WZ_1002_E_MajorBusinessSectors-Pakistan

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PakistanMajor Business Sectors

Compiled by:

Consulate General of Switzerland

Karachi 18th

of February 2010

Overview and trends

The structure of Pakistans economy has changed from a mainly agricultural base to a service base.Agriculture and industry sector now account for about 22% and 24% of GDP respectively, while the servicessector accounts for 54% of the GDP.

Agriculture:

The agriculture sector comprising of farming, forestry, livestock, poultry and fisheries, contributes about 22percent to the GDP, employs about 45 percent of the total work force and is the main source of livelihood forover 60 percent of the countrys population living in rural areas. It contributes substantially to the countrys

exports, provides raw material to major industries such as textile, sugar, dairy, leather and other agro-basedindustries and as well as market for industrial products.

The agriculture sector with a growth of 4.7% in the fiscal year (FY) 2008-09 (July2008-June2009) provided amajor impetus to the GDP growth, with both, the crops and the livestock sub sectors exhibiting above-targetgrowth. This was primarily due to a considerably improved performance by the cropping sub-sector thatovershadowed the impact of a moderation in the growth of the livestock sub-sector. The contribution of theremaining sub-sectors to overall agricultural growth was not material.

Share in GDP and growth rate of agriculture sectorFY 2008 FY 2009

Growthrate

Percentshare

Growthtarget

Growthrate

Percentshare

Agriculture 1.1 21.3 3.5 4.7 21.8Crops -2.2 9.5 - 6.6 9.9

Major crops (Wheat, rice, cotton, sugarcane etc.) -6.4 6.9 4.5 7.7 7.3Minor crops (Pulses, vegetables, fruits et.) 10.9 2.6 2.0 3.6 2.6

Livestock 4.2 11.1 3.2 3.7 11.3Fishing 9.2 0.4 3.4 2.3 0.4Forestry -11.5 0.3 1.5 -15.7 0.2

Industry:

Industry is the second largest and an important sector of the economy accounting for 24.3 percent of GDP. Itcomprises of large to middle scale manufacturing, mining & quarrying, construction, electricity & gas

distribution.

In manufacturing, cotton yarn and cotton cloth is the leading sector, followed by food processing industrieslargely based on indigenous raw materials. Engineering sector in Pakistan is engaged in manufacturing cement

Download from: www.osec.ch


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and sugar plants, industrial boilers, chemical/petrochemical plant & equipment, construction equipment andpower transmission towers, textile related engineering and automotive etc.

During the FY 2008-09, the industrial sector witnessed its worst-ever performance, with production dropping by3.6 percent in contrast to the 5.5 percent compound annual growth rate (CAGR) recorded in the previous tenyears.

Share in GDP and growth rate of industry sectorFY 2008 FY 2009

Growthrate

Percentshare

Growthtarget

Growthrate

Percentshare

Industry 1.7 25.7 6.0 -3.6 24.3Manufacturing 4.8 19.2 5.0 -3.3 18.2

Large-scale 4.0 13.4 6.1 -7.7 12.1Small-scale 7.5 4.4 5.5 7.5 4.7Slaughtering 4.2 1.3 8.0 4.2 1.4

Mining and quarrying 4.4 2.6 5.2 1.3 2.5Construction -3.9 2.4 8.0 -10.8 2.1Electricity and gas distribution -22 1.6 3.0 -3.7 1.5

The poor FY 2008-09 industrial growth performances was caused principally by domestic developments.Structural problems took their toll in the form of severe energy shortage and the circular debt issue, etc.Further, the economy was hit by deterioration in security and law and order situation and lower demand frommajor consumer durable goods as real incomes weakened and credit contracted.

Services:

The services sector though missing its growth targets during last two consecutive years is becoming anincreasingly important dimension of Pakistans economy due to its major contribution of about 54 percent in theGDP. Wholesale & retail trade, transport & storage, communication, community & social services and personalservices are leading service activities in Pakistan. Other services are finance and insurance, ownership ofdwellings, public administration etc.

The services sector by missing its target growth of 6.1 percent grew by 3.6 percent which is the lowest in thepreceding eight years. Weakening activities in industrial sector slowed down the pace of wholesale and retailtrade. Major setback to services sector growth came from sharp weakening of transport, storage &communication as well as decline in finance & insurance.

