The document outlines challenges facing Pakistan's business environment, including a high inflation rate, energy crisis, security issues, and increasing utility costs. It analyzes opportunities in local and international markets and makes recommendations to address problems. Key points discussed are low foreign investment, exports less than imports, the need for consistent policies, controlling energy and security issues, lowering customs duties to promote exports, and offering tax incentives to attract investment. The document aims to inform Pakistan's Ministry of Commerce & Trade of pressing business concerns.

1. BUSINESS SCENARIO
Federation of Pakistan Chamber of Commerce and Industries
Prepared For : Ministry of Commerce & Trade
Prepared By: Talha Arfi (Secretary General)
Registration # 20090498

2. Structure
 Current Business Situation.
 Energy Crisis.
 Increase In Utility Bills.
 Law & Order Situation.
 Inflation Rate.
 The Realities Of Globalization.
 Opportunities In The Local & International Market.
 Strategy To Gain Market Share Globally.
 One Window Operation.
 Tax Free Holidays.
 Conclusion.
 Recommendations.
 References.
 Questions & Answers.

3. Current Business Situation
• Comparatively Low Investments.
• FDI= USD 340.2 Million.
• Exports = USD 8.12 Billion.
• Imports = USD 13.4 Billion.
• Uncertainty.
• Mergers.
• Liquidation.
• Outsourcing.
• Contract Employees.
• Downsizing.

4. Energy Crisis
• Causes
33 2%
– Political & Economical Instability.
– Fluctuation of Oil Prices.
%
– Faulty Distribution System. 65
– Aging of Equipment %
– Unproductive Efforts.
– Mismanagement of Resources. thermal hydel
• Impacts nuclear
– Increase in Power Tariff.
– Decrease in Production.
– Destroys at least 50% of Industrial Sector.
– Increase in Unemployment Rate.
– Frustration In Citizens.
– Higher Transportation Cost.
– Affects Fixed Income Group.
– General Price Rising.

5. Increase In Utility Bills
• Escalating Manufacturing Costs.
• Cost of Services Increase.
• Affecting Consumer’s Pocket.
• Lack of Funds.
• Affects Cash-flows.

6. Law & Order Situation
• Political Instability.
• Security Concerns.
• Poor Police Infrastructure.
• High Crime Rate.
• Tourism Industry is in the Doldrums.

7. Inflation Rate
• What is Inflation?
– Rise in the price of goods and services.
– Decline in the real value of money.
– Loss of purchasing power.
• Inflation Rate
– Current inflation rate prevailing in Pakistan is 13.4%.
14
12
10
8
6
4
2
0
Inflation Rates
Srilanka 6
Bangladesh 8
India 12
Pakistan 13

8. Realities Of Globalization
• What is Globalization?
• The process by which :
– Different parts of the world interact:
 Economically,
 Politically, and
 Culturally.
– People of the world unified into a single society.
• Realities of Globalization
– Political Engagement.
– Personal Contact.
– Technological Connectivity.
– Economic Integration.

9. Opportunities
• In Local Market
– Agriculture.
– Leather.
– Gems & Jewelry.
– Live Stock & Fisheries.
– Military Equipment.
– Petroleum & Energy Sector.
– Services.
• In International Market
– Halal Food .
– Infrastructure Development.
– Energy Sector.
– IT Sector.
– Medicines.

10. Gaining Market Share Globally
• Cost Leadership
• Global Marketing Mix (4P’s).
• Differentiation Strategy.
• Niche Marketing Technique.
• Porter 5 Forces.

11. One Window Operation
•Trade Facilitation Idea.
•Submission of Documents at a Single Location.
Forwarding Agents
Shipping Agents Port Authority
Ministries, Departm Insurance
ents & Agencies Companies
One
Window
Traders Customs
Vehicle Licensing
Banks Authorities
Freight Station

12. Tax Free Holidays
• Government Incentive Program.
• Offer Tax Reduction or Elimination.
• Increase in Gross Domestic Product (GDP).
• Attracts Foreign Investors.
• Promote Growth of Particular Industry.

13. Conclusion
• Economy is in shambles.
• Investors Fear of Sinking Their Investment.
• Low Investments due to Law & Order Situation.
• Energy Crisis on it’s Peak.
• Higher Manufacturing Costs .
• Low Productivity.
• Higher Unemployment Rate.

14. Recommendations
• Policies Should Not Change With Government.
• Energy Crisis and Security Situation should be controlled.
• Lower Customs Duty to Promote Exports.
• Offer Tax Credits to Attract Foreign Investment.
• Exhibitions Should be Held Regularly.
• Positioning of National Products in International Markets.
• Ease of Doing Business must be Ensured.

15. References
• Central Intelligence Agency. Retrieved Nov 24,2011, from
https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html
• Wikepedia. Retrieved Nov 24,2011, from https://www.en.wikipedia.org
• Dawn Newspaper. Retrieved Nov26, 2011, from
http://www.dawn.com/2011/01/10/energy-crisis-in-pakistan.html
• Pakistan Board of Investment. Retrieved Nov26, 2011, from
http://www.pakboi.gov.pk/
• Nation Master. Retrieved Nov 26,2011, from
http://www.nationmaster.com/country/pk-pakistan

16. Thank You !

17. Questions & Answers