance of payment stability can largely be credited to
foreign workers remittances and also decreasing oil prices. Pakistan earns
ma"imum of its e"port earnings from te"tiles. While there is nothing wrong
with that, if the country wants to aoid future balance of payments problem
it should deelop a feasible e"port base for other manufactures in order to
make the country less susceptible to changes in world demand.
@oreign inestment outCow has also risen steadily throughout the years. 7?P
as preiously mentioned has grown Muite positiely till the recession in '66=
and onwards.
InIation an+ Une%p$o'%ent
The rise in the general price leel is probably the most worrisome of all the
problems faced by the Pakistani public. !t increased to a whopping '6.(< in
'66= from a mere #.#< in '66#. 1oweer the year '66E saw a decrease to
%(.,< and that can be taken as a positie deelopment.
('
Dnemployment started rising between '66=-6E because of the growth
slowing down. @rom %'.,< in '66=, it went up to %)< in '66E.
E;c)ange Rate
Pakistan rupee 2P945 per D/ dollar 2D/?5$
o =%.)% 2'66E5
o #6.,) 2'66=5
o ,6.,'E* 2'66#5
o ,6.(* 2'66,5
o *E.*%* 2'66*5
The Pakistani rupee has been depreciating since '66# because of political
and economic unsteadiness.
Ta;ation
The corporate ta" in '66E was (*< for public companies, priate companies
and banking companies too.
Ta"able !ncome 4ate of Ta"
Dpto 4s. %=6,666 .il 26<5
4s. %=6,66% -
'*6,666
6.*6<
4s. '66,66% -
'*6,666
6.*6
4s. '*6,66% -
(*6,666
6.#*
4s. (*6,66% -
)66,666
%.*6
4s. )66,66% -
)*6,666
'.*6
((
4s. )*6,66% -
**6,666
(.*6
Ta&$e =: Sa$arie+ Ta;pa'er in (33/
Tra+e Po$ic'
&fter the '66= WT0 reiew, it was found that Pakistan has greatly adopted
trade liberali>ation. The oerall tariB protection has been decreased and
intellectual property rights hae increased.
1oweer, some imports from !ndia are still prohibited and trade with !srael is
banned completely. &t the same time, it has been e"panding its network of
bilateral free-trade agreements, including with +hina, !ran, -alaysia,
-auritius, and /ri :anka
TariBs are main form of protectionism applied by Pakistan. !t makes up one-
ffth of the total ta" reenue.
TariJ an+ +ut' !ree i%port
TariB binding coerage 2<5 E=.#
-@. tariBs
&pplied
'66=
/imple aerage of import duties
&ll goods %(.*
&gricultural goods 2&0&5 %*.)
.on-agricultural goods %(.'
.on ad-alorem duties 2< total tariB lines5 6.#
-@. duty free imports 2<, '66#5
in agricultural goods 2&0&5 )).6
()
in non-agricultural goods ((.E
Ta&$e 0: Su%%ar' o! TariJ
& few import Muotas e"ist e.g. for used refrigerated trucks. !mports of alcohol
are strictly prohibited. 1oweer, non--uslims can obtain alcoholic beerages
through priate monopolies. Prohibited e"ports focus on health, social,
religious, or enironmental protection under international treaties 2e.g.
+!TI/5, but also coer mainly wood and timber. & temporary ban was applied
to cement e"ports in '66, owing to domestic shortages. I"porters are also
assisted ia general schemes 2e.g. '*< freight subsidy, /8P concessionary
fnance5 and arious sector-specifc schemes 2e.g. on 4N? subsidy for
garments and footwear, and freight subsidies5.