Share in GDP and growth rate of Services sectorFY 2008 FY 2009Growth

ratePercentshare

Growthtarget

Growthrate

Percentshare

Services sector 6.6 53.0 6.1 3.6 53.8Wholesale & retail trade 5.3 17.3 4.5 3.1 17.5Transport storage & communication 5.7 10.2 5.4 2.9 10.3Finance and insurance 12.9 6.4 12.0 -1.2 6.2Ownership of dwellings 3.5 2.7 3.5 3.5 2.7Public administration and defence 1.2 5.9 4.0 5.0 6.1Community, social & personal services 10.0 10.6 7.0 7.3 11.1


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Gross Domestic Product (GDP), (at constant factor cost of 1999-2000)Fiscal Year 2008-09 (Provisional)

Business Sector % ofGDP

Change fromprevious year

Growthrates %

Value (Billion Rupees)

Agriculture 21.8 +0.9% 4.7 1,203.31Industry 24.3 -1.6% -3.6 1,341.04Services 53.8 +0.6% 3.6 2,968.11

Total 5,512.451 USD = 78.49 (Average exchange rate during July 2008 June 2009)

Major imports:July 2008 June 2009 (Provisional)

Business Sector % ofimports

% Changefrom previous

year

Value inUSD (Mio)

Main countries oforigin

Food group(Dairy products, edible vegetablesand certain roots and tubes, coffeetea, mate, spices, cereals, oil seeds,animal and vegetable fat and oil

products, prepared foodstuffs, sugar& sugar confectionary, beveragesand other.)

11.8 -1.8 4,136.9

USA, Brazil, Argentina,Australia, Canada,India, Malaysia, UAE,Indonesia and others.

Machinery group(Power generation machines, officemachines, textile machinery,construction & mining machinery,aircraft, telecommunication, ships &boats, agriculture machinery andother.)

18.9 -10.5 6,594.7

China, Japan, USA,Germany, UK, Italy,Switzerland & others.

Petroleum group(Fuels, oils and products of theirdistillation etc.)

27.3 -17.0 9,509.7Saudi Arabia, UAE,Kuwait, Iran etc.

Vehicles, aircrafts, vessels

and associated transportequipments etc.(Other than railway or tramwayrolling stock etc.)

3.8 -41.1 1,339.4

Japan, China,

Germany, Malaysia etc.

Products of chemical or alliedindustries(Organic, inorganic chemicals &compounds, Pharmaceuticals,fertilizers, soap, washingpreparations & others etc.)

15.0 -9.8 5,230.4

China, Germany, UK,Switzerland, USA etc.

Base metals and articlesthereof(Iron & steel, articles of iron & steel,

copper, aluminium, lead zinc, tin &articles thereof etc.) 7.9 1.8 2,754.1

China, France,Belgium, USA,Australia, Austria,

Japan, UAE,Germany, South Africa,Canada, Switzerland,Argentina, etc.


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Others 15.0 -42.3 5,256.9 -Total -12.9 34,822.1 -

Major exports:July 2008 June 2009 (Provisional)

Business Sector % ofexports

% Changefrom previous

year

Value inUSD (Mio)

Main destinationcountries

Food group(Rice, fish & fish preparation,fruits, spices, oil seeds, nuts &kernels, meat & meat

preparation etc.)

17.0 6.5 3,023.2

Afghanistan, GulfStates, Sri Lanka,South Korea,Indonesia, Italy, Japan,

China, Bangladesh,Netherlands, UK,Switzerland etc.

Textile group(Raw cotton, cotton yarn, cottoncloth, knitwear, bed wear, towelsreadymade garments, made-uparticles etc.)

53.7 -9.5 9,564.4

USA, Hong Kong, UK,Germany, China, SouthKorea, France, Italy,Switzerland etc.

Petroleum group(Petroleum products, petroleumtop naptha and coal etc.)

4.5 -35.5 812.4UAE, Afghanistan, Iran,Bangladesh, Sudan,Oman etc.

All other manufactures group(Chemicals, pharmaceuticals,

molasses, cement, leather &leather goods etc.) 20.1 -2.1 3,581.7

USA, UK, Germany, S.Arabia, UAE, Italy,

France, Spain,Afghanistan, Portugal,Russian Federation,Singapore etc.

All others items 4.5 9.7 800.2 -Total -6.7 17,781.9 -

Promotion opportunities:

Trade Fairs/Exhibitions

Information about trade fairs and exhibitions can be obtained from Pakistan Homepage(http://www.osec.ch/internet/osec/en/home/export/countries/pk/export.html) on the website of the OSEC

Business Network Switzerland or from the following organizations in Pakistan:

Trade Development Authority of Pakistan (TDAP)5th Floor, Block A, Finance & Trade CentreShahrah-e-Faisal, Karachi 75200 PakistanTel.: +92.21- 9206487-90UAN:+92.21-111-444-111E-mail: [email protected]: www.tdap.gov.pk

Karachi Expo CentreUniversity Road, Karachi- PakistanTel.: +92.21-111444111, 9206808, 4999234Fax: +92.21-9206497, 9206473, 4999231Email: [email protected]
http://www.osec.ch/internet/osec/en/home/export/countries/pk/export.htmlmailto:[email protected]://www.tdap.gov.pk/mailto:[email protected]:[email protected]://www.tdap.gov.pk/mailto:[email protected]://www.osec.ch/internet/osec/en/home/export/countries/pk/export.html


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Leading trade fair/exhibition organizers

Ecommerce Gateway Pakistan (Pvt) Ltd.Website:www.ecgateway.net

Pegasus Consultancy (Pvt) Ltd.

