Pakistan: Global Sourcing Country Profile by Devon Bert

devon bert fasm 420 prof. canepa

pakistan country profile

Executive summary This report serves as a detailed and comprehensive summary of Pakistan and their textile and apparel industry. Through covering a brief history of the country, detailing their socio-economic and political climate, and describing their labor laws and the state of the industry, the report will aid Fit & Flourish in determining whether Pakistan is the best choice for sourcing womenâ&#x20AC;&#x2122;s knit bottoms. If chosen, the report will smooth transactions between American and Pakistani companies by specifying trade agreements for both the foreign and domestic parties, as well as laws that affect the importation of Fit & Flourish product. Also covered are Fit & Flourishâ&#x20AC;&#x2122;s sourcing guidelines, textile and apparel associations we may work with, and the business culture specific to the country. Negotiation styles and dining etiquette are also included, as they are key aspects of the relationship building process when doing business internationally. A list of evaluated potential manufactures and a list of prospective costs are additional necessary components included to ascertain whether or not Pakistan will be used for sourcing. Along with the list of manufacturers will be a HTS codes and tariff percentages for our products and any preferential treatment included, a description of the ease of shipping within Pakistan and shipping routes and maps to help clarify the transportation process. Based on the logistics of importation, along with US importing requirements and Pakistan exporting requirements, the potential for sourcing in Pakistan can be established. Post examination of the report, it becomes clear that there are both risks and benefits to doing business in Pakistan.

table of contents executive summary....1 introduction....3 country overview....5 trade laws & agreements...20 business etiquette...24 sourcing guidelines...37 m a n u fa c t u r i n g & p r o d u c t i o n . . . 4 3 costing...48 import classification...52 lo g i s t i c s & i m p o r ta t i o n . . . 5 2 us importing requirements...56 conclusion...64 appendix...67 maps...90 t e c h n i c a l pa c k a g e . . . 9 2 sources...100 2

introduction Often called the “Crossroads of Asia.” Pakistan is conveniently situated around the South Asian, Middle Eastern and Central Asian regions. Pakistan has deep roots within Asia, which has made for a uniquely blended culture. The country resides on some of the most ancient lands known to man. In fact, Pakistan was the site of some the earliest human settlements in the world. Societies have flourished there before Babylon, “its people practiced the art of good living and citizenship before the celebrated ancient Greeks.” The Indus Valley Civilization once thrived where the country now stands. The civilization was one of the first establish vital elements to developing a nation; government, religion and culture. In 1,500 BC the Aryans conquered the region, pushing the Hindus out of the area and Eastward. In the 5th century, the Persians took over the northern lands. The Greeks came later in 327 BC led by Alexander of Macedonia. Finally, in 712 AD Mohammed Bin Qasim led the Arabs into the area and spread the word of Islam throughout the land. Today, 97% of the population practice the word of Islam. Pakistan has been influenced by a wide array of cultures and beliefs. Because of all this, heritage and history are cherished. Conversely, these values sometimes conflict with one another, thus the common power struggle. Pakistan first became an independent state in August 1947, due to the division of the British Indian Empire. The geography of Pakistan is diverse and beautiful. Northern Pakistan boasts plentiful mountains ranges like The Himalayas and The Karakoram Mountains. Additionally, Sindh is known for its vast hot desert and the Makran coast attracts tourist with its miles of golden sand. Because of all this, Pakistan has vast potential. However, the nation has faced decades of political and social turmoil. This country report will detail the risks and benefits of manufacturing textile and apparel in Pakistan.

country overview socio-economic-politcal climate Pakistan’s internal challenges are “terrorism, extremism, economic woes, energy crises, an unstable political situation, ethnicity, sectarianism, drug mafia and geographic vulnerabilities.” Many serious concerns plaguing the Pakistani nation are “the ever widening budget and trade deficits, galloping inflationary pressures, incessant increase in the level of poverty, power outages, water shortages, closure of industries, food insecurity, and relying heavily on domestic borrowing due to lower revenue collections,” However, due to lowered foreign assistances, the government is forced to rely on deficit financing that, in the long run, will negatively affect profitability. [4.] Pakistan is a hierarchal society that prescribes behavior for each individual according to his or her age, sex, and social status. Historically, Pakistan has switched between democracy and military rule. “Since independence in 1947, Pakistan has been ruled by the military on three occasions and for a period totaling over half of the country’s existence. General Ayub Khan seized power in a bloodless coup in 1958, changing the course of democracy in Pakistan forever.” [2.] When he took office, Ayub promised to reform the economy with agrarian techniques. Foreign investment was also encouraged for the first time in order to stimulate the industry. [3.] The ever-changing power structure can account for the many political out bursts the nation faces. There is a battle in the nation between those who believe it should be ran traditionally through the military and more modern thinkers who prefer democracy. Because of this, matters of the state tend to become drawn out battles between powers. The war torn nation is accustom to acts of terrorism. Pakistan has been on the front lines of war for more than three decades. It is the most fractured country in the world. [1] Extreme debt and political differences have led the nation to an all time low. “In November 2013, the country’s foreign exchange reserves hit a 12-year low, falling to US$3.4 billion, which will cover less than one month of imports.” [6] However, the nation has seen a recent resurgence. Democracy is becoming the norm, there are new leaders in office and female voters finally have a true presence in the national decisions. With these tools of modern civilization, Pakistan may be able to develop themselves into a respected, rather than feared, nation. These major issues with the economic and political sectors, make it impossible for the society and culture to truly flourish and thrive.

National Debt

As energy debts continue to pile up, the national budget will be negatively affected. The 2011-2012 GDP was estimated to see a 4.2% growth rate, 2013 was estimated to see a lower growth rate at only 3.6%. 2014 will continue to see a GDP decline, which will directly account for implications regarding tax collection and the fiscal shortages. This drop is a 40-year all time low, meaning, “Economic growth has slowed to an average of less than 3% per annum over the last four years.” [4.] This slow growth rate will directly affect the citizens of Pakistan; fewer opportunities in the job market means far less people will be able to make their way out of poverty. Furthermore, every year around 2,843,700,000.0000 US dollars of public money goes to “[penalties] for bad governance and poor management of the Pakistan Railways, PIA, Steel Mills, power generation and other public-sector entities.” [4] Rather than using these billions of dollars to restore the economy, these government infrastructures are causing more harm than good. On top of the national debt, Pakistan owes the IMF (International Monetary Fund) around $7.9 billion in borrowed funds which must be paid back between 2012 and 2015. The IMF lent the funds to support Pakistan’s increased oil import bill as well as an accumulation of other foreign debt service payments.

Due to rising prices, unemployment rates, an overall lack of control, and no basic services for the impoverished, there are few Pakistani’s starting the New Year hopeful. [1] What’s worse, “more than three consecutive years of low growth have left per capita incomes stagnated, aggravated poverty and worsened unemployment rates. This has generated widespread public discontent.” [4.] A decrease in “public and private investment, [as well as] growing uncertainty pertaining to business and market growth” [4] are the core factors in the nations demise. The lack of proper international marketing strategies and out of date technologies are keeping Pakistan in the dark ages

political climate

“Terrorism, sectarianism, ethnic violence and crimes related to politics resulted in over 5200 fatalities during the year. Bringing peace back, which in turn will likely rebound economic activity, is a major challenge ahead.” [1] There is a bright side; for this first time in 67 years the government is Civilian run. “For the first time in history one democratically elected government was replaced by another democratically elected government after President Asif Ali Zardari’s Pakistan People’s Party (PPP) completed its full term in office.” [6] In December 2013 a new chief of justice, prime minister, president and chief of staff took office with hopes turn to the social, economic and political climate around. While far from perfect, this year’s election surpassed critic’s expectations. In the past, elections have been riddled with fraud, scandal, and murder. The elections brought in over 4,000 registered candidates for positions in the assembly and 216 new parties. In fact, there were so many assembly hopefuls, The Electoral Campaign of Pakistan ran out of symbols to represent the parties on the ballot. An even more groundbreaking presence was the female outcome. “Figures from the Electoral Commission showed a 129.8 % increase in the number of female political candidates contesting general seats from the 2008 elections.” [6] Over all, total female voter turnout was 55%, the highest it has been since the 1980s. Because human and women’s right are a prevalent concern to many U.S. businesses, this will positively affect the industry in Pakistan. If investors and brands notice that there is a stronger female voice in the nation, they will be more inclined to place their product in Pakistan. As a company that strongly believes in the ethical treatment of female workers, supporting the Pakistan textile industry may help further the rights of women there. Despite the many positive moves towards stable democratic election, violence occurred prior to the vote, with several candidates killed or kidnapped. “On election day itself, several polling stations were attacked across the country including multiple blasts in Karachi, Pakistan’s financial capital.” [6] While Pakistan takes one step forward; they seem to take two steps back in global development. Nawaz Sharif, leader of the Pakistan Muslim League (PML-N) won the race, his third time as Prime Minister. the PML-N mandate promised to seek an end to the energy crisis, stopping the US drones and improving the economy. “While 2013 was marred by natural disaster, violence, increasing conservatism and poor economic trends, it should be remembered as the year that democracy was consolidated in Pakistan.” [6] With a new leader at the helm and democracy stronger then ever, a fiscal turn around and over all state of peace may be in the near future.

political climate

“Perhaps no other country has experienced such a total change of its constitutional officers within a calendar year.” [1.] With a new roster of political leaders, Pakistan may be able to turn around their political climate, which will in turn benefit the economy. In the past few years, efforts to focus on the economy have been pushed to the wayside due to more serious political and religious related crime.“Important matters of state impacting the wider public are decided behind closed doors with no input and debate in the parliament.” Because of this, leaders are not able to focus their efforts in the manufacturing industries. In fact, Prime Minister, Nawaz Sharif, cancelled his plans to attend the World Economic Forum meeting in Switzerland in the wake of another deadly bombing in Bannu, Pakistan that took the lives of 22 security personnel. With the constant acts of extremism in Pakistan, Sharif and other government leaders cannot wholly focus their efforts on the economy. Bringing peace to the nation is first and foremost their main concern. “Our nation is united against extremism and terrorism and the sacrifices rendered by our citizens and personnel of law-enforcement agencies will not go in vain”, he said. “Government will take all practical measures to provide security to the masses. The terrorists cannot sabotage [the] state’s efforts to establish peace in the country through dialogue.” [2.] Despite the overwhelming economic and political woes facing this nation, foreign investors continue to look to Pakistan for trade opportunities. There are many regions within the country that offer enticing opportunities for foreign investors, but because of mismanaged and unstable fiscal policies, many are weary of entering the market. Power Outages

In addition to the continuous fear of nationwide anarchy, “irresolute action when it comes to tackling problems of tax evasion by the privileged, bank defaulters and privatization, for fear of political backlash” is a major problem. [1] Unpaid taxes and power thieves lead to countrywide power outages. Loss of power means loss of profits for the fashion industry and factories in the country. In 2013, the government did not show interest in catching the thieves but instead raised the tariff on power supply. When black outs occur, production must cease. This affects everything in the supply chain because processes must be delayed, which in turn costs the investors large sums of money. Pakistani labor workers must stop manufacturing and thus cannot receive the pay they need to take care of their families. “Production disruptions caused by long power outages and energy shortages. These disorders [will continue to grow] further, which badly affect exports” Ultimately, this will erode overall business assurance at both the foreign and local levels. To combat this issue, some alternative solutions have developed. “The power sector debts [result in] power cuts. To save on the production costs, there is some movement to convert power plants from oil to coal.” [2.] “Pakistan possesses the 5th largest coal reserves in the world and a wide-range of other natural resources.” [4] Pakistan has many opportunities for alternative fuel options. The capacity of the coal industry in Pakistan is still being researched and defined. It would behoove the textile and apparel industries to consider moving towards coal or oil fuel in their factories. One thing is for sure, power outages can and will affect the bottom line of production.

political climate Impact of Afghanistan A serious factor to account for the unstable climate of Pakistan is the Afghan war and its associated violence. This disorder intimidates foreign businesses and investors from producing in Pakistan. Because the two nations are often synonymous with one anther, Pakistan is sometimes known as ‘the most dangerous place in the world.’ Those in control must become hands-on in order to dispel this bad reputation. Because the two countries share borders, the Afghan War often spills into Pakistani territory, and thus, their radical ideals leak over as well. Currently, there are over 3 million Afghan refugees in Pakistan, a number that increases every day. “The inflow of refugees will need to be carefully managed to prevent social upheaval and even more insecurity.”[6] Despite this, the two nations share many common bonds that many are not aware of. “Western powers are unable to understand the tribal and familial compulsions of this cross-border connection. Pakistan will remain under pressure to bring the Afghan resistance to talk to the Karzai government or the Americans, which Pakistan is in no position to deliver. Peace in one country is not possible without peace in the other, and that remains Pakistan’s big challenge.” The Pakistani and Afghani people have a vast connections throughout history. The two nations share the “Pashtun ethnicity; a broadly shared ideology; common links to Al-Qaeda; two way cross border movement and some mutual support.” [5] The Pashtun culture is based on an Islamic ancient way of life that dates back to 300 B.C. History shows the root of the Pashtun dating back to Alexander the Great and his time exploring Pakistan and Afghanistan. The two nations share many cultural influences. For these reasons, Pakistan is widely seen by the rest of the world as an extremist nation. U.S. businesses are concerned with foreign manufactures that may have questionable morals.

labor & labor laws factories act, 1934

Allows for the employment of children between the ages of 14 and 18 years provided that each adolescent obtains a certificate of fitness from a certifying surgeon.” “The Act further restricts the employment of a child in a factor y to five hours in a day. The hours of work of a child should thus be arranged in such a way that they are not spread over more than seven-and-a-half hours in any day. In addition, no child or adolescent is allowed to work in a factor y between 7 p.m. and 6 a.m.”

payment of wages act, 1936

-“Applicable to any railway administration, commercial or industrial establishments.” -“Applicable to all industrial establishments’ employees (whether skilled, unskilled or apprentices and even domestic workers) but excludes those of Federal or Provincial governments, coal mine employees or persons employed in agriculture.”

constitution of Pakistan

Part II: Fundamental Rights and Principles of Polic y.