Regiona$ Tra+e Agree%ent
Iconomic +ooperation 0rgani>ation 2I+05
7lobal /ystem of Trade Preferences among ?eeloping +ountries
27/TP5
Pakistan - +hina T -alaysia - /ri :anka
Protocol on Trade .egotiations 2PT.5
/outh &sian @ree Trade &greement 2/&@T&5
/outh &sian Preferential Trade &rrangement 2/&PT&5
/outh &sian &ssociation for 4egional +ooperation 2/&&4+5
Econo%ic Sector
7?P composition by sector$
agriculture$ '6.=<
industry$ ').(<
serices$ *).E< 2'66E est.5
&griculture $ cotton, wheat, rice, sugarcane, fruits, egetablesH milk,
beef, mutton, eggs
(*
!ndustries$ te"tiles and apparel, food processing, pharmaceuticals,
construction materials, paper products, fertili>er, shrimp
/erices$ Transport, storage, communications, fnance, and insurance
account and wholesale and retail trade
Pakistan is a semi-industriali>ed company. :ike the deeloped nations,
ma"imum of the countrys 7?P comes from the serice sectors.
La&our Force
/i>e$ *(.#= million 2'66E est.5
Participation rate$ ('.'< 2'66*-6,5
:abour @orce by occupation$
agriculture$ )(<
industry$ '6.(<
serices$ (,.,< 2'66* est.5
!n terms of the si>e of the labour force, Pakistan ranks %6th in the world.
&lso, there is a lot of labour e"port to the -iddle Iast. The participation rate
has increased from (6.)< in '66). &lso praiseworthy is narrowing of the
urban-rural and male-female gap in recent years.
(,
A*SOLUTE AN- COMPARATIVE A-VANTA.ES
Agricu$ture
Pakistan ranks ffth in the -uslim world and twentieth worldwide in farm
output.
The most important crops are wheat, sugarcane, cotton, and rice, which
together account for more than #*< of the alue of total crop output.
PakistanRs largest food crop is wheat. !n '66*, Pakistan produced '%,*E%,)66
metric tons of wheat, more than all of &frica 2'6,(6),*=* metric tons5 and
nearly as much as all of /outh &merica 2'),**#,#=) metric tons5, according
to the @&0. Pakistan has also cut the use of dangerous pesticides
dramatically.
Pakistan is a net food e"porter, e"cept in occasional years when its harest is
adersely aBected by droughts. Pakistan e"ports rice, cotton, fsh, fruits
2especially 0ranges and -angoes5, and egetables and imports egetable
oil, wheat, cotton, pulses and consumer foods. The country is &siaRs largest
camel market, second-largest apricot and ghee market and third-largest
cotton, onion and milk market.
&griculture T products in term of global ranking$
+hickpea 2'nd5, &pricot 2)th5, +otton 2)th5, /ugarcane 2)th5, -ilk 2*th5, 0nion
2*th5, ?ate Palm 2,th5, -ango 2(rd5, Tangerines, mandarin orange,
+lementine 2=th5, 4ice 2=th5, Wheat 2Eth5 and fnally 0ranges 2%6th5
Principa$ In+utrie
Pakistan ranks forty-frst in the world and ffty-ffth worldwide in factory
output. PakistanRs industrial sector accounts for about ')< of 7?P. +otton
te"tile production and apparel manufacturing are PakistanRs largest
industries, accounting for about ,,< of the merchandise e"ports and almost
)6< of the employed labour force. 0ther major industries include cement,
fertili>er, edible oil, sugar, steel, tobacco, chemicals, machinery, and food
processing.
The goernment is priati>ing large-scale parastatal units, and the public
sector accounts for a shrinking proportion of industrial output, while growth
in oerall industrial output 2including the priate sector5 has accelerated.
7oernment policies aim to diersify the countryRs industrial base and bolster
e"port industries. Pakistans industrial production growth rate of -(.,< 2'66E
(#
est.5, shows a downward. This maybe due to some Cua$it' iue regarding
products from Pakistan. &lso, e"port leels hae dropped from K'%.'' billion
2'66= est.5 to K%=.)) billion 2'66E est.5, another sign indicating the decline
in demand for Pakistani goods.
