1. B
USINE & E
SS
CONOM
IC
E
NVIRONM NT OF
E
P IST
AK A
N
Presentation
by
T. Harish
R. Sravan kumar
Swathi Sinha
M. Sridhar
(9029)
(9079)
(9096)
(9094)
1

2. ECONOMY OF PAKISTAN
Main Focus
Economy system
Political Environment
Exports
Imports
Foreign Trade Policy
Fiscal Policy
Doing business
Corporate governance
2

3. POLITICAL ENVIRONMENT
COUNTRY NAME:
conventional long form: Islamic Republic of Pakistan
local long form: Jamhuryat Islami Pakistan
head of government: Prime Minister Mohammad Nawaz SHARIF
(since 5 June 2013)
•Pakistan is the world's fifth largest democracy and the world's second
largest Muslim democracy after Indonesia.
•the President of Pakistan is the largely ceremonial head of state.
•the Prime Minister is head of government.
•there is a multi-party system. Executive power is exercised by the
government.
•Legislative power is largely vested in the Parliament.
3

4. Economy of Pakistan
•
•
•
•
The economy of Pakistan is the 27th largest in the world in terms of
purchasing power parity (PPP), and 44th largest in terms of nominal
GDP
Pakistan has a semi-industrialized economy.
Growth poles of Pakistan's economy are situated along the Indus
River. The economy has suffered in the past from decades of internal
political disputes, a fast growing population, mixed levels of foreign
investment.
In Pakistan, we have neither of two extreme systems. But their
Economy system is a via Media compromise of both the systems of
Capitalistic and Socialistic patterns. We can safely be said that it is a
Mixed Economy.
4

5. About Pakistan
•
•
•
•
•
•
•
•
•
•
Capital
Population
: Islamabad
: 182.5 Million(April,2013) (the world's 6thlargest)
Government
: Federal Republic,
Parliamentary Republic
Currency
: Pakistani Rupee
Literacy Rate
: Below 60%
Growth rate
: 3.59%(As for 2013) decreased from
4.36%(2012)
Per capita income : $ 3144
Life Expectancy : 65.45 years
Inflation (CPI)
: 10.9% (Dec 2013)
Population below poverty line : 14% (2013)
5

6. Exports
•
•
•
•
•
•
•
•
•
•
Raw cotton ,textile products & cotton yarn
rice
Leather & leather products
Carpets & rugs
Synthetics textile
Sports goods
Readymade garments
Vegetable , fruit & fish
Engineering goods
Chemicals & pharmaceutical product
6

7. Contd..
•
•
Majority of Pakistani people live in the Indus river Valley. So, this
people practice lot of Farming.
Main Export Partners:
US – 13.3%
China – 20.9%
UAE - 8.6%
7

8. IMPORTS
Pakistan’s main Imports are
•Petroleum products
•Palm oil
•Iron and steel
•Power generating machineries
•Raw cotton
•Plastic materials
•Electric Machinery and
apparatus
•Other Apparatus(Telecom)
•
•
•
•
•
•
•
Vehicles & spare part
Edible oil
Wheat
Tea
Fertilizers
Paper board
Pharmaceuticals product
8

9. Contd…
•
•
•
•
•
Main Imports of Pakistan are:
China – 19.7%
Saudi Arabia – 12. 3%
UAE – 22.1%
Kuwait – 6.3%
9

10. FOREIGN TRADE POLICY OF PAKISTAN (2012-15)
♣ In order to address the challenges confronting Pakistan on the
economic fronts, Ministry of Commerce has launched a
comprehensive three years Strategic Trade Policy
Framework (2012-15) document.
♣ It would provide the reference to different trade measures by
the Ministry of Commerce and other ministries from time to
time.
♣ The overall objective of the STPF is to achieve sustainable
high economic growth through exports with the help of policy
and support interventions by the government, industry, civil
society and donors.

11. WHO MAKE IT
♣ The latest trade policy announced by the government
of Pakistan was the strategic trade policy framework for
the year 2012-2015.
♣ Prime Minister Raja Pervaiz Ashraf approved the
Strategic Trade Policy Framework 2012-2015
♣ Makhdoom Amin Fahim, Minister for Commerce,
announced the policy after getting formal approval from
the cabinet.

12. SALIENT FEATURES OF STRATEGIC TRADE
POLICY 2012-2015
♣ Mark-up support for future import and purchase of
machinery ,
♣ Export finance scheme for selected export sectors,
♣ Establishment of Export Import Bank (EXIM Bank) to
increase exports and make them competitive with regional
competitors such as India and Bangladesh,
♣ Promotion of service sector through institutional
arrangements,
♣ Promotion of regional trade especially trade with China,
Iran and Afghanistan,
♣ Mobilization of new investment in export oriented industry
with establishment of Special Economic Zones.

13. FISCAL POLICY
1.
Objectives
a. Full Employment
b. Resource Mobilization
c. Resource Allocation
d. Maintenance of Economic Stability
e. Income Re-Distribution
2. Canons of Taxation: Adam Smith
a. Equity
b. Certainty
c. Convenience
d. Economy
3. Other Canons
a. Flexibility
b. Situation
13

14. 4.
Income Tax Rates 2013
1. Individuals
- Non-Salaried - 5 brackets (10% -----25%)
- Salaried – 5 brackets (5.0% -----20%)
Exempt up to Rs. 4 Lac
2.
Companies
- Public, Private& Banking Companies 35%
- Small companies
25%
3.
Dividend received by all tax payers 10% and 20% on banking
company from its assets management company
4.
Property income
- Rs. 150,000 exempt
- Rates 5% -----10%
14

15. Doing Business
•
The World Bank (WB) and International Finance Corporation's
flagship report Ease of Doing Business Index 2010 ranked Pakistan
85 among 181 countries around the globe. Pakistan comes
highest in South Asia but also ranks higher than China and Russia
which is at 133. The top five countries are Singapore, New Zealand,
the United States, Hong Kong and United Kingdom.
•
The Government of Pakistan has granted numerous incentives to
technology companies wishing to do business in Pakistan. A
combination of decade-plus tax holidays, zero duties on computer
imports, government incentives for venture capital and a variety of
programs for subsidizing technical education, are intended there.
15

16. OVERVIEW OF PAKISTAN’S CORPORATE
GOVERNANCE
Pakistan has a multifaceted corporate governance regime. Laws fall
into one of the following categories:
1. General corporate laws.
2. Rules and regulations made under corporate laws.
3. Stock exchanges’ listing regulations and by laws.
4. Civil laws, including those that provide remedies for seeking
declarations, enforcement of a claim, and recover.
16

17. CORRUPTION IN PAKISTAN
•
Corruption in Pakistan is widespread, particularly in the
government and lower levels of police forces. In 2013, Pakistan
scored 127 out of 175 on the Corruption Perceptions Index
published by the Transparency International.
•
In recent times, the 2008–2013 coalition government led by the
Pakistan Peoples Party is criticized as the most corrupt
government in the nation's history.
17

18. CSR PRACTICES IN PAKISTAN
•
Siemens Pakistan Engineering Company Limited has won
several awards including the prestigious CSR award from the
employers federation of Pakistan.
•
ZONG, mobile phones company in Pakistan supporting students by
giving scholarships in part of CSR Activities.
•
SHELL Pakistan ltd. The Social Investment portfolio at Shell is
aligned with three broad global thematic areas: Enterprise
Development, Road Safety and Access to Energy& Education.
•
Fauji Fertilizer Company Limited (FFC) helping in poverty
alleviation of common farmer and assisting them in sustained
empowerment.
18