OPORTUNITIES FOR FOREIGN INVESTORS IN PAKISTAN

Pakistan is one of the progressive economies in its region with a GDP growth rate of 5.8% in 2007-08. Pakistan’s GDP growth is likely to touch eight percent in the next three years, as the economy has withstood the impact of global recession. The 2nd Quarterly Report for the year 2008-09 has shown fall in trade deficit, the first time in seven years. Remittances have been robust and is expected to reach a record of US& 7.5 billion. The fiscal and current account deficit are likely to fall to 4.5 percent and 5.8 percent respectively. Exports in 2008-09 are expected to be close to US$ 19 billion like last year, while imports are likely to be around US$ 31 billion. Exports during the 9-month July 08 – March 09 was US$ 13.4 billion. Imports were US$ 26.1 billion. The exports at US$ 1.3 billion in March 09 registered 3.7 percent growth over February, 2009. In addition to textiles and Rice, exports included seafood, cement, sanitary ware, engineering products, pharmaceuticals, carpets, fruits/vegetables, etc. Pakistan received record remittances in March 2009 at US$ 739 million making July 08 – March 09 total at US$ 5.6 billion which makes target of US$ 7.5 billion within reach.

Foreign investors have continued to prefer Pakistan. This foreign investment has rising sharply from US$ 300 million in the 1990s to over US$ 5.1 billion in 2007-08. 600 multinational companies are comfortably operating in Pakistan and making huge profits for far higher than in any other country. This is evidence of the fact that Pakistan is a safe place for investment, contrary to speculative media reports.

There are five good reasons for foreign investment in Pakistan:

  1. Geo-strategic Location: Located in the heart of Asia, Pakistan is the gateway to the energy rich central Asian States, the financially liquid Gulf States and the economically advanced Far Eastern tigers. This strategic advantage alone makes Pakistan a marketplace teeming with possibilities.
  2. Trained Workforce: A large part of the workforce is proficient in English, hardworking and intelligent. Pakistan possesses a large pool of trained and experienced engineers, bankers, lawyers and other professionals with many having substantial international experience.
  3. Economic Outlook: Pakistan is one of the fastest growing economies of the world having touched a GDP growth rate of 8.4% in 2005.Today Pakistan has 160 million consumers with an ever growing middle class. Fiscal deficit has declined from an average 7% of GDP in the 1990s to around 3% in recent years. And FOREX reserves have increased from $ 3.22 billion in 2000-1 to $ 11.6 billion in June 2009.
  4. Investment Policies: Current investment policies have been tailor made to suit investor needs. Pakistan’s policy trends have been consistent, with liberalization, de-regulation, privatization, and facilitation being its foremost cornerstones.
  5. Financial Markets: The capital markets are being modernized, and reforms have resulted in development of improved infrastructure in the stock exchanges of the country. The Securities and Exchange Commission of Pakistan has improved the regulatory environment of the stock exchanges, corporate bond market and the leasing sector. Whilst the federal Board of Revenue has facilitated structural reform in tax and tariffs and the State Bank of Pakistan has invigorated the banking sector into high returns on investment.

EXPO PAKISTAN

Trade Development Authority of Pakistan (TDAP) takes pride to organize the 5th edition of International Trade Exhibition “Expo Pakistan” scheduled from December 3 – 5, 2009 at Karachi Expo Centre.

The show features a diversified portfolio of high quality products including textile, leather, food, engineering, minerals, gems & jewellery etc from leading local and regional manufacturers and exporters.

Expo Pakistan provides a well designed prescheduled meeting programme to meet with quality manufacturers and exporters of your choice. The Foreign Missions of Pakistan in various countries are actively coordinating with TDAP to assist international trade delegates in making Expo Pakistan a comfortable and rewarding experience.