Invest in Pakistan

By August 13, 2019 September 5th, 2019 Investment, Recent

Strategic Location

Pakistan, with a total area of nearly 800,000 square kilometers, is the 36th largest country in the world. Its neighboring countries include Iran, India, China, and Afghanistan. Consequently, this makes Pakistan a good location for businesses in sectors such as agriculture and trade. Its location near China and India allows Pakistan to be a key player in regional development.

Continuous GDP Growth

Pakistan’s economy has seen a notable GDP growth. As a result, in 2017, the GDP of Pakistan increased by 5.28%, making it one of the fastest growing emerging markets in the world. Their major industries contributing to this growth are textiles, garments, agriculture and construction materials.

Rapidly Growing Population

Pakistan has a population of over 200 million people. It is the 6th most populous country in the world. Furthermore, Pakistan’s population is rapidly growing and is predicted to reach 300 million by 2050.

Competitive Labor Cost

The minimum wage for the unskilled workers in Pakistan is currently around Rs. 15,000 ($125) per month. High skilled workers, on the other hand, have the average monthly wage of Rs. 41,100( $339).

Young and Skilled Workforce

The median age of the population is 22.7 which makes Pakistan’s workforce very young and the country to gain from demographic dividends for the next decades.

Emerging Middle Class

Together with a growing economy, Pakistan’s middle- class is also emerging. Currently, Pakistan’s middle class is estimated to be over 80 million people – a large number considering that is already the population of Germany alone. On top of that, its middle class is expected to even surpass Italy and UK’s in a forecast period between 2016-2021.

Improving Infrastructure

Even more, the government recognizes the importance of improving and expanding infrastructure services in Pakistan. This sustains both economic and social development.

Increasing Inflow of Foreign Investments

Unlike many other similar markets, Pakistan is very encouraging towards foreign direct investment (FDI). To attract more FDI, the government has made it easier to start a business here and also offers several investment incentives to foreign investors.

Foreign Investment Incentives

Pakistan offers various grants and incentives to foreign investors. These incentives include, for example: Tax concessions, Double tax treaties , Low-interest loans, Research and development Consequently, there are also specific laws to safeguard foreign investors, including the Foreign Private Investment (Promotion and Protection) Act 1976 and the Protection of Economic Reforms Act 1992.

Low Competition

There are challenges like political instability or poor quality of infrastructure which have also kept the competition in Pakistan low. However, Pakistan has a unique combination of a huge and rapidly growing population and economy and government’s active involvement in lowering entry barriers to foreign investors.

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