Pakistani e"ports include te"tiles 2garments, bed linen, cotton cloth, and
yarn5, rice, leather goods, sports goods 2renowned for footballsGsoccer balls5,
chemicals, manufactures, carpets and rugs
Natura$ Reource
PakistanRs principal natural resources are arable land and water. &bout '*<
of PakistanRs total land area is under cultiation and is watered by one of the
largest irrigation systems in the world. Pakistan irrigates three times more
acres than 4ussia. Pakistan has proed natural gas reseres of ==*.( billion
cu m 2% Aanuary '66E est.5 '#
th
highest in the world. !t has proed oil
reseres of )%*.) million bbl 2% Aanuary '66E est.5 *%
st
highest in the world. !t
is rumored that Pakistan has more une"plored reseres than 9/&. !t also has
/ubstantial hydropower potential, coal, iron ore, copper, salt, limestone.
Ien with plenty of natural resources, Pakistan needs to import products like
petroleum, petroleum products, machinery, plastics, transportation
eMuipment, edible oils, paper and paperboard, iron and steel, tea. PakistanRs
single largest import category is petroleum and petroleum products which
suggest there needs to be a great deal inested in the proper e;p$oration
o! oi$ an+ ga reer5e.
>u%an Reource
Pakistans population as of Auly '66= was around %#6,%#*,666 2,
th
highest in
the world5. The literacy rate among male and female are diided male ,(<
and female (,<. This shows around half of the population is literate which is
a good thing. &lso the work force is diided between &griculture--)'<H
serices--(=<H industry--'6<. This is a rare feat for a deeloping country to
hae a large proportion of labor in the serice industry. &ll this leads to the
conclusion that, there are a $ot o! peop$e ,aiting to &e traine+ an+
uti$iEe+.
Ser5ice
PakistanRs serice sector accounts for about *(.(< of 7?P. Transport,
storage, communications, fnance, and insurance account for ')< of this
(=
sector, and wholesale and retail trade about (6<.
Pakistan is trying to promote the information
industry and other modern serice industries
through incenties such as long-term ta" holidays.
The goernment is acutely conscious of the
immense job growth opportunities in serice sector
and has launched aggressie priati>ation of telecommunications, utilities
and banking despite union unrest.
Touri%
The frst thing eeryone thinks about when they think of Pakistan is
terrorism, its time to change that iew. Pakistan with its dierse cultures,
people and landscapes has attracted 6.# million tourists to the country. The
countryRs attraction range from the ruin of
ciili>ation such as -ohenjo-daro, 1arappa and Ta"ila, to the 1imalayan hill
stations, which attract those interested in winter sports. Pakistan is home to
seeral mountain peaks oer #666m, which attracts adenturers and
mountaineers from around the world, especially 9'. The north part of
Pakistan has many old fortresses, ancient architecture and the 1un>a and
+hitral alley, home to small pre-!slamic &nimist 9alasha community
claiming descent from &le"ander the 7reat. The romances of 9hyber
Pakhtunkhwa proince is timeless and legend. Punjab proince has the site of
&le"anderRs battle on the Ahelum 4ier and the historic city :ahore, PakistanRs
cultural capital, with many e"amples of -ughal architecture such as
8adshahi -asjid, /halimar 7ardens, Tomb of Aahangir and the :ahore @ort.
8efore the 7lobal economic crisis Pakistan receied more than *66,666
tourists annually.
+urrently Pakistan has si" major cultural sites that are categorised as
D.I/+0 World 1eritage /ites. These include$
&rchaeological 4uins at -oenjodaro of the !ndus Oalley +iili>ation.
%st +entury 8uddhist 4uins at Takht-i-8ahi and .eighbouring +ity
4emains at /ahr-i-8ahlol.
The ruins of Ta"ila from the 7andhara +iili>ation
The :ahore @ort and /halimar 7ardens in :ahore.
(E
Figure 19: D( Mountain
1istoric -onuments of the ancient city of Thatta.
