Pakistan

The name of a relatively young state for South Asia — Pakistan — is translated from Urdu as “land of the pure”, that is, “land of Muslims”. Pakistan was at the crossroads of the trade route between India, China and Ancient Rome. The state was formed in 1947 after the partition of India, and has existed within its modern borders since 1971.

Official name of the state — Islamic Republic of Pakistan (IRP). The state occupies an area of 803,940 km² (34th in the world). The population is approximately 237,806,500 people (as of the end of 2023).

Ethnic composition of the population of Pakistan — Punjabis 44.68%, Pashtuns 15.42%, Sindhis 14.1%, Seraikis 8.38%, Muhajirs 7.57%, Baloch 3.57%, others 6.28%.

The vast majority of Pakistanis profess Islam. 96% of the country's population — Muslims (91% of them are Sunnis, 5% are Shiites). The remaining 4% — religious minorities of Hindus, Christians, Sikhs and others. The Constitution of Pakistan establishes Islam as the state religion and also provides all citizens with the right to freedom of religion. Only a Muslim has the right to become president or prime minister, and only Muslims have the right to serve as judges in the Federal Sharia Court (which has the power to strike down any law contrary to Islam).

Pakistan — multilingual country. Urdu — national, and English — official languages, it is widely spoken as a business language. Provincial languages are also widespread in the provinces of the country: in Punjab — Punjabi, in Sindh — Sindhi, in Balochistan — Balochi, in Khyber Pakhtwukhwa — Pashto.

The official currency of the country is the Pakistani rupee.

Islamabad — capital of the Islamic Republic of Pakistan. Built in the 1960s as a planned city to replace Karachi as the capital of Pakistan. The cultural, political and economic center of the country.

Karachi — a port city in southern Pakistan, the largest city in the country and one of the largest cities in the world. It is the main financial, banking, industrial and commercial center of Pakistan. The country's largest corporations are located here, the textile and automotive industries are developed, as well as the entertainment, art, fashion and advertising industries, publishing, software development, and medical and scientific research. The city is a major center of higher education in South Asia and the Islamic world. Most of the large foreign multinational corporations operating in Pakistan have their headquarters in Karachi. Most of Pakistan's public and private banks are represented in the city, including the State Bank of Pakistan.

Karachi is the outsourcing center of Pakistan and has developed information technology and electronic media. Call centers began to attract investments from foreign companies.

The city has several large industrial zones.

Largest shipping ports in Pakistan — Port of Karachi and Port Qasim. These ports are equipped with modern equipment and technology and are used not only by Pakistan, but also by Afghanistan and the landlocked countries of Central Asia.

Faisalabad (until 1977 Layallpur) — city and administrative center of the district of the same name, located in the Pakistani province of Punjab. The third largest city in Pakistan after Karachi and Lahore. After Pakistan's independence, the city developed a well-developed textile industry. Textiles are produced by both industrial enterprises and thousands of small family enterprises and account for 68% of exports. The chemical, food, and pharmaceutical industries are also developed.

Thanks to good soil irrigation, the lands of Faisalabad are very fertile. This is one of the most developed agricultural regions. Wheat and cotton are grown. Faisalabad is famous for its fruits: oranges, bananas, apples, tangerines, mangoes, guava and sugarcane. Not far from the city is one of the largest rice mills in Pakistan.

Since May 31, 2018, Pakistan has been divided into 4 provinces, 1 capital territory and 2 territories of Kashmir, administratively subordinate to Pakistan.

The earliest settlements in what is now Pakistan date back to 7000 BC. The Vedic civilization and the Persian Empire gave way to Greek settlement in 327 BC. The rise of Islam in 650 AD. had a strong impact on the region. In 711, Muhammad ibn Qasim, an Umayyad general, encouraged a number of Muslim dynasties to establish their empires in the region. Soon, in 1526, the region became part of the Mongol Empire. With the fall of the Mongols, Afghans and then Sikhs began to invade Pakistan. With the fall of the Sikh state, most of the territory was taken under the control of the British colonialists. Pakistan, being part of the Indian subcontinent, took an active part in protests against British colonization and desired independence.

On August 14, 1947, shortly after leaving the British dominion, modern Pakistan was formed. Sindh, West Punjab, Baluchistan, North-West Frontier Province, and East Bengal were officially included in Pakistan. At the same time, disagreements arose with India over Kashmir. The first Indo-Pakistani war took place in 1947-1948.

