With a population of around 215 million, Pakistan is the 6th largest country in the world. 64% of the population is under the age of 29 years, making Pakistan one of the youngest countries in the world with respect to age distribution. A predominantly young population means an increasing demand for goods and services, which makes Pakistan an attractive place for trade and investment.

Pakistan is strategically located to become Asia’s premier trade, energy and transport hub. It is the gateway to Central Asia, Middle East and East Asia. Pakistan provides the shortest land route to the land-locked Afghanistan and Central Asian States. Pakistan is the home to the world’s largest deep-sea port, Gwadar Port, which is an important part of the China Pakistan Economic Corridor and has been developed with Chinese assistance. These strategic advantages make Pakistan a marketplace teeming with possibilities.

In manufacturing, Pakistan is the 8th largest exporter of textiles in Asia. It is one of the few countries in the world which have a complete textile chain starting from production of raw cotton and leading up to manufacture of finished garments. Pakistan is known as a producer of top quality footballs, which are used in important sport events in the world including the FIFA World Cup.

In services, Pakistan has thriving trade, transport & communications, financial, and Information Technology sectors. The ITC industry has witnessed tremendous growth in recent years. In June 2019, the country had 70 million Broadband subscribers and more than 160 million cellular subscribers. The country is also blessed with abundant natural and historical riches. Four out of the 10 highest peaks in the world are located in Pakistan, including the world’s second highest peak, K2, which is located in the famous Karakoram Range (connects Pakistan with China). Pakistan has a rich and diverse cultural heritage and a fascinating history, which are a source of numerous cultural landmarks situated all over the country. These include mosques, forts, mausoleums and national monuments, which hold immense attraction for tourists.

Alongside its breathtaking landscape and rich cultural heritage, Pakistan has a robust, stable and diversified economy. It is the 4th largest producer and 3rd largest consumer of cotton, 4th largest producer of milk, 6th largest producer of dates and mangoes, and 8th largest producer of wheat. It also has the world’s 2nd largest salt mine.

Exports from Pakistan enjoy preferential market access to 32 countries with a combined population of 2.5 billion including access to EU GSP+. Labor cost in Pakistan is competitive (USD 124 per month) compared with other regional economies. This along with a business friendly environment and liberal policies should give a lot of confidence to investors from all over the world in Pakistan.  

China-Pakistan Economic Corridor is a key component of the Belt and Road Initiative, the flagship initiative of China for multilateral cooperation and connectivity. The CPEC connects the Xinjiang province of China with the Gwadar Port. The first phase of CPEC focused on energy and infrastructure development. Phase-II focuses on industrial and agriculture development. 09 Special Economic Zones are being set up in different parts of Pakistan. The Government of Pakistan offers a number of incentives for investment in these Special Economic Zones, which include:

Pakistan has the most Liberal Trade & Investment Regime in South Asia. In principle, import and export of all commodities is freely allowed and no government permission is needed. In Pakistan all economic sectors, except arms, high explosives, radioactive substances, security printing, currency and mint, which pertain to national security, are open to foreign investment. Foreign investment is fully protected by law. Up to 100% foreign ownership is allowed; there is no minimum requirement for amount of foreign equity investment; investors have full freedom to repatriate profits and dividends. Pakistan offers a business friendly environment. In 2020, Pakistan’s ranking on World Bank’s Ease of Doing Index improved by 28 points to reach 108, which is one of the highest improvements among all countries.

Pakistan’s Investment Policy Matrix