The ancient fort of 4ohtas.
)6
MULTINATIONAL COMPANIES
*an" A$!a$a) Li%ite+ was launched on Aune '%, %EE' as a public limited
company under the +ompanies 0rdinance %E=). The bank commenced its
operations on .oember %, %EE'. The bank introduced commercial banking
and related serices as defned in the 8anking +ompanys ordinance,
%E,'.&fter a few years, the bank introduced its new identity of 1.+.I.8 after
the priati>ation in %EE#. The management of the bank had implemented
strategies and policies so the bank would become a major player in the
market. With a partnership with the &bu ?habi 7roup the position of the
bank became stronger which allowed the bank to inest more in
reolutionary technology to increase its range of products and serices. The
bank is currently operating through more than '#) branches domestically
and an international presence in &fghanistan,
8angladesh and 8ahrain.
The S)eEan Internationa$ Li%ite+ was
incorporated on -ay (6, %E,) as a Priate :imited +ompany. /he>an
!nternational :imited was conceied as a joint enture by the /hahnawa>
7roup, Pakistan and &lliance !ndustrial ?eelopment +orporation, D./.&. in
%E,). /he>an is the largest food processing unit haing deeloped and
installed the capacity to meet the countryRs local as well as e"port needs. !n
%E#%, /hahnawa> group purchased all the shares of &lliance !ndustrial
?eelopment +orporation with the permission of the 7oernment of
Pakistan. !n %E=6-=% a separate unit was installed in 9arachi which now
caters for 9arachi, /indh and e"port demand. & bottle flling plant was set in
%E=( in :ahore, Punjab. &n independent Tetra 8rik plant was commissioned
in %E=#.!n the year %EE6 it was decided to install a juice factory at the 1attar
in .orth West @rontier Proince of Pakistan. /he>an !nternationalRs 1ead
03ce is located in :ahore, Pakistan. !n +anada, Target @oods, is the
authori>ed distributor for all /he>an Products. They carry all the e"port
Muality Auices, Aams, Pickles, +hutneys, /auces, /yrups and /Muashes.
The State Li!e !nsurance +orporation of
Pakistan 2the corporation5 was incorporated in
Pakistan on .oember %, %E#' under the :ife
!nsurance .ationali>ation 0rder, %E#'. The
corporationRs head o3ce is located at 9arachi,
Pakistan. The corporation is engaged in the life insurance business. !t is the
biggest life insurance corporation in Pakistan operating though ', >ones for
)%
indiidual insurance and four >ones for group life insurance. !t also operates
in the gulf countries 2comprising of 9ingdom of /audi &rabia, 9uwait and
D&I5 through the >onal o3ce located in ?ubai. The goernment of Pakistan is
the sole shareholder.
The Attoc" Petro$eu% Li%ite+ 2&P:5 is one of four oil
marketing companies in Pakistan to be granted a license
2in @ebruary, %EE=5. &ttock Petroleum is part of the &ttock 7roup of
+ompanies, which is the only fully integrated group in the oil N gas sector of
Pakistan inoled in e"ploration N production, refning N marketing. &ttock
PetrolemRs corporate head o3ce is registered in !slamabad.
&P: is one of the fastest growing oil
marketing companies in Pakistan
,
haing
successfully established its network of
petrol pumps in .W@P N Punjab. &P: is
presently strengthening its presence in major urban areas such as 9arachi,
upper Punjab and &fghanistan.
The La"on .roup, was founded in %E*). :akson 7roup is a well-known
business group in Pakistan. The conglomerate is run by the :akhani brothers
among whom !Mbal &li :akhani is +hairman of the :akson group. 1is siblings
are &min :akhani, /ultan :akhani and FulfMar :akhani. !ts head o3ce is
located at 9arachi, /ind, Pakistan. The 7roupRs portfolio consists of
detergents and soaps, toothpaste, food products, fast food restaurants,
insurance, internet serices, software, paper and board, printing, powdered
beerages and tea, packaging, publications, surgical instruments, and
te"tiles.
