Investment Climate and Opportunities in Pakistan

The roundtable ‘Investment Climate and Opportunities in Pakistan’, which was partaken by a delegation of Chinese investors visiting Pakistan to explore various business and investment opportunities, was organized by IPS on May 20, 2017.

The visitors were apprised of the prevailing and emerging business potential in Pakistan and it was highlighted that the rate of investment was on the rise in the country and the GDP had also been going up for the last six years. There had been 16 per cent growth in company registrations in the last year. The government was already pursuing an agenda of fiscal reforms, whereas with the recorded increase of 6.4per cent in per capita income during the last year, the consumer base was growing in Pakistan, more brands were coming in, foreign remittances were increasing, trade industry was flourishing, the population itself was growing and along with it the size of the middle class in the country was also growing. Adding to it the incentives offered for business investment by the government – such as significant tax exemptions in areas like Gwadar and other special economic zones. All of these indicators were healthy enough from investor’s point of view to start investing their capitals in the country.

It was also mentioned that over 700 Chinese companies were already working in Pakistan in various sectors such as manufacturing, electronics, textile, etc. The scope of opportunities for Chinese companies working in Pakistan had grown so much in recent years that they have even formed their own Chamber of Commerce in Lahore by the name of China-Pakistan Chamber of Commerce.

It was viewed that the strategic location of Pakistan that serves as a gateway connecting Asia with Central Asia, over 60 per cent of the country’s population comprising young workforce, a large pool of scientists, engineers, bankers, lawyers, and other professionals, the improved economic outlook, a robust stock market, and the establishment of a number of special economic zones across the country’s landscape were some of the reasons attracting foreign investments in Pakistan. Agriculture, energy, plant manufacturing, shipping, transportation, real estate as well as the establishment of large warehouses in the country were identified as some of the potential areas for Chinese investment.