An economy to consider when investing Pakistan is one of the emerging countries of the moment . With a GDP growth of more than 3% per year and with a population of more than 186 million inhabitants, it is, together with 10 other countries, in the list of Next 11 (‘Next 11’), a list drawn up in 2005 and that groups those countries called to become great world economic powers. It is time to consider investing in Pakistan .
Although it is a country of recent industrialization, Pakistan’s economic potential for transport operations is enormous . At the moment it concentrates its economic activity in the export of textiles, rice, leather, manufactured leather and chemical products, being its main clients the United States and China. If you look at imports , Pakistan imports mostly oil, machinery and transport and its first two suppliers are, again, the United States and China.
Economic relations with China
With this country, Pakistan maintains very good economic relations. In 2007, the Free Trade Agreement between the two countries entered into force, whereby the majority of tariffs were reduced and eliminated . In recent years, bilateral trade between China and Pakistan has grown exponentially , and the Asian giant has become Pakistan’s main trading partner . In addition, during 2015, they signed a millionaire agreement to build an economic corridor linking the Pakistani port of Gwadar, in the Arabian Sea, with the northwestern Chinese region of Xinjiang.
Why invest in Pakistan?
Pakistan is in a privileged geographical situation for international trade . First, its strategic situation on the Silk Road and the fact that it is the gateway to much of the countries of Central Asia, make it very attractive in the eyes of investors.
Another reason that invites you to invest in Pakistan is the fact that you have – after many efforts – a more open foreign trade regime that has improved access to export markets and has provided, and continues to do, incentives Taxes to domestic and foreign investors . In this way, liberalization and deregulation policies have been carried out in recent years .
Nor can we forget Pakistan’s economic outlook : as we mentioned earlier, in 2005 it entered the list of the Next 11, thanks to its economic growth . Although this declined to record lows during the 2008-2011 period, since 2012 the trend has returned to the upside. According to World Bank data, in 2014 there was a growth of 4.74%, a really positive figure.
Also, another attraction of the country is in its population, and that is that Pakistan is among the 10 countries with more inhabitants of the world , and consequently the percentage of people of active age is very high and is, therefore, An extremely productive country. In addition, it has a very young and consuming population, a fact that makes it a country with an excellent potential market.
Commercial relations with Spain
According to data from the Ministry of Foreign Affairs and Cooperation, the main imported Pakistani products are textiles: women’s clothing, men’s clothing, home textiles and textiles for clothing. These imports have increased greatly in the last two years, thanks to the inclusion of Pakistan in the SPG + system of the EU, which led to the elimination of tariff barriers to exports from this Asian country in the EU.
If we look at the figures, in 2014 Pakistan’s imports reached a value of 639 million euros, 43% more than in 2013. Thus, Pakistan is currently among the top ten countries that provide Spanish fashion .
For its part, Pakistan basically imports from Spain industrial products and capital goods such as floor and wall tiles, machinery, zinc and chemical products.
However, Pakistan has become a country with many economic opportunities for both export and import of products . With an increase in economic growth year after year, as well as numerous trade agreements with different countries and with a high active population, Pakistan has shown great economic potential to be exploited .