Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
The Pakistan working week is from Monday to Friday. There are variations but in general, from Monday to Thursday business hours are 8.30am to 5.00pm, except in Islamabad where it is 8.00am to 4.30pm. On Friday most government offices close at midday for Friday prayers, but are open again on Saturday morning.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Import restrictions
Imports under loans, credits or bilateral assistance that require a contract to be approved by Economic Affairs divisions, or some other agency of the Government of Pakistan, require the letter of credit to be established within 60 days of registration of contract with a bank designated by the State Bank of Pakistan.
Items on the negative list are banned items (Appendix - 'A'). Some of the main items on the list are:
- items that may be repugnant to the injunctions of Islam
- dyes based on benzidine or containing it
- hazardous wastes, as defined and classified in the Basle Convention
- alcoholic beverages and spirits, including brewing and distilling dregs and waste and wine lees and argol
- factory rejects and goods of job lot, stock lot or substandard quality job lot and stock lot of items where the customs duty is zero per cent
- fireworks, fur skins, waste and scrap of polyethylene and polypropylene plastics, retreaded tyres, used pneumatic tyres
- imports from India have restrictions and only those items can be imported that are specified under the Import Trade and Procedures Order (Appendix B)
Certain restricted items (Appendix - 'D') can be imported only if the stipulated conditions are met. Most of the restricted items would need prior approval or certification from the relevant government agency. Some of the main items include:
- animal semen
- tobacco products
- radioactive material and apparatus
- seeds
- calcium carbide
- asbestos
- food colours
- dyes
- explosives
- insecticides
Wheat is importable only by the public sector.
Tariffs
The government of Pakistan is implementing a program of tariff reduction in line with obligations signed on to as part of the World Trade Organisation entry. The general tariff rate will fall to approximately 30 per cent this year. Tariffs can be significant for Australian exporters and we suggest obtaining specific information on your product.
Customs authority contact details:
Central Board of Revenue
Constitution Avenue
Islamabad
Tel: +92 51 920 1938
Packing, marking and labelling
Packing should be strong and should guard against extreme heat in summer, humidity in winter and possible brief periods of storage in the open.
Straw or hay used as packing must be accompanied by a certificate of sterilization issued by a veterinary when used to wrap or pack plants or seeds.
Packaging should be conspicuously marked with the country of origin and the name of either the manufacturer or the importer. For textiles this is especially important and the yardage, width and length (if in roll) should also be clearly marked.
Dyes and chemicals must be marked with a full description, including quality and code numbers.
Packets of cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes should carry the warning: 'Smoking is injurious to health'.
Food colours must carry fair and true labeling about the product.
Labels on packages for edible products should show that they have at least six months or 50 per cent of the shelf life, whichever is the lesser, calculated from the date of filing of Import General Manifest (IGM) and also that they are free of Haraam elements or ingredients. Where these conditions are not printed on the packaging, certificate issued by the manufacturers or principals in respect of these conditions shall be accepted by customs.
Weights and measures
The metric system.
Insurance
The importer must arrange insurance through an insurance company registered in Pakistan.
Methods of quoting and payment
Quotes should be C&F port of delivery in US dollars or Pound Sterling. Payment must be made by irrevocable letter of credit.
Public health requirements
The import of livestock, plants and plant material is subject to specific regulations.
New pharmaceutical preparations not previously imported require the prior approval of the Pakistani Director-General of Health. For this approval, the Director-General requires, free of cost, a supply of the preparation to treat about 60 patients. Pharmaceutical industries holding valid licences are permitted to import pharmaceutical raw material subject to the condition that pharmaceutical (allopathic) raw materials are of pharmaceutical grade and have at least 75 per cent of the shelf life calculated from the date of filing of IGM. Pharmaceutical raw materials specifically allowed by the Director-General are exempt from the above requirements. Import of pharmaceutical products is subject to the conditions and limitations laid down in the Drugs Act 1976
Calcium carbide, whether or not chemically defined, require prior approval of the Department of Explosives. Used or refurbished cylinders (for compressed or liquefied gas) for use in motor vehicles need a safety certificate from the Department of Explosives.