+olgate-Palmolie +ompany !ncorporation 2D/&5
!"uity hlding in #lgate$%almli&e '%akistan( Limited
9raft 7eneral @oods !ncorporation 2D/&5
Licensing arrangement with #l&er %akistan Limited, with e"uity
participation option
-c?onalds +orporation 2D/&5
)'
!"uity in Siza )ds '%ri&ate( Limited
Philip -orris !nternational @inance +orporation 2D/&5 N
4othmans !nternational 2D95 !"uity in Laksn *bacc #mpany Limited
Tetley 0erseas 1oldings :imited
+,-+, .int /enture with *etley #l&er '%ri&ate(
Limited
S)an Foo+ In+utrie is a Pakistani food
company that produces a brand of Pakistani
cuisine mi"es including spice blends. The companyRs products are e"ported
to many nations. Popularity is based on reducing the amount of time needed
to make traditional meals that would otherwise reMuire a large time
commitment, including the preparation of a large Muantity of spices. /han
@ood !ndustries began as a cottage industry in %E=%. & few years later it
started e"ploring the international market and e"ports went out to Iurope,
Dnited 9ingdom, Dnited /tates and the -iddle Iast. Within a decade /han
was e"porting to '* countries. !n '666 it fortifed its sales with local
penetration in the central and northern regions of Pakistan and o3cially
launched in !ndia in '66). /han e"ports to *, countries making it the largest
e"porter of premium Muality packaged spice, food, and rice mi"es. The
company also sponsors cooking competitions.
This is a list of companies that are traded on Pakistani stock
e"changes.
U &bbott :aboratories Pakistan
U &damjee !nsurance
U &l 7ha>i tractors
U &rif 1abib /ecurities
U &skari +ommercial 8ank
U &tlas 1onda
U &ttock +ement Pakistan
U &ttock 4efnery
U 8ank &l 1abib
U 8ank &lfalah
U 8ank of Punjab
U 8annu Woollen -ills
)(
U 8ata Pakistan
U 8estway +ement
U 8-& +apital -anagement
U 1abib !nsurance +o. :imited
U 80+ Pakistan
U 8osicor Pakistan
U +allmate Telips :imited
U +entury Paper N 8oard
U +hakwal +ement
U +herat +ement
U +lariant Pakistan
U +olgate Palmolie Pakistan
U ?awood 1ercules +hemicals
U ?awood :awrencepur
U ?escon +hemicals
U ?I/+0. Ingineering
U ?era 7ha>i 9han +ement
U ?ewan /alman @ibre
U ?igital Prodigy 2Pt5 :td
U ?reamworld Pakistan
U Icopack
U Ingro +hemical Pakistan
U @auji +ement
U @auji @ertili>er 8in ;asim
U @auji @ertili>er
U @aysal 8ank
U 7adoon Te"tile -ills
U 7atron !ndustries
U 7eneral Tyre N 4ubber Pakistan
U 7hani 7lass
U 7la"o/mith9line Pakistan
U 7ul &hmed Te"tile -ills
U 1onda &tlas +ars
U 1ub Power
U !brahim @ibres and Thal
U !+! Pakistan
U !7! !nsurance
U !ndus -otor +ompany
U !nternational !ndustries
U !ttehad +hemicals :imited
))
U Aahangir /iddiMui 7roup
U Aahangir /iddiMui N +ompany :imited
U Aahangir /iddiMui !nestment 8ank
U Aaed 0mer Oohra N +ompany
U 9arachi Ilectric /upply +orporation
U 9ohinoor Inergy
U 9ohinoor Te"tile -ills
U 9ohinoor Weaing -ills
U :akson Tobacco
U :ucky +ement
U -aple :eaf +ement @actory
U -ari 7as
U -ee>an 8ank
U -etropolitan 8ank .ational 4efnery
U -illat Tractors
U -+8 8ank :imited
U -y8ank :imited
U .ational 8ank of Pakistan
U .asim N 8rothers
U .estle -ilkpak
U .ew Aubilee !nsurance
U .ishat 2+hunian5
U .ishat -ills
U .ishat /huaiba Paper Products +ompany :imited
U 0il N 7as ?eelopment +orporation
U 0ri" :easing
U Packages :imited
U Pakitan /u>uki -otor +ompany
