Pakistan

Major Business Sectors

Compiled by:

Consulate General of Switzerland

Karachi 18th of February 2010

Overview and trends

The structure of Pakistan’s 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 services
sector accounts for 54% of the GDP.

Agriculture:

The agriculture sector comprising of farming, forestry, livestock, poultry and fisheries, contributes about 22
percent to the GDP, employs about 45 percent of the total work force and is the main source of livelihood for
over 60 percent of the country’s population living in rural areas. It contributes substantially to the country’s
exports, provides raw material to major industries such as textile, sugar, dairy, leather and other agro-based
industries 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 a
major impetus to the GDP growth, with both, the crops and the livestock sub sectors exhibiting above-target
growth. This was primarily due to a considerably improved performance by the cropping sub-sector that
overshadowed the impact of a moderation in the growth of the livestock sub-sector. The contribution of the
remaining sub-sectors to overall agricultural growth was not material.

Share in GDP and growth rate of agriculture sector

FY 2008 FY 2009
Growth Percent Growth Growth Percent
rate share target rate share
Agriculture 1.1 21.3 3.5 4.7 21.8
Crops -2.2 9.5 - 6.6 9.9
Major crops (Wheat, rice, cotton, sugarcane etc.) -6.4 6.9 4.5 7.7 7.3
Minor crops (Pulses, vegetables, fruits et.) 10.9 2.6 2.0 3.6 2.6
Livestock 4.2 11.1 3.2 3.7 11.3
Fishing 9.2 0.4 3.4 2.3 0.4
Forestry -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. It
comprises 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 industries
largely based on indigenous raw materials. Engineering sector in Pakistan is engaged in manufacturing cement

Download from: www.osec.ch

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

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

Share in GDP and growth rate of industry sector

FY 2008 FY 2009
Growth Percent Growth Growth Percent
rate share target rate share
Industry 1.7 25.7 6.0 -3.6 24.3
Manufacturing 4.8 19.2 5.0 -3.3 18.2
Large-scale 4.0 13.4 6.1 -7.7 12.1
Small-scale 7.5 4.4 5.5 7.5 4.7
Slaughtering 4.2 1.3 8.0 4.2 1.4
Mining and quarrying 4.4 2.6 5.2 1.3 2.5
Construction -3.9 2.4 8.0 -10.8 2.1
Electricity 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 from
major 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 an
increasingly important dimension of Pakistan’s economy due to its major contribution of about 54 percent in the
GDP. Wholesale & retail trade, transport & storage, communication, community & social services and personal
services are leading service activities in Pakistan. Other services are finance and insurance, ownership of
dwellings, 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 the
preceding eight years. Weakening activities in industrial sector slowed down the pace of wholesale and retail
trade. 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 sector

FY 2008 FY 2009
Growth Percent Growth Growth Percent
rate share target rate share
Services sector 6.6 53.0 6.1 3.6 53.8
Wholesale & retail trade 5.3 17.3 4.5 3.1 17.5
Transport storage & communication 5.7 10.2 5.4 2.9 10.3
Finance and insurance 12.9 6.4 12.0 -1.2 6.2
Ownership of dwellings 3.5 2.7 3.5 3.5 2.7
Public administration and defence 1.2 5.9 4.0 5.0 6.1
Community, social & personal services 10.0 10.6 7.0 7.3 11.1
Gross Domestic Product (GDP), (at constant factor cost of 1999-2000)
Fiscal Year 2008-09 (Provisional)

Business Sector % of Change from Growth Value (Billion Rupees)

GDP previous year rates %
Agriculture 21.8 +0.9% 4.7 1,203.31
Industry 24.3 -1.6% -3.6 1,341.04
Services 53.8 +0.6% 3.6 2,968.11
Total 5,512.45
1 USD = 78.49 (Average exchange rate during July 2008 – June 2009)

Major imports:
July 2008 – June 2009 (Provisional)

Business Sector % of % Change Value in Main countries of

imports from previous USD (Mio) origin
year
Food group USA, Brazil, Argentina,
(Dairy products, edible vegetables Australia, Canada,
and certain roots and tubes, coffee India, Malaysia, UAE,
tea, mate, spices, cereals, oil seeds, 11.8 -1.8 4,136.9 Indonesia and others.
animal and vegetable fat and oil
products, prepared foodstuffs, sugar
& sugar confectionary, beverages
and other.)
Machinery group China, Japan, USA,
(Power generation machines, office Germany, UK, Italy,
machines, textile machinery, 18.9 -10.5 6,594.7 Switzerland & others.
construction & mining machinery,
aircraft, telecommunication, ships &
boats, agriculture machinery and
other.)
Petroleum group Saudi Arabia, UAE,
(Fuels, oils and products of their 27.3 -17.0 9,509.7 Kuwait, Iran etc.
distillation etc.)
Vehicles, aircrafts, vessels Japan, China,
and associated transport Germany, Malaysia etc.
equipments etc. 3.8 -41.1 1,339.4
(Other than railway or tramway
rolling stock etc.)
Products of chemical or allied China, Germany, UK,
industries Switzerland, USA etc.
(Organic, inorganic chemicals & 15.0 -9.8 5,230.4
compounds, Pharmaceuticals,
fertilizers, soap, washing
preparations & others etc.)
Base metals and articles China, France,
thereof Belgium, USA,
(Iron & steel, articles of iron & steel, Australia, Austria,
copper, aluminium, lead zinc, tin & 7.9 1.8 2,754.1 Japan, UAE,
articles thereof etc.) Germany, South Africa,
Canada, Switzerland,
Argentina, etc.
Others 15.0 -42.3 5,256.9 -
Total -12.9 34,822.1 -

