Islamic Republic of Pakistan Business Practices

Ali Hassan

Shahid Ali

➢ Overview of Pakistan

➢ History

➢ Geography

➢ People & society

➢ Government

➢ Economy

➢ Business practices

CONTENTS

▪ Official Name: ISLAMIC REPUBLIC OF PAKISTAN

▪ Capital City: ISLAMABAD

▪ Province: 6

▪ Population: 217,398,737

▪ Area: 513,120 km2

▪ Official Language: URDU

▪ Currency: Pak Rupee (PKR)

Overview of Pakistan

History➢ The history of the Islamic Republic of Pakistan began on 14 August 1947.

➢ Pakistan government's official chronology started with the Islamic rule over Indiansubcontinent by Muhammad bin Qasim which reached its zenith during Mughal Era.

➢ In 1947 Pakistan consisted of West Pakistan (today's Pakistan) and East Pakistan (today's Bangladesh).

➢ The constitution of 1956 made Pakistan an Islamic democratic country.

➢ Pakistan faced a civil war and Indian military intervention in 1971 resulting in the secession of EastPakistan as the new country of Bangladesh.

➢ Pakistan is a nuclear power as well as a declared nuclear-weapon state, having conducted six nucleartests in response to five nuclear tests of their rival Republic of India in May 1998.

➢ Terrorism due to War of Afghanistan damaged the country's economy and infrastructure to a greatextent from 2001-09 but Pakistan is once again developing.

➢ Many economists and think tanks suggested that until 2030 Pakistan become Asian Tiger and CPEC willplay an important role in it.

GeographyPakistan is a South Asian country shared It’s borders with 4 countries:

India, China, Iran, Afghanistan.

It has coastlines on the Gulf of Oman and the Arabian Sea.

Religion

96.0% Islam (Official)

1.85% Hinduism

1.5% Christianity

0.6% others

People & Society

▪ The current population of Pakistan is 217,398,737 as ofFriday, April 03, 2020, based on the latest United Nationsestimates.

▪ Pakistan population is equivalent to 2.81% of the total worldpopulation.

▪ Pakistan ranks number 5 in the list of countries by population.

▪ 34.9 % of the population is urban (75,510,639 people in2019)

▪ The median age in Pakistan is 22.0 years.

Pakistani FoodPakistani cuisine can be characterized by a blend of various regional cooking traditions ofthe Indian subcontinent, Central Asia as well as elements from its Mughal legacy.

BARYANI

Biryani is a special meat andrice biryani dish originatingfrom the Sindh provinceof Pakistan. Owing to itspopularity, it forms one of themost consumed dishesof Pakistani cuisine and Sindhicuisine

MUTTON HANDI

Meat has many verities to cook.This is very popular version ofmeaty recipes named muttonhandi. You can serve it with roti,naan or paratha.

BUTTER CHICKEN

Butter Chicken is one of themost popular curries at anyPakistan restaurant around theworld. Aromatic golden chickenpieces in an incredible creamycurry sauce.

SEEKH KEBAB

Seekh kebab, which literallymeans kebab on a skewer, aretraditionally made on anoutdoor grill over coals that addas much color as it does flavorto the kebabs.

Pakistani Desserts

kheer is made of milk, rice, sugar and fragranced with green cardamom, kewra or saffron. Kheer is generally milky in colour and smooth in texture.

Sheer khurma is made of milk, vermicelli, sugar, nuts, dry fruit, ghee and fragranced with cardamom, kewra or saffron. Sheer khurma is usually milky golden in colour and can be thin or medium thick depending on the cooking method

Halwa is many types of dense, sweet confections. It is very well cooked food ingredientwith or without milk, but mostly has a handsome quantity of sugar and ghee. There is avariety of popular halwas in Pakistan.

Government

The Government of Pakistan پاکستانحکومتِ is a federal government established bythe Constitution of Pakistan as aconstituted governing authority ofthe four provinces of a parliamentarydemocratic republic, constitutionallycalled the Islamic Republic of Pakistan.

PM Imran Khan

Government

State: PAKISTAN

Leader: Prime Minister

Appointed by: National Assembly

Main organ: Cabinet

Responsible to: National Assembly of PAKISTAN

Headquarters: Prime Minister House, Islamabad, PAKISTAN

Emblem

State emblem of Pakistan. Ribbon vert, backed argent uponwhich is written in argent the word national motto in theUrdu language. The state emblem of Pakistan was adopted in1954 and symbolizes Pakistan's ideological foundation, thebasis of its economy, its cultural heritage and its guidingprinciples.

