PAKISTAN
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PAKISTAN
ASIA Southern Asia
3000 N, 7000 E Capital Islamabad
Largest city Karachi
Boundaries
Afghanistan 2,670 km China 438 km India 3,190 km Iran 959 km Coastline 1,046 km
Area
Total: 796,095 sq km Land: 770, 875 sq km Water: 25,220 sq km
Irrigate Land
199,900 sq km
Terrain
Flat indus plain in the east, mountains in the north & northwest, balochistan plateau in the west
Natural Resources
Natural gas reserves Arable land Petroleum Limestone Copper Salt & Coal
Climate
Mostly dry, desert temperate northwest arctic north
Agriculture Products
Cotton Wheat Rice Sugarcane Fruits & Vegetables
4 Territories Tribal Belt Gilgit-Baltistan Islamabad Capital Territory Kashmir
4 Provinces
Baltistan Punjab Sindh Khyber Pakhtunkhwa (Formerly North-West Frontier Province)
(FITA) (World Factbook)
TABLE OF CONTENTS
Unless specified, all figures (%,$) refer to statistics recorded during/ for the year 2014.
1 ................................................ Geography 2................................................. History / Introduction 3................................................. Social 4................................................. Etiquette 5................................................. Political / Government Structure 6................................................. Economics / FDI 7................................................. The Industry / Labor / Export 8................................................. Trade Agreements & Associations / Disruptions 9................................................. Manufacturers 10................................................ Transportation 11................................................ Benefits / Risks / Work Cited
INTRODUCTION HISTORY
In the 8th century Muslim traders disembarked on today’s Pakistan spreading Islamic history. Pakistan as an individual existence was formed in 1947 after the independence of British India. Pakistan and India have been at odds for decades over the disputed Kashmir territory; having fought two wars since Pakistan’s formation. In recent years leading to the present the country has struggled with large scale political corruption and poverty resulting in a notoriously unstable economy. (Youngblood-Colman Ph. D.)
Country reports are put into action in order to investigate all aspects of global sourcing. Every facet is specified to enhance foreign investors knowledge of business in that particular country. The research will include and review the current state of geography essentials, socioeconomic-political analysis, insight to the labor force, the apparel industry as a whole, and etiquette guidelines to recognize the diverse culture and ensure your respect.
The mass of Pakistan’s population practices Islam, which is usually carried into their personal, political, economic and legal lives. One commitment that is performed is prayer, occurring five times a day once at dawn, noon, afternoon, sunset, and evening. It is common for some operations to be closed or closed early on Fridays due to it being considered their holy day. Pakistan’s honor a hierarchical society; acquiring respect comes with age, elders are introduced first, served first, and get the best cut of meat as well as their drinks poured for them.
Social
Pakistanis view family as a foundation of social structure and individual identity. Nepotism plays a common role in business ensuring trustworthy employees. Additionally, family is considered more private in contrast to the United States, as well as the putting family loyalty before business and social relationships. (Kwintessential) Human Development Index Pakistan is ranked 125 out of 169 (low) Life Satisfaction Index Pakistan is ranked 166 out of 178 (low) Happy Planet Index Pakistan is ranked 24 out of 143 (high) Corruption Perception Index (2009) Pakistan is ranked 139 out of 180 (high) (Youngblood-Colman Ph. D.)
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Languages
Punjabi 48% Sindhi 12% Saraiki (Punjabi variant) 10% Pashto (Pashtu) 8% Urdu (official) 8% Balochi 3% Hindko 2% Brahui 1% Other 8% English (Official; lingua francs of Pakistani elite and most government ministries), Burushaski, other
Ethnic Group
Punjabi 44.68% Pashtun 15.42% Sindhi 14.1% Sariaki 8.38% Muhajirs 7.57% Balochi 3.57% Other 6.28%
Religions
Muslim (official) 96.4% Sunni 85-90% Shia 10-15% Other Christian & Hindu 3.6%
Literacy Rate Total: 57.9% Male: 54.7% Female: 42%
Population
Below poverty level
12.4%
Unemployment Rate 6.8 %
(FITA) (World Factbook)
Etiquette Eye Contact
Direct eye contact is common when speaking to the same gender and age. Indirect eye contact is acceptable when talking to someone older than you, as well as in a business meeting. Making eye contact with the opposite sex on the street is considered rude and can easily be misinterpreted.