Arms and ammunition not otherwise banned would require authorisation from the Ministry of Commerce.
Ingredients for formulation or manufacturing of pesticides are importable only by industrial users.
Documentation
Fax signatures are not permitted.
Invoice
No prescribed form. Three copies are required.
Invoice must be signed by the manufacturer or shipper and must show names of consignee and vessel carrying the goods, number and description of packages, their serial numbers or other identification, value of goods C&F (freight charges to be shown separately) and country of origin. Except where it is not possible to do so (bulk items or where products are marketed under generic names) the invoice shall give the brand name of the product being imported.
A signed declaration of origin is required.
Certificate of origin
Although not legally required, the importer or his bank frequently requests this document. If not provided, statement of origin should appear on the invoice.
Bill of lading
To Order bills are acceptable. Must show:
- gross weights and dimensions in metric units
- name and address of the party to be notified
Packing list
Not obligatory but facilitates clearance.
Special certificates
Livestock must be accompanied by a sanitary certificate issued by the approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service, Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture.
All plants and plant products, except fruit and vegetables, require a phytosanitary certificate issued by the approved authority in the country of origin.
Hay or straw used as packing material for plants or seeds must be covered by the phytopathological certificate issued by the approved authority in the country or origin.
Leaf tobacco must be covered by additional certification indicating that it is free from ephestiam elutella or that this pest does not exist in the country of origin.
Used clothing should be accompanied by a certificate of cleanliness signed by a physician with the letters MD following the signature.
A special certificate of alcoholic strength may be required for imports of spirituous beverages.
Supplier's certificate or quality and price are required for certain items.
Taxation
Taxation is a problem area for the government, as Pakistan has a very narrow and small tax base. The Central Board of Revenue, under the control of the Ministry of Finance is attempting to alter this situation but is having limited success.
The tax rate for private limited, foreign, and unquoted companies for assessment year 2002-03 is 45 per cent. There is also a goods and services tax set at 15 per cent. Provincial government also levy their own taxes. Sidat Hyder, Taxonline and Khan and Associates provide detailed information on taxation laws and other business information.
General tax information:
- Customs duties are up to 25 per cent (four rates 25, 20, 10 and 5 percent) with the exception of vehicles where the duty can be as high as 200 per cent.
- Specific duties are generally assessed on the net weight of goods.
- Sales tax of 15 per cent is levied on most goods.
- Pulses, chick peas are duty free. Soya beans (1201.000) rape or colza (1205.1000 & 1205.9000), sunflower (1206.0000) and safflower seeds (1207.6000) whether or not broken have a custom duty of 10 per cent.
- The duty on raw materials is 10 per cent, for semi-processed 15- 25 per cent and for finished goods that are also manufactured locally the duty is 35 per cent.
- Excise is levied on a wide range of goods.
- Exemptions are available industry and area wise.
Business travel
On domestic flights Austrade suggests that you only fly with Pakistan International Airlines (PIA). It is worth paying the extra small premium to fly business class. Be sure to re-confirm all domestic and international flights with PIA or reservations can get cancelled.
In all international arrival cities - Islamabad, Karachi and Lahore - most people join the hotel shuttle buses, which are usually complimentary. Private car transfers can also be arranged and you should expect to pay PKR200.
Islamabad is 15 kilometres from the airport and the journey should take approximately 25–30 minutes. Karachi is 20 kilometres away and is a 30–45 minute drive, and Lahore is eight kilometres away, taking 20–25 minutes.
Avoid any long distance travel by trains or buses at night.
The best option for business visits is to hire a car and driver from your hotel. It is relatively inexpensive and will work best in heavy traffic centres with confusing road layouts.
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