Under the Constitution of Pakistan, labor is considered a ‘concurrent subject,’ which means the topic falls under the responsibility of both Federal and Provincial Governments. This additional level of defense means that the nation takes labor laws seriously. Having two levels of law, ensures the guidelines will be mandator y and regulated. Laws are ratified and put in place by the Federal Government. Requiring that the Provincial Governments may also “make rules and regulations of their own according to the conditions prevailing in or for the specific requirements of the Provinces.” It is essential that strict labor laws are in place in Pakistan; approximately 37.15 million people make of the nations labor force…With 47% within the agriculture sector, 10.50% in the manufacturing & mining sector and remaining 42.50% in various other professions,” protection is crucial in order to have a stable and ethical industr y. In The Constitution of Pakistan, labor workers have various rights that must be adhered to by the employer. The Constitution protects and discusses the following rights and guidelines:

Termination of the Contract, Working Time and Rest Time, Paid Leave, Maternity Leave and Maternity Protection, Other Leave Entitlements, Minimum Age of 14 years old and Protection of Young Workers, Pay Issues, Bilateral Negotiations, Freedom of association, Registration of trade unions, Freedom of association Collective bargaining and agreements, Strikes and Lockouts and Settlement of Individual Labor Disputes .

Equality

“Article 38 of the Constitution imparts the State’s obligations aimed at achieving equality in the form of securing the well-being of the people, irrespective of sex, caste, creed or race, by raising their standard of living, by preventing the concentration of wealth and means of production and distribution in the hands of a few to the detriment of general interest and by ensuring equitable adjustment of rights between employers and employees, and landlords and tenants.”

Workers’ Representation in the Enterprise:

“Until the adoption, on 29 October 2002, of the Industrial Relations Ordinance, 2002, which repealed the Industrial Relations Ordinance, 1969, Pakistan had a threepronged system of participation in management (i.e., the Works Council, the Management Committee and the Joint Management Board.”

textile & apparel industry The textile industry in Pakistan is both vigorous and diverse. Textile production accounts for the country’s highest export earnings, at about 55%. The industries employ around 39% of employment, which is about 15 million people. The industry accounts for 8.5% of GDP. “The annual volume of total world textile trade is $18 trillion which is growing at 2.5%. But Pakistan’s share is less than one per cent.” [14] Pakistan has major opportunities of growth within the textile industry. The nation must implement modern technology in order to keep up with the demand of the apparel industry. The past several years have arguably been the worst in Pakistan’s history. Some factors were uncontrollable to the industry such as “the power crisis, the security situation and the lack of access to global markets.” [14] On the other hand, there are aspects that they must take the blame for. The apparel industry and its factories over the years have failed to keep up with modern technology and innovation to ensure that the products advance within the value-added chain. “At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products.” [15] Despite the large amount of infrastructure, within the sportswear and high-fashion sectors, Pakistan has seen little movement. While other Asian countries such as India, China and Bangladesh have succeeded in these markets, “Pakistan’s total exports in this sector are barely $50 million.” [14] $10.2 Billion of Pakistan’s $12.5 Billion export revenue comes from 20 countries. “However, it accounts for merely 5.7% of the total textile imports of these 20 countries.” [14] China is the second largest buyer of Pakistani textiles. Its imported a total of “$1.527 billion of textiles last fiscal [year]. Unlike in the U.S., where mostly value added textiles are imported, China buys only cotton yarn and cotton fabric from Pakistan.” China purchases raw materials because of aggressive stockpiling policies that have raised domestic prices. For this reason, China has moved its efforts to other Asian countries, seeking to purchase all the yarn possible. “China’s cotton yarn imports from September to November 2012 rose 56% year-on-year to 409,877 tons.” With demand from China at an all time high due to their extremely large yield of product, Pakistan can benefit from their restrictions. China will now rely on Pakistan for it’s cotton yarn and Pakistan will be able to drive their prices higher, helping to further development. Pakistani textile exports account for only “2.98% of total US’s textile imports in the fiscal year 2011-12.” While in China, Pakistani textile was reported at 12.4%. Despite the fact that the textile industry drives the economy, Pakistan must make strides towards modern innovation in order to stay competitive.

Via Tribune.pk

textile & apparel associations a.p.t.m.a APTMPA is the All Pakistan Textile Processing Mills Association. This association works with over 400 fabrics mills within the nation providing services and resolving the issues faced within the textile industry. This is “a registered trade body which is duly affiliated with the Federation of Pakistan Chambers of Commerce & Industry.” The APTMPA works closely with the mills to promote foreign exchange and modern mechanisms. The group makes strides to boost the domestic economy through the global marketplace. They consider themselves one of the most value-added focused sectors in the country. The association has succeeded in implementing uninterrupted electricity within the textile industry despite the major power blackouts. This is a huge benefit for businesses inquiring about processing in Pakistan. U.S. investors will undoubtedly have concerns about the energy outages in the country, but the APTMA has taken on the issue. The Chairmen of the association ensure continuous power to their members factories in order to continue international trade. In addition, they also promise to evolve and constantly support environmental efforts. The APTMA has the “potential to spearhead the country’s economic growth and contribute, in a major way, towards job creation and industrial investment.” With this association at the forefront of the effort, Pakistan’s apparel and textile industry may be able to continue competing in the global marketplace. [33]

textile & apparel associations w.w.o in pakistan The Working Women Organization was established in 1986 in order to protect the right of the working women in less developed countries. The organization has headquarters in Punjab, Pakistan. There are four representative within the country that speak for the female laborers of Pakistan within the organization. The group strives to strengthen the female workforce as well protect their rights. These right include proper eduction, “awareness raising and collective struggle to establish and implement legal rights for women.” Together, with the textile industry, the WWO has put together several workshops around the country to rally female workers together. These meetings raised awareness about the reality of women in this masculine based society. At these workshops, the group teaches women about their rights as workers. The WWO has established education centers around the country and the world where women and their children can come take training programs. One such event was the Conference at International Women’s Day in Pakistan. On March 8, 2012, around 600 female workers rallied together to educate one another on their rights and opportunities. The women were educated on the Women Workers Protection Bill and the Women Harassment Bill, both of which were recently passed by parliament. It is essential for female workers to not only read but fully understand these documents. In order for the Pakistani industry to succeed, workers must be fully aware of the rules and restrictions within their workplace. Many employers and factory owners may try to abuse or stretch laws in order to cut costs. For this reason, workers must not be afraid to stand up for their rights and protects themselves. Overall, the women left the conference confident in themselves as laborers. The women came together and made lasting friendships which are essential in such a large industry. After the meeting, 650 posters were posted around the factories of Pakistan in order to continue the support of female factory workers. These posters contained more information about not just women’s rights but also human and workers right in general. The WWO strives to not only educate women but also their families and communities. Thanks to the WWO, Women in Pakistan can move forward with the rest of the modern global market. Considering women’s right are a main focus of Fit and Flourish, it is beneficial that Pakistan has some efforts in place to move forward in this respect. Female workers are often marginalized and disrespected by their superiors. Through these organizations, Pakistani female laborers can be confident in the workplace.

trade agreements SAFTA: SOUTH ASIA FREE TRADE AGREEMENT

The South Asia Free Trade Agreement was established between Bangladesh, Bhutan, India, The Maldives, Nepal, Pakistan and Sri Lanka. The agreement places guidelines and regulations to obtaining tariff free products if said products are manufactured or produced within these nations. SAFTA was developed to create and promote trade between the cooperating economies through the exchange of goods and services. This report establishes set plans to expand investment and “production opportunities, trade, and foreign exchange earnings as well as the development of economic and technological cooperation.” [10] The SAARC, or South Asian Association for Regional Cooperation established the free trade agreement, “recognizing that Least Developed Countries in the region need to be accorded special and differential treatment commensurate with their development needs; and Recognizing that it is necessary to progress beyond a Preferential Trading Arrangement to move towards higher levels of trade and economic cooperation in the region by removing barriers to cross-border flow of goods.” [10] SAFTA aims to promote trade within these nations in various ways. The nations understand that in order to develop their own economies, they must work together and rely on one another. The agreement promises to eliminate tariffs and barriers and facilitate free cross-border movement of goods, promote fair trade conditions, create a mechanism for implementation and resolution of disputes, and establish framework for future regional cooperation’s.

Rules of Origin

the adoption of trade facilitation and other measures to support and complement SAFTA for mutual benefit. These may include, among others: a) harmonization of standards, reciprocal recognition of tests and accreditation of testing laboratories of Contracting States and certification of products; b) simplification and harmonization of customs clearance procedure; c) harmonization of national customs classification based on HS coding system; d) Customs cooperation to resolve dispute at customs entry points; e) simplification and harmonization of import licensing and registration procedures; f) simplification of banking procedures for import financing; g) transit facilities for efficient intra-SAARC trade, especially for the land-locked Contracting States; h) removal of barriers to intra-SAARC investments; i) macroeconomic consultations; j) rules for fair competition and the promotion of venture capital; k) development of communication systems and transport infrastructure; l) making exceptions to their foreign exchange restrictions, if any, relating to payments for products under the SAFTA scheme m) Simplification of procedures for business visas.

Understanding all international trade agreements connected to one’s chosen country of export is vital. Even though the SAFTA does not include the United States within the agreement, various processes or components make come from these neighboring countries. For this reason, as an investor it is best to be confident with all agreements and licenses. For example, manufacturers in Pakistan may source textiles from other nations like Bangladesh or another South Asian nation. These textiles may be qualified for preferential treatment, which will lessen the price. Because of this, understanding all agreements is beneficial when contracting international work.

TIFA: US-PAKISTAN TRADE AND INVESTMENT FRAMEWORK AGREEMENT - “It manifests the importance both countries place on strengthening a long-term relationship that broadens our cooperation beyond military and security ties to programs that promote the private sector and economic development. Over the long term, solid economic, trade, and investment policies will create jobs, boost investment, and build sustainable development.” - Developing a “sustained and multi-faceted high-level engagement between our governments. Efforts are focused on practical solutions that effectively address these issues, helping to create jobs and draw private investment. 1) Pakistan's preparations for implementing Afghanistan and Pakistan Reconstruction Opportunity Zones for which legislation is now pending in the U.S. Congress 2) South and Central Asia regional trade issues 3) Investment climate issues, including bilateral trade issues, Pakistan's privatization plans, intellectual property rights, and current programs in Pakistan of the U.S. Export-Import Bank, Overseas Private Investment Corporation, and U.S. Trade and Development Agency 4) Ongoing agricultural cooperation programs by the U.S. Department of Agriculture and U.S. Agency for International Development, and ideas for expanding agricultural cooperation. Other guidelines and treatment under the agreement: - ESTABLISHMENT OF PAKISTAN LAND PORT AUTHORITY (PLPA) - TO STRENGTHEN REGIONAL TRADE - SETTING UP OF EXIMBANK - PROMOTION OF SERVICES SECTOR EXPORTS - CREATING REGULATORY EFFICIENCIES - STRENGTHENING OF PRODUCT DEVELOPMENT INSTITUTES - REGULATORY AMENDMENTS IN TRADE REGULATIONS - PROTECTION TO LOCAL INDUSTRY - USE OF TYRE SCRAP AS ALTERNATE FUEL STRENGTHENING WOMEN CHAMBER OF COMMERCE Support would be provided to strengthen the research and outreach capabilities of women chambers of commerce to encourage the women entrepreneurs. Despite that strained relationship between the United States and South Asian, Pakistan and the States have put forth a set of guidelines between the two nations. Both countries understand that true cooperation is essential to moving away from the economic downturn. The two countries are working together to build more innovative structures in regards to exports and imports. Despite the political differences, the two countries are working together to put in place a set of fair and just guidelines.