In 1956, Pakistan became a parliamentary republic, but civilian rule was soon replaced by military rule following a coup d'état by General Ayub Khan. The country held democratic elections in 1970, but a year later civil unrest broke out in East Pakistan. With Indian support, East Pakistan gained independence and Bangladesh was formed.

Civilian rule in the country lasted from 1927 to 1977. General Zia-ul-Haq took control of the country and the subsequent military government lasted until 1988. Since the general's death, Pakistan has remained a stable democracy, and during this time the country has amassed significant political clout in South Asia.

In the southwest, the shores of Pakistan are washed by the Arabian Sea, in the west the country borders on Iran, in the northwest — with Afghanistan, in the northeast — with Jammu and Kashmir (which is claimed by both India and Pakistan) and in the east — with India. Pakistan controls the northern and western regions of Jammu and Kashmir — so-called Azad Kashmir (i.e. Free Kashmir).

In the north of the country rise the Hindu Kush, Karakoram, and Hinduja mountain ranges. This is where Mount Chogori is located, the second highest on earth — after Chomolungma.

In the west stretches the low Iranian Plateau, where, in addition to mountains, there are valleys and deserts. In the east of Pakistan lies the vast plain of the Indus River, in the south the country has access to the Arabian Sea.

The culture of Pakistan has its origins in the depths of centuries. Islam had (and continues to have) a decisive influence on it. However, even before the advent of Islam, the territory of Pakistan became the birthplace of some ancient civilizations (in the Indus River Valley). Pakistan was conquered by the ancient Greeks, Persians, Huns, Arabs, and Turks. However, Pakistanis have always maintained their cultural traditions. The country is home to six sites included in the UNESCO World Heritage List. Among them — Shalimar Gardens in Lahore, with marble palaces, mosaic mosques, waterfalls and decorative ponds, an architectural site created in the 17th century; the ancient city of Thatta near Lake Kinjhar; the Punjabi fortress of the 16th century and the Lahore fortress of the 12th century, the ruins of Takshashila — the capital of the ancient Gandharas, which is mentioned in the ancient Indian epic "Ramayana".

Pakistan — a Muslim country where established norms of behavior have been adopted in accordance with Sharia law. There are even Sharia courts in the country.

There are certain restrictions on clothing for men and women, and rules for visiting places of worship. The consumption of alcoholic beverages is prohibited (except in specially designated places for the consumption and sale of alcohol by non-Muslims). There are restrictions on food intake during fasting in the Muslim month of Ramadan.

When communicating with the local population, especially with women, it is necessary to observe generally accepted standards of etiquette. In many areas of the country it is prohibited to communicate with women without the presence of relatives, etc.

Pakistan is a federal republic. The government, which is formed on the basis of a parliamentary majority, is led by the prime minister.

According to the national Constitution in its current version, the head of state does not have real political and administrative power. It is the "symbol of unity" of the Federation and serves primarily ceremonial functions.

Bicameral parliament. The National Assembly (lower house) is elected for five years. Consists of 342 deputies (including 60 seats reserved for women and 10 for representatives of religious minorities). The leader of the party with the majority in the National Assembly is appointed by the President to the post of Prime Minister.

The Senate (upper house) is elected by members of the National Assembly and provincial legislatures. Consists of 104 senators. Every three years, the composition of the upper chamber is renewed by half.

The judicial system includes subsystems of civil and criminal proceedings. The highest court is the Supreme Court, which also serves as a constitutional court. In parallel, the country has a Federal Sharia Court, which considers cases affecting the moral and ethical norms of Islam.

Pakistan's economic freedom score is 49.4, making it the 152nd most free economy in the 2023 Index. His score is 0.6 points higher than last year. Pakistan ranks 33rd out of 39 countries in the Asia-Pacific region, and its overall score is below global and regional averages.

Economy of Pakistan — it is a mixed economy with diverse sectors. Agriculture — one of the most important sectors of the economy. About half of the working population is employed here. The country's agriculture relies on the most extensive irrigation network in the world. In Pakistan, more than 80% of arable land is irrigated. Main grain crop — wheat. Government organizations promote the introduction of new high-yielding Mexican-Pakistani wheat varieties by distributing seeds to farmers at low prices, and also provide support in the purchase of pesticides to combat pests and plant diseases and mineral fertilizers.

