Professional Documents
Culture Documents
100 Performing Ceos and Leaders of Pakistan
100 Performing Ceos and Leaders of Pakistan
100
PERFORMING CEOs
& LEADERS OF PAKISTAN
2014
Exclusive Inspiring Interviews, Success Stories and Case-Studies of Business Leaders,
Presidents, CEOs, High-Profile Entrepreneurs, Women of Substance
and Difference Makers
Investors Guide
Ijaz Nisar
Founder & President
Manager Today Magazine | CEO Club Pakistan
Supported by:
DEDICATION
This book is dedicated to our visionary leader, Quaid-e-Azam Mohammed Ali Jinnah, the
founder and the father of the nation who defined Leadership:
The things that will destroy us are knowledge without character, worship without
sacrifice, politics without principles and leadership without integrity.
I would like to express my sincere gratitude for all the help, support and assistance to the
team of Manager Today. Its contribution and encouragement made the whole venture a
delightful experience. Moreover, this dedication is to honour all those incredible business
leaders, entrepreneurs, women of substance and the next generation of future leaders,
who generously contributed to make it an exciting experience. I earnestly believe the
thoughts and experiences shared will inspire many for decades.
ACKNOWLEDGEMENT
Allah Almighty bestowed upon me the vision to come up with the idea of Manager
Today, a best-selling, professional learning and development magazine for business
leaders, professional managers, and enterprising entrepreneurs. Working untiringly for
five years, I was able to successfully compile the exclusive inspiring interviews and
success profiles of many business personalities and difference makers who belong to
different walks of life, in third edition of exclusive book, 100 Performing CEOs &
Leaders of Pakistan.
The book, 100 Performing CEOs & Leaders of Pakistan, owes its existence to the
unflinching efforts of the Manager Today team, which comprises Numan Ahmed
Siddiqui, Rabika, Huma Mazher, Nadeem Shamsi, Haseeb Nisar, Saqib Shehzad and
Shah Jahan. I am also thankful to the unwavering support of Ms Sijjal and Ali Khizer
(Head of Research) from Business Recorder, who in their professional capacity offered
their expertise. The eagle-eyed professionalism and humorous touch of my team kept the
momentum, and it proved to be a great support during the long months of seeing this
book through the press.
I would also like to express my heartfelt gratitude to the executive committee members
who have always been with me through all rough and rocky times, and have helped me to
transform this idea into reality. People like Mr. Ahmed Husnain, Mr. Rizwan Ali Shah,
Mr. Saleem Ranjha, Mr. Danish Shehryar and I are the real strength behind every success
that has been achieved so far.
Here, I am forever grateful to the contributors and writers; without their valuable input,
the flesh of the book would have gone amiss. We all know that in the hectic routine of
todays life, it is very difficult to take out time even for oneself, but they somehow
managed to do so, and it means a lot to the Manager Today team.
After all this, I present to you the hard work of all those who have been mentioned and
also those who, though, could not be a part of this page but deep down in our hearts,
know the value of their participation.
Ijaz Nisar
Founder & President
CEO Club Pakistan & Manager Today Magazine
Ijaz.nisar@ceoclub.pk | ijaz.nisar@managertoday.co
+92 300 452 1298
CONTENTS
2.
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44.
45.
46.
47.
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49.
50.
51.
52.
53.
54.
Club.)
55.
Ltd.)
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58.
59.
60.
61.
10
62.
11
82.
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101.
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domains. We have miserably failed to project our business leaders as heroes our role
models serving as inspiration for our future generations. Some of these may be unsung
heroes. I have been venting out such frustration at this gap between business and
academia off and on over a period of time. My training and teaching experiences took a
definitive shape and I resolved to bridge the gap between business & academia.
Our concept of 100 Performing CEOs & Leaders of Pakistan was born with the need
that most developed countries have a huge amount of information available about their
business platform and business leaders, about the thought processes of those who are at
the helm of the businesses affairs, whereas, in Pakistan we have scant quality information
about our business leaders. We had to start from somewhere; so MANAGER TODAY
then took small steps forward that we hoped would constitute a comprehensive collection
of inspiring stories; business interviews and case studies of business leaders and their
organizations.
During our research, we found seven key success factors of these 100 business leaders.
But we named the key success factors as "Seven Secrets of Failure", these 100 business
leaders did the opposite of these key factors.
Finally the Seven Secrets of Failures of the top 100 business leaders and difference
makers have been revealed:
1. Lack of Perseverance (Istaqamat):
Most leaders fail not because they lack knowledge or talent, but because they quit. The
total secret of success lies in two words: persistence and resistance. Persistence in what
must be done and resistance what ought not to be done.
2. Lack of Faith (Yaqeen e Kamil):
People who lack conviction take the middle of the road; and guess what happens in the
middle of the road? You get run over. People without conviction do not take a stand. They
go along to get along because they lack confidence and courage. They conform in order
to get accepted even when they know that what they are doing is wrong. They behave
like part of a herd.
3. Rationalizing (Susst - Musst):
Winners must analyse but never rationalize. That is a loser's game. Losers always have a
book full of excuses to tell you why they could not. We hear excuses like
I'm unlucky
I'm born under the wrong stars
I'm not good looking
I don't have contacts
I don't have enough money
The economy is bad
If only I had the opportunity
If only I didn't have a family
And the list goes on.
15
16
This is the first time we are giving the success definitions of Pakistani people like Mian
Mansha, Abdul Razak Dawood, etc. Before, the definitions of European gurus like Steve
Jobs, Shakespeare and others were preferred.
Following are the few expert definitions on Success:
"One should be brave and courageous enough to take risks and tough decisions and
boldly accept their consequences, as it is one of the most essential components of the
spirit of entrepreneurship."
Mian Muhammad Mansha, Chairman, Nishat Group/MCB.
"Success has many sides, it is about being a good family man, and that means being a
good husband and a good father. One should always struggle to be a good Muslim and
give back to society. If you accomplish and create an institution, that is a great
achievement!!!
Abdul Razak Dawood, Chairman, Descon.
"It is not easy to define happiness because it is a subjective thing. Generally, people here
lack emotional stability. However, no matter how many roles a person has to assume in
everyday life, he should be able to maintain a balance of happiness in all of them."
Arif Habib, Chairman, Arif Habib Corporation.
"No matter what the institute is, the major emphasis should be on the development of the
inner soul and mind. Education is the ability to analyse and understand... values are the
fundamental touchstone on which a professional is made."
Hussain Dawood, Chairman, Dawood Hercules Corporation.
The biggest success is that you have contentment. Losing hope is not allowed in our
religion. You should be persistent. If you are constantly working towards some goal, the
divine help is also there for you. If you dont have a goal unfortunately, things would go
bad for you.
Sikander Sultan, Chairman, Shan Foods.