Greeting
Men / Men: A handshake and a hug is common. Handshakes may linger a bit, and hugs sometimes need relationship building before initiating Women / Women: A handshake and hug is common. Some women will exchange kisses on the cheek. Men / Women: Often a nod of acknowledgment will suffice, handshakes are common as well, but it is always best to wait for the woman to extend her hand first. Overall it is uncommon for someone to address you by your first name, excluding close friends. (Kwintessential) (Culture Crossing)
Traveling to a different country with different customs, religions, an can be socially paralyz d signals ing. Be mindful of little actions or words you as the wrong name or use, incorrect eye contact could lose business. If comes a point of unce th ere rtainty, analyze and mi mic others around you. Pakistanis may have a name representing Personalizing a card their class, tribe, showcasing advanced Hierarchy is practiced occupation, or other university degrees or in business, higheststatus indicators, while professional honors, ranked pupil makes the having two names is as Pakistanis adoration decision. also common; be aware status. not mentioning one out Bureaucratically of two names, you can structuring is in place, lose the definition all requiring layers of together. approval, taking a couple Men: conservative, dark
Negotiations
Dress Code
- It is in your best interest To ask how they wish to be titled.
It’s considered taboo for religiously observant men to touch women or religiously observant women to touch man
Business Meetings
Appointments are vital, finalized in writing 3 to 4 weeks beforehand; late mornings and early afternoon are considered best times.
- Private companies are often Scheduled with less time - Be aware of holiday dates, Planning around them is advised.
Arrive to meetings on time; be prepare to wait. Last minute cancellations are common. Prolong social inquiries take place before meeting. And several meetings can occur before business is initially discussed. Meetings are formal, though frequent interruptions may occur; as open-door policy is common.
visits to accomplish
an assignment. Rushing things can be interpreted as offensive and interfere with your goal. If a change in negotiators, all previous settlements might have to start over. Emotionally driven, intense discussions may arise; staying calm is essential. Pakistanis are... - Skilled negotiators - Price driven - Strive for win-win
Business Cards Business card exchange takes places after the preliminary introduction.
When presenting business cards use your right hand or two hands; avoid using only the left. Spend some time looking at any business card received before placing it on the table in front of you or in a card holder, acknowledging respect towards them.
colored suits. Wear shoes that are easy to slip on and off if possible.
Women: conservative business suits or dresses and blouses are appropriate. Avoid tight fitting, short shirts, and sleeveless attire. Dresses should not reveal too much of the legs. Although, business casual attire may be appropriate in certain industries/areas. Jeans and less casual attire are not recommended for a first meeting.
Dinning
Arrive around 15 minutes after the initial invite, if a small gathering, it is also expectable to arrive an hour later then original time. If invited to a home, be prepared to remove your shoes, if the host is shoe-less, you must be shoe-less. Dress conservatively.
Government Structure Islamic Republic of Pakistan Jamhuryat Islami Pakistan
Federal, constitutional republic; mixed presidential-parliamentary system
Executive Authority Chief of State: President Mamnoon Hussain Head of Government: Prime Minster Mohammad Nawaz
Legislative Authority
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Political
In 2013 the transition to recalibrate the federal and provincial government gave birth to Pakistan’s 18th constitutional amendment. The amendment was put into place to transfer political, legislative, and administrative power to provincial governments and federating units in various zones; agriculture, environment, social services including education and health. A willing President Asif Ali Zardari relinquished the power as president to dissolve Pakistani Parliament and in doing so brought Pakistan parliamentary republic structure. (2)
The Senate: Consist of 104 seats The National Assembly: consist of 342 seats
Judicial Authority Supreme Court of Pakistan: 1 Chief Justice and 16 Judges (6)
Direct Foreign Investment (DFI) United States holds a crucial stake in Pakistan’s DFI, in the FY 2013 alone amounting to 206.8 million.