Cotton is the most important among commercial industrial crops. It is cultivated mainly on small farms, which supply raw materials to cotton ginning enterprises at government purchasing prices. These enterprises then sell the fiber to a government corporation, which sells it for export or to textile mills.

The leading food crops include rice, corn, chickpeas, sugarcane and millet. Rice is particularly important as an export commodity: the country's locally grown basmati variety produces an elongated, aromatic grain that is highly prized in the Middle East.

The textile industry (production of yarn and fabrics from domestic cotton) and the production of clothing for export are the most developed in Pakistan.

With the help of the Soviet Union, a metallurgical plant near Karachi was built and put into operation in 1980. The capacity of the cement and sugar industries is being increased, and several oil refineries are operating. Natural gas serves as a raw material base for the chemical industry, in particular the production of fertilizers, and is used as fuel for thermal power plants.

An important place in the economy of Pakistan is occupied by small-scale industries, for example, sports goods (soccer and other balls, hockey sticks) and surgical instruments in Sialkot. There are numerous small cotton weaving enterprises operating in the informal sector of Faisalabad and other cities. In a number of Punjabi settlements, workshops sprang up for the manufacture of agricultural implements, pumps and diesel engines. Carpet weaving is developing rapidly.

The country is actively developing its infrastructure, building roads, energy facilities and various engineering structures.

The information technology sector in Pakistan is also growing. It is becoming increasingly important and makes a significant contribution to the country's economy.

The stability of the banking system and the development of the financial sector are also key aspects of the Pakistani economy.

Problems with energy supply and electricity affect production and the economy as a whole. Development of the energy sector remains an important task for ensuring economic growth.

Pakistan exports textiles, clothing, leather, agricultural products and imports energy, machinery, oil and various manufacturing goods.

The government actively supports the development of small and medium-sized businesses, as they play an important role in the economy and job creation.

Pakistan has large reserves of natural resources. Major gas deposits were discovered in Sui (Baluchistan) in 1952, followed by discoveries in Punjab and Sindh. Oil was first discovered in Punjab's Attock district before the First World War. There are currently 7 fields in operation, but they satisfy less than 10% of Pakistan's liquid fuel needs. Other identified mineral resources include coal, chrome ores, marble, table salt, gypsum, limestone, uranium ore, phosphate rock, barite, sulfur, fluorite, precious and semi-precious stones. A large deposit of copper ore has been discovered in Balochistan.

Pakistan — it is the tenth largest labor market in the world.

There are more than 200 institutions in the country that provide higher education and are recognized by the Education Commission. Every year, about half a million people in the country receive higher education (about twenty thousand in the computer and technical fields). This ensures the necessary influx of qualified personnel.

Pakistan has one of the largest English-speaking job markets outside the English-speaking world. English is a compulsory curriculum at all levels, and many educational programs in schools and universities are taught in English.

In recent years, special attention has been paid to infrastructure development. A project for a network of new highways has been developed, within the framework of which highways connected various cities of the country. The government is developing bus rapid transit. Numerous high-speed rail lines are under construction. The construction of the state-of-the-art Gandhara Airport in Islamabad is almost complete. On the technology front, auctions of licenses for 3G and 4G technologies have been held in Pakistan, and 3G services are now available everywhere. The government is also paying attention to spreading the Internet to the most remote corners of the country.

Pakistan is a member of the Shanghai Cooperation Organization (SCO), as well as the South Asian Association for Regional Cooperation (SAARC), Central Asia Regional Economic Cooperation (CAREC) and the Economic Cooperation Organization (ECO). It is one of 23 WTO countries negotiating the Trade in Services Agreement.

Pakistan has signed bilateral investment treaties (BITs) with 48 countries, although treaties have entered into force with only 32 countries.

The country has free or preferential trade agreements with China, Malaysia, Sri Lanka, Iran, Mauritius, Turkey, Indonesia and Uzbekistan. It is also a party to the South Asia Free Trade Agreement (SAFTA) and the Afghanistan-Pakistan Transit Trade Agreement (APTTA).

Foreign citizens legally residing in Pakistan have the right to purchase real estate without restrictions.

The Investment Authority of the Government of Pakistan provides assistance in visa extensions and registration of property rights for this category of foreign citizens.

To open your own business in the IRP, you must register with the local authorities (office of the county commissioner).

To open a joint stock company or a representative office of a foreign company, you must register with a specialized institution — the Securities and Exchange Commission.