Our vision is to produce world-class professional managers, business leaders and
entrepreneurs for industrial and business development of Pakistan.
Dr. Ishrat Husain, Dean & Director, IBA Karachi.
The word impossible is simply non-existent in a leaders vocabulary. A thing seems
impossible, if you think it is impossible. The best quality of a leader is that he dreams big,
he is an idealist.
Imran Khan, Chairman, Pakistan PTI.
17
We have tried our level best to place equally all these visionary leaders, rather than to
rank them according to any particular competency order. Every individual is a giant on its
own and stands out among the crowd. One should not misunderstand someone who is at
the beginning or at the end. The position is in alphabetic order. While compiling these
success stories, KPIs (Key Performance Indicators) and interviews of CEOs & Leaders or
our research process, focus is on our purpose-built questionnaire shedding light on four
dimensions of leadership and management as mentioned below:
1. On Economy, Business & Finance we asked:
With the country sliding back into serious economic crisis and creating extreme
joblessness, how to fix the economy? Entrepreneurship is a buzzword now a day. How to
create job providers /entrepreneurs rather than job seekers? We are not poor in resources
but in poor governance, could good governance help us deal with this dilemma? What is
your take on good governance? What are the challenges and opportunities in your
industry/sector?
2. On Human Resource, Education and Development it was asked:
With the commercialization of educational institutes, are you happy with the quality of
business graduates being produced? What is leadership to you? Are leaders born or
made? What are the challenges for the business leaders in Pakistan? Differentiate
between a good manager and a good leader? What are the core competencies of
leadership that you want to see in our new managers & business leaders? We are faced
with a dilemma in professional ethics. How can we inculcate a sense of ethics in our
managers? What are the HR challenges and strategies regarding employee retention,
motivation, engagement and performance appraisals at your company?
3. About the Company and Its Future Plan:
What are your vision, mission, core values and shared behaviours that define your
corporate culture? Do you have the high performance team with the right skill-set,
mindset and value-set to lead the business growth? Is training, coaching and mentoring a
high priority for you? How much time/resources do you devote to this? Can you share
your contribution towards CSR (Corporate Social Responsibility)? What steps should be
taken to empower women professionally? Does your company have any harassment
policy? Please share your best management practices for others to follow as a
benchmark? Do you have any plans of expansion? Where do you see your organization
five years down the road? Does your company envision to be Pakistans multinational?
4. Personal and Professional Life Revealed:
Please share with us your professional background as to how it all started? How would
you define your leadership and management style? What has been the toughest decision
that you had taken so far? Define success in three key words or phrases? What is your
idea of happiness? From where do you get your inspiration, personally as well as
professionally? What is your favourite book on personal &professional development that
18
you would recommend others to read? What do you consider to be your greatest
achievement or failure? How do you manage workplace/business stress? How do you
keep your work-life balance? Any significant note of hope to the younger generation of
business leaders, entrepreneur, and managers.
This exclusive book bridges the gap between Business and Academia providing
continuous learning opportunities. The purpose of this book is to promote reading &
learning culture, healthy community, renewed value system, a strong family institution &
developing excellence in human beings. This humble effort is aimed at making a
difference with individuals, organizations and communities by attempting to bring change
in their current cognitive framework. The focus of this book is to learn from others
experiences, providing a space to build positive relationships, bringing new insight &
inspiration and developing leadership with new consciousness.
By the grace of Almighty Allah, previous edition 2013 was dispatched to more than 100
countries, their ambassadors, high commissioners chambers of commerce, federations
and diplomats. We got a huge response from them. This humble effort of the book does
not claim anything big but can make a big difference by creating softer and corporate
images of Pakistan in international horizon.
This book is also part of the syllabus of many business programmes for students of
entrepreneurship and management. It is doing positive branding for Pakistan. It is
highlighting the success stories of Pakistani entrepreneurs that never happened before in
Pakistan before. This book is bringing a mental revolution in Pakistan by reviving the
book-reading culture in Pakistan.
19
20
21
22
23
To consult the people concerned and not impose any decision upon others is called Shura.
Reconciliation on an issue should be achieved while opinion should be given when inner
self is satisfied.
Emotional Stability
Optimism
Assertiveness attitude
Business knowledge/excellence
Professionalism
24
Familys support
Strong belief system
Integrity
Global Vision
This research totally focuses on Pakistani CEOs and business leaders in context of their
respective local environment and circumstances. Their business models and successes
could be compared with their international peers. Analysis, drawn from the given data
reveals ten major factors although they are different but closely correlated with each
other.
The first factor they use for their success is optimism and this is their Pollyannaish bent
of mind towards life that helped them to compose their success in this world. The 1 st
subject reported very clearly, We should not lose hope or think that we cannot get out of
difficult situation, all the leading people and countries were able to achieve glory only
after braving hard times. In this regard other two subjects reported the importance of
clarity of vision and global mindset. This shows the leaders positive approach towards
future and hope for better results in terms of success. The 4 th subject reported leadership
is the ability to see things differently, bring about change in the people showing them new
directions, raising hopes and transforming culture. The 5 th subject said, Leaders are
those who raise hopes amongst people. Visionary leaders are those who can convey their
message to people in an effective manner and then inspire them. They are who can
articulate the vision.
The other important theme extracted from their success interviews is assertive attitude of
CEOs and leaders that provokes confidence in their abilities and themselves. All the
subjects narrated in different ways only one uniformed opinion and that is how to be
efficient, be strong and take risks in business regardless how difficult the situation is. As
1st subject in his interview said, A leader should possess the willingness to lead people
upfront and take risks. Leadership is having the courage to stand up, bring about change
and be counted for your actions. The 2 nd subject reported, Your independence and your
own decisions lead you towards great success.
Another combined theme extracted from these interviews is business knowledge,
excellence and humility of business leaders, different leaders report differently about the
key factors of success in business that totally depends on the leaders himself. The 1 st
interviewee said, Quality of education, knowledge about the business and your own
dreams, skills, excellence in your work, your own values, humility, and sense of direction
take you towards great achievement in business field. And the 2 nd interviewee said,
Your hard work, struggle, commitment, passion and strong beliefs lead you towards
success. And the 3rd said, We must be recognized as true professionals who possess
humility and also provide decent services. The 4 th subject in the interview very clearly
defines in his own way: Naik Niyati, clarity of vision, dedication and team work are the
values religiously followed in our organization and I assure you that by Allah's grace,
guarantee success. Most of the interviews find the characteristics of self-fulfillment,
25
strong belief in oneself, sense of ethics, ability to inspire others and education that
contribute to business leaders personal and professional success. Discerning all the
qualities mentioned above can bring out the secrets of their success at their personal and
professional levels.