Website:www.pegasusconsultancy.com

CEMS Pakistan Pvt Ltd.Website: http://www.cems.com.sg/

Business Council/Forum:

Swiss Business Council10, Sasi Town, Abdullah Haroon Road,KarachiTel: 9221- 3522-1627Fax:9221- 614-0649Email: [email protected]: www.swissbusinesscouncil.com.pk

Contact persons:

PresidentMr. Syed Farukh Mazhar, Managing Director, SGS Pakistan (Pvt.) Ltd.

Office ManagerMs. Rita Khursheed

Trade journals/publications:

Jamals Yellow Pages of PakistanWebsite: www.jamals.com(Jamals Yellow Pages is a leading commercial search provider in Pakistan)

PhoneBook Directory SystemsWebsite: http://phonebook.com.pk/(PhoneBook Director System is another leading commercial search provider in Pakistan)

Pakistan & Gulf Economistwww.pakistaneconomist.com/(Weekly financial magazine in Pakistan)

Money(http://www.money20.com/)Fortnightly Business & Personal Finance Magazine

Pakistan Textile Journalwww.ptj.com.pk(Pakistan Textile Journal is the leading monthly magazine for the textile industry of Pakistan).

ENERGY UPDATEWeb:www.energyupdate.com.pk (Monthly Energy Update is a trade magazine on energy sector in Pakistan).
http://www.ecgateway.net/http://www.pegasusconsultancy.com/http://www.cems.com.sg/mailto:[email protected]://www.swissbusinesscouncil.com.pk/http://www.jamals.com/http://phonebook.com.pk/http://www.pakistaneconomist.com/http://www.money20.com/http://www.ptj.com.pk/http://www.energyupdate.com.pk/http://www.energyupdate.com.pk/http://www.ptj.com.pk/http://www.money20.com/http://www.pakistaneconomist.com/http://phonebook.com.pk/http://www.jamals.com/http://www.swissbusinesscouncil.com.pk/mailto:[email protected]://www.cems.com.sg/http://www.pegasusconsultancy.com/http://www.ecgateway.net/


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Red BookPharma Guide Publishing CompanyBungalow no. 176-N,Block-2, P.E.C.H.S.,Karachi - 75100Tel.: +92. (0)21.4395301 - 02Fax: +92. (0)21.4383769E-mail: [email protected](Red Book is a comprehensive guide of pharmaceutical products with trade & retail prices)

ThePharmaGuide.comhttp://thepharmaguide.com/ThePharmaGuide.com is an online, healthcare media publishing company. It provides easy-to-read, in-

depth, medical information for visitors via its web site.

ThePharmaGuide.com also provides powerful targeted marketing for advertisers who want to takeadvantage of a health condition based viewer ship.

Professional Medical PublicationsProfessional Medical Publications is a medical publishing house in Pakistan. Founders of thispublication house have been active in the filed of medical journalism since 1966. It has two renownedpublications to its credit: PULSE International, a fortnightly medical Views-paper and PAKISTANJOURNAL OF MEDICAL SCIENCES (PJMS), a peer reviewed quarterly medical journal now in its20th year of publication.

Respective websites of both the publications are: www.pulsepakistan.com and www.pjms.com.pk

Daily press:

DAWN (www.dawn.com ) The News International ( www.thenews.jang.com.pk ) Business Recorder ( www.brecorder.com ) The Financial Daily ( www.thefinancialdaily.com) Business Day ( www.businessday.com.pk )

Date: 18th

February 2010Author: Aslam Pervez

Commercial OfficerAuthors address: Consulate General of Switzerland

98, Block 5, Clifton, Karachi 75600Tel.:+92.21.5873987Fax:[email protected]

Sources:-State Bank of Pakistan, Annual Report 2008-2009 The state of Pakistans economy.-Federal Bureau of Statistics
mailto:[email protected]://thepharmaguide.com/http://www.pulsepakistan.com/http://www.pjms.com.pk/http://www.dawn.com/http://www.dawn.com/http://www.thenews.jang.com.pk/http://www.brecorder.com/http://www.thefinancialdaily.com/http://www.businessday.com.pk/mailto:[email protected]:[email protected]://www.businessday.com.pk/http://www.thefinancialdaily.com/http://www.brecorder.com/http://www.thenews.jang.com.pk/http://www.dawn.com/http://www.pjms.com.pk/http://www.pulsepakistan.com/http://thepharmaguide.com/mailto:[email protected]

Documents

WZ_1002_E_MajorBusinessSectors-Pakistan