Doing business with Pakistan
Pakistan is suffering horrendous flooding again – and the world has been once more been accused of ignoring her plight. Meanwhile allegations of dastardly involvement in terrorism in Afghanistan make it to the world’s front-pages, ensuring that one side to Pakistan is not forgotten.
Against the context of flooding, terrorism and corruption, it might seem a strange and somewhat misplaced time to be writing about the benefits of economic investment in Pakistan. But those who know me as a writer, will know my attempts to wring out inspiring news stories and splash a spotlight on a side to life that is uplifting, but no less real.
I was recently sitting amongst a sea of suited businessmen in a swanky club in the heart of London, when an American-Pakistani friend shared the news that Forbes Magazine has produced an article saying that Pakistan was a good place to invest. She delivered the revelation in an excited whisper, and I watched the jaw of another friend drop to the floor. As a British-Pakistani businessman, he of course knew this to be true – but the fact that one of the most respected business magazines in the USA was saying it was an utter delight. What the media says does matter – especially in business.
The writer of the article, Helen Coster, talks much about Lahore, the Indus Entrepreneurs and an internet mogul named Monis Rahman. Coster doesn’t shy away from some of the obvious challenges about doing business in Pakistan, but ultimately insists that “the promise of doing business in Pakistan outweighs the frustration”.
I’m right with Rahman when he says: “You tend to hear the worst 5 per cent of the Pakistan story 95 per cent of the time,” but Coster’s story was so focused on the successful entrepreneur that I wonder whether his experience of the business landscape was unique to him, or at least unique to Lahore.
On closer inspection, I discovered many others are saying the same. In an article in Blue Chip Magazine, another businessman from Karachi claims that Pakistan is “entrepreneurial to the core” – something others I spoke to agree on. The Invest in Pakistan website lists the top five reasons for foreign investment in Pakistan as being: abundant land and natural resources; human resources (huge English speaking population); a large and growing domestic market (a growing middle class); well-established infrastructure and legal systems (road, rail, sea, IT); and geographic location – as principal gateway to the Central Asia Republics and connections to the Middle East and South Asia.
Putting it crudely, the labour and raw materials are cheap, the population is 6th biggest in the world and growing fast with over 50 per cent of the 180 million under the age of 20, and tax and set-up incentives for foreign investment are good.
Business giants, like GlaxoSmithKline Consumer Healthcare are increasing investment in what it considers a “high growth market”. Rs2 billion will be invested in Pakistan over the next five years. And it’s not just inward investment that holds potential. Last week the Federation of Pakistan Chambers of Commerce and Industry announced that despite economic challenges, Pakistani exports had reached $25 billion (against the government target of $20 billion). One export, which may surprise my fellow British countrymen, is bagpipes – in fact Pakistan is the world’s biggest producer of the Scottish instrument (worth $6.8 million in 2010).
I am not ignoring the floods, or the allegations of terror-funding, my Pakistani friends in London wouldn’t let that happen. I have my eye on the tides of disaster, but as I commit professionally to exploring Business with Britain, I can’t help but think that Business with Pakistan should certainly not be forgotten.
Caroline Jaine is a UK based writer, artist and film-maker with a background in media strategy, training and diplomacy. Her book A Better Basra, about her time in Iraq was published in August 2011. More about Caroline’s work and her contact details can be found on www.jaine.info and facebook.
The views expressed by this blogger and in the following reader comments do not necessarily reflect the views and policies of the Dawn Media Group.
Is this self motivation in the time of crisis? Why don't you people first work on what is fundamentally wrong with you and then the compedition with the rest of the world will take care of itself. The virally spread misconception of Pakistanis being better than anyone else in every field is so juvenile that the contrasting evidences of the country take away plight from the hearts of non-pakistanis
well , it great to know there is something in my country to cheer about .. it is so true that pakistan has vast resource and talents and everything else have what an emerging economy need . but if you look at the history there is lot of kingdom who have wealth and resources but they failed . the reason quite simple . no one is coming to our country in kind of foreign investment until our own business man and people do not care about their country .. Pakistan is not a fail state but i am very sorry to say we the proudly people of Pakistan making in a failed one
I had the good fortune of working in Pakistan for a year. That assignment opened my eyes to the wealth of opportunities available in Pakistan and a dynamic commercial sector. To capitalize on these opportunities, three areas need to addressed. First, Pakistan must have a stable, transparent government and address corruption at the highest levels. Second, Pakistan must be able to provide reliable sources of energy. And third, Pakistan needs to address its own security breaches. Unless these issues are addressed in a timely manner, Pakistan will loose the chance to become a reliable global partner in the world economy.
I completely agree with you. If you have any further feedback please forward it to me. I am writing an article regarding how Pakistan should tackle its economic problems.
I would like to add a point here. Two of the weaknesses ie Power shortage and Security problems themselves provide lots of business opportunities. Corruption is the only issue to be tackled on an urgent footing. And this applies to India too.
