Pakistan an Emerging Market in South Asia

Mike MoignardSenior Trade Commissioner

South Asia

Pakistan an Emerging Market in South AsiaCountry Info

Pakistan an Emerging Market in South AsiaMap of Pakistan

Austrade Offices

Tony Burchill, Trade Commissioner (Pakistan)

Azhar Shah, BDM IslamabadTahir Mahmood, BDM KarachiImran Saeed, BDM Lahore

Pakistan an Emerging Market in South AsiaCountry Info

•Population: 153 mill (2004)•Capital City: Islamabad•Major cities (Karachi, Lahore, Islamabad, Peshawar,Quetta)•Per Capita Income US$ 769 YR05 (LY US$ 669)•GDP Growth rate: 8.4% YR05 (LY 7.5%)•Inflation: 9.3%•Agriculture based Economy•Languages: Urdu, but English widely spoken and understood•A$ 1 = PKR 45.00 US$ 1 = PKR 59.50

Pakistan an Emerging Market in South AsiaCountry Info

•Major Industries–Textile, Sugar, Vegetable Oils, –Agricultural products, Cement, –Fertilizers, Steel, Chemicals, –Sporting goods & carpets

•Major Trading Partners–US, Japan, Germany,–UK, Saudi Arabia & UAE

Pakistan an Emerging Market in South AsiaPakistan on the Move

Pakistan is no exception and many of you would rank Pakistan as one of the more unfamiliar or perhaps more difficult countries in which to do business

But I am here to tell you there is a change in the wind – Pakistan is on the move for the better

PAKISTAN It’s Easier Than You Think!

Pakistan an Emerging Market in South AsiaPakistan on the Move

PAKISTAN: A Move for the Better

Politically Pakistan is now a substantially more stable environment than it has been for the last 20 years

Government that is very pro business oriented

It has set in place reform packages to stimulate the economy and to promote domestic growth

The economy has achieved one of the highest annual growth rates in South Asia

Pakistan an Emerging Market in South AsiaPakistan on the Move

Pakistan’s economy has made significant progress during the last six years, because of major economic reforms,•Industry & Investment Reforms•Government Reforms•Financial Sector Reforms•Fiscal Responsibility & Debt Limitation Law•Tax Reforms•Agricultural Reforms•Privatisation

Pakistan an Emerging Market in South AsiaPakistan on the Move

A vibrant Economy spurred by FDI and domestic investment

•Reform policies institutionalised ensuring continuity•Confidence of the private sector restored•Fiscal and current account deficits lowered•Declining domestic and external debt•Increased foreign exchange reserves•Exports growing at double-digit rate

Pakistan an Emerging Market in South AsiaTrade Statistics – Australia

Year 2002 2003 2004 2005

Exports 427.2 355.4 504.5

155.3

468.8

Imports 203.1 174.1 139.3

AUD Million

Pakistan an Emerging Market in South AsiaAustralian Exports 2005 – Major Items

•Oils Seeds•Vegetables•Cotton•Coal•Fertilizer•Telecom equipment

Pakistan an Emerging Market in South AsiaAustralian Imports 2005 – Major Items

•Textile Manufactures•Cotton Fabrics•Rice•Medical instruments

Pakistan an Emerging Market in South AsiaBilateral Relations

Established diplomatic relations with Pakistan in 1947Recognised Pakistan’s key role in the war on terrorism

June 2005 - President Pervez Musharraf visited AustraliaNov 2005, PM John Howard Visited Pakistan

Australia contributed more than $80 mill to Pakistan during last year Earthquake$39 mill five-year support package for 500 high-achieving students to study in Australia

Commercial links between Australia and Pakistan include BHP Billiton’s investment in PakistanPeople to People links are expandingCurrently there are more than 2000 students studying in Australia2005 Australia/Pakistan Trade at $608 mill

Pakistan an Emerging Market in South AsiaAustralian Ventures

BHP BillitonClipsalLeightonTethyan CopperInterscan NavigationClough EngineeringSMEC International and many others represented by Agents

Pakistan an Emerging Market in South AsiaKey Industry Sectors

•Education & Training•Agribusiness•Health & Medical•Oil & Gas•Building & Construction•Multilateral Projects (ADB-WB)•Information Communication & Telecom•Defence & Aviation

