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Pakistan

Pakistan profile

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Current business situation



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Visiting this country

Security & health, Visas, Travel tips & facts

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Country overview

Country facts, Economic climate, Political climate, Trade relations & statistics

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Useful websites and resources 

Government, business & trade, News & media, Travel & tourism

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Doing business

Business opportunities, Business etiquette, Tariffs & regulations, Documentation, Taxation, Business travel                

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Contact details

Austrade offices, Australian Embassy


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Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

See map below for Austrade office locations for this country. Please note that the markers are a guide only. A full list of Austrade offices (in alphabetical order of country) is also available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australian High Commission in Pakistan
Constitution Ave and Ispahani Rd
Diplomatic Enclave No. 1
Sector G-5/4 Islamabad, Pakistan
Tel: +92 51 282 4345
Fax: +92 51 282 0112
Email: consular.islm@dfat.gov.au
Web: www.pakistan.embassy.gov.au


Business hours:
8.00am-4.30pm, Monday to Thursday
8.00am-12.30pm, Friday

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Current business situation

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists to Pakistan. This is regularly updated, and should be checked before planning travel.


If travelling to remote or rural areas it is advisable to register your travel plans with the Australian High Commission in Islamabad, email: ahcisb@isb.comsats.net.pk.

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Country overview

Country facts

Capital city: Islamabad
Surface area: 796,000 sq km
Population: 155.4 million
Official language(s): Urdu, English
Head of State: H.E. General Pervez Musharraf
Head of Government: H.E. Prime Minister Shaukat Aziz
Australian exports to Pakistan: A$320 million
Australian imports from Pakistan: A$151 million
Pakistan's principal export destinations: USA, United Arab Emirates, Afghanistan
Pakistan's principal import sources: United Arab Emirates, Saudi Arabia, China
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

The Pakistan economy has undergone a great deal of change as a direct result of the Government’s support for the ‘War on Terrorism’. The economic fundamentals of the country had been steadily improving post September 11, earning support from the International Monetary Fund and World Bank.  The current high tension with India is placing the economy under pressure but the longer term impact is, at this stage, difficult to assess.


Pakistan’s economic strengths have traditionally come from agricultural products, with important cash crops being citrus, rice and cotton. Textiles continue to be another important sector of the economy.


There are well-defined sectors or niches where Australia has been a consistent supplier. These include food, commodities, education services and other industries offering significant potential, especially health, telecommunication, technical assistance, and oil and gas.


Key economic indicators and statistics for 2006:

GDP - US$127 billion
GDP per capita - US$817
Real GDP growth - 6.9 per cent
Inflation - 7.9 per cent


 

Political climate

Pakistan has been under a great deal of pressure since the events of 11 September, with the Government required to handle a range of crises. By and large these have had little impact on the economic situation, saying much about the ability of Pakistani business to operate in quite difficult environments.


Under normal circumstances, Pakistan has a system of government based on Westminster principles, and therefore quite familiar to Australians. There are Federal and Provincial governments. Likewise, common law principles support the legal system.

Trade relations and statistics

Pakistan’s political relationships are mainly focussed on its regional neighbours, such as Saudia Arabia and the People’s Republic of China.


Pakistan is a member of the South Asia Association for Regional Cooperation (SAARC), which has trade issues as a significant component of its overall agenda. While there has been some talk of creating a free trade area within SAARC, this has not gained any real momentum.


Australia enjoys a good relationship with Pakistan. The removal of sanctions by the Australian Government has obviously assisted the relationship overall, although trade continues to be little affected by the ups and downs in the political relationship.


Major Australian exports to Pakistan (2006-07):

  • Coal - A$43 million
  • Vegetables - A$34 million
  • Lead - A$26 million
  • Animal oils & fats - A$23 million

Major Australian imports from Pakistan (2006-07):

  • Bed, table, toilet and kitchen linen - A$57 million
  • Clothing - A$21 million
  • Woven cotton fabrics - A$15 million
  • Rice - A$12 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Doing business

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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Visiting this country

Security and health

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists to Pakistan. This is regularly updated, and should be checked before planning travel.


If travelling to remote or rural areas it is advisable to register your travel plans with the Australian High Commission in Islamabad, email: ahcisb@isb.comsats.net.pk.

Health

Only drink bottled water (referred to locally as mineral water). It is acceptable to ask the waiter to break the seal on the bottle in front of you

Visas

The Government of Pakistan has cancelled its 30-day visa on arrival policy for Australian citizens (amongst others). As a result, you will need to contact the Pakistan High Commission in Canberra to arrange for a visitors visa.


Pakistan High Commission in Canberra
4 Timbarra Crescent
O'Malley ACT 2606
Tel: +61 2 6290 1676, 6290 1879 or 6290 1031
Fax: +61 2 6290 1073
Email: parepcanberra@actonline.com.au

Travel tips and facts

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.


Avoid any long distance travel by trains or buses at night.


Pakistani food is relatively mild and there are a lot of meat dishes and breads. Although the standard of food is quite good, many Australians will find the dishes very oily and there are few options for vegetarians (particularly in summer). Avoid seafood and salads, this also applies to hotel restaurants.


It’s customary for Pakistanis to eat their evening meal relatively late. At functions, the meal is usually eaten around 10.00pm. Restaurants normally open at 7.00pm.


For further travel information please visit Lonely Planet.

Time

Pakistan is five hours behind Australian Eastern Standard Time.

To find out the current time in Islamabad, view the World Clock.

Dialling codes

Pakistan's country code is 92.
For calls to Pakistan from Australia dial: 0011 + 92 + area code + telephone number
For calls from Pakistan to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

Pakistan’s power supply is 240 volts, 50Hz 1, 3 phases, 2, 3, 4 wires. The round two-pin plugs are the most common.

Weather

Pakistan has a sub-tropical, semi-arid climate with extreme variations in temperature. Although it lies in the monsoon region, it is basically a dry country with only seven per cent of the country receiving rainfall over 480 millimetres annually.

Winter begins in mid-December lasting through till March. In Sindh, Punjab and lower areas of Baluchistan, winter brings cool weather. In the Lahore, Islamabad and Peshawar regions it is cool during the day and cold at night. North of Islamabad the temperature falls rapidly and winters can be severe. Snowfalls are common in the hills just 50 kilometres from Islamabad.

Summer begins in early May, with June and July being the hottest months. The monsoon normally arrives in July and lasts until late August. Temperatures can be high, often reaching over 40°C in Lahore and Islamabad. Karachi has a more even range of temperatures in the low to mid-30s, however, the humidity is generally higher


For weather details in Pakistan, please visit the World Meteorological Organization.

Currency

Oanda currency converter

The official currency of Pakistan is the rupee.

Public holidays

March 23 - Pakistan Day
May 1 - Labour Day
August 14 - Independence Day
September 6 - Defence of Pakistan Day
November 9 - Birthday of Allama Iqbal
December 25 - Birthday of Quaid e Azam

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Useful websites and resources

Government, business and trade

Central Board of Revenue - www.cbr.gov.pk
Government of Pakistan - www.pakistan.gov.pk
Ministry of Commerce - www.commerce.gov.pk
Ministry of Foreign Affairs - www.mofa.gov.pk

News and media

Dawn - www.dawn.com
The Pakistani Newspaper - www.thepakistaninewspaper.com

Travel and tourism

Pakistan Tourism Development Corporation - www.tourism.gov.pk/Index.html
Travel and Tourism Pakistan - www.nicepakistan.com/travel.htm

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.


(Last updated: 19 Aug 2008)

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Aussie company first ever to supply navigation aids to Pakistani airports

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OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

     

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Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.