I really appreciate you are doing well… keep up your good work.God bless you Caroline
Finally …
an article that shows the bright side of Pakistan. We can really do with more positive publicity and MUCH less of the dime-a-dozen so called 'analysts'
Nice article
South Asia is a wonderful God gifted peace of land. It has enormous untapped treasures hidden in its land(Agri-Dairy), mountains(minerals), people(talent) and in its beauty(tourism).
I think we have explored not more than 5% of hidden treasures in Pakistan. A Single Thar Coal Reserve Of Pakistan is about 850 Trillion Cubic Feet Which is More Than Oil Reserves Of Saudia & Iran. Baluchistan province in Pakistan is rich in numerous precious minerals. Land of Punjab in both India and Pakistan is famous for wheat, rice, sugarcane, cotton and many more crops. About 99609.6 Sq Km land is still available for cultivation in Pakistan.
Pakistan has enormous unexplored gas and oil reserves. The land has huge resources of gold (write recodec Pakistan in Google). We have world largest reserves of natural salt.
Dairy Business, Pakistan is no 2 in world after our neighbor India in milk production. Our fruits specially Dates, Mango, Orange are highly demanded all over the world.
Pakistani brain is well known in world, from IT specialist to Atomic scientists; The nation has the ability to ‘do what they want’. Korea adopted our first five year plan to achieve enormous growth.
Only we need is political stability.
Pakistan is heaven for foreign investment.
Good question from India? Pakistan is second largest exporter of what?
Well as per my limited knowledge….
Pakistan is 2nd largest exporter of Bagpipes (a musical instrument)
Pakistan is 2nd largest Ethanol exporter to EU.
Pakistan is 2nd largest exporter of Dates.
Pakistan is 2nd largest exporter of yarn.
Pakistan is 3rd largest exporter of cotton and clothes.
Pakistan is 3rd Largest rice exporter. (later on this year 2011-12)
Pakistan is 3rd largest exporter of mango.
Pakistan is 5th largest exporter of Cement. (China-Japan-Thailand-Turkey-Pakistan)
The list is quite long. I think its enough.
AAMIR
you are right..i lived abroad …..pakistani products are much more popular then india especially in clothing…..every pakistani need to know about our capicity
Hello Caroline Jaine , thanks for whatever you wrote for pakistan.
support imran khan……he can lead us …like he is leading two great institutions shaukat khanum hospital and numl university mianwali…………
Please be sensible. Follow the topic i.e. 'Doing Business in Pakistan'. From where Imran Khan came in?….
It will be great advertisement for Pakistan if peace could be sustained for longer period of time in some of the cities. Suicide bombing, killings are not fiction. Even Caroline will agree to that.
we need all this to boost the morale and unlock the true potential of our nation
It is unfortunate that the image of Pakistan has been tainted and due to this foreign investors are avoiding the country.
Well, the facts are true that Pakistan is a natural growing markets due to its population and abundant of resources. But, in today's world security risk is the major deterrant to Pakistan's foreign investment. Very few foreign institutions or multinational are willing to make further investment due to security risk and poor credit rating of Pakistan which is infact lower than Bangladash. By the way, the investment of Rs. 2 billion as an example is not a big amount when converted to US dollar i.e. US$. 23 million only. The same amount is thrown away by big multinational on their small advertisement and PR services. By an international standard it has no value. Charity services gather more money in single event or one musical show makes more than that. All we need is to the corruption and improve law and order to become a successful nation.
Happy to see some positive thing written about Pakistan. I strongly believe that South Asia has tremendous potential to grow its economy at a very faster pace. Only thing is we need to develop some good habits and instead of playing in the hands of enemy of South Asia, who under the disguise of friendship, poke one against the other in different ways and keen to maintain and/ increase their influence on South Asia, we need to talk to each other. Mr. Gilani said a very right thing- if we don't sort out our problems, no third party can not do it for us. South Asia is our home and I shall be happy to see stable & developed South Asia which is impossible without Pakistan.
This article focuses on one aspect of business, and that is how much money there is to be made. Most of us, and especially people who have commented on this article have failed to ignore some very important facts of business; namely the human involvement and fulfilment, and the difference in society a business can make. Pakistan is a bigoted and unsafe society. Who wants to make a quick buck in exchange for endangering his/her life? One has to be really desperate, or must worship just money to make that decision, IF the whole investment article above holds true.
But i think, the glass is half filled. The real picture is quiet different.
Despite all odds and evils prevailing around, world and its optimistic good people will always refelect, project and carry the truth; Caroline Jaine, you being one in the right cader of optimism, deserve appreciation, prayers and best wishes for the truth that you have spoken through this article … Remain blessed and God speed !!!!!!!!!
Those who see Pakistan on the brink of collapse,can't see it on same time,its standing right on the brink of fastest economical flight, Pakistan has all the right resources for rapid growth & if ignored,its a great loss.
Resources are valuable only if these are used. Hope, Pakistan leaders will realise it one day and define priorities.