|Pakistan||20ft container||40ft container|
LCL shipping from our London office in Feltham TW14 post code to Pakistan ports
|Total Volume *||Karachi Seaport|
|Destination||50 kilos||200 kilos||500 kilos|
|Destination||50 kilos||200 kilos||500 kilos|
* Documentation surcharge applies to any shipping to Pakistan.
* For an accurate price, please use our online quotation form above and provide detailed information about your shipment requirement to Pakistan.
Pakistan is an emerging market with a young and growing population of around 200 million, according to the World Bank.
Pakistan is the second largest economy in South Asia after India. With a growing middle class, and an affinity for UK expertise, products and brands, there are good opportunities to increase UK exports of goods and services in this unsaturated and rapidly growing market.
UK-Pakistan bilateral trade in 2017 was £2.9 billion. The UK exported £1.1 billion of goods and services to Pakistan. The UK is currently Pakistan’s third largest source of foreign direct investment, after China and the Netherlands.
There are opportunities for British businesses to benefit by integrating Pakistani firms into their supply chains. Pakistan is keen to expand and diversify its export base and is already competitive in products such as textiles, garments, surgical instruments, steel, and sporting goods.
Important sectors for UK businesses in Pakistan include:
UK Export Finance (UKEF), the UK’s export credit agency, has doubled support for Pakistan to £400 million. This additional capacity is to help UK exporters win, fulfil and get paid for export contracts, and to help Pakistan’s buyers access finance to source high-quality UK goods and services.
Benefits for UK businesses exporting to Pakistan include:
Strengths of the Pakistan market include:
Challenges you may face when doing business in or with Pakistan include:
According to the World Bank, Pakistan’s growth continues to accelerate but macroeconomic imbalances are widening. Macroeconomic stability is a major concern for the near-term economic outlook.
World Bank data states that in 2017, Pakistan’s GDP growth increased by 0.8% over the previous year to reach 5.3%. Major impetus came from improved performance of services and agriculture sector. Industrial sector also saw some recovery. Low interest rate environment contributed to the growth in private sector credit, which supported businesses.
According to the International Monetary Fund (IMF), GDP growth is projected at 5.6% for 2018. This is amidst rising infrastructure spending and the implementation of structural and economic reforms.
Under China’s Belt and Road Initiative, the China-Pakistan economic corridor (CPEC) is currently under development. CPEC is a collection of modern infrastructure projects including roads, rails and power plants for improving geographical connectivity in the region.
The EU award of the Generalised System of Preferences Plus (GSP+) status came into effect on 1 January 2014. Pakistan currently receives preferential market access on goods to the EU under GSP+, eliminating tariffs on two thirds of its product lines. This has supported an increase in trade and foreign investment with the EU.
On leaving the EU, the UK government aims to maintain the levels of access Pakistan receives to UK markets under the EU GSP+ scheme. The UK government also wants to explore options to expand the UK’s trade relationship with Pakistan in the future.3.2 Enhanced Strategic Dialogue
The Enhanced Strategic Dialogue includes a range of UK government cooperation with Pakistan. The governments of Pakistan and the UK are committed to co-operating where we have shared interests, including trade and investment, economic stability and development.
According to the ONS Pink Book 2018 total trade in goods and services (i.e. exports plus imports) between the UK and Pakistan was £2.9 billion in 2017, a 7% increase from 2016.
In 2017, UK exports to Pakistan amounted to £1.1 billion (a 10% increase from 2016) while UK imports from Pakistan were £1.8 billion (an 5.1% increase from 2016).This means the UK reported a trade deficit with Pakistan of £656 million, compared to a trade deficit of £672 million in 2016.
Of all UK exports to Pakistan in 2017, £669 million (59.2%) were goods and £461 million (40.8%) were services. Of all UK imports from Pakistan in 2017, £1.2 billion (68.0%) were goods and £571 million (32.0%) were services.
In 2017, the UK had a trade in goods deficit of £546 million and a trade in services deficit of £110 million with Pakistan.
In 2017 (latest available rankings), Pakistan was the UK’s:
According to ONS data on foreign direct investment (FDI) involving UK companies 2016, the stock of UK FDI in Pakistan was £1.4 billion in 2016, 34.1% higher than in 2015. In 2016, Pakistan accounted for 0.1% of total UK outward FDI stock.
Modernising transportation infrastructure and greater regional connectivity is an important element of Pakistan’s plans for economic development.
Pakistan needs new municipal infrastructure. The Government of Sindh is working on improving the state of public transport in Karachi. Karachi, Pakistan’s biggest city, has no official public transit system.
The bulk of Pakistan’s trade is conducted via the sea. Pakistan currently has 2 fully functional ports: Karachi port and Port Qasim. A third port, Gwadar is being upgraded in Baluchistan.
Opportunities for UK companies include:
Other opportunities are available via the Asian Development Bank (ADB) and World Bank who are major stakeholders in Pakistan’s infrastructure development. They include:
According to the Government of Pakistan’s economic survey 2017 to 2018, energy is an important sector of Pakistan’s economy and plays a vital role in the country’s economic development. Pakistan faces energy shortages resulting in power outages in both urban and rural areas. The sector is marred by transmission and distribution losses, which has constrained its growth and development.