Flag

The national flagof Pakistan جمہوریہإسلامىپاكستان ,lslamic Republic ofPakis̱tan was adopted in itspresent form during a meetingof the Constituent Assembly onAugust 11, 1947, just threedays before thecountry's independence, whenit became the official flag ofthe Dominion of Pakistan.

Overview of Economy

After several experiments in economic restructuring, Pakistancurrently operates a mixed economy in which state-ownedenterprises account for a large portion of gross domesticproduct. (GDP)

Agricultural Sectory13%

Industrial Sector15%

Commodity Producing Sector28%

Services Sector44%

GDP CONTRIBUTION BY SECTORS

The GDP in Pakistan was worth 312.57 billion US dollars in 2018. The GDP value of Pakistan represents0.50 percent of the world economy. GDP in Pakistan averaged 75.28 USD Billion from 1960 until 2018.reaching an all time high of 312.57 USD Billion in 2018 and a record low of 3.71 USD Billion in 1960.

Gross Domestic Product

Gross Domestic Product per capita

The Gross Domestic Product per capita in Pakistan was last recorded at 1196.60 US dollars in 2018. TheGDP per Capita in Pakistan is equivalent to 9 percent of the world's average. GDP per capita in Pakistanaveraged 705.67 USD from 1960 until 2018, reaching an all time high of 1196.60 USD in 2018 and arecord low of 304.20 USD in 1960.

Inflation

Pakistan’s annual inflation rate increased to 11.63 percent in August of 2019 from 10.34 percent in theprevious month

Major local companiesName Industry Sector Found Notes

Adam Motor Company Consumer goodsAutomobiles

2003Automotive division defunct on 2006, only rehabilitation products are manufacturing.

AirblueConsumer services Airlines 2003 Private, low-cost airline

Al-Ghazi TractorsIndustrials

Commercial vehicles & trucks 1983Tractors, agricultural

equipment, diesel generating sets manufacturer

Arif Habib Group Conglomerates Building materials & fixtures 1970

Cement, energy, fertilizer, financials, power generation,

real estate, steelCement, energy, fertilizer, financials,

power generation, real estate, steel

Bareeze Consumer services Apparel retailers 1985Fashion retailer

CA Sports Consumer goodsPersonal goods 1958 Sportswear

Foreign Investors

CHINA PAKISTAN ECONOMIC CORIDORE

• Total Investment 62 Billion US dollars

• One of the biggest project in South ASIA

• Largest direct invest of China in any other counter.

• A part of one road Belt & Road Initiative (BRI).

• 40 to 70 thousand Chinese engineer's are Working.

• CPEC are going to produce 800,000 jobs.

• CPEC has already produced 75,000 jobs and the (Special Economic Zones)

Five biggest Chinese investments in the Pakistan arm of the Belt and

Road Initiative• World Deepest Seaport

• Infrastructure.

Special Economic Zones ,Roads, Railway, Transportation, Airports,

• Energy.

• Telecommunication.

• Karakoram Highway

Saudi Arabia To Build $10 Billion Oil Refinery In Pakistan's Gwadar

"Saudi Arabia wants to make Pakistan's economic development stable throughestablishing an oil refinery and partnership with Pakistan in the China-PakistanEconomic Corridor," Saudi Energy Minister Khalid al-Falih

Natural Resources • Coal: Coal reserves are estimated at 175 billion tons. This would equate to 618

billion barrels of crude oil

• Oil and Gas: Natural gas production is at a high level in Pakistan. Estimatedreserves are 885.3 billion cubic meters

• Forestry: Forests are limited to 4% of Pakistan’s land.

• Mining: Pakistan has large gold, copper, rock salt, gypsum, limestone,chromite's, iron ore, rock salt, silver, precious stones, gems, marbles, tiles, sulfur,fire clay, and silica sand deposits

• Land: About 28% of Pakistan’s total land area is under cultivation. Pakistanboasts one of the largest irrigation systems in the world.

• Uranium: Pakistan has a long history of exporting small amounts of uranium

• Water: The fishing industry plays a role in the national economy of Pakistan.The coastline is 814km and fishery resources still have room to grow. Fishing inPakistan is a major source of export earnings.

Major Imports and Exports of Pakistan

❑ The economy of Pakistan is the 24th largest in theworld in terms of purchasing power parity (PPP).

❑ 42nd largest in terms of nominal gross domesticproduct.

❑ Giving it a nominal GDP per capita of $1,357 in 2019.

Top export destinations are China, Germany, UK, USA, and Afghanistan. Pakistan export 186 products around the world.

