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discussions, stats, and author profiles for this publication at: http://www.researchgate.net/publication/275289063
1 AUTHOR:
Khalid Ahmed
University of Cambridge
13 PUBLICATIONS 28 CITATIONS
SEE PROFILE
2014. 04
Contents
1. Some Macroeconomic Indicators
2. Key Benchmarks
3. Business Environment
4. Business and Trade Reforms
5. 5-Reasons to Invest in Pakistan
6. Attractive Investment Policy
7. Key Challenges
Contents
8. Opportunities
9. Political Outlook
10. Sharif s Govt. and Politico-Economic Agenda
11. Pak-China Strategic Relations and Future Trade Prospects
12. Pak-India Relations and Kashmir
13. Policy Challenges
14. Conclusions
21%
53%
26%
Agri
Industry
Services
Main Industries
Textile and apparel Leather
Chemicals
Mining
Engineering
Motorcycle
Paper
Food processing
Construction
Machinery
Software
Auto parts
Fertilizer
Pharmaceuticals
Cement
Steel
Hardware
Electronics
Shrimp
Textile (Garments, apparel, bed, linen, cotton, yarn, etc), Rice, Leather
Goods, Sports Goods, Chemicals, Manufactures, Carpets & Rugs
and Electrical equipments etc.
US (13.6%),
China (11.1%),
UAE (8.5%),
Afghanistan (7.8%),
India (2.1%),
Turkey (2.0%),
Iran (1.8%)
Petroleum Products,
Machinery,
Transportation equipments,
Edible Oil
Tea
Electronics-
-Products,
Plastics
UAE (12.1%),
EU (10.4%),
Kuwait (6.3%),
Malaysia (3.9),
India (3.7),
Japan (3.6),
Iran (3.4%),
USA (3.2%)
World Rank
Regional Rank
Sri Lanka
85
Maldives
95
Nepal
105
Pakistan*
110
Bangladesh
130
India
134
Bhutan
141
*In 2010, Pakistan was 85th in world and 1st in South Asia
Source :World Bank
Special
Economic
zone
Population
and Work
Force
5
Reasons
Investment
Policy
Economic
Outlook
Manufacturing
Sector
Non-Manufacturing Sector
Agriculture
Govt. Permission
Remittances of profit,
dividends, etc.
Upper Limit of foreign
equity allowed
Infrastructure and
social
Services including
IT & Telecom
Services
Allowed
Allowed
100%
100%**
100%
100%
5%
0%
5%
0-5%
25%
25%
*Arms and ammunitions ,High Explosives. Radioactive substances Security Printing, Currency and Mint. No new unit for the manufacturing of alcohol,
except, industrial alcohol ** Only for CAF (Corporate Agriculture Farming)
PME= Plant, Machinery and Equipment
IDA= Initial Depreciation Allowance>
Source: Board of Investment(BOI), Government of Pakistan. http://boi.gov.pk
Population
Growth
Challenges
Budget
Deficit
Low
Savings
Public &
External
Debts
Megawatts (MW)
20000
15000
Demand
Supply
10000
5000
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Note: In 2013 Pakistan had plant capacity of 19,588 MW but could only generate 10,000 to 15,000 MW.
