Investment opportunities in Pakistan
Pakistan enjoys many economic endowments, favorable government policies and infrastructure making it an ideal destination for investment. It offers enormous potential having 9.1 million hectares of land available for agriculture and 22.4 million hectares of rangeland available for livestock. Pakistan has over USD 6.1 trillion net estimated mineral reserves with 7th largest copper reserves and 2nd largest coal reserves. The renewable energy potential in Pakistan is estimated at 3300 GW and there is an expected increase in the energy consumption by 1.5 times until 2030.
Pakistan is blessed with a vibrant, young and skilled workforce. It is the 5th most populous country in the world with a population over 241 million and median age of 21 years as 64% of the total population is aged below 30. Out of this total population labor force in Pakistan is estimated at 71.8 million strong, with an expected addition of 0.4 million people into the labor pool every year. IT labor in Pakistan, costs 70% less than North America and Europe, and constitutes the 2nd largest freelancing work force in the world. Wages in Pakistan are one of the most competitively priced rates in the world and as per a careful estimation a Chinese enterprise can save up good amount of costs by operating in Pakistan and utilizing Pakistani labor.
Pakistan has a unique and a strategic location. It stands at the crossroads of South Asia, Central Asia and the Middle East, presenting an unparalleled gateway for global economic opportunities. It is an economic gateway to the world offering transit route for regional trade and economic integration. The country connects energy-rich Central Asian states to rest of the world and offers key maritime link to Arabian Sea, Indian Ocean and international shipping routes. As a connectivity hub, Pakistan integrates land-sea routes for seamless connectivity and also provides a digital land bridge connecting China and Central Asia with rest of the world.
Pakistan has developed a modern infrastructure which guarantees the return on investment in Pakistan. Some of the important highlights of business enabling infrastructure in Pakistan are as follows:
- A strategic coastal line of 1,046 km
- 3 strategic seaports including Karachi, Port Qasim and a deep-sea port in Gwadar
- Network of dry ports throughout the country
- 12 international airports
- Strategic land ports including Torkham, Chaman, Khunjerab and others for cross border trade
- In October 2023, Pakistan and China agreed to keep open the Khunjerab pass throughout the year
- Sust border crossing points
- A well-developed and extensive network of 259,678 km of road and 12,774 km of railway infrastructure
In terms of market access, Pakistan has its largest FTA with China allowing over 90% of Pakistan’s exports in China at zero customs duty. Pakistan also has EU GSP plus status allowing huge unilateral duty free market access to Pakistani products in EU. This market access provides a great opportunity for Chinese enterprises to relocate to Pakistan and avoid the safeguard duties imposed on them. The Government of Pakistan is strongly committed to supporting economic activities through industrialization fueled by efficiency-seeking investment in Pakistan to make best use of the economic advantages in Pakistan. The next section takes stock of major investment policies, facilitation mechanisms and specials schemes for supporting investment in Pakistan