Pakistan exports the high quality rice to Oman, UAE, Kenya, Thailand, Jordanand many other countries. Pakistan produces the best quality basmati rice. Thisyear Pakistan has exported 2.59 million metric tons of rice in total which hasthe value of 1.224 billion US$.

Pakistan produces 110 kinds of mangoes. Mango is the 2nd largest fruit crop and2nd major exported fruit in Pakistan. Pakistan mainly exports mangoes to Iran,China, the Middle East, Japan, Hong Kong, and Germany. Pakistan is the 5thlargest mango producer in the world.

Pakistan export fresh Oranges of the best quality around the world. It hasexported 370,000 metric tons of Oranges this year. This is the highest exportvolume recorded that generated $222 million for the country. Pakistan exports bestquality Oranges to Russia, Philippine, Iran, Sri-Lanka, Indonesia, Singapore, SaudiArabia, Canada, Bangladesh, Malaysia, and the UAE.

Cotton Fiber, Spun Cotton, and Raw Cotton are exported as the top cash crop ofPakistan. Pakistan export cotton to China, Germany, USA, UK, France, Russia,Italy, Spain, Canada, Brazil, Australia, Netherlands and many other countries.country exported about 332,325 metric tons of cotton yarn worth $859.716million during the same 8 month period and also exported textile products worth of$8.793 billion

Pakistan exported around $478.85 million worth of leather goods during the 8months of current financial years. Leather goods are among the top export productsof Pakistan which include bags, jackets, pants, shoes, and other daily wear products.Major importers of leather goods from Pakistan are Russia, Italy, France, Canada,UK, USA, Spain, Netherlands, Australia, and Brazil.

Pakistan has 3600 firms, more than 150,000 workers engaged in manufacturing ofSurgical Instruments of the highest quality for export. Pakistan exported $221.298million worth of surgical and medical instruments in the first seven months of thecurrent financial year. Pakistan exports surgical instruments to USA, UK, Germany,Brazil, France, Australia and Russia.

Pakistan has provided best quality footballs to the world especially in FIFAworld cup matches. Pakistan manufactured top quality footballnamed Telstar for the FIFA world cup held in Russia. In 2014 footballnamed Brazuca was manufactured for FIFA world cup in Brazil. Beforethat, Pakistan has provided hand stitched football for all the world cupsfrom 1990 to 2010. According to Pakistan Bureau of Statics the country hasmanufactured and supplied 37.28 million footballs worth $153.018million to the foreign countries.

Pakistan exports fresh and healthy shrimps and prawns to continents. Ithas exported $264.18 million worth of fish in the foreign market during thefirst eight months of this year. The European Union members states andChina are the biggest importers of seafood from Pakistan.

The most important Pakistani imports also include

➢ Electronics.

➢ Machines.

➢ Plastic.

➢ Clothes.

➢ Iron.

➢ Steel products.

Top import destinations of Pakistan are China, Japan, USA, India, and Indonesia. Pakistan also imports number of goods from different countries.

Pakistan Business Customs

➢ Greetings are therefore often between members of the same sex; however, when dealing with people in the middle class, greetings may be across sex lines.

➢ Men shake hands with each other. Once a relationship is developed, they may hug as well as shake hands.

➢ Women generally hug and kiss. Pakistanis take their time during greetings and ask about the person's health, family, and business success.

➢ Pakistani names often include a name that denotes a person's class, tribe, occupation, or other status indicator.

➢ They may also include two names that have a specific meaning when used together, and the meaning is lost if the names are separated. . It is best to ask a person how they wish to be addressed.

➢ In general, this is not a culture where first names are commonly used, except among close friends.

Dress Code

Dress code in PakistanAppearance is very important toPakistani people. Business dresscode in Pakistan is conservative.Men should wear dark suits, whiteshirts and a tie. Women shouldwear plain conservative dresses orsuits.

References https://en.wikipedia.org/wiki/Pakistan

https://en.wikipedia.org/wiki/List_of_companies_of_Pakistan

https://www.worldbank.org/en/country/pakistan/overview

http://www.pbs.gov.pk/

https://thecommonwealth.org/our-member-countries/pakistan/history

https://www.worldometers.info/world-population/pakistan-population/

https://www.wefindyougo.com/top-10-traditional-pakistani-dishes/

https://www.expatriates.com/classifieds/pakistan/business-partners/

http://www.worldstopexports.com/pakistans-top-import-partners/

http://cpec.gov.pk/

https://www.samaa.tv/news/2019/01/pakistan-saudi-arabia-to-sign-15b-gwadar-oil-refinery-deal-in-feb/