Source: Private Power Infrastructure Board, www.ppib.gov.pk
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1576
1728
1715
1852
1979
2152
2322
2601
3266
3852
4651
6014
7638
9521
27.5
27.8
29.9
30.6
31.2
32.1
33.9
36.4
40.7
46.4
50.0
54.6
53.2
47.9
52.5
63.4
60.1
57.7
57.9
59.7
60.2
60.4
68.3
81.4
85.5
86.0
94.5
99.1
1442
1761
1795
1766
1810
1913
2041
2201
2778
3776
4270
4694
5030
4747
c) Total Debt (a + b)
3018
3489
3510
3618
3789
4065
4363
4802
6044
7629
8921
10709
12668
14268
3826
4163
4402
4823
5641
6500
7623
8673
10243 12724
14837
18063
20091
22909
513
553
624
721
806
900
1095
1298
1851
2078
2261
2566
2969
- GDP
78.9
83.8
79.8
75.0
67.2
62.5
57.2
55.4 59.0
60.0
68.1
59.3
63.0
62.3
- Revenue
588
631
563
502
470
452
398
370
412
429
474
494
481
GDP (mp)
Total Revenue
1499
403
66.4
65
65.8
63.9
61.1
60
55
52.4
50
46.3
45
38.9
40
35
30.1
32
32.6
33.6
40.5
37.9
37.1
36.5
35.4
35.3
35.8
37.6
30
25
20.5
21.2
20
12.9
15
10
8.8
5
1980- 1987- 1989- 1990- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 201281
88
90
91
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
External Debt
20
15
Savings
Inflation
10
Note: Population in 1983, 88.5 mn. and in 2012 ,179.1 mn. (doubled in 30 years)
Source: World Bank
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
1999-00
1998-99
1997-98
1996-97
1995-96
1994-95
1993-94
1992-93
1991-92
0.0
1990-91
Date
0.0
(1.0)
(2.0)
(2.4)
(3.0)
(3.3)
(4.0)
(3.7)
(4.3) (4.3)
(5.0)
(6.0)
(5.9)
(5.4)
(5.6)
(7.4)
(8.0)
(8.0)
(9.0)
(8.7)
(10.0)
(5.4)
(6.1)
(6.5) (6.4)
(7.0)
(4.2) (4.3)
(7.7)
(6.3)
(6.6)
(7.4)
(8.5)
(8.8)
% of GDP
15
Exports %
10
Imports %
5
Net %
0
1967
71
75
-5
-10
-15
Source: World Bank
79
83
87
91
95
99
03
07
2012
2000
Total Aid Flow
1500
US aid Flow
1000
500
0
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Million US $
2500
-500
-Poverty
(In 2008 there were 17.3% people living below poverty line in Pakistan but in 2012 this ratio rise to
22.4%. Poverty is a common issues of whole region and it needs to be resolved collectively as a quick reme
dy)
Population
(The population growth has been very high which has been a major concern for lower growth a
nd higher unemployment rate.
buildings, I.T
and communication in order to compete with other developing and emerging economies and for the attainm
ent of sustained growth rate.
It has 1046 KM Coast line having fast enough winds and sunlight throughout the year , that are
the potential renewable energy sources, which are yet unutilized.
Being an agricultural country the bio-fuels can be exploited at large.
Although the agriculture productivity has declined during last two decades but country is self
sufficient in food crops, however the productivity can be increased in both cash and food crops
that can boost the GDP growth.
Pakistan has worlds 7th largest scientist and engineers pool and 60 million young labor force.
Pakistan neighbors with worlds most populous and giant economies i.e. China and India. There
are many bilateral comparative advantages that can enhance trade potential.
Pakistan lies nearest to worlds 2/3 of oil producing countries (gulf).
First time in the history, the military institution has shown great support for strengthening of
democratic process.
Sharifs Govt. has always been business friendly during its past tenures and at present as well.
The recent bilateral relations with India has been the most friendly as compare to last decade.
The Govt. has taken drastic measures for investors security by providing fool proof security
measures with help of army and other law enforcing agencies.
The ongoing process of peace talks with Taliban has further ease to conduct business activities.
The Govt. is seeking national consensus on all the political and economic issues which is also a good
sign.
Straight of Hormuz
Drugs dealing
Weapon and arms spread
Illegal cross border trade
Terrorism
Extremism
Talibanization
Again this time the pleasant Civil-Military
relationships is a challenge for sustainable
political situation
Civil-Military relations
The deterioration of economic growth during 2009~12 was mainly because of global financial crisis and two consec
utive worst natural disasters of country's history.
But Pakistan still managed to secure its 4th position in world banks ease of doing business in South Asia, which wa
s 1st in 2010 report.
Owing to Governments pro-active economic policies, the economy hit 5% growth rate for 1Q-FY 14, compare to o
nly 2.9% 1Q-FY 13, although the target set for FY-14 is 4.4%.
Pakistan lacks in basic and IT infrastructure i.e. Buildings, roads, communication, transportation, e-government etc.
Due to weak disaster management system, country is fragile to natural calamities and disasters.