U.S. importing laws There are various laws are regulations regarding the importation of textile. This done to ensure safety of American citizens from potentially hazardous elements from around the world. The Consumer Product Safety Commission is a group committed to ensuring only quality products are released to the American marketplace. Specifically, flammability is a major cause for concern with the apparel. In general, all garments being imported into the states must contain a label of content and its origin. Labels must also provide care instructions to ensure longevity. When packaging garments for shipment, there must be a visible label explaining the content, origin and destination. It is vital for importers and exporters to describe content as detailed as possible because Customs must apply the correct tariffs and duties. Proper classification is necessary for correct liquidation. Understanding how to calculate classification is important for timely deliveries. Supplying all the necessary Entry of Goods documents is needed as well. These documents include the Entry Process, Right To Make Entry, Examination of Goods and Entry Documents and the Packing of Goods. Informed Compliance must also be submitted. This involves Definition of Goods, Reasonable Care Checklists, Compliance Assessment/Compliance Measurement and the Notice to Small-Business Importers. Additionally, invoices need to be completed. The various invoices required for importation are commercial invoices and other necessary forms. One must be careful when filling out invoices, as errors commonly occur. Next, importers must comply with the Assessment of Duty. This is when one must taken into their exporting countries trade agreements, if there are any. Unfortunately, Pakistan does not have a free trade agreement concerning apparel products. Therefore, no preferential treatment is available for this shipment. Classification and Value are other requirements for importation. This involves; Classification, Liquidation, Conversion of Currency, Transaction Value ,Deductive and Computed Value and the Rules of Origin. Products must be properly marked for easy importation. These marking must denote the origin, content, any special requirements and user fees. Prior to conducting international trade, one must ensure of any special requirements or prohibitions regarding the manufacturing country. Lastly, importers must comply with the necessary Foreign Trade Zone guidelines. This includes providing and filling out all the proper Foreign Trade Zone forms. Ultimately, the mission of US Customs is â&#x20AC;&#x153;homeland security: detecting, deterring and preventing terrorists and their weapons from entering the United States.â&#x20AC;? For this reason, complying with all guidelines are vital to protecting the country from outside threats. [36]

business etiquette

Proper trade etiquette and overall manners in Pakistan are essential for doing business with manufacturers. Pakistanis hold fast to the idea of Inshallah, which translates to "god willing." In other words, do not rush business or press concerns, “it will happen if and when god wills it.” Adhering to the traditional business customs will result in long-standing and trusted relationships “Pakistanis like to deliberate over ideas and come to a consensus among decision makers and tribal elders.” When dealing with transactions in Pakistan, patience and politeness is key to establishing ongoing business partnerships. Pakistani society as whole prides itself on proper etiquette. For this reason, dignity, honor and respect are the most important factors in business and the culture. [8]

masculine culture Just like in many lesser-developed nations, the culture in Pakistan has been predominantly masculine throughout history. Due to it’s tribal set-up and largely Islamic makeup; society runs off the norms put forth by men. Males decide the matters of the house. Women, on the other hand, have strict lifestyle guidelines. They are seen as the gentler gender, and are treated as such. Most of a female’s life decisions are decided upon by her patriarch, such as education, work, marriage and travel. This is not to say that Pakistani women do not work. Similar to in the United States, many women work as nurses, doctors, teachers, and bankers. Women can even hold superior posts in a company. [30] The culture of Pakistan places much importance on the patriarchs and elders of households. The elderly are thought to have the most wisdom, for that reason they are treated with the utmost admiration and respect. In any situation, conversational or business, the eldest person in a group, either by “age or position, is expected to make decisions that are in the best interest of the group.” [8] For this reason, when conducting business in Pakistan, one must identify this individual and treat them in a way that is culturally acceptable. In a business setting, complying with norms is vital. Acting in a manner that is unusual to any foreign associates will make one seem disrespectful. In a meeting, stand when others enter the room and greet elders or superiors first. Stay standing until the superior sits down; this is the first sign of respect in business. Rushing meetings is considered impolite. Business matters will likely not be resolved in one day, it is universal to discuss the affairs in a series of meetings prior to making any final decisions. In fact, it is arguably more important to Pakistani businessmen to develop a rapport with one another before handling any critical evaluations. Unlike in the United States, small talk and casual conversation are important to citizens to get to know one another. “Time is not an issue with business meetings which start with small talk and tea.” [8]

negotiating styles

“Americans are highly analytical and like to apply evidence in a logical manner in order to reach the best decisions. Pakistanis on the other hand generally consider how a situation relates to Islam or their family. If your reasoning does not agree with the Qur’an or impacts the family negatively, then your reasoning will not be convincing.” [7] First and foremost, Pakistanis lead with religious intentions. “A Pakistanis life is structured around prayer and any meeting will be interrupted by prayer time.” Unlike in the States, business and religion coincide; one must respect this when traveling and conducting business in Pakistan.

Negotiating styles in Pakistan may seem unusual to the American businessperson. In all types of exchanges, Pakistanis strive for a win-win situation. Honor, dignity and respect are first and foremost, the most essential parts of a successful business interaction. maintaining indirect eye contact is one factor to negotiating that is crucial. When speaking to other business associates, especially elders, eye contact is considered disrespectful. In addition to this, it’s important not to use high-pressure business tactics, like the ones commonly used in American business practices. These types of consulting will jeopardize the business relationship and the final outcome of the negotiations. However, while intense tactics are frowned upon, business meetings will still get heated. In fact, Pakistani businessmen “tend to be assertive and may even shout or talk over one another. However, they will never direct a conversation at or insult anyone in particular. Stay calm and maintain a controlled composure and an even tone of voice.” [8]

When conducting international business affairs, it is important to have negotiator and translator that are trusted and respected. Although English is spoken in most major cities, in the rural and suburban, especially within the factories, a translator will help one fully understand the culture and people of Pakistan. When choosing a negotiator, one must make sure they are available for the entire length of the process. The business gatherings will have to start over if the translator is changed. “Relationships and ideals are made with a person, not to the entity that they represent”[8]

initial meetings In Pakistan, initial meetings are arguably the most essential part of the negotiations. Business people prefer to do business with trusted acquaintances. It is considered rude to introduce yourself to a stranger. Because of this, a trusted third party is needed to introduce and vouch for your character. This is why a trusted negotiator or translator is essential when traveling to Pakistan for business. Most people in western Pakistan speak a form of English, therefore doing business will be must less complicated. However, one should always be familiar with conversational phrases in any countries language. This shows your business partners that you respect their culture and take this partnership seriously. It is common for initial meetings to take days in the country. These meetings are essential to building a lasting business partnership. Pakistanis will inquire about your personal life and acknowledgments. Some Americans may see this as prying or being rude, however in Pakistan this is an extremely vital step in the decision making process. Once Pakistanis feel comfortable and familiar with their foreign partners they will commence with the business discussions.

relationship building When conducting business in Pakistan, it is vital to remember building an honorable relationship is key before discussing any logistics. Like previously stated, Pakistanis want to get to know their associates better, this may take a few days so itâ&#x20AC;&#x2122;s important to stay patient. Pakistanis will ask polite yet insightful questions about oneâ&#x20AC;&#x2122;s family, health, and business success. However, discussions should never get too personal. Do not pry and especially do not mention their female spouseâ&#x20AC;&#x2122;s, this is considered extremely disrespectful. Especially in business, Pakistanis are very hospitable to visitors. Do not take it personally if business associates ask many personal questions; this is normal for Pakistanis as they are trying to get know you better.

social/ cultural elements appropriate dress

Overall, the dress in Pakistan is extremely conservative for both the women and the men. Men regularly wear dark colored suits with slip on shoes. Shoes are often removed in the Pakistani culture, so sandals are common. Women should be fully covered as a sign of respect. Acceptable dress are blouses, long dresses, suits and scarves as long as they do not show too much skin. In warmer weather, less informal clothing is suitable due to the extreme heat. When conducting business, especially first introductions, one must ensure they are dressed appropriately. Just like in the United States, Jeans or any informal attire are considered disrespectful during meetings. However, a form of business casual attire is acceptable in some industries. Overall, one must make sure their clothing does not turn any heads. Appropriate dress is one of the most vital parts of the Pakistani culture and adhering to the expectations will make for a successful business trip.

introductions & greetings

There are many guidelines when first meeting a Pakistani. Greeting someone in an appropriate manner will ultimately lead to a long lasting relationship. Pakistanis prefer to work with people they know and are comfortable with. Because of this, a trusted third party is needed to vouch for ones character. In fact, it is considered a threat to approach someone you do know without a third party to introduce you. While greetings are generally exchanged between the sexes, there are rules to appropriate introductions. For example, a male should never physically touch a female; verbally greeting the women will suffice. As always, use the right hand when introducing yourself, not the left hand. After shaking an associates hand, place your right hand over your heart as a sign of honor and reverence. While many Pakistanis speak English, it would be most respectful to learn some conversational phrases. For example, the “most common greeting is “As-Salamu Alaykum” [Ah-sahLAHM-ooh uh-LAY-kum], which means “may peace be with you,” and is accompanied with a slight bowing of the head.” The appropriate response to this greeting would be ““Walaykum AsSalamm” [Wah-uh-LAY-kum as-SAH-lahm] which means “and peace be upon you.” When greeting a Hindu or Muslim it is habitual to say ‘namaste’ which mean ‘I bow to you.’ When greeting this way, bow slightly with “hands pressed together, fingers pointing upward, and hand in front of the chest.” In Pakistan, formal names denote a familial affiliation, class or status. It is routine to address a new acquaintance with there formally given name. If you are unsure of how to address a person, politely ask. Another factor of Pakistani business etiquette that may seem off putting is staring. While direct eye contact is frowned upon, in business, it is normal for Pakistanis to stare during conversations. Only look at a person in the eyes for a moment: Pakistanis will feel challenged by prolonged eye contact. In business and in general conversation, do not insult a person’s intelligence in any way. This can happen by asking questions they do not understand. It is best to keep conversation casual rather than controversial. “A person may be illiterate but that does not mean you are more intelligent. Tribal people take great pride in their knowledge about their surroundings and ability to survive in harsh environments.” [8] It is essential to act accordingly when making first introductions. Especially in business, appropriate first initiations will lead to a successful and long lasting relationship.

presentation of business cards

Business cards are usually exchanged after the initial introductions. Present your business card with the right hand or with both hands but never the left hand. When given a business card, it is important to read it closely as soon as it is presented. Pakistanis are all about getting to know you, therefore, it is respectful to take interest in their professional experience. When presenting your business card, it would be beneficial to include your various degree’s and professional honors. Pakistanis place a lot of value on eduction; a higher degree will increase one’s status in society.

first name or title

When being introduced to business associates for the first time, it is customary to address them by their full name or surname. Their title’s come from a place of honor and must be respected. These surnames may denote and person ancestry, region and educational status. A title will describe their “class, tribe, occupation, or other status indicator. Some people may also have two names that have special meaning when said together but lose their importance when abbreviated. For these reasons, when greeting a Pakistani, it is essential to repeat the name they present themselves with. As always, when in doubt it is best to ask a person who they would like to be addressed.

gestures

Understanding what the appropriate gestures is fundamental when conducting business negotiations. In general, one should not directly point towards an individual. However, gesturing with the index fingers to an object is customary. When greeting someone, bowing and placing ones hand on the chest is expected. The ‘Moutza’ is an offensive gesture that one should be mindful of. This movement is thrusting the fingers spread out towards a person. Another obscene gesture is a closed fist. Understanding what is appropriate and what is frowned upon is necessary because these custom’s may differ from western culture.

colors

The Pakistani flag is green and white. These two colors have a lot of symbolism throughout history. The overall green background accompanied with the white vertical stripe symbolizes the many religions within the nation. The crest of the moon and star are the traditional mark of Islam. In the Ancient and Heraldic traditions that are customary in Pakistani culture, these two colors hold much importance. In the culture green denotes “hope, joy and love and has a sacred significance as t he color green is associated with Islam.” [23] The color green is extremely sacred; the Quran is bound in green leather and the green silk covers are made for the Sufi Saints. Muhammad was said to have worn the color green, which is associated with life and nature. The Quran describes the paradise that is the afterlife in which "ornaments shall be given to them therein of bracelets of gold, and they shall wear green robes of fine silk and the they will be "Reclining on green cushions and beautiful carpets (55:76)." For this reason, in the Islamic culture, gold and green are synonymous with paradise. White denotes “peace and honesty & symbolizing the role of religious minorities.” In the western part of the nation, white signifies purity, which is why it is not customary to wear the color unless it is a special occasion. Men in Muslims will wear white when attending Friday prayers. Black is another color that holds a lot of significance within the Pakistani culture. During everyday life, Pakistani women enjoy wearing colorful and sparkling robes. Much like in the American culture, black symbolizes mourning. [24] One must be mindful as to what colors are important within the culture. Wearing the incorrect colors during first introductions can throw off the business relationship.