U Pakistan .ational /hipping +orporation
U Pakistan 0ilfelds
U Pakistan Petroleum
U Pakistan PT&
U Pakistan 4efnery
U Pakistan 4einsurance
U Pakistan /erices
U Pakistan /tandard 0il
U Pakistan Tobacco
U PI&+I !nternational .etwork
U P!&+
U P!+!+
)*
U P!+!+ +ommercial 8ank
U P!+!+ 7rowth @und
U Prime +ommercial 8ank
U PT+:
U 4afhan -ai>e Products
U /ammi ?aewoo I"press
U /audi Pak +ommercial 8ank
U /ecurity Papers
U /hakarganj /ugar -ills
U /hell Pakistan
U /iemens Ingineering Pakistan
U /itara +hemical !ndustries
U /onutech
U /oneri 8ank
U /tandard +hartered -odaraba
U /ui .orthern 7as Pipeline
U /ui /outhern 7as +ompanyPP%QQ
U True :ight /ports 2www.tlightsports.com
U Dnileer Pakistan
U Dnion 8ank
U Wa>ir &li !ndustries
U World+&:: +ommunications
U /iddiMuesons Tin Plate :td
),
SUMMARY AN- CONCLUSION
K)' in5et in Pa"itanL
The !nternational @inance +orporation 2!@+5, a subsidiary of the World 8ank annually
prepares a report called ?oing 8usiness. !t basically looks into the regulations that
promote or limit business actiity from country to country. The regulations include
those that inCuence arious phases of business like ease of doing business, starting
up a business, inestor protection etc. Iach of these regulations is assigned a
Muantitatie indicator. This study is applied to most deeloping nations and also
deeloped nations of &sia.
Figure 1<: .$o&a$ ran"ing o! Pa"itan in Eae o! -oing *uine
The graph aboe shows the ranking for SIase of ?oing 8usiness of the
countries on which !@+ carried out the study. &s we can see, Pakistan has
faorable rankings. !t is the second most business-friendly country with a
score of =*, ahead of some of the other deeloping nations like /ri :anka,
-aldies, Igypt, .epal etc. When doing business is so easy and simple, there
is no reason for other inestors to not come and inest in Pakistan.
0ther than that, in Pakistan it also not that complicated to start up a
business, as the statistics in the ne"t page would say$
)#
-ata (330 (33/ (313
Ran" - =6 ,(
Proce+ure
6nu%&er:
%% %% %6
Ti%e 6+a': ') ') '6
Cot 6M o!
inco%e per
capita:
%) %'., *.=
Min8 capita$
6M o!
inco%e per
capita:
o 6 6
Ta&$e /: Stating up a &uine in Pa"itan
&s we can already see from the data aboe, the rankings hae improed in '6%6
from '66E considerably. @rom being the =6
th
country in the world for haing simple
business-startups, it is not the ,(
rd
. The number of procedures you hae to go
through also has been minimi>ed to %6 and the time to start up a business has also
gone down to '6 days from ') days in '66E. +ost has gone down substantially.
Whereas it would take %'.,< of income per capita in '66E, it now only takes *.=<
of income per capita. 0f course the minimum capital as u can see is 6< of income
per capita.
&nother reason for inesting is Pakistan is the high leel of protection inestors will
receie.
)=
Figure 1=: Ran"ing o! Pa"itan in t)e FIn5etor ProtectionF Fie$+
&ccording to the fgure in the preious page, we see Pakistan ranks third
amongst the gien countries in proiding inestor protection. The higher the
score, the more protection. Pakistan is ahead of -aldies, .epal, and /ri
:anka etc. This again is an incentie for @?! because this establishes
Pakistans credibility in terms of proiding a Ssafety net for the inestors.