Professionalism or professional attitude of a leader in business is a common theme
among the 100 success interviews. Professionalism involves what I find from the coding
of the 1st interview are strictly adhering to rules, objectives, management, human
resource, transforming culture, professional environment, clear destiny and continuous
learning. These are rules they adopted in running their respective organizations.
And other important findings about this topic are the necessity for a leader to have
business knowledge and take responsibility about the business, following the long term
strategy and, focusing on the quality rather than quantity. The 4 th subject quoted that a
business person should keep the business at his/her own hands so that they can explore
the new ways and capitalize everything they use in business. Subject 2 reported keen
interest in work and time management as the right things to do in business. He said, I
used to work for more than fourteen hours a day, from eight in the morning till eleven at
night. But all through that time. I only had one thing in my mind that I have to excel and
get ahead in what I was doing. And about the maintenance of quality he said, I have
never compromised on it. Moreover, I believe that one should always exceed customer's
expectations i.e. always give your customer something extra. From the time I used to sell
cloth on the roads. I learnt the basic lesson of selling quality products, yet perfection is a
literary name that you can give to this endeavor. This is what we call a thoroughly
professional attitude in business. The 4th interviewee said, We neither lend nor borrowed
money, rather we expanded within our own resources. Because of the fact that I did not
have an easy access to money, my competitors always had an advantage over me in this
regard, we worked harder and always believed in the strength of our culture and values.
The most interesting findings are that the leadership style of these leaders is totally in line
with our own culture and context. From the coding of 100 different interviews about the
style of management you can identify a common management style. What the 1 st subject
reported about his own management style is ability to lead people, show new directions
to employees, ability to motivate people, retain your key employees, team work, and
encourage strong points of your employees and empowering your key employees in your
organization. The 2nd subject answered that one should promote a family like
environment in your office, participate with staff, maintain cordial relationships with
workers, conformity with each other, and most importantly focus on solutions rather than
problems. The 3rd subject clearly reported, Training and development of employees is
an important part for the leader to promote team work, transparent dealing, aligning staff
with same goals, respecting employees and encouraging an interactive style of
management. I have a mixed leadership style, a mix of democratic and autocratic. I
would say an interactive management style. The subject of the 4 th interview said, I
clearly enunciate my vision to the top tier of my company's management and allow it to
26
travel down to the concerned sections in the management hierarchy. Subject 5 said, It is
a very difficult question. I think, it is very necessary to know how much knowledge you
have about your business, your market and your products. This knowledge must be
communicated to your colleagues and juniors.
Family plays very important role in their success. Supportive and caring relationship with
your family and their encouragement leads you to happiness and success. We found from
all interviews that all successful leaders unanimously reported the role of their families
behind their success. Some stated that their fathers are their role models, and that their
parents prayers and inspiring families are the main motivation of their success. 1 st subject
reported, I am very lucky to have a wife who shares my dreams. Work-life balance is
easy for me because she gives me a lot of room to fulfill my wishes. 2 nd subject said,
My parents were very simple people. They did not have great ambitions. They always
wished for their children to learn good things and to develop into better human beings. In
fact, my brother has always been a source of inspiration for me. I always looked up to
him for guidance. 3rd subject said, My father is my inspiration both personally and
professionally. 4th subject said, My parents are my role models in my life.
Faith in God plays a vital role in the development of the system of their beliefs. Being
Muslims they strongly believe in the blessing of Allah as they think if you leave all your
cares and worries to Allah and pray to Him for success, Allah will definitely help you. So
there is a strong stream of beliefs in religion present in every successful business leader
as the 1st subject said, One should always struggle to be a good Muslim and give back to
society. The 2nd subject reported, This is all about the blessing of Allah I always seeks
help from Allah in my matters. The 3 rd subject said, I adopt the Islamic values in my
business and I never go against the Shariah Laws. The 4 th subject clearly said, Success
comes by Allah's will! There are people far more brilliant and talented than I am, but
were not able to achieve so much as I have been blessed with. All of this, I believe, is
because of the will of Allah Almighty.
We conclude that there is nothing mysterious behind their success since they exhibit their
talents by doing hard work that leads their business to great success. The abovementioned characteristics reveal the secrets of their success in a crystal clear way.
Conclusion
It is concluded that, the factors significantly contribute to success in business and life; 1)
Optimism, 2) Assertiveness, 3) Professionalism, 4) Effective management or leadership
style, 5) Familys role, 6) Faith in God, and 7) Integrity 8) Emotional Stability 9) Global
Vision. These are considered common secrets of success and behavioral competencies
among 100 Performing CEOs & Leaders of Pakistan, according to the latest research
conducted by CEO Club Pakistan and Manager Today Magazine.
27
Pakistan Vision 2025 presents a strategic framework to overcome obstacles and to meet
the challenges. We aim to achieve the stated goal in Vision 2025 within a generation.
We have to look for energy solutions on a priority basis, because if there would be no
energy then there will be no industry, no production, no revenue and thereby no growth.
We are losing 2-3% of GDP due to the energy crisis. A comprehensive energy policy is
needed instead of treating natural gas, electricity and water separately.
Next comes the reshaping of human and social capital: Our people are the biggest asset.
Development has to be for the people, of the people, and by the people.
The utilization of our indigenous resources is of prime importance for self-reliance and
inclusive growth. It will set us free from foreign loans. The government is giving
attention to areas like science, technology, and innovation for productivity and
competitiveness with a special focus on enhancing export volume.
Then the focus will be on transforming our economy from a low value structure to a high
value structure. In agriculture, industry and production, a complete overhaul is
imperative. Developing a complete value chain in every cluster is the main target.
Through this transition, we can increase exports and production sector performance into
multiples. The backbone of development is a proper and modern infrastructure; its a big
bottleneck for expansion. The government is focusing on urban transport, and energy
infrastructure and our approach is to develop regional connectivity with China, South
Asia, and Central Asia to make Pakistan the hub of trade and commerce in this region.
Development of SMEs and private sector is a major target. We have a big knot of young
population. The government plans to shift youth from job seekers to the self-employed.
The government will encourage them to be entrepreneurs, so that they become self-reliant
instead of looking for jobs.
Without an effective public sector, no policies can succeed. Therefore, an institutional
reform for good democratic governance is a major priority area, starting from police
reforms, taxation reforms, criminal justice system reforms and public sector reforms. Our
public sector machine is outdated. People have lost faith. Quality service insurance and
delivery is essential to have efficient, responsive and effective results. If our machine is
outdated we cannot achieve our goals. By revamping public sector through merit,
transparency, performance indicators and incentives driven methods, we can achieve our
targets. Insha Allah.