personal space Personal space is not frowned upon in Pakistan like it is in the United States. Pakistani men will stand closely together in groups when conversing. When doing business, one should not become uncomfortable if an individual stands closely when speaking. This act does not hold the same meaning as it does in western society. Pakistanis are personable and eager to get to know new people, thus standing closely to listen. However, it is important never to stand closely to a female. Women are considered extremely virtuous beings and must be respected as such.

gift giving As a professional relationship grows, it is appropriate to give small gifts. A suitable gift would be a pen or flowers for the wife if you are a guest in ones home. However, do not present anyone with alcohol unless it is requested; many people do not drink in the Pakistani culture. Gifts are commonly presented with both hands. During first meetings, it is not customary to bring a gift; instead wait till the relationship has grown stronger. If invited to a persons home, it is appropriate to bring chocolates, pastries or flowers. Flowers should never be white, as white flowers are reserved for weddings and other religious services. Take the time to wrap the gift and present it beautifully. It is routine to wait and open the gifts in private, therefore do not be offended if your gift is not opened right away.

time In Pakistan, time is calculated in various ways depending on the circumstances. PST, or Pakistani Stretchable Time is where 20 minutes denotes one hour. When conducting business, punctuality is expected. However, when meeting with merchants or shop owners, punctuality is not valued. In day-to-day life, however, being on time is generally not stressed. People tend to arrive late to most occasions, such as weddings, meetings and events. When calling for transportation, expect them to be slightly late as well. Do not become angry if people are not on time, this is the norm of their culture. [20]

joke telling

• Humor should be avoided during the initial meetings. • Once a relationship is formed, local men regularly joke amongst themselves. • Jokes range from politics to race. • Foreigners should avoid making jokes about ethnicity or religion. • Sarcasm is often used in negotiations when things are not going well.

business entertaining

• Core values are dignity, honor and respect • Inshallah translates to "god willing,” o In other words, “it will happen if and when god wills it.” • Muslims have a duty to fulfill the responsibility of helping others in need. o For this reason, invitations to someone’s home should always be accepted. • Third part introductions are necessary o Do not speak to strangers until introduced o Do not make eye contact • Pakistanis are very hospitable to visitors • Prefer to work with close acquaintances o Spend a great deal of time with introductions o Require several visit to nurture relationship before business is discussed • Be prepared to flatter and be flattered • Associates may ask personal questions o Normal for Pakistanis as they are trying to get know you better to build a lasting relationship • Gift giving is common once a professional relationship grows. o Small gifts like pens, candy for children or flowers for hostess o No alcohol, majority of nation practices Islam • Non-Muslims and visitors are permitted to drink o FLOWERS SHOULD NOT BE WHITE; RESERVED FOR WEDDINGS o Appropriate to unwrap gift in private • Dining is generally not the appropriate setting to conduct business decisions. o Unless it is brought up by the host, do not bring up business.

dining etiquette

Having guests in one’s home is a cherished tradition in this culture. They love gathering with friends and family frequently. Women especially enjoy visiting other women, as this is one of the few times they can get out of the house and socialize openly. “The act of hospitality is a cherished social custom that bestows honor, pride, and integrity upon the family. The more guests received the more respect a family is given. Families, even if they are extremely poor, will go out of their way to make their guests feel welcomed by giving gifts or the best food and drink in their home.” [7] Hospitality is key factor discussed in the Q’uran. For this reason, Pakistanis believe in offering their food and home freely to loved ones. As Muslims, they have a duty to fulfill the responsibility of helping others in need. Because the act of hospitality is so cherished, invitations should always be accepted. When entering someone’s home, it is customary to removed ones shoes at the door. However, if the host is wearing shoes, one may leave theirs on. Depending on how the traditional the family is will determine if one must remove their footwear. Make sure to dress conservatively as to not offend anyone. Arriving 15 minutes late is normal when invited to a home or event. In fact, arriving up to one hour later then stipulated is common. At gatherings, men will commonly mingle in another room then the women. Children will generally stay with their mothers but it is permitted for children to socialize with their fathers as well. Show respect to elders by greeting them first and engaging in casual conversation.

proper use of utensils

In rural areas, utensils are not used. Instead, food is balled up with the tips of one’s fingers. However, western civilizations, which are more modern in their traditions, commonly use utensils. For special occasions, Pakistanis will generally use a spoon. The spoon is the most essential utensil, rather than the fork like in the States. Pita bread and Banana leaves are commonly used in place of utensils to scoop up food.

table manners When sitting down for dinner, remember to wait for the eldest member to sit down first before seating yourself. When a guest in someone’s home, expect to be served first with the best cut of meat. The eldest member will then be served before the rest in age order. Wait to the eldest family member begins before eating. It will be expect of you to have second or even third helpings. For this reason, take small helpings and pace yourself, so you do not get full. Saying “I am full” will be considered just a polite gesture and will more then likely be ignored. Like all interactions, remember to only eat with your right hand. This is especially important when dining because the left hand is considered unclean. In more traditional parts of the culture, it is common to sit on the floor or on small stools at a knee-height table. Sit crossed legged in these situations, as to not show the bottom of your feet, which are also considered unclean. [26] Guests will initially be offered a refreshment, like tea or soda and some type of small dish. Guests should happily accept the offerings. Especially in rural areas, having guests over is a true sign of respect. Because food is scarce, one must accept everything with grace. It is always a good idea to bring a gift when entering someone’s home. Small presents like candy or fruit for the children and flowers for the hostess are commonplace. Expensive gifts are frowned upon because the family may not be able to reciprocate, which is considered very embarrassing. Dining etiquette is an essential part of the Pakistani values. Being comfortable and familiar with these guidelines will lead to successful relationship building. By and large, when in doubt it is best to observe what others do and emulate their manners.

alcoholic beverages In conventional parts of the Pakistani culture, alcohol is not permitted. The Muslim culture has a strict no alcohol observance. Because this is the overwhelming majority of Pakistanis, do not be surprised if a person does not drink. However, non-Muslims and visitors are permitted to drink and purchase alcoholic beverages.

appropriate conversation subjects • State of the family in general • Local History • Health • Education • Business • Agriculture • Food • Things you like about the country • Concepts like bravery, honor, loyalty and courage. • Sports, like soccer or cricket

conversation subjects to avoid

• Topics that should be avoided are • Religion (unless they ask you questions about your religion) • Politics • India-Pakistan relations • Extremist Islamic groups like the Taliban, • War

These things are commonly discussed among locals, but it is bad form for a foreigner to mention these topics. In general, Pakistanis are reluctant to share their viewpoints with outsiders.

communication

• • • • • • •

Official Language: Pakistani English/ Urdu Generally indirect communicators Speak in round about fashion Direct statements are only made to close acquaintances Respond in a non-controversial manner; “I will try” Ask question several ways to ensure what is being said Silence is a regular communication tool Main telephone lines: 5.803 million (2012) Mobile telephones: 125 million (2013) Telephone systems: General assessment, domestic and international Internet hosts: 365,813 (2012) Internet users: 20. 431 (2009) Broadcast Media: Television & Radio: “media is government regulated.” (CIA World Fact Book)

sourcing guidelines The Fit & Flourish Supplier Workplace Code of Conduct defines our standards for fair, safe and healthy working conditions; as well as environmental and corporate responsibility throughout our supply chain. All suppliers that work with Fit & Flourish must commit to adhering to our detailed Code of Conduct. Fit & Flourish’s mission is to, “Inspire a well-balanced life both spiritually and physically”. Fit & Flourish seeks to exercise the best possible practices to ensure respectful and ethical treatment of workers. Our employees will be guaranteed a healthy, safe work environment in which they will receive fair and timely wages

code of conduct “fit and flourish is integrity” Law and Code Compliance Our suppliers are expected to comply with and will be internally monitored to all applicable laws and regulations of the country in which our workers are employed. 1. Manufacturers operate in full compliance with all applicable laws, rule and regulations including those pertaining to labor, employee health and safety, and the environment. 2. Manufacturers must freely invite and offer access to its facilities and records, whether or not notice is provided in advance or not. Quality Control Descriptive explanations as to how our products are made and with what our products are produced will be laid-out within our technical package. To be sure we will be receiving products that are in adherence to our standards, we will conduct a raw materials inspection, in process inspection, as well as a final product inspection. Should our final inspection reveal product that does not adhere to our quality standards said items will be returned to the supplier. At that point should the supplier not decide to re-make the product according to our expected quality, we will terminate business with said supplier and seek production elsewhere. Internal Monitoring In order to manage our supply chain, maintain codes of conduct, and ensure business is being conducted in accordance to our policies, we require all suppliers and agents to emulate the internal monitoring approach. We will have frequent, routine as well as unannounced check-ins to guarantee all guidelines are being strictly adhered to. Should we find that rules are not being adhered to we will issue two warnings before we end all business with a factory or supplier. When performing check-ins monitors will observe workers in their natural habitat, confirm that facilities are hygienic and safe, as well as interview employees one-on-one to assure that they are being treated fairly as well as being paid in a timely manner.

sourcing guidelines Child Labor All individuals employed by Fit & Flourish must be over age 15. Young workers (ages 15-17) shall not perform any work, which by its nature is carried out in a way that compromises the juvenileâ&#x20AC;&#x2122;s health, safety, or morals. The child labor policies are non-negotiable and non-adherence will end in immediate firing by Fit & Flourish. Forced Labor There shall be absolutely no forced labor. This includes imprisonment, indenturing of any kind, bond agreements, slavery like practices, or any other forms of forced labor. Our prospective employees have the right to choose whether or not they wish to work for Fit & Flourish, and by no means are forced into positions of any kind. Social (Workplace) Responsibility Fit & Flourish is committed to providing a positive, successful workplace environment. Production practices must meet a variety of standards that will be enforced through frequent checks on a continual basis, both announced and unannounced. Our care for all employees involved in any part of the supply chain is equal to the care we have for our customers. Empowerment, integrity, and safety are values we regard very highly and want to be sure are enforced. In order to implement such values we will provide protection from fire hazards, toxic waste and any materials that are potentially dangerous. Employees must have access to facilities at all times and work breaks will be a mandatory part of their day. Any prevention of workersâ&#x20AC;&#x2122; rights is unethical and against our code of conduct. Environmental Responsibility At Fit & Flourish, environmental responsibility is an essential part of our identity. Being connected to the entire supply chain and the complete manufacture process of our business is of extreme importance. Though we are a small and continually developing brand, we see great potential in making a positive difference in relation to current critical global issues. By taking steps to ensure that we are environmentally responsible, we verify and support our success by providing transparency in communication with our customers, employees and shareholders. Because all of our products cannot be produced with sustainable materials, we focus our efforts on reducing waste, energy, and chemical emissions in our stores and distribution centers. By becoming aware of our water use and energy consumption, along with minimizing our carbon footprint when it comes to transportation, we continue to work towards our goal of helping to reduce greenhouse gas emissions in the US by at least 20% in the next few years. We will take the steps necessary to transport by sea, as opposed to by truck, and we will contribute funds to various organizations working towards the same goals, including Sustainable Apparel Coalition and Ceresâ&#x20AC;&#x2122; Business for Innovative Climate and Energy Policy (BICEP) as well as the Zero Discharge of Hazardous Chemicals (ZDHC) group. In addition, we will be supporting our mills and factories in their individual efforts to becoming environmentally responsible.

sourcing guidelines “fit and flourish is empowerment” Our female employees are not to be discriminated against in any way. Employment of women and female empowerment is something that we as a company celebrate. Seeing as though we product apparel and product for women, it is imperative that we respect women all around the world, including those manufacturing our garments. Through the Working Women Organization, annual conferences will be held in all factories to educate female employees on their rights as workers, women, and human beings. Through the WWO, female factory workers will have their voices heard.

