Pakistan an Emerging Market in South Asia

Mike Moignard
Senior Trade Commissioner
South Asia
Pakistan an Emerging Market in South Asia
Country Info
Pakistan an Emerging Market in South Asia
Map of Pakistan

Austrade Offices

Tony Burchill, Trade Commissioner (Pakistan)

Azhar Shah, BDM Islamabad

Tahir Mahmood, BDM Karachi
Imran Saeed, BDM Lahore
Pakistan an Emerging Market in South Asia
Country Info

•Population: 153 mill (2004)

•Capital City: Islamabad
•Major cities (Karachi, Lahore, Islamabad, Peshawar,Quetta)
•Per Capita Income US$ 769 YR05 (LY US$ 669)
•GDP Growth rate: 8.4% YR05 (LY 7.5%)
•Inflation: 9.3%
•Agriculture based Economy
•Languages: Urdu, but English widely spoken and understood
•A$ 1 = PKR 45.00 US$ 1 = PKR 59.50
Pakistan an Emerging Market in South Asia
Country Info

•Major Industries
–Textile, Sugar, Vegetable Oils,
–Agricultural products, Cement,
–Fertilizers, Steel, Chemicals,
–Sporting goods & carpets
•Major Trading Partners
–US, Japan, Germany,
–UK, Saudi Arabia & UAE
Pakistan an Emerging Market in South Asia
Pakistan on the Move

Pakistan is no exception and many of you would

rank Pakistan as one of the more unfamiliar or
perhaps more difficult countries in which to do
business

But I am here to tell you there is a change in the

wind – Pakistan is on the move for the better

PAKISTAN It’s Easier Than You Think!

Pakistan an Emerging Market in South Asia
Pakistan on the Move

PAKISTAN: A Move for the Better

Politically Pakistan is now a substantially more stable

environment than it has been for the last 20 years

Government that is very pro business oriented

It has set in place reform packages to stimulate the economy

and to promote domestic growth

The economy has achieved one of the highest annual growth

rates in South Asia
Pakistan an Emerging Market in South Asia
Pakistan on the Move

Pakistan’s economy has made significant progress

during the last six years, because of major
economic reforms,
•Industry & Investment Reforms
•Government Reforms
•Financial Sector Reforms
•Fiscal Responsibility & Debt Limitation Law
•Tax Reforms
•Agricultural Reforms
•Privatisation
Pakistan an Emerging Market in South Asia
Pakistan on the Move

A vibrant Economy spurred by FDI and domestic

investment

•Reform policies institutionalised ensuring continuity

•Confidence of the private sector restored
•Fiscal and current account deficits lowered
•Declining domestic and external debt
•Increased foreign exchange reserves
•Exports growing at double-digit rate
Pakistan an Emerging Market in South Asia
Trade Statistics – Australia

AUD Million
Year 2002 2003 2004 2005

Exports 427.2 355.4 504.5 468.8

Imports 203.1 174.1 155.3 139.3

Pakistan an Emerging Market in South Asia
Australian Exports 2005 – Major Items

•Oils Seeds
•Vegetables
•Cotton
•Coal
•Fertilizer
•Telecom equipment
Pakistan an Emerging Market in South Asia
Australian Imports 2005 – Major Items

•Textile Manufactures
•Cotton Fabrics
•Rice
•Medical instruments
Pakistan an Emerging Market in South Asia
Bilateral Relations

Established diplomatic relations with Pakistan in 1947

Recognised Pakistan’s key role in the war on terrorism

June 2005 - President Pervez Musharraf visited Australia

Nov 2005, PM John Howard Visited Pakistan

Australia contributed more than $80 mill to Pakistan during last year Earthquake
$39 mill five-year support package for 500 high-achieving students to study in
Australia

Commercial links between Australia and Pakistan include BHP Billiton’s investment
in Pakistan
People to People links are expanding
Currently there are more than 2000 students studying in Australia
2005 Australia/Pakistan Trade at $608 mill
Pakistan an Emerging Market in South Asia
Australian Ventures

BHP Billiton
Clipsal
Leighton
Tethyan Copper
Interscan Navigation
Clough Engineering
SMEC International
and many others represented by Agents
Pakistan an Emerging Market in South Asia
Key Industry Sectors

•Education & Training

•Agribusiness
•Health & Medical
•Oil & Gas
•Building & Construction
•Multilateral Projects (ADB-WB)
•Information Communication & Telecom
•Defence & Aviation
Pakistan an Emerging Market in South Asia
Pakistan Market Attractions