Professor Ahsan Iqbal
Federal Minister for Planning,
Development and Reforms
28
INVESTORS GUIDE
PAKISTAN
A DESTINATION FOR
INVESTMENT
OPPORTUNITIES FOR THE LOCAL
& FOREIGN INVESTORS
The Market
Sector Outlook
29
Pakistan is facing enormous economic challenges today. The present government is fully
aware of the fast declining trends in all macroeconomic indicators. The governments top
priority will be the revival of the economy to double the GDP growth rate, from less than
3% in the past five years to over 6% during the next five years. Sustainable and inclusive
economic growth requires optimum utilization of the countrys physical and human
resources and utilizing the technological potential in the industrial and agricultural sector.
The Economy
One of the most important pre-requisite for higher GDP growth would be the progression
in the investment-GDP ratio from 12% at present to at least 20% in the next 5 years. A
balance is needed between fiscal consolidation and growth. Despite the unfavorable law
and order situation, the investment climate can significantly recover with improved
governance.
In the absence of any single strong driver for growth at present, Pakistan will have to
create several mutually reinforcing engines of growth to meet the emerging economic
challenges in this age of globalization.
The government will contribute special primacy to the following sectors:
Higher investment in the energy sector,
Attracting foreign investment in the agriculture and livestock sector to facilitate
exports of high value products to the regional markets,
Identifying growth prospects in the IT sector,
Large-scale infrastructure projects
Pakistan holds sizeable reservoirs of oil, gas and other minerals. The government will
pursue minerals exploration and abstraction with renewed vigour while ensuring absolute
protection of the interests of the nation. Foreign investment would be encouraged and
facilitated in this sector. Development of this sector will be a game changer for Pakistans
economy.
A vibrant domestic commerce is a pre-requisite for innovative entrepreneurship, quality
declaration and product development. Domestic commerce will be encouraged by
focusing on areas like competitiveness, fortification, market regulation, wholesale
markets, retail markets, storage and warehousing, transportation and real estate.
30
Foreign investment
Foreign Investment inflows in Pakistan (Million US$)
Year
FDI
Privatization
Proceeds
Total FDI
2001-02
357.00
128.00
485.00
-10.00
2002-03
622.00
176.00
798.00
22.00
2003-04
750.00
199.00
949.00
-28.00
2004-05
1,161.00
363.00
1,524.00
153.00
2005-06
1,981.00
1,540.00
3,521.00
351.00
2006-07
4,873.20
266.40
5,139.60
1,820.00
2007-08
5,276.60
133.20
5,409.80
19.30
2008-09
3,719.90
0.00
3,719.90
-510.30
2009-10
2,150.80
0.00
2,150.80
-64.50
2010-11
1,634.80
0.00
1,634.80
344.50
2011-12
820.70
0.00
820.70
(46.90)
2012-13
1447.30
0.00
1447.30
119.50
606.30
0.00
606.30
64.30
25,400.60
2,805.60
28,206.20
2233.90
2013-14
Feb)
Total
(July-
31
2013-2014 (JulyFeb)
Foreign Direct
Investment
FPI
Total
Inflow
Outflow
Net
Australia
9.40
9.40
(1.9)
7.50
Austria
32.70
32.20
32.20
China
10.80
22.50
-11.70)
0.2
-11.50
Hongkong
145.60
0.80
144.90
-7.20
137.70
Italy
51.70
0.90
50.80
0.10
50.90
Japan
21.80
9.00
12.80
15.40
28.20
Netherlands
50.70
15.30
(2.70)
(0.30)
3.00
Norway
196.70
97.70
(-47.00)
-47.00
Switzerland
119.30
18.40
178.30
-6.00
172.30
U.A.E.
125.50
120.00
-0.70
5.10
4.40
United Kingdom
207.80
49.30
76.20
68.00
144.20
United States
129.2
45.80
161.90
-38.40
123.50
Other
272.90
276.50
-3.60
82.90
79.30
1262.50
656.20
606.30
118.30
724.60
Debt Securities
GDRs
Total
32
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14 (JulyFeb)
USA
1,309.3
869.9
468.3
238.1
227.7
223.0
161.90
UK
460.2
263.4
294.6
207.1
205.8
632.3
76.20
U.A.E
589.2
178.1
242.7
284.2
36.6
19.9
10.70
Japan
131.2
74.3
26.8
3.2
29.7
30.7
12.80
Hong Kong
339.8
156.1
9.9
125.6
80.3
242.6
144.90
Switzerland
169.3
227.3
170.6
110.5
127.1
149.0
178.30
Saudi Arabia
46.2
(92.3)
(133.8)
6.5
(79.9)
3.2
(32.80)
Germany
69.6
76.9
53.0
21.2
27.2
5.0
(13.30)
Korea (South)
1.2
2.3
2.3
7.7
25.4
25.8
25.50
Norway
274.9
101.1
0.4
(48.0)
(275.0)
(258.4)
(47.80)
China
13.7
(101.4)
(3.6)
47.4
126.1
90.6
(11.70)
Others
2,005.2
1,964.2
1,019.6
631.3
289.7
283.6
102.20
Total
including
5,409.8
Pvt. Proceeds
3,719.9
2,150.8
1,634.8
820.7
1447.3
606.30
Privatization
Proceeds
0.0
0.0
0.0
0.0
0.0
0.0
3,719.9
2,150.8
1,634.8
820.7
1447.3
606.30
133.2
FDI
Excluding
5,276.6
Pvt. Proceeds
33
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
(July-Feb)
634.8
775.00
740.60
512.20
629.40
559.60
296.20
Financial
Business
1,864.90
707.40
163.00
310.10
64.40
314.20
102.80
Textiles
30.10
36.90
27.80
25.30
29.80
10.00
(1.10)
Trade
175.90
166.60
117.00
53.00
25.30
5.70
(8.50)
Construction
89.00
93.40
101.60
61.10
72.10
46.00
14.00
Power
70.30
130.60
(120.60)
155.80
(84.90)
28.40
21.60
Chemical
79.30
74.30
112.10
30.50
96.30
(47.60)
71.60
Transport
74.70
93.20
132.00
104.60
18.70
44.10
(5.20)
Communicati
on
1,626.80
(IT
&Telecom)
879.10
291.00
(34.10)
(312.60)
(385.70)
(121.20)
Others
764.50
763.40
586.30
416.30
282.60
872.60
236.10
Total
including
Pvt.
Proceeds
5,409.80
3,719.90
2,150.80
1,634.80
820.70
1447.30
606.30
Privatization
Proceeds
133.20
0.00
0.00
0.00
0.00
0.00
0.00
3,719.90
2,150.80
1,634.80
820.70
1447.30
606.30
FDI
Excluding
5,276.60
Pvt. Proceeds
34
35
Investment policies
The Salient features of Pakistan's Investment Policy 2013 are:
Equal treatment to local and foreign investors.
All economic sectors to be opened to FDI, except a few specified industries like arms and
ammunition, explosives, radioactive substances, security printing, currency and mint.
Foreign equity up-to 100% allowed for all sectors.
No minimum foreign equity is required in any sector.