“fit and flourish is stability” Wages and Benefits We seek and favor suppliers who progressively raise employee standards through fair and improved wage systems, health benefits, welfare benefits, and other services. Every employee has the right to work sufficiently enough to meet the worker’s and his or her family’s basic needs as well as some discretionary income. All employees also have the right to compensation for a regular work schedule. Every employee must receive equal wages and benefits. Attributes such as age, sex, religion, ethnicity, race, or any other personal characteristics shall not create differences in pay rates. Compensation must equal or exceed the minimum wage that is required by law. When compensation fails to meet the employer’s basic needs and provide some non-obligatory income, each worker will work directly with Fit & Flourish and the Fair Labor Association (FLA) in order to take the necessary steps to determine and establish a level of compensation that does. All compensation shall be paid to employees in an efficient and timely manner. Overtime Wages In addition to compensation for regular working hours, employees must be paid for overtime hours. Overtime labor will be compensated at the legal rate required within the country or for said manufacturer. In countries where overtime compensation is required, pay will exceed the regular wage rate starting at a minimum of 125%. As with standard compensation, overtime pay shall be given in a timely manner. Hours of Work Suppliers and managerial staff may not require employees to work in excess of the fixed hours scheduled each week or required by law. All overtime work is consensual. Employees are required to obtain at least 24 consecutive hours of rest within every seven-day period. Work hours cannot exceed 50 hours per week or the legal requirement of the country or county of manufacturer. Overtime cannot exceed more than 10 hours each week. Hours worked per week should not exceed over 60 hours.

sourcing guidelines “fit and flourish is teamwork” Employment Relationship Fit & Flourish employers should immediately adopt and abide by the rules and conditions of employment that establish respect for workers, safeguard their privacy, obey their rights, and maintain their well being under both international and national labor and social security laws and regulations. All employers and employees should treat each other with fairness and equality, with the comprehension that they are all working as a team. Community Fit & Flourish encourages all of its suppliers and their employees to get involved locally in their individual communities; whether this may mean socially or environmentally. It is encouraged that suppliers and employees contribute as they can to charitable efforts by way of volunteering, donation, or any other form of support. Fit & Flourish hopes to work in collaboration with suppliers to make philanthropy efforts a constant reality – regardless of geographical location. Code Communication Fit & Flourish requires suppliers to post the Code of Conduct in an easily found public place that is frequented by all employees. Said Codes of Conduct must be displayed in all local languages spoken by employees, supervisors, and managers. With enforcement of this policy, the Code of Conduct will become second nature for our employees, allowing for informed, responsible decision making. We will offer training to new and current employees in regards to the Fit & Flourish Code of Conduct standards simultaneously encouraging employees to speak up should they have any questions concerning the Code and our policies.

manufacturing & Production potential manufacturers STYLE TEXTILE

Style Textile is a fully vertical composite knitted garment manufacturing company based in the second largest city of Pakistan. We produce the finest knits and boast manufacturing facilities that are amongst the top most units of Pakistan. Style respect CSR as an integral principle in running it’s business. It is a vital part of our everyday management of operations, which focuses on adding quantitative and qualitative value addition in our products, people and through them, the company and society at large.” CUSTOMERS: NIKE, CONVERSE, HURLEY, ADIDAS MR. SHAHZAD SALEEM ASGHAR Phone NumbeR: 92-42-35123064 +92-42-35118888 Style Textile is premiere source for active-wear. The manufacturer develops apparel for major retailers like Nike, Adidas, Converse and Hurley. They are known for their quality and timely manner. If we were to produce our active wear in Pakistan, this would be the ideal choice of suppliers.

Buksh Industries Pvt. Ltd

“Buksh Industries (Pvt.) Limited, an entirely integrated and independent unit, comprises of State-of-the-Art composite knitting, dyeing, embroidery, printing, stitching and finishing units under one roof. Our modern facility along with our professional and dedicated team have made us what we are today—Renowned and Reliable Exporters of Quality Knitted Garments and Fabrics across the globe. At Buksh Industries we offer you a range of knitwear to suit your requirements and match your styles. Our product line ranges from Causal tees to Polo shirt, Pullover Hooded Sweatshirts to Zipper hoods, Jogging suits to Knitted Trousers. We put a lot of care and attention in to our goods and are confident in each item that leaves our premises.” CUSTOMERS: ADIDAS Email: info@bukshind.com Phone: (9221) 3258 8731-33 This manufacturer boasts clients like active wear giant Adidas. Adidas apparel is made from the most hight tech materials. It is safe to say Buksh industries creates top of the line products.

potential manufacturers ALFATTAH APPAREL

â&#x20AC;&#x153;Alfattah Apparel is an established knitted apparel factory located in Faisalabad the main Industrial city of Pakistan. Alfattah Apparel is a self-developed apparel manufacturing company specially focusing the markets of Europe and United States. The company's production base in Faisalabad from fabrication to the finished products has its own testing facility with annual production capacity of 1.5 million sets of knitted garments. Alfattah clothing matches with super strength, excellent product quality and integrity of the operating style, in the domestic and international market place. Alfattah Apparel strictly believes in manufacturing quality garments according to the demands and needs of the customer. We can meet tight deadlines without any compromise on quality. We have well trained employees having experience of more than 15 years in their relevant fields. Being a knitted apparel factory, we have all the modern machinery like Flat Lock, Feedo, Bartaking Machine, Lockstitch, Eyelet Holder, Four Thread Overlock, Four Needle, and Special Machinery for Cutting.â&#x20AC;? EUROPEAN CLIENTS: Low Land Fashions, Action, Wibra, Adlers, Socks House, Putteman, Jomo Fashions, Bremtex, Teidem Coordinator in Canada:Phone: 514-758-3385 Email: ayesha_farhan05@live.com, fattah498@gmail.com, info@alfattahapparel.com, alfattahapparel@cyber.net.pk Business Phone:92-21-36342542, 92-300-2266793 Alfattah has many European clients and are looking to expand to the United States. They specialize in quality knitwear, and highly trained workers. They use modern innovations like flat lock stitching

potential manufacturers CAPITOL SPORTS CORP (PVT)

“Capital Sports Corp (Pvt) Ltd. Sialkot was established in 1975 as a limited company dealing in the manufacturing and export of the highest standards Sports Balls of official specifications. Our quality conscious attitude coupled with selection of the finest quality raw materials and the craftsmanship of our highly skilled workmen makes it possible to offer the finest products. It is our pride to have our 7 models in “FIFA APPROVED”, 5 models in “FIFA INSPECTED” We work in close cooperation with world renowned multinationals including Adidas Worldwide. Our annual production capacity is 2.4 million balls. As it is our Commitment Towards Excellence, we are now FAIRTRADE Certified. We are a member of WFSGI (World Federation of the Sporting Goods Industry). All our workers and Stitching Centres are Child Labour free and we continuously ensure that no Child Labour is involved at any stages.” PHONE: +92-52-4265831~33 & 4273046~48 Email: export@capital-sports.net, capitalsports@gmail.com Capitol Sports Corp uses modern technology to create their products at a competitive price. The company is FIFA approved, meeting professional athletic standards. Capitol Sports is also Fair Trade certified. Their factories are child labor free.

Al Hadi Industries (PVT) Limited

“Al Hadi Industries established in 1995 as a private limited company, has vigorously pursued the goal to set high standards of excellence in the field of textiles. Its uncompromising adherence of high quality standards and on-time delivery has resulted an impressive export performance enormously. We have major commitments in European countries We are supplying our products to reputed Importers & Wholesalers in U.S.A. as well. Our facilities are equipped with latest machines to process our products completely in house and meet all international quality requirements. KNITTING UNIT: The unit comprises of latest circular Knitting machines having 24” to 56” in different gauges to produce various kinds of knitted fabrics such as in different Qualities, composition and finishes.” Muhammad Furqan Lakhani – Director Tel: (9221) 6979562,63,64 Email: akhtar.lakhani@alhadi.com.pk Al Hadi has been around for several decades, ensuring they understand the industry. They have set high standards in active wear. They use the latest machinery and meet all international requirements.

potential manufacturers BROTHERS TECHNIC

“Brothers Group producing Hi-Tec Sportswear and Sports gear.” PRODUCTION CAPACITY: “A unit with three buildings and multiple floors covers vast range of textile and fashion garments manufacturing occupying 350 machines a work strength with 400 peoples. Our business covers most of the Globe. We are serving most renowned European brands. These companies are satisfied with our quality and services and are increasing their business with the passage of time which is a clear indication of their trust on Brothers Group. Currently we intend to explore and locate new business opportunities and markets. We would like you to please let us know about your requirement and send us technical sketches for the development. On the contrary you may send your samples for the counter sampling. We positively hope that you would like our quality and workmanship when you will receive our developed products.” Tel: + 92 - 52 - 3256672 / 3255857 3253552 Email: sales@brotech.com.pk Brothers Technic is a large facility that has the capacity and machinery to withstand large orders. They are looking to explore new business regions within the States and around the world. They are eager to work with small business to develop successful products.

CORE SPORTSWEAR

Our mission statement is to provide excellent products and services within competitive prices. We pay a lot of attention to providing an outstanding customer service. About the machinery, Core Sportswears has over two hundred machines including, Singer, flat, over lock, double needle, pressing, cutting machines. We compete our competitors on quality as well as price basis. Our mode of delivery and payment is so convenient for buyers that our customer feels proud to deal with us with full confidence.” PHONE: +92-52-3000048 Email: info@coresportswears.com, coresportswears@gmail.com Core Sportswear focuses on providing excellent products and services. Core Sportswear boasts over 200 machines including singer, flat, over lock, double needle, pressing and cutting machines. All these mechanisms are vital to developing great active wear.

potential manufacturers MY SPORTS FASHION

“Established in 2006, M.Y Sports are manufacturers and exporters of sports wears. We have state of the art manufacturing facility ensuring quality production according to international standards and timely delivery of the product. Today M.Y Sports is ever expanding and the growth is much dependent on the support given to us by our esteemed clients. The company with has proven good management practices, corporate social responsibility, marketing capabilities and financial resources, will continue to grow and build its recognition in the market as an efficient and dependable supplier. We look forward to the inception of a long term and sustainable business relationship with you as we firmly believe that “Sustainability with trust and credibility is a genuine business practice in the current Global scenario.” Tel: +92 52 427 2558 Cell: +92 300 615 5001 + 92 321 962 1555 E-mail: info@mysportsfashion.com, mysportsfashion@gmail.com My Sports Fashion focuses on fashion fitness garments and stretch materials. The state of the art factory develops quality garments. The company practices good CSR and sustainable efforts.

TREND SPORTSWEAR

“We have 10 years experience in manufacturing of sportswear, active wear, leisure wear and gym wear. Our specialties are in cotton t shirts, polos, functional Dri Fit t shirts, shorts, pants, Sweat shirts, Hoodie and track suits. We have 11000 square feet constructed area and our unit is fully equipped with latest stitching machinery. Our experience staff and workers always ready to handle any kind of Quantities required by our customers.” PHONE: +92-52-3555191 E-MAIL: info@trendsportswear.com Trend sportswear has been in the industry for over 10 years specializing in knitted garments. They also focus on dri-fit technology which is needed for yoga wear

BRIGHT POINT ENTERPRISES

“BRIGHT POINT ENTERPRISES was established on 1992, as experienced manufacturer and exporter of all kind of Custom Made Clothing, Fitness & Gym Wear, Work Wear, Hi Vis Industrial uniforms, Sportswear, Sublimation Uniforms, Martial Arts Uniforms, Brazilian Jiu Jitsu Gi, Fight Shorts and Accessories. We are serving large number of worthy customers all over the world with their complete satisfaction exactly according to their demand and instructions. 100% quality product and customer service is guaranteed.” E-MAIL: info@brightpointent.com PHONE: +92 52 3610734 Bright Point Enterprises focuses on custom made fitness wear. They specialize in high tech textiles and processes. This manufacturer will understand how to develop the garments properly.

costing breakdown

cost sheet breakdown

target wholesale/ retail price & margin Because, Fit and Flourish wants to be on a competitive playing field with the likes of Lulu Lemon, Nike and Adidas, a 126.1% markup will be implemented on the garments. For this reason, the boot cut yoga pant will retail price margin of $75.We believe this price is high enough to compete with other active wear brands, but low enough to entice customers to purchase our product over the others. The cost for a pair of Knit yoga pants, made in Pakistan is $15.52, including labor and other fees. At wholesale, the bottoms cost around $25.52. This makes the total profit earned for every pay of yoga pants sold, $49.48.

import classification hts code & tariff percentage

The Harmonize Tariff Schedule is given to all products being imported into the United States. The HTS Code determines the tariff on a specific item, depending on it’s content and origin. Each products has it’s own unique code depending on the country it was manufactured in and it’s description. An HTS code will also denote if a product may receive preferential treatments, such as eliminated tariffs. In Pakistan, a knitted yoga pant has an HTS code of 648: 6104230032. This code is for all womens/ girls knitted trousers, made of synthetic fibers. The corresponding tariff is 14.9%. Knitted trousers do not receive any special treatment within Pakistan.