Pakistan an Emerging Market in South AsiaPakistan Market Attractions

•Rapidly Growing Market•Custom Duties Reforms – 0% custom duties on Raw Material used for re-export and equipment/machinery not available locally•Infrastructure Development•No restriction on payment of Royalty•Tax Free Industrial Zones•Liberal Investment Policy•100% equity share by foreign companies•Local Packaging & Distribution•Presence of Foreign Banks•Easy Transparent Payments, Wire-Transfer , Letter of Credits•Pakistan Business Visa issued on Arrival at any Airport

Pakistan an Emerging Market in South AsiaMissions to Pakistan – Australia, Visits

•Australian PM Visit to Pakistan •Australian Dairy Industry visits to Pakistan• Australian Education Exhibitions•Dawn Education Exhibitions•Companies Individual Visit program•Pakistan IT Companies Mission to Australia•Pakistan Buyers Mission to Australia to meet

– Fine Food, Australian Sugar Industry–Australian Dairy Industry–Oil seeds, pulses dealers–Multilaterals sector companies

Pakistan an Emerging Market in South AsiaSummary

PAKISTAN

A Market Location with Great Potential•With Fast Moving Economy•Strategically located in South Asia •Provide access to other countries, ie

–Afghanistan, Iran, CIS countries•Open to All

Pakistan an Emerging Market in South Asia

THANK YOU

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

PAKISTAN

It’s Easier Than you can ThinkOpportunities for Australia

Continued by

Azhar Shah – Business Development ManagerPAKISTAN

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

PAKISTANIt’s Easier Than you Think….

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

EducationPakistan is a significantly increasing market for the international education providers and Australia is increasingly being recognised as a supplier of a quality education services with very significant advantages in terms of cost vis a vis the UK and USA.

Promotion of Australian education services in conjunction with AEI is a key priority for Austrade in Pakistan

2005/06 DIMIA has issued 1200 student visas to Pakistani students to study in Australia

•Opportunities for institutions are to recruit students–for TAFE, Diplomas, Undergraduate and –Postgraduate programs

Market entry though Exhibitions / Agents

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

AgribusinessRapidly growing population, •Increased in agricultural output •opportunities are for the import of

–Pulses/Lentils–Canola oilseeds–Packaged food–Agribusiness development projects

Dairy & Livestock•Great deal of requirement for dairy cattle/farming and dairy processing equipments

•Pakistan Dairy Mission recently visited Australia to meet with Australian Dairy companies for the import of livestock and technical collaboration. Approx. 5000+ cows will be imported in the next 12 months, Experts are already visiting each others.

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Health & MedicalPakistan Government has set the priorities in health sector too for

–Investment in better medical facilities–Provision of better medical services–Improved health delivery–Private sector involvement in new hospital projects

Opportunities exist for the supply of

–Medical equipments, –Hospital beds–Pharmaceutical drugs, –Diagnostics, Vaccines–Surgical services – in Australia

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Building & Construction

–Residential apartments, –high rise buildings–Commercial buildings–Roads Infrastructures–Airports–Power Sector development–Ports and Shipping–Railways–Communications

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Multilateral Projects(Agribusiness, Education, Governance)

–Project Management & Consultancy–Education & Training–Skills Development

ADB/WB Projects–Balochistan/NWFP Education US$310 mill–Punjab Education US$ 850 mill–Punjab Irrigation & Municipal US$ 159 mill

Technical Assistance projects–Power Distribution–Sindh Basic Urban Services–Policy Reforms, Punjab Resource Management–Capacity Building, Social Services Program–Science Education Project, Improving Governance

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Information Communication & Telecom–Software development, packages–Banking networks & services–E-Government projects–Video Conferencing–Telecom equipment & services–Cellular equipment & services–Value Added Services–New Telecom projects in remote areas

Defence & Aviation–Defence Equipment–Aviation Equipment–Radar, Surveillance Systems–Security, Consultancies

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

THISCONCLUDES

MYPRESENTATION

SO WHERE DO WE GO FROM HERE ?

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Action – Next Steps

Quick Market Assessment on your productAppointment of a suitable Business AgentEstablishing an on ground presenceDetail Market ResearchVisiting the Market

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

In Pakistan contracts are won through persistence and working networks of contacts

The locals know the game, they have the contacts, the leads and know how to facilitate

Question: How do you find such an agent or partner, market research, market assessment

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

CONTACT: Austrade PakistanWe are suitably located in 3 major cities covering the whole of Pakistan:Islamabad, Karachi & Lahore

We can assist and facilitate your request

Doors are always unfastened

Pakistan an Emerging Market in South AsiaBusiness Prospects and Opportunities

Pakistan is definitelyEasier Than you Think

Thank you for attending this Seminar

Happy to Answer your Questions