• Pakistan Pakistan
Pakistan

Until recently, Pakistan had internal political disputes and low levels of foreign investment which led to slow growth and underdevelopment. Agriculture accounts for more than one-fourth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings. 

Remittances from overseas workers, averaging more than $1 billion a month, remain a bright spot for Pakistan. After a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to a deficit where it remained through 2014, spurred by higher prices for imported oil and lower prices for exported cotton. In September 2013, after facing balance of payments concerns, Pakistan entered into a three-year, $6.7 billion IMF Extended Fund Facility. The Sharif government has since made modest progress implementing fiscal and energy reforms, and in December 2014 the IMF described Pakistan's progress as "broadly on track."

Pakistan must address long standing issues related to government revenues and the electricity and natural gas sectors in order to spur the amount of economic growth that will be necessary to employ its growing and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors. (Source: Central Intelligence Agency)

Macro economy: Pakistan is a developing country and has the potential to become one of the world's large economies in the 21st century. However, after decades of war and social instability, as of 2013, serious deficiencies in basic services such as railway transportation and electric power generation had developed. Pakistan is a semi-industrialized nation, where the manufacturing and industries sector serve as the back bone of the economy.

According to World Bank estimates, Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The continuing conflict in the border areas and security challenges throughout the country has impacted all aspects of life in Pakistan and is seen as an impediment to development.

Islamic economy:  Pakistan ranks #5 in the Global Islamic Economy Indicator produced by Thomson Reuters. The ranking evaluates quality of the overall Islamic economy ecosystem a country has relative to its size. In the last one year, Pakistan has shown remarkable development in Islamic finance and Halal Food sectors as well as Pharmaceutical and Cosmetics sectors. It also ranks fifth in the Islamic Finance Development Indicator. Thanks to the strong Islamic governance initiatives and a growing awareness in those sectors. According to data from Thomson Reuters, there are five Islamic banks and 18 Islamic banking windows in the country with a total banking asset of $12,563 million. Pakistan has more than 25 Islamic financial institutions.

GIEI Ranking5
Halal Ranking23rd in Global Muslim Travel Index (GMTI 2015)/Crescentrating. Ranks 18 in the world for Halal Meat exports (Trade development authority of Pakistan, 2013)
Major Industries
MAJOR EXPORTSMAJOR IMPORTS

Textiles

Rice

Leather Goods

Sporting Goods

Chemicals

Manufactured Goods

Carpets & Rugs

 Petroleum & Petroleum Products

Machinery

Plastics

Transportation Equipment

Edible Oils

Paper & Paperboard

Iron & Steel

Source: Central Intelligence Agency

 

 

 

Halal-related agencies Intro

Halal Development Council HDC is a registered NGO dedicated to the development of Halal Economy in Pakistan. HDC’s Mission is to provide platforms for Halal Awareness, Research, Standards, Certification, Branding, Marketing, Trade Development, Updates, Investment promotion and Halal Industry development with the objective to promote Pakistan as the Regional Halal Hub and to introduce ‘Halal Pakistan’ brand label in the world as the guarantee for ‘Good Quality’ product. (HalalPakistan.com, 2015)

Halal compliance guidelines Intro

The aim of the HDC is to create awareness in exporters regarding the “Power of Halal” brand, conduct Halal Compliance Training Workshops for Pakistani companies as per International Halal Standards, and to organize Halal Branding Workshops to educate exporters regarding Halal branding, packaging and presentation techniques to add value to their exports.

Halal-related trade and trading

The Pakistan Halal Authority Bill - aims to develop and implement policies and programmes for the promotion of both international and domestic trade in halal products permissible by the laws of Islam.

OIC member Yes
Other regional/global membershipsWTO, United Nations, SAARC
Investment and Export Promotion Agencies Intro

The Board of Investment (BOI) was established with broad based responsibilities of promotion of investment in all sectors of economy; facilitation of local and foreign investors for speedy materialization of their projects and to enhance Pakistan's international competitiveness and contribute to economic and social development.

The BOI assists companies and investors who intend to invest in Pakistan as well as facilitates the implementation and operation of their projects. The wide range of services provided by BOI includes providing information on the opportunities for investment and facilitating companies that are looking for joint venture.  

Trading Corporation of Pakistan (TCP) is the principal trading arm of the Government of Pakistan. Established as a premier international trading house in 1967, the Corporation has gradually moved from barter, through commodity exchange to cash trade. Acting on the directives of the Federal Government, amongst other things, TCP undertakes import of essential commodities to help ensure their availability to the common man at affordable prices.

Investment and Export Promotion Agencies Names Industrial Development Bank Of Pakistan
Trade Agreement
PAKISTAN TRADE AGREEMENTS
 Pak-Afghanistan Transit Trade Agreement (APTTA-2010)
 Agreement on South Asian Free Trade Area (SAARC)
 Pak-Malaysia Trade Agreement
 Pak-Malaysia Early Harvest Programme
 Pak-China Trade Agreement in Goods & Investment
 Pak-China Free Trade Agreement in Services
 Pak-China Early Harvest Programme
 Pak-Sri Lanka Free Trade Agreement
 Pak-Iran Preferential Trade Agreement
Pak-Mauritius Preferential Trade Agreement
Pak-Indonesia Trade Agreement

Source: www.commerce.gov.pk

Company ownership limits
(foreign and local)

Foreign and domestic investors are free to establish and own businesses in all sectors except five: arms and munitions manufacturing, high explosives manufacturing, currency/mint operations, non-industrial alcohol manufacturing, and radioactive substance manufacturing. In retail food sales, the GOP has influenced pricing of essential foodstuffs (such as flour, rice, and lentils) through its several hundred Utility Stores. Market leaders in the cement and sugar industries are alleged to have formed cartels. Investment in the energy sector, particularly conventional gas, is stymied by a policy that underprices resources and fails to safeguard contracts, and by an evolving relationship between and among the federal and provincial governments, whose views on the disposition of natural resources do not always match. The 2012 Petroleum Policy, adopted in August 2012, increased the wellhead price for natural gas to $6 per million British thermal units (mmbtu), as part of an effort to increase exploration and attract new investors to this sector (Source: U.S. Department of State-Investment Climate-Pakistan)