logistics & importation ease of transportation

There are several ports with Pakistan that ship international exports. This makes transporting products simple. Shipping internationally from Pakistan to North America raked in a total of 21,950,00 shipping routes in 2012. It is clear that international shipping is a massive industry that allows for the as must ease as possible. The Karachi port in Pakistan ranks number 77 around the world in regards to 20-foot container traffic. In 2011, the ports total number of containers was 1,545,434 TEU’s (Twenty-foot Equivalent Unit.) Karachi is an extremely large and high traffic international port which can handle large and small shipments around the world. Although, the industry within Pakistan has not completely flourished, the nation has the infrastructure and ability to move product around the world. [37][38] It takes exactly 39 days and 6 hours to travel the ocean from Karachi to Savannah. Thats is almost 8500 miles at sea. Around the world, there are over 6,000 container ships traveling the sea lanes. The average speed of one of these vessels is around 14 knots. These ships have the ability to carry several warehouse-size shipments at once. In fact, on average one container ship makes enough trips in a year to make it to the moon and back almost ten times. Most vessels can carry around 18,000 TEU’s at once, which are stacked 8 high and 19 across. This makes it simple to ship any size shipment. [39] These vessels are on tight schedule’s s do to high demand in the industry. Liner shipments are the most efficient way to transport product. “It would require hundreds of freight aircraft, many miles of rail cars, and fleets of trucks to carry the goods that can fit on one large liner ship.” [40] The freight industry has made strides to support the environment. These ships are more fuel efficient than ever, lessening the carbon footprint of the entire apparel industry. Ocean shipping is the most efficient form of global transportation, with the smallest carbon footprint compared to air shipping and ground shipping. Liner shipping “produces fewer grams of exhaust gas emissions for each ton of cargo transported than air, rail, or road transport.” In addition to this, 98% of containers used are recyclable, most of them made in the 1980s. The liner shipping industry is responsible for thousands of job opportunities around the world, it also holds together the global economy through international trade. [40]

logistics & importation freight companies

The Pakistan International Freight Forwarders Association, P.I.F.F.A is helps facilitate and regulate the freight industry in Pakistan. The association has over 500 trusted members that could potentially carry product from the manufacturer to the Karachi Port in Pakistan. For example, one such freight company is Allied Logistics. This freight forwarder has been established in Karachi since 1996. The company offers various services of transportation. For ocean freight, they will supply the following services: “FCL/LCL import /export, Issuance and verification of documentation, Export and import customs clearance, Packing and crating of industrial goods, Packing and crating of household goods, Warehousing, Assembly and distribution logistics, Credit processing letter, Part & full vessel charter, Conventional shipments (break-bulk, dry & liquid bulk), Sea/Air shipment, intermodal / multimodal transportation and Transport Insurance.” [57] Allied Logistics also offers customs brokerages services which include: “Legal Valuation of merchandise, Duty & tax assessment, Classification of goods, Maintenance of record, Temporary import procedures, Permanent import/export procedures and other Consultancy services.” Customs brokers help ease the facilitate of importation and exportation. [56]

karachi, pakistan port

“The Port of Karachi is Pakistan's largest and busiest seaport, handling about 60% of the nation's cargo.” “More than 80 percent of Pakistan’s International trade passes through Karachi.” Because of this, as an investor one can trust their product will be handled and transported professionally in this port. “The geographic position of Karachi places the port in close proximity to major shipping routes such as the Straits of Hormuz. The administration of the port is carried out by the Karachi Port Trust which was established in the nineteenth century.” The port is large enough tot handle major production shipments; “it has a handling capacity of 300,000 TEUs per annum.” There are several major facilities at the port which help to keep the transportation of goods flowing. These infrastructures are “thirty dry cargo berths, three liquid cargo-handling berths (oil piers), two ship repair jetties and a shipyard and engineering facility.” The Karachi ports sits on a deep natural harbor which connects to the Pacific Ocean. On the other hand, due to major maritime traffic, delays may occur when working with the Karachi Port. There are several other vessel destinations located close by, so boat traffic is a common issue in the area. The port also faces heavy competition from a private port located nearby Despite this, Karachi is a major international trading place that can conduct transportation of product in a timely manner. [55]

logistics & importation shipping routes

time lines searates.com

timelines

searates.com

logistics & importation maps

searates.com

u.s. importing requirements The United States has strict guidelines when it comes to importing product into the country. Exporters as well as US customs brokers must be sure to comply with all requirements in order to meet the timely demands of the apparel industry. Fully understanding the guidelines prior to importation is essential to successful international trade. According to â&#x20AC;&#x153;Importing into the United States; A Guide for Commercial Importersâ&#x20AC;? put out by the United States government, there are several requirements put forth. Under the document, it states that in order to import product into the States, businesses must first comply with the Entry of goods process. This first step Entry Process,Right To Make Entry, Examination of Goods and Entry Documents and the Packing of Goods. After the entry process is complete, it is then required to adhere to a compliance checklist, assessment and measurement. Next, invoices must be drawn up and sent out. There are common errors made with invoices, so businesses must be sure to careful read over these documents before submitting. Next, the product must have an assessment of duty. This duty is put in place depending on the trade agreement in which the country of export falls under. Pakistan, however, does not have any preferential treatment on synthetic knit wear. After assessment, the product must then be classified and then a final value must be placed. In order to properly import into the US, businesses must be aware of product markings and other special requirements such as prohibitions on alcohol or certain foods, and foreign trade zones. The United States has laid out specific guidelines for importing into the country. Because the country has one of the strongest economies in the world, they have made sure that the requirements fully support the international trading marketplace. [36]

Pakistan exporting requirements Exporters from Pakistan has several requirements in order to be apart of the international marketplace. The textile and apparel industry must comply will all guidelines set forth by the Export Trade Control regulations which includes obtaining on the necessary licenses. Exporters must first register with the government association, no one can trade unless they are registered with the Export Promotion Bureau. For this reason, it is vital for investors to ensure that the factories they work with are registered with the government. These things can cause major set backs to the supply chain. Exporters are also required to declare all exports to the customs agencies within Pakistan. This is done so customs agents can carefully track containers for any suspicious activity, like counterfeit products or even human trafficking. Pakistani exporters must also ensure that all payments are made within six months of shipment or as otherwise stated by officials. In addition, prior approval from the State Bank should be obtained before any payments are made. Before any shipments are made, exporters must first have all forms and licenses approved by Authorized Dealers. The authorized dealers must also have all complete export forms including the distribution to retailers. Exporters must make sure that all forms stay up to date and correct on a constant basis for both the government and their own records. [35]

importing documents certificate of origin DEPARTMENT OF HOMELAND SECURITY

1. PORT

U.S. Customs and Border Protection

2. DATE

CERTIFICATE OF ORIGIN

5. NAME OF FIRM

19 CFR 7.3 7. DATE FILED

9. DESTINATION (Port of)

8. CARRIER (Vessel or Airline)

10. CONSIGNED TO

12. MARKS AND NUMBERS

3. CERTIFICATE NO.

4. NAME OF PERSON COMPLETING CERTIFICATE

(ARTICLES SHIPPED FROM INSULAR POSSESSIONS, EXCEPT PUERTO RICO, TO THE UNITED STATES 1 )

6. SHIPPERS EXPORT DEC. NO.

OMB No. 1651-0016 Exp. 02-28-2015

11. LOCATION OF CONSIGNEE (City and State)

13. QUANTITY

FOREIGN MATERIALS 2

14. DESCRIPTION OF ARTICLES

15. Description

MATERIALS DESCRIBED IN GENERAL NOTE 3 (a)(iv)(B)(2) 3 19. 18. 17. Date Incorporated into Date Imported into Description Imported Goods Insular Possession

16. Value

20. INSULAR POSSESSION WHERE MERCHANDISE WAS PRODUCED OR MANUFACTURED 21. INSULAR POSSESSION OF WHICH MATERIALS ARE THE GROWTH, PRODUCT, OR MANUFACTURE I declare that I am the person named above, acting in the capacity indicated; that the description and other particulars of the merchandise specified above are correct as set forth in this certificate; that the said merchandise was produced or manufactured in the insular possession named above, and from the materials grown, produced, or manufactured in the insular possession also named above, or of the United States, or of both; that if foreign materials were used therein, their description and value are shown above.

22. ADDRESS OF SHIPPER

23. SIGNATURE OF SHIPPER

VERIFICATION OF CBP OFFICER

I hereby certify that I have investigated the foregoing 24. DATE statements and am satisfied that they are correct to the best of my knowledge and belief.

25. SIGNATURE OF CBP OFFICER

CBP Form 3229 (06/09)

SEE BACK OF FORM FOR FOOTNOTES AND PAPERWORK REDUCTION ACT NOTICE.

power of attorney 1. THIS FORM MUST BE TYPED. 2. DO NOT ALTER THIS FORM. 3. ORIGINAL TO BE SUBMITTED

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

CORPORATE TO CBP. (See Option explained in Instruction No. 2.) GRANT CHANGE to Grant on file (Instruction (Instruction No. 3b.) No. 3a.) NAME

GRANTEE:

GRANTOR:

OMB No. 1651-0050 Exp. 03/31/2014

CBP USE ONLY

DATE RECEIVED

SURETY POWER OF ATTORNEY REVOCATION. The below-described powers previously granted are hereby revoked. (Instruction No. 3c.) This is a name change

ADDRESS

EFFECTIVE DATE

This is an address change

SOCIAL SECURITY NUMBER SURETY COMPANY'S CORPORATE NAME

SURETY NO.

STATE UNDER WHOSE LAWS ORGANIZED AS A SURETY

Port code(s) for CBP port(s) in which authorized to do business and limit on any single oblligation -OR- port(s) being added to the original grant. LIMIT LIMIT LIMIT LIMIT LIMIT LIMIT PORT PORT PORT PORT PORT PORT

Grantor appoints the above-named person (Grantee) as its attorney in fact to sign its name as surety to, and to execute, seal, and acknowledge any bond so as to bind the surety corporation to the same extent as if done by a regularly elected officer, limited only to the extent shown above as to Customs and Border Protection port and amount on any single bond obligation. This grant, or change to a grant on file, or revocation, as specified, shall become active on the effective date shown provided the CBP Form 5297 is received at a port office 5 days before the effective date shown; otherwise the specified actions will be come active at the close of business 5 working days after the date of receipt at the port office. In witness whereof, the said Grantor, by Date Attested Name and Title Name and Title virtue of authority conferred by its Board of Directors, has caused these presents to be sealed with its corporate Use a facsimile of corporate seal and attested by any two principal seal, and not impression seal. Signature: Signature: officers.

Distribution: 3 copies

CBP Form 5297 (06/08)

entry summary DEPARTMENT OF HOMELAND SECURITY

1. Filer Code/Entry No.

U.S. Customs and Border Protection ENTRY SUMMARY

Form Approved OMB No. 1651-0022 EXP. 08-31-2014

2. Entry Type

3. Summary Date

4. Surety No. 5. Bond Type 6. Port Code

7. Entry Date

8. Importing Carrier

9. Mode of Transport

10. Country of Origin

11. Import Date

12. B/L or AWB No.

13. Manufacturer ID

14. Exporting Country

15. Export Date

16. I.T. No.

17. I.T. Date

21. Location of Goods/G.O. No.

18. Missing Docs 19. Foreign Port of Lading

22. Consignee No.

23. Importer No.

25. Ultimate Consignee Name and Address

City 27. Line No.

State

Zip

City A. Entered Value B. CHGS C. Relationship

35. Total Entered Value

$ 36. DECLARATION OF IMPORTER OF RECORD (OWNER OR PURCHASER) OR AUTHORIZED AGENT Importer of record and that the actual owner,

or purchaser or agent thereof. I further declare that the merchandise

33. A. HTSUS Rate B. ADA/CVD Rate C. IRC Rate D. Visa No.

CBP USE ONLY

Total Other Fees

purchaser, or consignee for CBP purposes is as shown above, OR

State 32.

I declare that I am the

24. Reference No.

26. Importer of Record Name and Address

28. Description of Merchandise 29. 30. 31. A. HTSUS No. A. Grossweight Net Quantity in B. ADA/CVD No. B. Manifest Qty. HTSUS Units

Other Fee Summary for Block 39

20. U.S. Port of Unlading

Zip 34. Duty and I.R. Tax Dollars

Cents

TOTALS

A. LIQ CODE

B. Ascertained Duty

37. Duty

REASON CODE

C. Ascertained Tax

38. Tax

D. Ascertained Other

39. Other

E. Ascertained Total

40. Total

owner was obtained pursuant to a purchase or agreement to purchase and that the

prices set forth in the invoices are true, OR was not obtained pursuant to a purchase or agreement to purchase and the statements in the invoices as to value or price are true to the best of my knowledge and belief. I also declare that the statements in the documents herein filed fully disclose to the best of my knowledge and belief the true prices, values, quantities, rebates, drawbacks, fees, commissions, and royalties and are true and correct, and that all goods or services provided to the seller of the merchandise either free or at reduced cost are fully disclosed. I will immediately furnish to the appropriate CBP officer any information showing a different statement of facts.

41. DECLARANT NAME

TITLE

42. Broker/Filer Information (Name, address, phone number)

SIGNATURE

DATE

43. Broker/Importer File No. Paperwork Reduction Act Notice CBP Form 7501 (06/09)

bill of lading BILL OF LADING / CONNAISSEMENT Not negotiable / Non negociable

UNIT NO. / NO.D’UNITÉ

------------------------------------------------------

BILL OF LADING NO. / Nº DE CONN. D/J

SHIPPER / EXPÉDITEUR NAME / NOM

PLEASE PLACE TOP OF BAR CODE STICKER STRAIGHT ON DOTTED LINE S.V.P. PLACER LA PARTIE SUPÉRIEURE DU CODE À BARRE AUTOCOLLANT EN LIGNE DROITE SUR LE POINTILLÉ

Y/A CUSTOMER CODE CODE DU CLIENT

Declared Valuation $ Valeur déclarée ______________ Per: ……………………..

