It gives me immense pleasure that Pakistan has celebrated 75 years of its independence, with monumental successes in varied fields including the economy. It is historically-evidenced that at the time of independence, Pakistan faced myriad of the economic, social and political problems.
Pakistan’s economy was mainly dependent on agriculture and with a small industrial base. Pakistan’s major exports were primary raw materials mainly exported to India (almost 60% of exports) and imports were mainly manufactured goods. Pakistan’s total exports in 1948-49 were Rs.984 million, comprising of mainly jute, cotton & cotton yarn, and hide & skins.
Pakistan inherited a weak industrial base and there was no large-scale manufacturing industry. The share of manufacturing in GNP in 1949-50 was only 6% but even this was shared largely by the small- scale industries (4.4%). Soon after independence Pakistan embarked upon an ambitious industrial development programme aiming at import substitution.
Today, Pakistan has a large industrial base in textile & clothing, consumer goods, petroleum refining, engineering and electronics, cement, fertilizer, sugar, iron & steel, automobiles, sports & surgical goods, home appliances etc. The local industry is not only fulfilling most of the requirements of the country, thus saving billions of foreign exchanges, but is playing a major role in exports as well.
With its unique geo-strategic location, vast human resources and a huge untapped growth potential, Pakistan provides attractive incentives and liberal policies for investment in all sectors of the economy for foreign and local investors. The traditional as well as non-traditional sectors of our economy offer the business community great opportunities to invest in the country and to have maximum dividends on their investments.
The value-added textiles, food processing, information technology, logistics, automobiles and tourism sectors are some of the areas where great potential exists for investment to the mutual benefit of all. The Government of Pakistan is cognizant of various challenges to its economy and is undertaking every possible effort to overcome these challenges and ensure a business friendly climate.
With over 210 million inhabitants, Pakistan offers its investors a strong and large consumer market with an ever expanding middle class. Strategic location at the crossroads of South Asia, Central Asia and West Asia and close proximity to the Gulf countries, makes Pakistan a promising regional hub and an important market for intra and inter-regional trade and investment. Pakistan as an investment destination, offers investor friendly policies with the commitment to resolve and enhance the business competitiveness in the region.
Almost all sectors of economy are open to investment with attractive incentives and liberal policies to give investors a competitive and thriving business environment.
Today, Pakistan has an edge over all its regional competitors. The country offers equal opportunities to foreign and local investors. As an emerging economy, Pakistan offers the opportunity of diversification to global players with strong intention to structural reforms in various sectors of the economy. Pakistan presents vast investment opportunities with lucrative returns to investors.
Ministry of Commerce has always played the key role in providing ease of doing business to the trade and industry of Pakistan. Ministry of Commerce has been playing an important role in the multilateral negotiation at World Trade Organization (WTO) as a founding member of the WTO and implemented all WTO agreements through domestic legislation or amendments in existing laws. Pakistan is also signatory to plural agreement on Trade Facilitation and made considerable progress in reducing the time on clearance of goods at ports, automation of customs procedures, and recently setting up Pakistan Single Window.
Ministry of Commerce has also signed Free Trade Agreements (FTAs) with China, Malaysia, and Sri-Lanka and has been negotiating FTA with Thailand and Turkey in order to have greater market access of Pakistan’s exports. Due to untiring efforts of Ministry of Commerce the European Commission (EU), United States of America (USA), Switzerland, Norway, Turkey, United Kingdom, Canada, Australia, New Zealand, Japan, Russia, Belarus, and Kazakhstan have granted Generalized System of Preference (GSP) status to Pakistan. The GSP status allows almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential tariff rates.
The Ministry of Commerce has very recently unveiled the National Priority Sectors Export Strategy (NPSES), with a focus on 10 priority sectors to achieve growth in exports. It is part of the Strategic Trade Policy Framework 2020-25, in which the focus was on 18 priority sectors.
Syed Naveed Qamar
Pakistan Rupee Exchange Rate