Pakistan

MARKET OF PAKISTAN

PAKISTAN'S MARKET OVERVIEW

Pakistan has official religion of Islam and is the second-largest Muslim country in the ‎world. Pakistan's GDP growth rates have seen a steady increase over the past five years. Pakistan, a member of the World Trade Organization since 1994, has substantially reduced tariffs on imported goods since 1998. All kinds of investment banks and financial development institutions and investment funds are responsible for transferring money and capital flows in the country. Road transport is the backbone of Pakistan's transport system.

Where is Pakistan?

Pakistan has official religion of Islam and is the second-largest Muslim country in the ‎world
Pakistan has official religion of Islam and is the second-largest Muslim country in the ‎world

Pakistan is the official name of the Islamic Republic of Pakistan, a country in South Asia located in the western part of the Indian subcontinent. It shares a 1,000-kilometer water border with the Oman Sea to the south and borders Iran to the west, Afghanistan to the north, India to the east, and China to the northeast. Pakistan covers an area of ​​881,913 square kilometers and has a population of 228,935,145. Its capital is Islamabad and its largest city is Karachi. The official languages ​​of Pakistan are English and Urdu. It is the official religion of Islam and is the second-largest Muslim country in the world.

About 97% of Pakistanis are Muslims, of which 77% are Sunnis and 20% are Shiites. About 3% of the country's population follow other religions. The country's largest religious minorities are Christians and Hindus.

This region has an ancient history of life and civilization, which includes the Indus Valley civilization. It became independent from India in 1947 as a new state and state. In 1971, the civil war led to the secession of East Pakistan, known as Bangladesh. Since independence, the Federal Republic of Pakistan has gone through periods of military and economic growth as well as instability since Bangladesh seceded. The Federal Republic of Pakistan is the seventh-largest armed force in the world. Pakistan is the seventh country in the world in terms of the number of permanent military forces, it is one of the nuclear powers and one of the countries with nuclear weapons, and the only Islamic country holding it.

The Kashmir region is claimed by India and Pakistan. Both countries run parts of the region separately, and these areas are separated by a line of control.

Pakistan is a developing country that has faced challenges on the political and economic fronts. Despite being very poor in 1947, Pakistan's economic growth rate has been better than the global average for the next four decades. But unintentional policies led to a decline in the rate in the 1990s.

How is economic changes in Pakistan?

Pakistan's GDP growth rates have seen a steady increase over the past five years
Pakistan's GDP growth rates have seen a steady increase over the past five years

Extensive economic changes have recently led to stronger economies and accelerated growth rates, especially in the manufacturing and financial services sectors. We have also seen great improvements in the foreign exchange position and rapid growth in fixed currency resources in recent years. Foreign debt in 2005 was estimated at $ 40 billion. However, this debt has been reduced with the help of the International Monetary Fund and debt forgiveness from the United States. GDP in 2005 was estimated at $ 405 billion, and its per capita GDP was $ 2,400.

Pakistan's GDP growth rates have seen a steady increase over the past five years. In 2001, the country's GDP growth rate was 1.8, but in the fiscal year ending June 30, 2005, the nominal GDP growth rate reached about 8.4. This made Pakistan the second most populous country in the world after China. However, inflationary pressures and lower reserves, as well as other economic factors, make it difficult to maintain growth.

The growth of non-agricultural sectors has changed the structure of the economy, and now the economy accounts for only 20% of GDP. The service sector accounts for about 53% of the country's GDP, of which the major and minor trade of the country is about 30%. Recently, the Karachi Stock Exchange has peaked along with other emerging markets around the world. Huge amounts of foreign investment have been used in many industries. However, the per capita stock market is still telecommunications, software, automobiles, textiles, cement, fertilizers, steel, and shipbuilding.

Another important industry that has been denied access in the past is aerospace. Various artillery brigades in the army have already helped expand Pakistan's military ammunition. There are rumors of possible public or private involvement in future missile programs that could be linked to Pakistan's space program; because the country's current capabilities include short-range ballistic missiles and research on intercontinental ballistic missiles. A structural approach to utilizing these aerospace capabilities may lead to a faster Pakistani economy, as the aviation industry has already seen significant growth in recent years, with the presence of several airlines.