ADDRESS / ADRESSE

Maximum liability of $2.00 per pound unless declared valuation states otherwise. A surcharge is applicable when the declared value is in excess of $2.00 per pound.

CITY / VILLE

CONSIGNEE / CONSIGNATAIRE

/ Responsabilité maximum de $2.00/livre à moins d’indication contraire. Un supplément s’applique quand la valeur déclarée dépasse deux dollars la livre.

CUSTOMER CODE CODE DU CLIENT

FREIGHT CHARGES / FRAIS DE TRANSPORT

PREPAID / PORT PAYÉ

NAME / NOM

Bill Shipper / Facturer l'Expéditeur

COLLECT / À PERCEVOIR

Bill Consignee / Facturer le Destinataire

ADDRESS / ADRESSE

Freight charges will be collect unless marked prepaid. Les frais seront à percevoir à moins d’avis contraire

CITY / VILLE

ROUTING / ROUTE

TRANSFER POINT / POINT DE TRANSBORDEMENT

CARRIER / TRANSPORTEUR

# PIECES MORCEAUX

DANGEROUS GOODS PROD. DANGEREUX CLASS P.I.N.

PARTICULARS OF GOODS, MARKS AND EXCEPTIONS DESCRIPTION DES MARCHANDISES, MARQUES ET PARTICULARITÉS

– OR / OU:

BILL THIRD PARTY FACTURER UNE TIERCE PARTIE

WEIGHT POIDS

Name of Third Party Nom de la troizieme partie

Address Adresse

P.O. #

REF# SHIPPER: PLEASE COMPLETE THE FOLLOWING

TOTAL NO. OF PIECES

NOMBRE TOTAL DE COLIS

SHIPPER’S # EXPÉDITEUR: S.V.P. REMPLIR CE QUI SUIT

DIMENSIONS OF SHIPMENT / DIMENSIONS DU CHARGEMENT

LENGTH / LONGUEUR

WIDTH / LARGEUR

HEIGHT / HAUTEUR

TOTAL CUBIC FEET TOTAL PIEDS CUBES

1. Any agreement covering transportation of the goods described herein with other than due dispatch, or for specific time, must be endorsed on this bill of lading and signed by the parties hereto. 2. When a shipment is at shipper’s risk, the words “At Shipper’s Risk” must be entered and initialed by both parties hereto. 1. Toute entente spéciale concernant le transport des biens décrits ci-haut, soit heure spéciale de livraison ou autre, doit être indiquée sur ce connaissement et signée par les partis concernés. 2. Si la marchandise est expédiée au risque de l’expéditeur, les mots “Au risque de l’expéditeur” doivent être inscrits et initialés par les deux parties concernées.

SHIPPER / EXPÉDITEUR

__________________________________________________ PER: _____________________________________________

NOTE: UNCRATED MERCHANDISE AT SHIPPER’S RISK. / THIS BILL OF LADING TO BE SIGNED BY SHIPPER AND CARRIER.

TOTAL WEIGHT POIDS TOTAL

C.O.D. AMOUNT / MONTANT

___________________

DIMENSIONAL WEIGHT / POIDS DIMENSIONNEL *

* 10 lb/cu.ft./li./p.c. C.O.D. FEE PREPAID FRAIS C.O.D. PAYÉS D’AVANCE C.O.D. FEE COLLECT FRAIS C.O.D. À PERCEVOIR

C.O.D. charges will be collect unless marked prepaid.

Les frais C.O.D. seront à percevoir à moins d’avis contraire.

CARRIER / TRANSPORTEUR

CHECKER CONTRÔLEUR

PER: _________________________________________________________

NOTE: MARCHANDISE NON-EMBALLÉE AU RISQUE DE L’EXPÉDITEUR / CE CONNAISSEMENT DOIT ÊTRE SIGNÉ PAR L’EXPÉDITEUR ET LE TRANSPORTEUR

commercial invoice

ENTRY/ IMMEDIATE DELIVERY DEPARTMENT OF HOMELAND SECURITY U.S.

OMB No. 1651-0024 Exp. 04-30-2015

Customs and Border Protection

ENTRY/IMMEDIATE DELIVERY 19 CFR 142.3, 142.16, 142.22, 142.24

1. ARRIVAL DATE

2. ELECTED ENTRY DATE 3. ENTRY TYPE CODE/NAME

5. PORT

6. SINGLE TRANS. BOND

7. BROKER/IMPORTER FILE NUMBER

8. CONSIGNEE NUMBER 10. ULTIMATE CONSIGNEE NAME

12. CARRIER CODE

4. ENTRY NUMBER

9. IMPORTER NUMBER 11. IMPORTER OF RECORD NAME

13. VOYAGE/FLIGHT/TRIP 14. LOCATION OF GOODS-CODE(S)/NAME(S)

15. VESSEL CODE/NAME 16. U.S. PORT OF UNLADING

17. MANIFEST NUMBER

18. G.O. NUMBER

19. TOTAL VALUE

20. DESCRIPTION OF MERCHANDISE 21. IT/BL/AWB CODE

22. IT/BL/AWB NO.

23. MANIFEST QUANTITY

27. CERTIFICATION

I hereby make application for entry/immediate delivery. I certify that the above information is accurate, the bond is sufficient, valid, and current, and that all requirements of 19 CFR Part 142 have been met. SIGNATURE OF APPLICANT

PHONE NO.

DATE 29. BROKER OR OTHER GOVT. AGENCY USE

24. H.S. NUMBER

25. COUNTRY OF ORIGIN

26. MANUFACTURER NO.

28. CBP USE ONLY OTHER AGENCY ACTION REQUIRED, NAMELY:

CBP EXAMINATION REQUIRED. ENTRY REJECTED, BECAUSE:

SIGNATURE DELIVERY AUTHORIZED:

DATE

Paperwork Reduction Act Statement: An agency may not conduct or sponsor an information collection and a person is not required to respond to this information unless it displays a current valid OMB control number and an expiration date. The control number for this collection is 1651-0024. The estimated average time to complete this application is 15 minutes. If you have any comments regarding the burden estimate you can write to U.S. Customs and Border Protection, Office of Regulations and Rulings, 799 9th Street, NW., Washington DC 20229.

CBP Form 3461 (10/09)

FREIGHT DOCUMENTS VENDOR REGISTRATION

VENDOR REGISTRATION

To be completed by Vendor

Applicant’s Particulars

Name of Vendor :

NTN.:

(Please attach BR copy)

Correspondence Address : Phone No.:

Fax No.:

Website:

Contact Person :

Position :

Direct Line : Payment Terms: � 45 days credit

E-mail Address:

� ____________

(for quote invitation and order confirmation)

Date of Incorporation:

Size of Workshop

Total No. of Employees :

/Office: Name of Director(s): Financial Information: Year Ended Type of Organization :

Gross Turnover

Net Profit Before Tax

� Sole Proprietorship

Current Assets

� Limited Company

Current Liabilities

� Publicly Listed

Company

Group Information: (1) Relatives /directors in KICT (2) Ultimate holding co.:

� Partnership

Shareholding (%)

Category of Products / Services

Products/Services to be supplied : Ref. 1

Job Reference :

sq. meter

Paid Up Capital :

Ref. 2

Ref. 3

Company: Job Nature: Business Volume (PKR): `

Qualification : (Please attach relevant document for reference) 1) Are you Agent / Authorized dealer? � No � Yes , please specify the product name and principal 2) Any Licences / Certificates obtained? Order / Contract Value Interested : (Please tick “√ “ in appropriate space) � Any amount � Usually Over PKR100K � We shall not submit offer for purchase less than PKR Note to Vendor: (a) (b)

(c)

All vendors have to be registered under KICT purchasing record for any business relationship. All relevant documents are required to be submitted for easy reference. Any update on above information has to be notified by vendor in writing on timely basis.

Signature

Company stamp

Name & Title

Date

FOR OFFICE USE Attachment:

� NTN � Name Card �

�

Source of Info:

� Referred by – User/Technical advisor/ Other:

� Internet/Advertisement/other:

Role:

Supplier/Contractor

Reviewed by:

Vendor Code: PD-FORM-001-R.1

Others:

Nature / Expertise:

Approved by: Input by:

(Procurement Manager)

Checked by:

Other import/export procedures

via doingbusiness.org

necessary import documents Bill of lading Certificate of origin Commercial invoice Customs import declaration Delivery order Gate pass (cargo release order) Insurance certificate Packing list

necessary export documents Bill of lading Certificate of Origin Commercial invoice Customs export declaration E-form (foreign exchange authorization) Insurance certificate Packing List Pre-shipment inspection report

in conclusion benefits

“During the period 2007-2012, the Education, Health, Social Work and Other Community, Social, Personal Service Activities sector recorded the highest average annual growth rate across all sectors of the Pakistani economy at 6.4%” The Benazir Income Support Program of 2008 made strides to supporting these efforts. This record high was due to the government aid that the sectors received. In addition to this, the banking sector has seen lesser restrictions from the government. However they are still run by the corrupt and flawed system. The motorcycle, personal, and household goods industries saw growth as well; a 3.8% increase per year since 2007. This increase was due to the increase in public spending which came about from the support programs. The economy is seeing some growth, this shift depicts the “importance of government expenditure as the engine moving the Pakistani economy.” Pakistan is the fourth largest country in Asia Pacific behind China, India and Indonesia. There are many unemployed civilians looking for employment within the nation. They are eager and skilled laborer’s looking to make a living. Pakistan’s population increase 3.4% every year, the fastest growing the region, “due to both the country’s high fertility rates and elevated net migration rates.” This makes the potential labor forces even greater, which can be beneficial for investors looking at Pakistan. The average age is 22, which means the majority of the population is young and eager. With this, the textile and apparel industry can gain an competitive age. [31] As Pakistan and the rest of the global marketplace marches towards the future, there is major growth potential to be had. However, for the nation to see some of this stability, they will have to rethink their agreements and restrictions. They will also need to move towards upgrading their mechanisms and infrastructure. Until this is done, Pakistan will continue to decline.

in conclusion risks

Over the past several years, economic growth has been slow for various reasons. Despite the funds pushed into supporting the economy over the years, it has should little growth.“ A weakened external sector, deteriorating public finances and the dire situation of the energy sector” are the main issues plaguing the economic and overall state of the nation. The Pakistani economy grew at an annual rate of 2.9% between 20072012. While the average rate in the entire Asia Pacific during that time was 5.8%. This low rate is brought on by frivolous government spending. The Pakistani government must come to an agreement an stop the unjust politics before the economy can truly flourish like it’s neighboring countries. “Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.” [28] Another added risk to doing business in Pakistan is the concentrated product assortment. The countries industry is better know for low-value added products rather than using innovative and sustainable processes and materials. With the on going concerns within the United states in regards to the environment, low value added products tend to do more harm than good. The manufacturing sector has grown at average of 2.7% since 2007. This low demand for Pakistani product is brought on by the high demand for Chinese product in the global marketplace. On top of this, domestic inflation has added to the problem by raising the cost of industrial inputs. Because of the warfare and turmoil that has been plaguing the nation, the government must focus heavily on social efforts; leaving economic issues to the wayside. The energy sector is one of the largest issues within the nation. Due to a lack of modern infrastructure in electricity and it’s distribution; blackouts are a common occurrence within urban and rural areas of Pakistan. The high demand of the apparel industry does not make room for blackout periods in production time. Retailers cannot afford to wait for product to be finished, they are on a strict and demanding schedule. In fact, World Bank’s Ease of Doing Business Index, ranked Pakistan 107th out of 185 economies at a global level in 2013. Another major risk factor in Pakistan is the constant social unrest. Political violence has plague the nations for decades. The constant battling is between the various social groups, including extremist terrorist groups, the military, the clergy and ethnic groups. Conflicts in neighboring Afghanistan also causes problems for Pakistan. The unattended border between the two nations sees thousands of Afghan refugees as well as battle spilling over the nations lines. “Terrorism, target murders, attacks on the government’s security forces, violent protests and assassination of political figures continue to be widespread in Pakistan.” The future of the Pakistani economy depends on domestic spending. These sectors have seen consecutive growth while external factors have remained low. For these reasons, despite their attempts, sourcing from Pakistan may be too much of a risk for US investors and businesses. [31]

appendix

country traits Population: 193,238,868 (July 2013 est.) Age Structure: 0-14 years: 34% 15-24 years: 21.6% 25-54 years: 35.1% 55-64 years: 5% 65 years and over: 4.3% Ethnic Groups: Punjabi, Sindhi, Pashtun (Pathan), Baloch, Muhajir (immigrants from India at the time of partition and their descendants) Religion: Muslim 97% (Sunni 77%, Shi'a 20%), other (includes Christian and Hindu) 3% Languages: Punjabi 48%, Sindhi 12%, Siraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official; lingua franca of Pakistani elite and most government

Government: Parliamentary form: consists of two Houses, the Senate (Upper House) and the National Assembly (Lower House). Cheif of State: Asif Ali Zardari, President Head of Government/ Prime minister: Navaz Shariff Representative from US: Ambassador James F. Dobbins is the Special Representative for Afghanistan and Pakistan. Daniel F. Feldman is his Principal Deputy.

cultural traits the arts The arts within Pakistan have a long history that far surpasses the country sovereignty. Their traditional performing and visual arts have much in common with their neighbor India. Calligraphy Arabic Calligraphy is an ancient art form that has gained much attention and respect throughout history. Particularly Pakistan has retained the art form due to their Islamic roots. The word ‘Calligraphy’ derives from the Greek word ‘kalligraphia’ which means ‘beautiful writing.’ Islamic calligraphy has evolved over the years. Those artists who create the new characters become famous for their talents. For example, Kufi script was the favored calligraphy because of the ideal character combinations. In fact, The Holy Quran was said to have been written in Kufi script. Later on, Naskh script gained popularity and after that Arabic script evolved. Landscape Art Landscape art depicts a type of scenery or nature. In Pakistan, the many landscapes inspired many artists to depict the dry land and those who venture through it. One particular artists known for his talents landscape painting was Khalid Iqbal. Iqbal used impressionist style painting to depict his homeland. The artist is known for accurately portraying the lighting and foliage of Pakistan. His works bring to life the Punjabi and rural cultures of Pakistan.

