How to Export - Pakistan HOW TO EXPORT Pakistan (Fifth Draft) MINISTRY OF EXTERNAL RELATIONS Department of Trade and Investment Promotion Trade Information Division i How to Export - Pakistan Table of Contents List of Acronyms ............................................................................................................................. viii 1. INTRODUCTION ....................................................................................................................... 1 Maps ...................................................................................................................................................... 2 1.1 Basic Information ................................................................................................................ 4 1.2 General Characteristics ...................................................................................................... 6 1.2.1 Geography ...................................................................................................................... 6 1.2.2 Distances ........................................................................................................................ 7 1.2.3 Climate ........................................................................................................................... 8 1.2.4 Population, Urban Centres and Social Indicators .......................................................... 9 1.2.5 Major Urban Centres ................................................................................................... 11 1.2.6 Key Socioeconomic Indicators ...................................................................................... 11 1.3 Political System ................................................................................................................. 17 1.3.1 Ministries and Key Economic Bodies ........................................................................... 18 1.3.2 Key Governmental Economic Bodies with Relevance to Foreign Trade ....................... 18 1.4 Administrative Organization .......................................................................................... 19 1.4.1 Legislative Branch ........................................................................................................ 19 1.4.2 Executive Branch .......................................................................................................... 20 1.4.3 Judicial Branch ............................................................................................................. 20 1.4.4 Elections and Voting System ....................................................................................... 21 1.4.5 Provincial Administration and Governments .............................................................. 21 1.4.6 List of International Agreements to Which Pakistan is a Signatory ........................... 22 1.4.7 Trade Treaties ............................................................................................................... 23 2. ECONOMY, CURRENCY AND FINANCES ....................................................................... 24 2.1 Economic Setting ............................................................................................................... 24 2.1.1 General Characteristics of the Economy ....................................................................... 24 2.1.2 Current Development Stage ......................................................................................... 24 2.1.3 Pakistan Economy – Recent Developments ................................................................. 25 2.1.4 Share of Capital Goods Imports in Developing the Domestic Industrial Base............. 25 2.1.5 Unemployment Level over the Past 5 Years ................................................................. 26 2.1.6 Inflation Rates .............................................................................................................. 26 2.2 Principal Economic Sectors ............................................................................................. 27 2.2.1 Agricultural Sector ...................................................................................................... 27 2.2.2 Mining Sector............................................................................................................... 28 2.2.3 Manufacturing Sector .................................................................................................. 30 2.2.4 Energy Sector ............................................................................................................... 32 2.2.5 Services Sector .............................................................................................................. 34 2.3 Currency and Finances ..................................................................................................... 34 2.3.1 Currency and Exchange Rate ....................................................................................... 34 2.3.2 Convertibility and Foreign Exchange Rate .................................................................. 35 2.3.3 Balance of Payments and International Reserves......................................................... 35 2.3.4 International Reserves .................................................................................................. 37 2.3.5 IMF Reserve Position ................................................................................................... 38 2.3.6 Special Drawing Right (SDR) ..................................................................................... 38 2.4 Public Finances .................................................................................................................. 39 2.4.1 The Financial Sector ..................................................................................................... 39 2.4.2 Banking System ............................................................................................................ 40 2.4.3 Country Ranking by Different International Ranking Agencies ................................. 41 3. OVERVIEW OF PAKISTAN’S FOREIGN TRADE ........................................................... 42 3.1 Recent Trends: General Considerations ....................................................................... 42 i How to Export - Pakistan 3.1.1 Current Share of Country's Trade ............................................................................... 42 3.1.2 Pakistan's Trade with Developed Countries ................................................................ 43 3.1.3 Pakistan's Trade with Oil Producing Countries ......................................................... 44 3.1.4 Contribution and Structure of Foreign Trade .............................................................. 44 3.1.5 Imports and Sectors of Imports with Largest Share ..................................................... 46 3.1.6 Pakistan’s Foreign Trade and Growth ......................................................................... 48 3.2 Origin and Destination of Trade .................................................................................... 48 3.2.1 Export Destinations ..................................................................................................... 48 3.2.2 Origins of Imports ........................................................................................................ 50 3.3 Foreign Trade by Commodity Categories .................................................................... 51 3.3.1 Imports by Major Commodity Categories .................................................................... 51 3.3.2 Exports by Major Commodity Groups ......................................................................... 51 4. BRAZIL – PAKISTAN ECONOMIC RELATIONS ............................................................ 53 4.1 Bilateral Trade: Brazil - Pakistan Economic Relations .............................................. 53 4.1.1 Recent Trends ............................................................................................................... 53 4.1.2 Breakdown of Bilateral Trade ....................................................................................... 54 4.1.3 Pakistan Exports to Brazil ............................................................................................ 55 4.1.4 Brazil’s Export to Pakistan .......................................................................................... 55 4.2 Brazilian Exports to the World ....................................................................................... 67 4.3 Brazilian Exports – Recent Performance ....................................................................... 68 4.4 Bilateral Investment ......................................................................................................... 70 4.4.1 Highlight Opportunities .............................................................................................. 71 4.4.2 Net Negative Exports ................................................................................................... 71 4.4.3 Net Positive Exports..................................................................................................... 72 4.5 Principal Bilateral Economic Agreements with Brazil .............................................. 72 4.6 Credit Lines from Brazilian Banks ................................................................................ 72 4.7