Other important industries in Sialkot include pipe making, leather, clothing, music equipment, surgery and dentistry, sports equipment including martial arts clothing, gloves, medals, chairs, canes, cutlery, hunting knives, air rifles, and shotguns. Exports of these industries generate billions of dollars in foreign exchange earnings annually for Sialkot. Part of Pakistan's auto parts industry is also active in Sialkot. In addition, sectors such as the production of wooden and steel sofas, rubber products, cooking utensils, bicycles, tires, and bicycle tubes and shoes are also present in Sialkot.

Another important industry that has been denied access in the past is aerospace. Various artillery brigades in the army have already helped expand Pakistan's military ammunition. There are rumors of possible public or private involvement in future missile programs that could be linked to Pakistan's space program; because the country's current capabilities include short-range ballistic missiles and research on intercontinental ballistic missiles. A structural approach to utilizing these aerospace capabilities may lead to faster economic growth in Pakistan, as the aviation industry has already seen significant growth in recent years, with the presence of several airlines.

Pakistan Customs Law

Pakistan, a member of the World Trade Organization since 1994, has substantially reduced tariffs on imported goods since 1998
Pakistan, a member of the World Trade Organization since 1994, has substantially reduced tariffs on imported goods since 1998

The decline peaked in 2002, and the government set four tariff groups, including 5, 10, 20, and 25 percent, for various goods. This rate is even lower than the WTO tariffs, and the average tariff is now close to 2.15 percent, a significant reduction from 1994 (56 percent). The tariff is 25% for most consumer goods, 10% for intermediate goods, and 5% for raw materials, and no goods are subject to customs for export from Pakistan.

Restrictions on exports and imports in Pakistan are as follows:

  • The federal government is allowed to restrict or prohibit the entry and exit of goods or to impose new regulations on them, following laws passed and in exceptional circumstances.
  • The federal government may, by printing a notice in an official journal or newspaper, subject to certain conditions and restrictions, which it deems necessary, on each of the imported or exported goods, as set out in the tariff tables, to a maximum of the value decided. To impose duties to regulate that product.
  • No goods are allowed to be exported or imported without a license issued by the official authorities and following legal procedures.

Pakistan Export Laws
There are no restrictions on exports to Pakistan and only exporters must register with the Pakistan Export Promotion Office and obtain an export registration number.

Pakistani banking laws and how to transfer money and capital

All kinds of investment banks and financial development institutions and investment funds are responsible for transferring money and capital flows in the country
All kinds of investment banks and financial development institutions and investment funds are responsible for transferring money and capital flows in the country

Responsible for Pakistan's monetary policy is the Ministry of Finance and the Central and State Banks. All kinds of investment banks and financial development institutions and all kinds of investment funds are responsible for transferring money and capital flows in the country.

In the field of money transfer, since 1994, Pakistan has set new principles for currency conversion. In other words, importers do not need prior authorization to withdraw foreign currency and make their payments through FEBC foreign exchange remittances, which can be purchased in Pakistani currency (rupee) and can be easily converted into foreign currency. Of course, opening a credit account for the transfer of remittances requires various assessments such as the quality and type of imported products. Export-dependent currencies must be stored at the Central Bank of Pakistan and received in exchange for currency.

To convert currency, the Central Bank of Pakistan calculates the exchange rate of rupees to various currencies in US dollars and adjusts it based on the following.

  • Relative changes in the currencies of Pakistan's main foreign trade partners against the dollar
  • The extent of Pakistan's inflation gap with these foreign partners

Pakistan tax laws
Taxes in the Government of Pakistan are collected following the laws of the central government from all sources of direct taxes and consumption and sales taxes, including customs duties, consumption and sales. However, state governments levy land taxes, agricultural income taxes, real estate taxes, and other sharp local taxes. Direct taxes usually include wages, real estate income, business income, capital gains, and other sources of income. Pakistan's tax year ends on June 30 every year for 12 months.