Remittance of royalty, technical and franchise fee, dividends, capital and profits is
allowed.
Import of raw material for export manufacturing will be zero-rated.
Tax and tariff incentives package:
5 % customs duty on import of plant, machinery and equipment for
manufacturing, infrastructure and social sectors.
0-5 % customs duty for services sector (including IT and Telecom.)
0% customs duty for agriculture sector.
No sales tax on import of machinery.
Tax relief in the shape of Initial depreciation Allowance has been
provided at 25% of machinery cost to all sectors.
Foreign Investment is fully protected by following Acts
i Foreign Private Investment (Promotion & Protection) Act, I976.
ii. Protection of Economic Reforms Act, I992.
Investment strategy
Vision 2025 lays down the national consensus on the major challenges faced by Pakistan
in the years to come and outlines the approaches to meet the challenges. To accommodate
basic needs, alleviate poverty and generate employment for this growing population,
GDP growth will have to average some 7% to 8% per year. In Pakistan's resource
constrained economy, private investments in productive ventures have to be the prime
engine of such growth. Meeting the challenges of the future thus depends on Pakistan's
ability to mobilize private investment, both domestic and foreign.
Foreign Direct Investment (FDI) will have to play a crucial role in energizing Pakistan's
economy. Its contribution will not be limited, providing much needed capital; more
important are the non-financial contributions that come along with FDI, notably:
Transfer of state-of-the-art technology.
Integration of domestic production into world-wide production and marketing chains.
Linkages with domestic businesses (up and down stream effects).
International experience shows that economic growth is best promoted by creating a
business-friendly legal, institutional and administrative enabling framework for all
investments, domestic and foreign alike. Such a framework should provide a "level
playing field for entrepreneurial activities where all investments, regardless of origin,
are driven by market forces to their most effective use (optimizing resource allocation
efficiency).
36
This FDI Strategy is meant to offer a conceptual framework for the co-operation of all
stakeholders in energizing private investment in Pakistan and for shaping the role of the
Board of Investment (BOI) in spearheading such co-operation.
Special Economic Zones
The Special Economic Zones (SEZ) Act was promulgated on September 13, 2012 and
later this year SEZ Rules were notified. The law provides SEZs to be set up by the
Federal or Provincial Governments themselves or in collaboration with the private sector
under different modes of public-private partnership or exclusively through the private
sector.
The fiscal benefits under the SEZ law include a one-time exemption from custom duties
and taxes for all capital goods imported into Pakistan for the development, operations and
maintenance of a SEZ (both for the developer as well as for the zone enterprise) and
exemption from all taxes on income for a period of ten years. The provincial SEZ
authorities, set up under the law, are required to move the applications received from
developers to the Federal Board of Investment which is to act as the secretariat to the
Board of Approvals and the Approval committee.
The Board of Approvals (BOA), the highest approving forum is headed by the Prime
Minister with membership from economic ministries, provincial governments, public and
private sectors. Approvals Committee is headed by the Chairman BOI and membership
from Economic Ministries, Provincial Governments, Public and Private Sectors and SEZ
authorities (at provincial level including Gilgit- Baltistan) work under the leadership of
the chief ministers.
Agriculture
Salient features for Corporate Agriculture, Farming (CAF):
Only such companies (foreign and local) will be entitled to CAF that are incorporated in
Pakistan under the Companies Ordinance, 1984.
State land can be purchased or leased for 50 years through open auction, extendable for
another 49 years.
All banks and financial institutions will earmark separate credit share for CAF.
Exemption of duty for transfer of land for CAF.
Dividends from CAF are not subject to tax.
Raw material for the manufacture of agricultural pesticides can be generally imported at a
zero - percent rate of customs duty.
Plant & machinery, equipment and vehicles meant for agriculture, harvesting, dairy,
livestock, poultry, agro-based industries, horticulture and floriculture, etc. under SRO
575 (1) /2006 can be imported at a zero percent rate of customs duty.
Textile
Textile Policy 2009-14
37
Textiles Investment Support Fund (TISF) will be established within the ambit of
the policy.
Long term loans will be converted on the pricing applicable to LTTF scheme,
together with a grace period of one year on both existing and converted facilities,
without the facility of refinancing.
To settle the past claims under R&D scheme of 2007-08, allocation of Rs5.4
billion for the purpose by GOP.
The group will contribute part of the investment financing or part of the
investment cost through the Technology Up gradation Fund.
The policy will focus on certain sub-sector issues from fiber to garments
including ginning, spinning, weaving, knitting, processing, fashion designs, handloom
and handicrafts, carpets, technical textiles etc.
The policy offers duty drawbacks between 1% and 3% for a two-year period for
value added textile exports.
All textile machinery imports will be zero rated to encourage new investments.
Import duty on raw material, sub components and components used in local
manufacturing of textile plants and machinery, has been reduced to zero percent.
Construction and Housing
Stamp duty / registration fee, for the housing mortgage has been rationalized.
All new construction of houses on plots measuring up to 150 sq. yards and flats
having an area of 1,000 sq. feet, have been exempted from all types of taxes for a
period of 5 years.
Banks and DFIs shall extend credit facilities for balancing, modernization and
replacement (BMR] of machinery used for housing and construction industry.
As per the Foreign Exchange Regulations, any foreign investor can invest in
shares / securities listed on Stock Exchanges in Pakistan, and can repatriate profits /
dividends or disinvestment proceeds.
The investor has to open a Special Convertible Rupee Account with any bank in
Pakistan, in order to make such portfolio investments.
IT & Telecom Sector
38
Specific licenses are required from respective authorities e.g. in order to start the
cellular operation network, a license needs to be obtained from Pakistan
Telecommunication Authority.
Energy (Power, Oil & Gas)
The energy industry is regulated by the Policy for Power Generation Projects
2002, Policy for Development of Renewable Energy for Power Generation 2006 and
Petroleum Exploration & Production Policy 2009.
For power projects above 50MW one window support to be provided at the
federal level. For projects below or up to 50MW support to be provided at the
respective provincial level.
Royalty will be payable at the rate of 12.5% of the value of petroleum at the field
gate.
Sector Outlook
Agriculture has been the main stay of Pakistans economy with a contribution of 20.9%
to GDP in FY2010-11. However, Pakistan has also demonstrated its growth potential in
the services sector during recent years with increased foreign investment in the economy.
Sectors such as IT, financial services and construction are endowed with growth
opportunities and capacity to progress, supported by a young demographic nation which
is the sixth populous nation in the world. This chapter aims at identifying key business
sectors in Pakistan considering their investment determinants in the light of current
market as well the opportunities they hold. The sectors have, thus, been analyzed along
the lines of the following three parameters to provide a comprehensive outlook:
The Market
Industry Snapshot
The Opportunity
Market
39
It is the source of livelihood of almost 45.1% of the total employed labour force
and contributed 21.4% to GDP in FY2012-13.