Major exports:
July 2008 – June 2009 (Provisional)

Business Sector % of % Change Value in Main destination

exports from previous USD (Mio) countries
year
Food group Afghanistan, Gulf
(Rice, fish & fish preparation, States, Sri Lanka,
fruits, spices, oil seeds, nuts & South Korea,
kernels, meat & meat 17.0 6.5 3,023.2 Indonesia, Italy, Japan,
preparation etc.) China, Bangladesh,
Netherlands, UK,
Switzerland etc.
Textile group USA, Hong Kong, UK,
(Raw cotton, cotton yarn, cotton Germany, China, South
cloth, knitwear, bed wear, towels 53.7 -9.5 9,564.4 Korea, France, Italy,
readymade garments, made-up Switzerland etc.
articles etc.)
Petroleum group UAE, Afghanistan, Iran,
(Petroleum products, petroleum 4.5 -35.5 812.4 Bangladesh, Sudan,
top naptha and coal etc.) Oman etc.
All other manufactures group USA, UK, Germany, S.
(Chemicals, pharmaceuticals, Arabia, UAE, Italy,
molasses, cement, leather & France, Spain,
leather goods etc.) 20.1 -2.1 3,581.7 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:

ƒ Trade Development Authority of Pakistan (TDAP)

5th Floor, Block A, Finance & Trade Centre
Shahrah-e-Faisal, Karachi 75200 Pakistan
Tel.: +92.21- 9206487-90
UAN:+92.21-111-444-111
E-mail: tdap@tdap.gov.pk
Website: www.tdap.gov.pk

ƒ Karachi Expo Centre

University Road, Karachi- Pakistan
Tel.: +92.21-111444111, 9206808, 4999234
Fax: +92.21-9206497, 9206473, 4999231
Email: epb@tdap.gov.pk
 Leading trade fair/exhibition organizers

ƒ Ecommerce Gateway Pakistan (Pvt) Ltd.

Website: www.ecgateway.net

ƒ Pegasus Consultancy (Pvt) Ltd.

Website: www.pegasusconsultancy.com

ƒ CEMS Pakistan Pvt Ltd.

Website: http://www.cems.com.sg/

Business Council/Forum:

ƒ Swiss Business Council

10, Sasi Town, Abdullah Haroon Road,
Karachi
Tel: 9221- 3522-1627
Fax:9221- 614-0649
Email: info@swissbusinesscouncil.com.pk
Website: www.swissbusinesscouncil.com.pk

Contact persons:

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

Office Manager
Ms. Rita Khursheed

Trade journals/publications:

ƒ Jamal’s Yellow Pages of Pakistan

Website: www.jamals.com
(Jamal’s Yellow Pages is a leading commercial search provider in Pakistan)

ƒ PhoneBook Directory Systems

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

ƒ Pakistan & Gulf Economist

www.pakistaneconomist.com/
(Weekly financial magazine in Pakistan)

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

ƒ Pakistan Textile Journal

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

ƒ ENERGY UPDATE
Web: www.energyupdate.com.pk
(Monthly “Energy Update” is a trade magazine on energy sector in Pakistan).
 ƒ Red Book
Pharma Guide Publishing Company
Bungalow no. 176-N,
Block-2, P.E.C.H.S.,
Karachi - 75100
Tel.: +92. (0)21.4395301 - 02
Fax: +92. (0)21.4383769
E-mail: pharmaguide@cyber.net.pk
(Red Book is a comprehensive guide of pharmaceutical products with trade & retail prices)

ƒ ThePharmaGuide.com http://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 take
advantage of a health condition based viewer ship.

ƒ Professional Medical Publications

Professional Medical Publications is a medical publishing house in Pakistan. Founders of this
publication house have been active in the filed of medical journalism since 1966. It has two renowned
publications to its credit: “PULSE” International, a fortnightly medical Views-paper and “PAKISTAN
JOURNAL OF MEDICAL SCIENCES” (PJMS), a peer reviewed quarterly medical journal now in its
20th year of publication.

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

Daily press:

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

Date: 18th February 2010

Author: Aslam Pervez
Commercial Officer
Author’s address: Consulate General of Switzerland
98, Block 5, Clifton, Karachi 75600
Tel.:+92.21.5873987
Fax:+92.21.5874104
aslam.pervez@eda.admin.ch

Sources:
-State Bank of Pakistan, Annual Report 2008-2009 “The state of Pakistan’s economy”.
-Federal Bureau of Statistics