But the central government also considers December 31 of each year as the end of the fiscal year. The taxpayer includes a natural or legal person.

Export to Pakistan
Pakistan's total imports of goods in 2017 were $ 55.6 billion, making it the 47th largest exporter in the world.

The article "Exports to Pakistan" contains complete information about the top imports of Pakistan, exporting countries to Pakistan, the largest source of imports from the continents to Pakistan, along with practical diagrams and..

Imports from Pakistan
Pakistan's total exports in 2017 were $ 24.8 billion, making it the 68th largest exporter in the world.

Transportation in Pakistan

Road transport is the backbone of Pakistan's transport system
Road transport is the backbone of Pakistan's transport system

The 9,574 km long National Highway and Motorway network - which is 3.65 percent of the total road network - carries 80 percent of Pakistan's total traffic.

Ports & Shipping 

  1. Karachi Port Trust (KPT): The steady and continuous progress made by KPT has helped boost the national economy over the years with international trade ever-increasing in a globalized world. The KPT had an annual cargo handling size of 30.8 million tons during 2006-07, showing a slight decrease of 4.4 percent over last year’s record cargo handling of 32.3 million tons. However, there has been a rise in activity during the first seven months of the current fiscal year, showing remarkable increase in all types of cargo handling including bulk, Break bulk and containers. Figures show that during the first seven months of the current fiscal year, already 20.5 million tonnes of cargo has been handled.
  2. Port Qasim: Port Qasim is the first industrial and commercial port of Pakistan operating under landlord concept. Today it caters for around 40% of shipping requirements of the national economy. During the last financial year 2006-07, PQA handled a record volume of 24.3 million tonnes cargo showing an impressive growth of around 13% over corresponding period. However, from July to March of the current financial year, 2007-08, PQA handled 19.76 million tonnes of cargo depicting a growth rate of 10% over the same period last year. Cargo volume also surpassed the budget targets by 3% during the same period under review.
  3. Gwadar Port: Gwadar, a district of Balochistan enjoys a strategic position on the coastline with immense trade potential for not only Pakistan, but also for the region in general. The purpose of developing a port at Gwadar is to stimulate economic growth in the western and northern parts of Pakistan, utilizing the available coastline resources of the country and also providing and outlet for land-locked Central Asian Countries and Afghanistan through transit trade and offering trans-shipment facilities. With a fully equipped and well-functioning port at Gwadar, Pakistan will be able to promote trade and transport with Gulf States, China, Europe, Africa and Central Asian Countries; unlock the development potential of hinterland; divert the influx of human resources from upcountry to Gwadar instead of Karachi; provide a socioeconomic uplift of Gwadar, the province of Balochistan and the country in general; establish shipping related industries; reduce the congestion and dependency on existing ports; and serve as a regional hub for major trade and commercial activities.

Pakistan International Airlines (PIA)
 The year 2007 turned out to be an exceptionally difficult year for PIA. The Airline experienced a series of financial, operational and marketing problems during the past year that severely hampered its performance. In the early part of the year, an operating restriction was placed on PIA flights by the European Union. Apart from providing a negative image for the Corporation, this translated to a loss in market share as well as growth in business which made the situation exceptionally difficult. An unprecedented increase in oil prices adversely impacted PIA’s bottom line and neutralized recovery efforts. Attempts were made to contain the impact of a rising fuel bill by reducing the utilization of older and fuel inefficient planes. The airline was also mired by increases in pay to certain categories of personnel and a depreciation of the Rupee against the Dollar.

Pakistan Railways
 An efficient transportation system plays a vital role in the economic development of a country. The government vision for economic growth and poverty reduction requires massive investment and development of infrastructure for sustainable economic growth. Pakistan Railways has a definite edge over roads for long haul and mass scale traffic movement both for passengers and freight in addition to providing a safe, economical, and environment friendly mode of transport. Throughout world history, rail traffic has played an important part in the development and economic prosperity of nations. Railways are a valuable source of employment while generating large Transport and Communications 229 amounts of revenue to the benefit of the economy.

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