The Opportunity
The GOP has initiated mega projects worth Rs8.8 billion in livestock.
Pakistan is the third largest producer of raw milk in the world with growth
potential at 20% per annum in exports. However only a negligible quantity goes into
40
GOP plans to launch tree plantation campaign twice a year with a view to
increase forest cover to 6% of the landmass by 2015.
Auto sales witnessed a substantial growth at 20% on yearly basis to 70, 460 units
in the first five months of FY2012 as against sales at 58,784 units in corresponding
period last year.
Pakistan has the second highest number of CNG-powered vehicles in the world
with more than 1.55 million cars and passenger buses, constituting 24% of total
vehicles in the country.
Despite the declining economy, Indus Motor Company and Honda Atlas Cars
launched new models to their key products, Corolla and City in the local market.
Car sales are related to the interest rate regime functional in Pakistan especially
in the small low and economy segments, whilst purchases in the small-high segment
(1300cc and above) are dependent on rising income level and improved living
standards.
Market players: Honda Atlas, Pak Suzuki, Indus Motors, Mitsubishi, Dewan
Farooque, Sigma Motors, Hinopak
Domestically manufactured parts account for less than 60% of all components as
compared to a targeted 80%-85% and producers rely heavily on imports of key
components.
The Opportunity
Pakistan has one of the lowest motorization levels (8 vehicles per 1000 persons) in Asia
compared to India (11), Sri Lanka (25), and Malaysia (641) indicating a domestic market
general with growth potential.
Declining interest rates regime adopted by SBP likely to induce increased market for
purchases in the small-low income segments.
The removal of 5% excise duty (passed on to the customers) will enhance sales growth.
Fall in steel prices has massively reduced the cost of production of vehicles
The Engineering Development Board [EDB] is actively implementing the Auto Industry
Development Program (AIDP) to achieve the following targets:
i.
Increase the GDP contribution of the automotive sector to 5.6%,
ii.
Boost car production capacity to half a million units,
iii.
Attract an investment of $3 billion,
iv.
Reach an auto export target of $ 50 million,
Retail Market
41
Pakistan's retail and wholesale market is estimated at over $42 billion a year which
is serving a population approaching 190 million. This is more important in view of
the large number of middle class population and available high disposable income in
the age group 25-35 years.
This retail growth is also supported by the increasing literacy rate in Pakistan; the
current urban population is more educated and has a better understanding of retailer
influences on shopping as a larger retailer give quality assurances to consumers.
In late 2006 and in mid-2007, respectively, Makro and Metro entered the Pakistan
market operating a cash and carry business format. Makro entered through a joint
venture between the House of Habib and SHV of The Netherlands as Makro-Habib
Pakistan Ltd.
It is high time for the foreign retailers to invest in Pakistan. This will help stabilize
the global economy in general and the national economy of Pakistan in particular as
entry of global retailers in the retailing industry of Pakistan would not only
strengthen the retail industry of Pakistan but would also generate more jobs, foreign
investments and revenues.
In FY2009 the market for electrical appliances and household goods was
approximately $1.4 billion and is expected to increase to $2.1 billion by 2014.
At present the middle class consumers, who are unable to purchase imported
electronic products due to increase in rate of FED and depreciation of the Pakistani
rupee, are a great source of attraction for companies willing to set up electrical
manufacturing units in Pakistan.
Support fund of Rs2.5 billion has been allocated for the engineering sector by the
Federal Government in the Trade Policy 2009-10.
In 2009 GoP lifted duty on completely knocked down CKDI units, reduced and
extended a favorable 5% tariff rate on semi knocked down (SKD) kits for LCD /
Plasma television manufacturers in order to curb illegal imports.
42
Pharmaceutical Sector
The Market
In 2008 the health care and pharmaceutical sector contributed 2.2% to the
country's GDP, with the pharmaceutical sector solely contributing 1% to GDP
(Rs101.6 billion).
Demand for pharmaceutical products has been growing at about 10% -15% a
year over the past few years.
Unlike global trends drug demand does not follow a seasonal pattern and sales
remain similar throughout the year because of poor health and environment
conditions.
Industry Snapshot
Market size: $1.35 billion as at 31 March 2009
CAGR: 12% over the last five years until April 2009
Capital investment: $ 0.5 billion (as of March 2009)
Major Market Players: Galaxo SmithKline Pakistan, Johnsons & Johnsons,
Aventis Ltd., Reckitt & Benkiser, Roche, Abbot Laboratories, Merck, Marker,
Novartis, Pfizer Laboratories.
Market Share: Tap 50 producers contribute to 84.5% of the market share
Top 50 domestic producers contribute to 45.5% of the market share
Domestically produced drugs: Pain killers, anti-stress and anti-depressants, antiinfective and penicillin etc.
Imported Products: Antibiotics, vaccines, analgesics, tranquillizers, drugs for
treating cardiovascular diseases & cancer.
Import Markets: US, UK, Germany, Switzerland, Japan, and Netherlands and
France
The Opportunity
Rising life expectancy thus consequent rise in number at elderly people and increasing
urbanization would stimulate demand tor pharmaceutical products and health care
services.
43
Customs duty on import of packing materials has been reduced tram 25% / 20% / 10 % to
just 5%, on import at polyacrylate, piston caps, laminated heat sealable paper, craft paper
(wax coated) non-woven Fabric and non-woven paper.
Spendings on health care and pharmaceutical products are expected to rise from Rs261
billion in 2008 to Rs424 billion in 2013.
The export size of pharmaceutical industry is currently at $101 million and has the
potential to grow many folds to at least $1,000 million.
Textile sector
The Market
The textile and clothing industry has been the main driver of Pakistans exports for the
past 50 years in terms of foreign currency earnings and job creation.
75% to 80% of total cotton and synthetic production is exported in the form of yarn,
fabric, readymade garments, bed wear & made ups.
Pakistan is the fourth largest producer of cotton and third largest user of cotton.
The sectors contribution to total exports has averaged nearly 60% during the last six
years and declined to approximately by 53% during FY2011. Textile Sector contributed
9.5% of GDP and 3.8% employment of total labour force. During FY2011 the sector
44
benefited from recovery in retails sales in advanced economies and increased price
differential in local and global yarn prices.
Investment of about $7.5 billion has been made in the textile industry during the last ten
years (1999-2009). A sector wise breakup of the void is shown.
The Opportunity
Pakistan is one of the major cotton textile product suppliers in the world market, with a
share of world yarn and cotton fabric trade of about 30% and 8% respectively.
Although the GOP has directed efforts to diversify exports as well as the industrial base,
the textile sector remains the backbone of industrial activity in the country.