/ome of the other reasons for inesting in Pakistan are as follows$
7eo-strategic location$ Pakistan is situated in the Sheart of &sia. !t is
surrounded by the oil-rich +entral &sian countries, the fnancially stable
7ulf economies and of course the booming economies of the Iast.
Trained workforce$ &s already mentioned before, Pakistans literacy
rate is rising day by day, and the goernment has high hopes for it
improe een more in the future. -ost of the workforce is Cuent in
Inglish, hae international e"perience, adeMuate training and
knowledge.
Iconomic 0utlook$ Pakistans economy is growing at a ery good rate.
8eing the si"th most populous country can proide opportunities in
terms of a huge market and consumers. @?! inCows improed from
K(66 million in the E6s to appro"imately K(.# billion in '66=-6E. The
fscal defcit has also gone down to (< from #< in %EE6s.
!nestment Policies$ Pakistan has ery attractie inestment policies,
which proide a lot of incenties for @?!. They hae been made to cater
to the needs of the inestors. -ore information about them will be
proided in the ne"t page.
@inancial -arkets$ Oast improements hae been made in the capital
and money markets. The stock e"changes of the country hae
undergone moderni>ation and the /ecurities and I"change
+ommission 2/I+5 are deeloping the regulatory enironment of the
corporate bond markets, stock e"changes and leasing sectors. Ta" and
tariB systems also hae had faorable changes made to them, while
the banking industry has e"perienced high returns on inestment.
In5et%ent Opportunitie
Pakistan is looking for inestments in the following sectors$
%. Iducation$ I"panding inestment in education would further raise
literacy rates and will take the country into the direction of deeloped
nations
)E
'. !nfrastructure$ There are many opportunities for inestors in this area.
(. Telecommunications$ &s stated before already, the telecommunications
industry is booming in Pakistan.
). Te"tiles$ Pakistanis te"tiles are world-famous, and inestment in this
sector will allow for further improements and diersity.
*. Power, 0il, -inerals and 7as$ Pakistan has a great many reseres of
natural resources still une"plored. This proided a good opportunity for
inestors.
Po$ic' Para%eter Manu!acturing Sector
4emittance of capital, profts,
diidends, etc.
&llowed
Dpper :imit of foreign eMuity allowed %66<
-inimum !nestment &mount 2- K5 .o
+ustoms duty on import of P-I *<
Ta" relief 2!?&, < of P-I cost5 *6<
4oyalty N Technical @ee
.o restriction for payment of royalty N
technical fee.
7oernment Permission .ot reMuired e"cept ) specifed industries
Ta&$e 13: In5et%ent Po$icie in t)e Manu!acturing Sector
Po$ic'
Para%eter
Non2
%anu!acturing
Sector
&griculture
!nfrastructure N
/ocial
/erices including !T
N Telecom /erices
7ot. Permission .ot reMuired e"cept specifc licenses from concerned agencies.
4emittance of
capital, profts,
&llowed
*6
diidends, etc.
Dpper :imit of
foreign eMuity
allowed
%66< %66< %66<
-inimum
!nestment
&mount 2- K5
6.(
6.( 6.%*
+ustoms duty on
import of P-I
6< *<
6-*<
Ta" relief 2!?&, <
of P-I cost5
*6<
4oyalty N
Technical @ee
&llowed as per guidelines - !nitial lump-sum upto K%66,666 - -a"
4ate *< of net sales - !nitial period * years
Ta&$e 11: In5et%ent Po$icie in t)e non2%anu!acturing ector
&ll in all, Pakistan, as a deeloping nation is way ahead than many other
nations of similar status. /o, inestment and trade is encouraged to further
steer the nation into the correct direction.
*%
REFERENCES
*'