Doing Business in Pakistan
Pakistan has embarked upon a program of IMF supported fiscal and structural reform to relieve energy shortages and guide the economy toward faster, more sustainable growth.
Pakistan's economy is made up of the services sector, industry/manufacturing and agriculture. Agriculture is a mainstay of the economy, accounting for up to 25.1% of total Gross Domestic Product (GDP), with around half of the country's population depending directly or indirectly on agriculture for their livelihood. Major imports include petroleum products (22.1% of total), crude petroleum oils (13.6%) and palm oil (4.6%).
Pakistan lags behind many other countries in the region on measures of per capita income, creditworthiness, growth and business climate. Poor law and order, violence and power shortages are estimated to have shaved more than two percentage points off annual growth.
Natural disasters and poor governance have kept growth below 4% over the last five years. It is expected to improve marginally in future years, although fiscal consolidation to limit high deficits will limit the pick-up. The uneasy political environment and ongoing border disputes remain other impediments.
On a positive note, the government has embarked upon a program of fiscal and structural reform, supported by the IMF to relieve energy shortages and guide the economy toward faster, more sustainable growth. Favourable demographics also spur growth potential.
Doing Business in Pakistan
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Why do business in Pakistan?
The government has embarked upon a program of fiscal and structural reform.
Pakistan's economy is made up of the services sector, industry/manufacturing and agriculture. Agriculture is a mainstay of the economy, accounting for up to 25.1% of total Gross Domestic Product (GDP), with around half of the country's population depending directly or indirectly on agriculture for their livelihood. Major imports include petroleum products (22.1% of total), crude petroleum oils (13.6%) and palm oil (4.6%).
Pakistan lags behind many other countries in the region on measures of per capita income, creditworthiness, growth and business climate. Poor law and order, violence and power shortages are estimated to have shaved more than two percentage points off annual growth.
Natural disasters and poor governance have kept growth below 4% over the last five years. It is expected to improve marginally in future years, although fiscal consolidation to limit high deficits will limit the pick-up. The uneasy political environment and ongoing border disputes remain other impediments.
On a positive note, the government has embarked upon a program of fiscal and structural reform, supported by the IMF to relieve energy shortages and guide the economy toward faster, more sustainable growth. Favourable demographics also spur growth potential.
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Business etiquette in Pakistan
Do not introduce yourself to strangers.
- You will likely be asked many personal questions about yourself and your life in Australia, and discussions may often appear to focus on completely unrelated topics. You should view this as part of the process of getting to know you.
- Conversations are generally indirect, and you may only be able to achieve a promise that they will "try".
- Do not try to schedule meetings during Ramadan. The working day is a shortened one, and fasting means they will not be able to offer you tea.
- Do not introduce yourself to strangers – it is considered rude. Wait for someone you have already met to introduce you.
- Given names are not commonly used. It may be useful to ask the person how they wish to be addressed.
- Do not shake hands with members of the opposite gender. It is also considered inappropriate to ask questions about a member of the opposite gender – never enquire about a colleague's wife or daughters.
- You should stand when being introduced to elders or seniors, as a sign of respect.
- Pakistanis do not have the same concept of personal space that we do. People will often stand very close to you while they talk to you. It is important not to back away.
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