The five-year Textile Policy 2009-14 offers approximately $1 billion cash subsidy to the
textile and clothing sector to boost exports. It plans to boost textile exports to $25 billion
from the current $17.8 billion by 2014.
The package for the sector carries special duty-drawback rates, besides repayment of
earlier research support, subsidy on long-term financing loan and development and other
subsidies. The policy focuses on export promotion measures, instead of steps to increase
production and revive the industrial sector. Under the new policy, the textile industry has
been exempted from load-shedding. It will also enjoy priority in gas allocation like the
fertilizer sector. An amount of Rs2.5 billion has been allocated to make export refinance
to be available at 5%.
Industry Snapshot
Total exports: 53% in FY 2011
GDP Contribution: 9.5% in 2010-11
Employment: 38% of overall employment
FDI: $12.4 million (July December 09)
Listed companies 209
45
WLL services are available across Pakistan with seven operators providing services in
licensed areas in addition to PTCL operations. There are 2.71 million WLL subscribers as
in October 2009.
WLL penetration has increased from 0.17% in 2005 to 1.6% in 2011, with subscribers
growing at a CAGR of 77% with a balancing gain and drop effect visible in WLL and
FLL service subscription for PTCL during FY 2009.
Internet usage continues to grow and usage subscription was close to 19 million internet
users at the end of 2009, with penetration levels at 10.6%
The telecom sector attracted over $79 million worth which is 5% of total FDI in Pakistan.
Pakistan is the first country in South Asia to implement Mobile Number Portability
(MNP), with over 1.I4 million subscribers having availed the facility since June 2009 due
to the implementation of the MNP project.
Policy Announcement:
Rate of FED on telecom services is reduced from 21% to 19% to reduce the cost.
Industry Snapshot
Market size:
Telecom Cellular Subscribers: Over 100 million by end FY2011
Fixed-line and WLL subscribers: 5.72 million by end FY2011
Internet Subscribers: 19 million in FY2009 including 414,000 broadband
subscribers
Investment of $493 million in FY2011 1,595 registered IT companies (60 foreign IT
and telecommunication companies)
Market players:
Mobilink, Warid Telecom, Telenor, China Mobile, WorldCall, PTCL, Ufone
Emerging Technologies:
3GS, WiMax
The Opportunity
Reduction in loyalty and license fee by PTA and adoption of simple and liberal licensing
policies provide ample opportunities.
Availability of new SIM cards at cheap prices will further enhance demand for cell
phones, whilst the availability of second hand phones on cheap prices will increase the
demand for SIM cards.
Alternative fixed-line providers are starting to offer WLL and long-distance international
(LDI) services in competition to PTCL, thus providing opportunities for infrastructure
suppliers.
Based on data provided by PTA, there is still room to penetrate further in the low cellular
tele-density areas of Baluchistan and N.W.F.P.
Subscription growth in the medium to long-term is likely due to inclination of
demographics towards young and middle aged people amidst increasing urbanization.
There are strong growth prospects in broadband services with only less than half o
million broadband subscribers in Pakistan as compared to over 80 million subscribers
each in China and US. There are about 19 million users of internet in Pakistan with many
still using dial up connections.
46
Based on growth prospects, Pakistan ranks fourth in terms of broadband internet growth
globally, supported by proliferation of local and foreign companies into the market and
the decline in tariffs.
Power-generation sector
The Market
The power deficit has been a key issue for industrial and commercial activities.
The current supply shortage has been estimated at 7,500 MW (megawatts) with frequent
electricity outages experienced country-wide in FY2011whereas demand of electricity
growing at over 10% per annum.
67% of Pakistan's electricity generation is tilted towards thermal power generation with
power plants operating at a reduced capacity utilization of 34% presenting opportunities
for investment in plant machinery.
Two nuclear power plants; Karachi Nuclear Power Plant (K-1) and Chashma Nuclear
Power Plant unit 1 (C-1) are operational, while construction of a third plant, Chashma
Nuclear Power Plant unit 2 (C-2) is also in progress.
In order to meet the current and future energy demand, the GoP is working on different
power generation projects which are expected to contribute additional power supply of
9,817 MW by the end of 2011-12 to the installed capacity of 19,754MW in 2008-09. A
further breakup of expected increase in annual capacity is as follows:
Period Expected:
Capacity to be installed
2010-15
14,022 MW
2015-20
23,271 MW
2020-25
16,077 MW
Pakistan Atomic Energy Commission has also been given the task of increasing nuclear
power generation capacity to 8,800 MW by the year 2030.
With the expansion of electricity network, the number of consumers also increased from
10.8 million in 1998-99 to 18.5 million consumers in March 2009.
Pakistan enjoys abundance in coal resources estimated at over 185 billion tons, including
175 billion tons identified at Thar, in the Sindh province. Only 18% of total gas reserves
have been discovered in the last decade.
Zorlu Energy Pakistan limited has commissioned its first phase (6MW) of a wind power
plant in April 2009. Zorlu has indicated that it would like to install an additional 2GW of
renewable energy capacity in Pakistan by 2015.
Pakistan's Executive Committee of the National Economic Council has approved
infrastructure projects worth $11.78 billion, including the flagship Diamer-Bhasha
hydropower dam. Pakistan and China have also signed a MoU to build the Bunji dam in
Astore district in the north with power generation capacity of 7,000MW.
Industry Snapshot
Demand & Supply: Over 10% in FY2011.
Installed Power 20,681 MW in FY2011
Generation Capacity:
Major players with installed capacity
47
The rising energy shortfall, high vulnerability to oil prices, and expensive energy
import options, all have resulted in significant government attention and incentives for
the sector.
The GoP is offering increased incentives to the private sector for the task of
developing independent power producers {IPPs) and rental power projects (RPP). The
GoP guarantees 15% $ IRR along with passage of all expenses to the consumer and
17% for hydel generation. Thus providing predictable multi-year and long term tariff.
In order to meet enhanced gas requirements, The GoP has been providing
improving economic terms for investment in oil and gas exploration through its
petroleum policies.
Further, in order to tap the mass reservoir of coal reserves at Thal, GoP is
considering offering $ indexed IRR of 20-21%.
AEDB is actively working to install 103 micro hydro power plants in Chitral as
well as other locations in the Northern areas.
The Asian Development Bank (ADB) has approved a $810 million multi- tranche
financing facility for the power sector.
Transportation sector
The Market
Although the quality of roads generally improved in 2008 due to facilitation.
National Highway Authority's (NHA) planned to invest $536 billion in the sector. This
plan benefited from a $900 million multi-tranche loan from the ADB. However, in
FY2011, 10% of roads were destroyed due to floods.
The cargo business generated Rs6.4 billion in 2010-11 as compared to Rs4.98 billion in
FY2009. Cargo capacity increased by 8.8%.