•Rapidly Growing Market

•Custom Duties Reforms – 0% custom duties on Raw Material
used for re-export and equipment/machinery not available
locally
•Infrastructure Development
•No restriction on payment of Royalty
•Tax Free Industrial Zones
•Liberal Investment Policy
•100% equity share by foreign companies
•Local Packaging & Distribution
•Presence of Foreign Banks
•Easy Transparent Payments, Wire-Transfer , Letter of Credits
•Pakistan Business Visa issued on Arrival at any Airport
Pakistan an Emerging Market in South Asia
Missions to Pakistan – Australia, Visits

•Australian PM Visit to Pakistan

•Australian Dairy Industry visits to Pakistan
• Australian Education Exhibitions
•Dawn Education Exhibitions
•Companies Individual Visit program
•Pakistan IT Companies Mission to Australia
•Pakistan Buyers Mission to Australia to meet
– Fine Food, Australian Sugar Industry
–Australian Dairy Industry
–Oil seeds, pulses dealers
–Multilaterals sector companies
Pakistan an Emerging Market in South Asia
Summary

PAKISTAN

A Market Location with Great Potential

•With Fast Moving Economy
•Strategically located in South Asia
•Provide access to other countries, ie
–Afghanistan, Iran, CIS countries
•Open to All
Pakistan an Emerging Market in South Asia

THANK YOU
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

PAKISTAN

It’s Easier Than you can Think

Opportunities for Australia

Continued by

Azhar Shah – Business Development Manager

PAKISTAN
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

PAKISTAN
It’s Easier Than you Think….
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Education
Pakistan is a significantly increasing market for the international education
providers and Australia is increasingly being recognised as a supplier of a quality
education services with very significant advantages in terms of cost vis a vis the
UK and USA.

Promotion of Australian education services in conjunction with AEI is a key

priority for Austrade in Pakistan

2005/06 DIMIA has issued 1200 student visas to

Pakistani students to study in Australia

•Opportunities for institutions are to recruit students

–for TAFE, Diplomas, Undergraduate and
–Postgraduate programs
Market entry though Exhibitions / Agents
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Agribusiness
Rapidly growing population,
•Increased in agricultural output
•opportunities are for the import of
–Pulses/Lentils
–Canola oilseeds
–Packaged food
–Agribusiness development projects

Dairy & Livestock

•Great deal of requirement for dairy cattle/farming and dairy processing equipments

•Pakistan Dairy Mission recently visited Australia to meet with Australian Dairy companies
for the import of livestock and technical collaboration. Approx. 5000+ cows will be imported
in the next 12 months, Experts are already visiting each others.
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Health & Medical

Pakistan Government has set the priorities in health sector too for
–Investment in better medical facilities
–Provision of better medical services
–Improved health delivery
–Private sector involvement in new hospital projects

Opportunities exist for the supply of

–Medical equipments,
–Hospital beds
–Pharmaceutical drugs,
–Diagnostics, Vaccines
–Surgical services – in Australia
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Building & Construction

–Residential apartments,
–high rise buildings
–Commercial buildings
–Roads Infrastructures
–Airports
–Power Sector development
–Ports and Shipping
–Railways
–Communications
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Multilateral Projects
(Agribusiness, Education, Governance)
–Project Management & Consultancy
–Education & Training
–Skills Development

ADB/WB Projects
–Balochistan/NWFP Education US$310 mill
–Punjab Education US$ 850 mill
–Punjab Irrigation & Municipal US$ 159 mill

Technical Assistance projects

–Power Distribution
–Sindh Basic Urban Services
–Policy Reforms, Punjab Resource Management
–Capacity Building, Social Services Program
–Science Education Project, Improving Governance
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Information Communication & Telecom

–Software development, packages
–Banking networks & services
–E-Government projects
–Video Conferencing
–Telecom equipment & services
–Cellular equipment & services
–Value Added Services
–New Telecom projects in remote areas

Defence & Aviation

–Defence Equipment
–Aviation Equipment
–Radar, Surveillance Systems
–Security, Consultancies
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

THIS
CONCLUDES
MY
PRESENTATION

SO WHERE DO WE GO FROM HERE ?

Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Action – Next Steps

Quick Market Assessment on your product

Appointment of a suitable Business Agent
Establishing an on ground presence
Detail Market Research
Visiting the Market
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

In Pakistan contracts are won through

persistence and working networks of contacts

The locals know the game, they have the

contacts, the leads and know how to facilitate

Question: How do you find such an agent or

partner, market research, market assessment
Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

CONTACT: Austrade Pakistan

We are suitably located in 3 major cities
covering the whole of Pakistan:
Islamabad, Karachi & Lahore

We can assist and facilitate your request

Doors are always unfastened

Pakistan an Emerging Market in South Asia
Business Prospects and Opportunities

Pakistan is definitely
Easier Than you Think

Thank you for attending this Seminar

Happy to Answer your Questions