For financial companies, permission from the Ministry of Finance is required, for insurance companies - from the Ministry of Commerce, for industrial enterprises — from the Ministry of Industry. Minimum requirements — authorized capital of at least 50 million Pakistani rupees, presence of a board of directors.

For defense industry enterprises — registration with the Ministry of Defense, with the Defense Procurement Directorate.

For foreign enterprises, it is necessary to register with the Investment Authority.

All legal entities are required to register with the Federal or Provincial Tax Administration and obtain a Taxpayer Identification Number (TIN).

With a population of over 200 million people, Pakistan is for potential investors — it is a huge consumer market with an ever-growing middle class. Located at the crossroads between South, Central and Western Asia and with access to the Persian Gulf, the state is both a promising regional economy and a large intra-regional and inter-regional trade and investment market. As an investment market, the country offers its investors friendly policies and a willingness to provide support in solving any problems that arise. Almost all sectors of the economy are open to investment with liberal domestic policies, which sets Pakistan apart from all its regional competitors. The government of the country provides equal rights to both domestic and foreign investments. Pakistan's economy is based on a strong foundation of healthy competition. As a growing economy, Pakistan is committed to diversifying global players and pursuing structural reforms in various sectors of the economy. It provides enormous investment opportunities with high returns in a short time. The government's main task is to provide all possible assistance for doing business in the country.

Pakistan — it is the fastest growing middle class and the 6th largest market in the world with a population of over 200 million people. Global corporations view the country as the most important market for their products. To this we must add that consumption growth in Pakistan has been 26% over the past three years, according to Bloomberg. This suggests that people are buying more than ever. This increase in consumption has fueled the growth of supermarket chains in industrial centers across the country such as Karachi, Hyderabad, Multan, Lahore, Faisalabad and Islamabad. Shopping centers are becoming larger and require suppliers to steadily expand their assortment. In shopping malls you can see an increasing variety of consumer goods.

Pakistan provides equal rights to both external and internal investors. All sectors of the economy are open for investment with the exception of the military-industrial complex, the nuclear sector, the issuance of securities and the sphere of monetary circulation. Up to 100% foreign capital is allowed in remittances, rents, dividends and more. Import of raw materials for export purposes is not subject to tax. Foreign investment is protected by the Overseas Investment Act (1976) and the Economic Reform Promotion Act (1992).

Competition in the global market required the creation of a system of special economic zones (SEZ) in Pakistan. The SEZ law adopted in 2012 allows the creation of SEZs by decision of the federal or regional government or on the initiative of the private sector of the economy.

China and Pakistan have begun implementing the “economic corridor” between two countries. The corridor will serve as a link between the countries of South and East Asia. Modern infrastructure will connect Urumqi in eastern China with Lahore, Islamabad, Karachi and directly with the port of Gwadar.

In the east, the state borders on India, whose economy is also actively developing and with which Pakistan intends to build a policy of peace and good neighborliness. To the southeast of the country is the oil-rich Middle East. In the northwest is the energy-rich region of Central Asia and in the east — China. Pakistan's airports can serve as critical transport hubs. The cities of Dubai, Doha, Delhi, Mumbai, Lahore and Islamabad are approximately equidistant from the airport in Karachi.

In Pakistan, there are several key organizations and structures that provide support to business:

1. Pakistan Investment Promotion Agency (Board of Investment — BOI). BOI is responsible for attracting foreign investment to the country. They provide information on investment opportunities, advise investors and assist in conducting business in Pakistan.
2. Pakistan Export Agency (Trade Development Authority of Pakistan — TDAP). It specializes in export development. TDAP provides support to exporters, conducts fairs, exhibitions and other events to promote Pakistani goods and services in global markets.
3. Small and Medium Enterprises Development Authority of Pakistan (SMEDA). This organization is designed to develop small and medium-sized businesses in Pakistan. SMEDA provides consultations, assistance in developing business plans, conducts training and provides financial support to entrepreneurs.
4. Federation of Pakistan Chambers of Commerce & Industry — FPCCI). It is the largest trade and industry association in the country. FPCCI represents business interests, provides advice, and provides information about the market and business opportunities.
5. National Bank of Pakistan. As the country's central bank, it plays an important role in regulating the financial system and ensuring the stability of the economy.

These organizations and structures provide various types of support for business development in the country, ranging from advice and educational programs to financial assistance and specific market information.