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Pakistan country brief

Pakistan, with a population of 164 million, is an emerging but relatively challenging market for New Zealand exporters.

It’s a diverse market, requiring adaptability and persistence. Careful planning and patience are prerequisites for success, but exporters who invest time and money to develop a market presence should be rewarded in the long term.

Getting your product into market

Pakistan companies prefer to act as exclusive agents and distributors. Some operate using the latest management principles while others are more traditional.

The government, along with its numerous state-run corporations and the armed forces, is Pakistan's largest importer. Procurement decisions are not always made on the basis of price and technical quality alone. Success will also depend on the ability of the agent and the company representing the tender locally.

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Pakistan controls certain imports through a negative list, which includes items such as products and by-products of pigs.

Pakistan has no uniform or universal system of labelling and marking requirements. Individual industries or sectors are subject to the regulations of specific bodies. In the case of meat, products should carry a Halal slaughter certificate.

Customs duties are levied on an ad valorem basis. The maximum tariff rate is 25 percent, except for luxury items which attract higher rates. Dairy equipment is zero rated.

Tax

Other than customs duty, the government charges a sales tax (16 percent) on the duty paid value of a variety of goods produced in or imported into the country.   In some cases, sales tax is exempted (e.g. milk powder).

Logistics

The most direct route for airfreight to reach Karachi from New Zealand is via Bangkok, Singapore or Dubai.

Most major shipping lines service Pakistan.

Vendor on a mobile in Pakistan. (TRANZ / Corbis)

Opportunities

  • Pakistan is one of the largest milk producers in the world, with dairy products forming part of the traditional Pakistani diet. Industry development is creating opportunities not only for New Zealand companies to supply the Pakistan market, but to form strategic relationships with Pakistani producers
  • Opportunities exist for core software companies in the financial, health, education, public sector administration, armed forces and media sectors. There are also openings for providers of integrated solutions for internet service providers and retail electronic payments systems
  • The telecommunications sector has significant potential for growth with the market now well down the path to deregulation. The mobile telephone market has been experiencing annual growth in excess of 100 percent in recent years.

Challenges

  • In the last decade, Pakistan has had a degree of political instability. There has been violence and unrest in a number of cities throughout Pakistan. Before travelling to Pakistan, check with the New Zealand Government’s travel advisory service at www.safetravel.govt.nz.
  • One of the biggest challenges facing New Zealand exporters to Pakistan is a lack of transparency in decision making.

Cultural and business tips

  • New Zealand nationals require a visa and a valid passport to visit Pakistan. Travellers coming for business may obtain a 30-day business visa on arrival as long as you hold a letter of recommendation or invitation. A visa will not be issued if the passport bears an Israeli stamp.
  • New Zealand nationals require a visa to visit Pakistan. A visa will not be issued if passports bear an Israeli stamp. An invitation letter from a company in Pakistan or New Zealand Trade and Enterprise is desirable for a business visa, though not strictly necessary
  • The national language of Pakistan is Urdu but English is commonly spoken in business, government offices and trade
  • The Muslim social code requires adherence to accepted standards of decorum. Visitors travelling to Pakistan should try to fit in so as not to offend the Muslim sense of decency.

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