Miniature Painting One of the more adored forms of art, Miniature Paintings has been seen across Pakistani heritage. This style of art first came to fruition during the Mughal era. The exquisite and painstaking detail that went into create these works is similar to that of a stone sculpture. Currently, Abdur Rehman Chughtai , Haji Muhammad Sharif and Sheikh Shujaullah have paved the way for modern miniature paintings. Pakistan could easily be most known for the masterful art form.

Modern Art With the ever-changing times, new artists are looking towards modern art. The artists want to represent themselves on an international level and this style of art allows them to do so. Modern art in Pakistan combines the traditional styles adopted from Europe and the United States with indigenous and traditional styles as well. One of the first modern artists in the nation was in fact a women, Zubeida Agha (1922–1997). Agha had both traditional Pakistani training and contemporary training from Europe. Her style reflected the two cultures. Through the use of simplified forms and bold colors. Several artists experimented with the use of traditional Islamic Calligraphy over top contemporary formats. Modern Art within Pakistan allows outsiders to understand the beliefs of the more progressive generations.

Pop Art Pop art is one of the more prominent types of art seen around Pakistan. However, much like graffiti artists, these talents go unnoticed. However the vibrant pop art seen around the nations cities is distinctly Pakistan.

‘Pop Art on Wheels’ Many of the trucks, buses and rickshaw are covered in eye-catching paintings and patterns with many beads and baubles. The colorful transportation is meant to reflect the wealth and status of it’s owner. The designs are often floral scenes or landscapes. The ornate vehicles are one of the many unique aspects of Pakistan.

Cinema Billboard Art In the 1990s, film billboard gained much popularity within the nation. The style combined two culture favorites; fine art and film. Cinema billboards are commonly scene in the major cities of Pakistan. Unfortunately, Cinema Billboard Art has seen a recent decline due to the new wave in digital arts.

Sculpture Sculpture has been a common art form in Pakistan since the era of the Indus Valley. Many archaeologists have found various sized sculptures in both stone and bronze. During the 2nd and 1st Century, sculptures became more intricate; detailing scenes of the Buddha’s life. Today’s sculptures are commonly made from metal or wood. Many of these contemporary sculptors continue to draw inspiration from the teachings of the Q’uran. Modern techniques have also influenced today’s sculptors; combining both new and old talents.

performing arts Drama & Theater Theater in Pakistan began with Bards and Jesters; this type of performance is still popular in rural regions. Traditional Dance Theater, however, has evolved in the 19th century with the many staged dance extravaganzas by Wajid Ali Shah, the last Muslim King of Oudh, which is what is now known as Urdu theater. The opera-type theater mainly focuses on song and dance; “its hyperbolic style of dialogue and its rhetorical technique of acting, had become the major form of entertainment in the urban centers throughout the sub-continent.” [17] Story lines in theater are based off local tales and fables as well as religious stories. With the invention of the cinema, performance art has seen a major decline over the past decade. However, traditional style performances are still held for cultural observances such as festival in smaller towns. In the 1980’s commercial theater began to take hold. But with a demand for a more modern type of theater, the traditional Pakistani style was pushed to the side.

Puppetry Puppetry is one of the oldest forms of art known to man. In ancient times, puppets were used to teach lessons and rules for young children in a fun way. Puppetry has become a more complex over time, conveying messages that forces the viewers mind to stretch and visualize. Traditional puppets were often various animals and people, made from doll cloth.

Musical Genres of Pakistan:

Classical Music Filmi Music Folk Music Milli Naghmay/ Patriotic Songs Pop/Rock Music Qawwalis

Musical instruments of Pakistan Algoza Bansari Been Chimta Dholak/Dholki Dhol Drums Guitar Harmonium Rubab Santoor Sarangi Sitar Shenai Tabla

Types of Dance in Pakistan • • • • • • • • • • • • • • • • • • • • • • • •

alochi Dances Baltistan-The flower Dance The Bhangra Dandia or Donka The Dhamal Cholistan Dance The Gidda Ho Jamalo Sindhi Jhoomar The Kikli The Luddi The Sammi The Kafir Dances Kathak Dance Khattak Dance Taxila Odyssey Dhole Drummer Moenjodaro Dance Basant Bhangra Dance Hunza Dance Fisherfolk Dance Thumry Dance Kashmiri Dance Classical Dance

MONUMENTS Wazir khan Mosque

MONUMENTS Uch Sharif

MONUMENTS Shahjahani Mosque

MONUMENTS Darbar Mahal

Derawar Fort

MONUMENTS Bagh Ibne Qasim

MONUMENTS Emperor’s Mosque

MONUMENTS hiran minar

MONUMENTS Shahi Mosque

MONUMENTS Makli Hills

Dining & Cuisine traditional cuisine

Cuisine is partial to the surrounding countries and other cultures that have conquered the area throughout history. Because of this, Pakistan has a unique fusion of cultures that make for an exciting palette. One such influence is the Moghul Empire who occupied the region during which time cooking used various herbs and spice as well as almonds and raisins. “The dessert shahi tukra and tandoori chicken, which are Moghul foods, are still enjoyed today. Pakistan's food is also heavily influenced by Indian, Persian, and Western dishes.”[7] These culinary traditions are still common modern Pakistani cuisine.

Each region of Pakistan has their own distinctive cuisine and specialties. Curry and other spice are popular in the southern areas while barbecue and beef are commonplace in the North. Fish, beef, lamb, and goat are commonly served with spices and oils. One traditional dish that is enjoyed throughout the nation is “Chapatti” is a type of pita bread that is eaten with most meals. The bread is used as a replacement for utensils to scoop up food. Dairy products are frequently enjoyed throughout the nation. Traditionally, many Pakistanis are pastorals, which are nomadic herders of livestock. For this reason, a main source of the diet, especially in rural areas is dairy based. Rice is often enjoyed with vegetable such as okra, potatoes, spinach and chickpeas. In addition to all this, lentils and wheat products are staples in the Pakistani diet. Other favorite meals in the culture are snacks and sweets. “Samosas” are triangle-shaped fried pastries filled with potatoes, vegetable or minced meat. “Pakoras” are floured, deep fried vegetables. “Kebabs” are the Pakistani equivalent to the hot dog stand. The meat sticks can be found on almost every street corner in major cities. “In general, most Pakistanis do not eat pork or drink alcohol as these are forbidden by Islam. However, do not be shocked if you see someone drinking alcohol as people in the cities and younger people are sometimes more lax on this tenant. Plus, not everyone in Pakistan is a Muslim.” [7] Most Pakistani’s enjoy tea with their meals or in meetings. Tea is often served with milk or a special type of butter. Individual take great pride when serving guests tea, so it is important not to turn the gesture down. In fact, they will commonly use their best tea china and kettles when serving friends, family or new acquaintances. Sharing tea with guest is an act of kindness and hospitality. This gestures helps to build bonds, especially in business practices. In the culture, it is believed that the more time you spend drinking tea; the more individuals will be comfortable with one another. As a Baltistan proverb says, “The first time you share tea, you are a stranger. The second time, you are an honored guest. The third time you become family.” Drinking tea is a spiritual process, especially when presented in someone’s home. This act implies “a public acknowledgment of acceptance and protection.” [7] Tobacco is another cultural observance that is very common within the culture. The men in Pakistan commonly enjoy cigarettes and hookah. However, smoke is taboo for women. Only about 12% of females smoke compared to the 54% of males who partake in smoking. Despite the recent anti-smoking campaigns the citizens of Pakistan still regularly take pleasure in smoking. When smoking in public, one should be prepared to offer one to every member of the group. Smoking hookah is a public gathering and social activity, so accepting the invitation is advised. However, if one must decline for outstanding reasons, placing the right hand over ones heart and bowing will ensure you are not offending the group. “Paan” is a drug that Pakistani men regularly partake in. This consists of chewing the areca nut wrapped in the betel leaf. This combination is chewed after a meal because it is considered to have cleansing abilities. However, prolonged use of Paan can cause discoloration of the teeth and other possible health concerns.

economy Pakistan has faced decades of political and economic turmoil. “Internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan.” Pakistan’s main export earnings come from the textile industry. Other than this, agriculture accounts for onefifth of the countries output. The nation has failed to create export opportunities for other industries. For this reason, Pakistan has become “vulnerable to shifts in world demand.” “Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population.” Because of the constant instability within the nation, the Pakistani Rupee has decreased 40% since 2007. Foreign investors are weary of entering the Pakistani market due to it’s constant state of crisis. They are concerned with issues of “governance, energy, security, and an overall slow-down in the global economy.” Pakistan remains in a rut of low-growth and low-income, “with growth averaging about 3% per year from 2008 to 2012.” In order to see an economic turn around, Pakistan must address its long standing issues concerning government revenues and energy production. Because Pakistan has a “rapidly urbanizing population” with more than half of which is under 22 years old, it would behoove the government to resolves it’s current issues and tap into the surplus of labor forces. [28]

fiscal policies

structural reforms

Tax Reforms There are several reasons why Pakistan has seen constant low income tax revenues. For one, traditionally, many tax exemptions were given out in order to promote investment and export opportunities. Another reason is that a large portion of the economy has never announced their incomes to the government for taxes. This was due to corruption and bribery within the economy. Lastly, the income tax receipts are not often filled out because they are extremely complicated, with literary only slightly above average. This neither benefits tax payers or the overall fiscal state of the union. In order to promote a steady flow of tax receipts, the Pakistani government has extended the tax base. This will allow taxes to enter the system in order to be properly checked so that not mistakes are made. In addition to this, a tax survey was sent out in order to increase the number of tax payers. Trade and Tariff Reforms Since Pakistan’s independence, the nation has implemented a higher tariff. This was done in order to promote the domestic industry and to increase the income and employment. However, due the high tariffs and growing demand for exportation, smuggling is a major concern in the country. Because of globalization, these high tariffs have since been abolished “quantitative restrictions on imports; the convertibility of rupee into dollar was made possible; only those goods remained on the negative import list whose imports were banned on religious or defense purposes.” [29]

fiscal policies gdp “Pakistan’s tax revenue-to-GDP ratio is one of the lowest in the world among non-oil exporters. Growth rates are too low to absorb the large number of new entrants into the labor force each year.” [31] GDP - real growth rate: 5.8% GDP (purchasing power parity): $546.7 billion (2012 est.) GDP (official exchange rate): $222.5 billion (2012 est.)

industries textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

national budget revenues: $27.48 billion expenditures: $42.15 billion (2012 est.)

export $24.71 billion (2012 est.) Partners: US 13.6%, China 11.1%, UAE 8.5%, Afghanistan 7.8% (2012) Commodities: textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, Manufactures, carpets and rugs

import $40.07 billion (2012 est.) Partners: China 19.7%, Saudi Arabia 12.3%, UAE 12.1%, Kuwait 6.3% (2012) Commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

geography location Southern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on the west and China in the north

area Total: 796,095 sq km Land: 770,875 sq km Water: 25,220 sq km

climate

Mostly hot, dry desert; temperate in northwest; arctic in north

natural hazards frequent earthquakes, occasionally severe especially in north and west; flooding along the Indus after heavy rains (July and August)

labor

labor force

Total: 59.21 million in 2012 (est.) By Occupation: Agriculture: 45.1% Industry: 20.7% Services: 34.2% (2010 est.)

unemployment rate Total: 6% (2012 est.) Population below poverty line: 22.3%

natural resources Land, extensive natural gas reserves, limited petroleum, poor quality coal, iron ore, copper, salt, limestone

products Commodities: textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs

maps of pakistan

technical package

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