KPT handled record cargo-volume of 41.4 million tons in FY2011 (July-March)
Industry Snapshot
Road network:
259,463 km
High Type Roads:
180,866 km
Low Type Roads:
78,597 km
48
Earnings:
Pakistan Railway: Rs13, 060 million against in FY2011 against Rs22,269 million in
FY2010.
PNSC Profit Tax: Rs. 2,552 million since July 2010 to March 2011 whereas Rs2,341
million July 08 to March 09
Railway network: 8,163 km
International Airports: 09
Sea-ports: 3
The Opportunity
Railways
Major development schemes include track renewal of 240 km of rails and 220 km of
sleepers planned for main line.
447 CKD wagons received from China were designated to be manufactured in Pakistan
Railways Workshop in Moghalpura in 2009, thus completing the scheme for Procurement
/ Manufacture of 1,300 high capacity wagons.
400 old coaches were rehabilitated in FY09-10 fiscal year 2009-10.
Airports
Civil Aviation Authority (CAA) will develop the International Airport in Islamabad and
make it operational by the end of 2011, which is expected to cost Rs37 billion.
CAA will construct the New Gwadar International Airport by the end of December 2011,
with the total estimated cost of Rs7.5 billion being financed under the Public Sector
Development Programme.
To enhance the trade route internationally with Afghanistan and central Asian countries,
the CAA has planned to upgrade the Peshawar International Airport in the near future.
Roads
NHA plans to launch a Motorway Advisory Radio (MAR) system during financial year
2009-10 under Public-Private Partnership. This system will provide updated information
regarding fog / low visibility of areas and will suggest precautionary measures for traffic
congestion and incidents / accident related information.
The National Trade Corridor (NTCI initiative envisages an investment program of
PKR325 billion, to be completed by 2017-I8. This step is expected to enhance National
Highway Authority's revenue to approximately Rs543 million during financial year 200910.
The long anticipated modernization work will start on the Karachi Circular Railway in
2010 and is plausible to be completed by 2014.
Construction Sector
Residential & Commercial Construction
The Market
49
The construction industry of Pakistan had a total value of about $3.6 billion in 2009 and
this value is expected to rise up around $4.2 billion by 2012.
Total GNP value of the sector was $4.4 billion in FY2011.
Residential construction is being carried out under the Prime Ministers Mega Housing
Scheme which involves one million low cost houses per year.
On GOPs invitation international companies from Germany, Canada, Iran, Italy and
Malaysia have participated in the construction sector, in order to facilitate execution and
completion of the GOPs mega housing scheme.
The construction industry in Pakistan has tremendous potential; with a sizable proportion
of trained professionals such as approximately 80,000 graduate engineers, 20,000
licensed constructors and 1,000 registered consultants.
Industry Snapshot
Contribution to GDP: 2.51% of GDP in 2011
Total Capital Investment: $28.87 billion in 2009
Imports of machinery and transport equipment: Rs626 billion in 2008-09
Employed labour force: 7.65% in 2009
The Opportunity
Karachi, the largest city of Pakistan, currently has a requirement of 500,000 additional
housing units per year, in order to supply demand for the ever growing population.
Rising level of urbanization increases from 34.9% in 2005 to 50% by 2035, as estimated
by the UN, provides ample development opportunity in the sector.
Investment policies in Pakistan permit 100% foreign equity ownership in the construction
sector.
SECP has introduced two types of Real Estate Investment Trust schemes, namely rental
and developmental, providing opportunity to the general public to pool funds for
investment in real estate sector.
The Infrastructure Project Development Facility (IPDF) team has stated that around 11
projects, valued at approximately Rs200 billion, are in the development stage.
50
The Opportunity
Exploration activities are in progress in collaboration with foreign investors. About 79
mineral titles i.e., reconnaissance licenses, exploration licenses and \mining leases have
also been granted under large scale mining in the Baluchistan province.
Pakistan Mineral Development Corporation offers joint ventures in the following
projects;
Gold & Base Metals Exploration in the Northern Areas of Pakistan
Coal Briquetting Plant
Coal mining for small thermal power plants
Production of Ultra Refined Salt.
51
Other Sectors
Education sector
According to Pakistan Social and Living Measurement Survey 2010-11, the overall
literacy rate (age ten years and above) is 57.7% (Male 69.5%, Female 45.2%), with
73.2% in urban areas and 49.2% in the rural areas.
The trend of investment on education in terms of GDP has been on the lower side with
2.50% & 2.47% in the years 2006-07 and 2007-08 respectively, and was estimated to be
2.10% during 2008-09. The primary cause is considered to be the financial constraints in
the given economic situation.
Investment case for education with only 124 universities catering to approximately 190
million people in the country and approximately 20 million school age children lacking
52
access to school material and books for different tiers of education, In some cases
outdated and there are limited resources for teachers training resources and research
laboratories.
The GOP approved the new national education policy in September 2009, which suggests
raising the annual budgetary allocation for the sector to 7% of the GDP and increasing
literacy to 85% by 2015.
Foreign assistance of $1,974 million has materialized in the past few years targeted at
improving education in the country.
Pakistan has a young workforce of 55.17 million (2010-11) with a literacy rate of 56.2%,
leaving greater room for public as well as private partnerships to enlarge access to
education, build infrastructure as well as train staff to achieve a skill development system
that can be benchmarked against international standards.
Tourism Sector
The tourism sector of Pakistan has great potential to attract investment.
Pakistan has a blend of beauty and historic sites, ranging from the peaks of Karakorum to
the historic civilization of Mohenjo-Daro.
Tourism services such as airlines, hotels, road transport, souvenir shops not only provide
employment but also provide unique business avenues in the diversified geographical
regions of Pakistan.
Health Sector
The health sector is a priority for the GoP, since the high correlation between the
expenditure on health and productivity in developing countries like Pakistan emphasizes
the importance at improving health services as an aid to growth.
Per capita health expenditure in Pakistan is $47 with GoP allocating 3% of its total
expenditure to health sector whilst the private sector provides 84% at total health
expenditure.
53
Pakistan's key health indicators are shy at international targets forming the base case at
GoP measures to reform the sector and progress is required at the policy and economic
front in order to reduce the burden at diseases.
Health facilities in Pakistan are provided through health care delivery systems and Public
Health Intervention (PHI). Programs under PHI include National Program tor prevention
of HIV / AIDS, Malaria, Hepatitis, child healthcare etc.
There are 12 healthcare attendants to every 10,000 people.
Low level of life expectancy (65 Years in 2007), high child mortality rate under 5 year
age (73/1,000 in 2007) and high population growth rate at 2.1% surpassing regional
average of 1.5%; indicate the increasing need for better health care and preventive
services in the country. Only 58% of the population has access to quality sanitation as
against the global average at 78%.
Sectors warranting attention include inadequate sanitation facilities, unsafe water, poor
living conditions and malnutrition.
54