Being a developing economy, Pakistan energy requirements are increasing rapidly. Energy generation is top priority for the government of Pakistan which is trying to ensure availability and security of sustainable supply of energy. The Government of Pakistan has encouraged local and foreign investment for establishing power projects and related infrastructure including developing transmission lines.
Over $33 billion is expected to be invested in this sector under the CPEC initiative. It’s hoped that over 10,400MW of energy generating capacity is brought online by the end of 2018.
The electricity from these projects will be primarily generated from fossil fuels, though hydroelectricity and wind-power projects are also included. The Liquefied Natural Gas (LNG) sector is gaining prominence is Pakistan’s energy mix with further LNG import terminal and related infrastructure planned.
Opportunities for UK companies exist in:
CPEC is a set of massive government to government deals between China and Pakistan worth at least $54 billion over the next 15 years.
Two thirds of this is for energy projects. The other third is for road projects between China’s Western border and a port on the Arabian Sea – Gwadar, west of Karachi
CPEC presents huge opportunities for Pakistan and the wider region, bringing economic development, greater connectivity and regional security.
UK companies are well placed to play a role in CPEC projects through provision of:
Pakistan has a mixed health care system, comprising of public and private, formal and informal sectors. All health responsibilities (mainly planning and fund allocation) are devolved to provincial health departments.
Main opportunities in healthcare sector include:
According to the Government of Pakistan’s Economic Survey 2017 to 2018, Pakistan’s literacy rate is 58%. The education sector consists of:
Opportunities exist in:
Pakistan is seeing an increasing growth in shopping centres and availability of retail space.
Potential opportunities exist in:
The general law and order situation throughout the country remains a challenge. The Pakistan security sector is well established and connected to suppliers based in Europe, the US and China. It is a price conscious market, but there are opportunities for high quality products and services.
UK capabilities of interest to Pakistan include:
Opportunities exist in:
Opportunities occur across many sectors, including privatisation of state-owned enterprises. They include a need for:
If you are looking to do business in Pakistan you can set up a company, normally a local subsidiary.
This is a fairly easy process using:
You can also enter the market by:
For direct exports you should appoint a local representative, either on a commission basis or as an importer/distributor.
Pakistan is a market in which can require an investment of time and personal presence. Likewise, product training for the agent’s workforce is essential. Therefore, you should regularly visit Pakistan, especially during the early phase of your set up.
The main government agencies involved in the regulation of companies in Pakistan are:
You are advised to seek legal and taxation advice before entering into a joint venture or similar type of partnership with a local company in Pakistan.7.1 Standards and technical regulations in Pakistan
The Pakistan Standards and Quality Control Authority has responsibility for standards and quality requirements.
The Ministry of Health is concerned with labelling requirements of drugs, cigarettes etc. The Ministry of Food Agriculture and Livestock (MINFAL) is responsible for labelling on food items.
In general, labelling in English and Urdu is required on all consumer products and needs to be approved by the relevant ministry or department. At the minimum, labels need to provide:
Packaging requirements include:
You should use a packing list for all shipments containing more than one shipping unit of packaged cargo.
Most countries require packing lists to be provided together with the commercial invoice. The information must be consistent with all information shown on the commercial invoice.7.2 Intellectual property in Pakistan
The government of Pakistan took measures in 2005 to ensure more effective protection of intellectual property in Pakistan.
Register your brands with the Intellectual Property Organization of Pakistan.7.3 Investment Promotion and Protection Agreement (IPPA)
IPPAs are designed to encourage investor confidence by setting high standards of investor protection applicable in international law. Main elements include:
Main features of Pakistan’s foreign investment policy are:
A UK-Pakistan IPPA came into effect on 30 November 1994.
Pakistan and the UK have signed a Double Taxation Convention in force. Taxes and duties paid in Pakistan can be claimed back in the UK.8.2 Corporate taxation in Pakistan
The corporate tax rate in Pakistan, set by the Federal Board of Revenue, stands at 30%.
The corporate income tax rate is a tax collected from companies. Its amount is based on the net income companies get while doing business, normally during one business year.8.3 Sales tax in Pakistan
The sales tax rate in Pakistan stands at 17%, and is set by the Federal Board of Revenue. The sales tax rate is a tax charged to consumers based on the purchase price of certain goods and services.8.4 Customs duties in Pakistan
Tariffs change annually.
In the 2017 budget the Government of Pakistan reduced the maximum general tariff rate from 25% to 20% (except on vehicles).
Port charges, clearance charges, transportation and the additional duties charged for certain products in addition to the customs tariff.8.5 Import controls in Pakistan
There is a list of banned items that cannot be exported to Pakistan. The list is available on in the Import Policy Order 2015 to 2018
Visitors are not permitted to import alcoholic beverages, except for non-Muslims, who can import enough for their own consumption.
Exports and imports to and from Israel are prohibited.8.6 Documentation for Pakistan
A clearing agent requires:
English is the official business language in Pakistan. People speak reasonably good English and have a good level of understanding.
Pakistan is an Islamic state. Women are expected to dress modestly when attending meetings or visiting some parts of the country. Western attire is acceptable.
Pork is banned in the country. Alcohol is officially banned for Pakistanis, but overseas visitors can buy alcohol at some leading hotels. This can only be consumed on the premises.
Muslims observe the month of Ramadan where they fast from sunrise to sunset. It’s recommended not to plan a business trip during this month as productivity decreases.
Photography of sensitive installations such as bridges, ports and airports is prohibited.