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ECONOMY :
About half of the Pakistani labour force works
in agriculture, where wheat, rice, sugar cane and cotton are the main
products. Cotton is by far the country’s most important export,
accounting for almost 60 per cent of revenues. Textiles and leather
goods are significant export earners. Pakistan has some reserves of
graphite and limestone, as well as gypsum, silica, coal, copper and
manganese. It also has a small oil industry, but most of its needs
must be imported: together with chemicals and machinery, this accounts
for nearly three-quarters of Pakistan’s import expenditure.
Established manufacturing industries include textiles, food processing
and building materials.
The overriding economic problem for the Pakistani economy is its huge
foreign debt burden, which consumes over half of government revenue.
Repeated efforts to renegotiate repayments have been undermined by a
history of bad relations with the IMF, in particular, and the
international financial community generally - largely a result of
failure to meet previous targets - and, more recently, international
sanctions imposed following Pakistani nuclear tests in 1998. This
coincided with the fall-out from the 1997 financial crisis that
engulfed the major economies of East Asia. Domestic political
instability has prevented effective planning and hampered continuing
economic reform. Both economic growth and inflation have declined
slightly in recent years to their present levels of three and two per
cent respectively; unemployment is a recorded eight per cent but there
is a high level of underemployment amongst the workforce. Pakistan’s
main trading partners are the USA, Saudi Arabia, Kuwait, Hong Kong and
the UK.
Business: Ties
should be worn for important business appointments. English is
commonly used. Appointments should be made, remembering that
businesses are usually closed on Muslim holidays. Visiting cards
should be used. Office hours : Mon - Thurs and Sat 0900-1700,
Fri 0900-1230.
Commercial Information :
The following
organisation can offer advice: Overseas Investors’ Chamber of Commerce
and Industry, PO Box 4833, Talpur Road, Karachi or Federation of
Pakistan Chambers of Commerce (FPCCI), PO Box 13875, Federation House,
Sharae Firdousi, Main Clifton, Karachi 75600, Pakistan. |
