pakistan economy

Pakistan’s economy is still very dependent on agriculture. The sector contributes 25% to GNP but employs nearly 50% of the labour force. Industry contributes approximately 18% to GNP and services about 50%, of which wholesale and retail trade account for 15%, and transport and communication for 10%. As a result of the importance of the agricultural sector, climatic conditions and water resources have a significant impact on the yearly economic performance.

Pakistan presents numerous and significant opportunities for investments aiming both at using Pakistan as an export base and at tapping an emerging market with a rapidly growing middle class.

The legal situation, arbitration schemes and protection of rights issues are being improved. Labour is usually very cooperative while skills depend a lot on sectors concerned. The banking system is efficient and liquidity is not presently a problem. There are practically no foreign exchange controls on capital and dividend repatriation.

The largest export sector of Pakistan is the textile and apparel sector with nearly 70% of the total exports; the balance is made up of cereals (mainly rice), miscellaneous manufactured goods (mainly toys and sports goods), chemicals, food and fish products and scientific instruments.

The European Union is the single largest trading partner of Pakistan and during fiscal year 2003, the share of Pakistani exports to the EU markets was in excess of 30% of Pakistan’s total exports. (Source: European Commission – Asia Invest Programme)

UK exports to Pakistan were worth £464m in 2005 and £489m in 2006. Britain and Pakistan have always enjoyed good trade relations.

The UK is the fourth largest OECD exporting country to Pakistan, with an 9.2 percent share of the market. It is listed as the third largest investor in the country