DFI Home
$ 31.25 Billion
DFI
Abroad
$ 1.805 Billion
DFI
American
(World Factbook)
$ 1.805 Billion ((U.S. Department of State)
Economic
Pakistan’s economy has coexisted with many defects, composed up of international and domestic elements including power outages, terrorism and constant flooding however these disruptions to social and economical life is being addressed within the new economically based reform. To combat such issues Pakistan is taking the initiative by focusing efforts to invite new investors to help rebuild and modernize infrastructure. Under newly integrated democratic reform Pakistan has faced many challenges in present years intervened domestic security failures, raised debt and the generally slow pace of economic and tax reform. Although this is the case, Pakistan has shown promise of economic growth with a 4.1% boost in the fiscal year 2012-2013. Pakistan strives to and achieves at sustaining a viable and lucrative exporting industry. Pakistan has a very liberal foreign exchange regime and allows 100 percent repatriation of profits and dividends. Pakistan has a floating exchange rate, although the Pakistani rupee is freely convertible on the current account. During the past four years, the rupee has depreciated.
GDP
Per capita
$ 4,700
GDP
Real growth rate
4.1 %
GDP
Real growth rate 2007 - 2014
3.2%
GDP
Composition by origin
Services: 53.6 % Industry: 21.3 % Agriculture: 25.1 %
Inflation Rate 8.6%
Currency
Pakistan Rupees (PKR)
Exchange Rate PKR per US $
102.89 (2014) (USADC) (World Factbook)
The Apparel & Textile Industry
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The apparel and textile industry has been growing for the past couple years, and the WTO has examined the FY of 2014 explaining the 5.3% growth in textiles was a big part of exports increase as a whole. Pakistan also benefits from their extensive cotton cultivation, being the fourth largest cotton producer in the world. (WT/TPR/S/311)
Ministry of Textiles
All Exports
$ 25.1 Billion
American Exports
Accounts for 15.7 % (the most of any country)
Textiles Exported
$ 13 Billion
(WTO document WT/TPR/G/311)
Policies were constructed by the Ministry of textiles under the Textiles Policy 2009-14, in order to increase there exports on textiles and clothing. Implementing stronger focus on high-quality as well as value added products, modernization of machinery, development in skills, enhancing the environment for growth. While in 2014, a new policy was put into place to keep moving forward.
Tariffs On Average the MFN tariff on textiles is 18.7%, at a range from 1% - 25%.
(WT/TPR/S/311)
Trade Agreements Trade Facilitation Agreement (TFA): Intend to
streamline customs clearance procedures around the world for members of the WTO. Conclusion in place in 2013 and intend to be fully implemented in 2015. Key factors include Transparency - Public Comments - Advance Classification and Country of Origin Ruling - Authorized Operators - Information Sharing & MORE!
Trade Organizations The World Trade Organization (WTO):
Intergovernmental organization regulating international trade - Trade negotiations - Implementation and monitoring - Dispute settlement - Building trade capacity
https://www.wto.org
World Bank: International group aiming to end extreme poverty
and boost shared prosperity. Consists of five organizations; The International Bank for Reconstruction and Development The International Development Association The International Finance Corporation The Multilateral Investment Guarantee Agency The international Centre for Settlement of Investment Dispute http://www.worldbank.org
Led-Time Disruptions There are many circumstances that can affect receiving orders on time, thus looking into possible disruptions can resolve potential mishaps.
Natural Disasters Frequent earthquakes: July & August Occasional flooding along the Indus River after heavy rain: July & August North & West undergo more extreme weather, less effected in the South & East.
Holidays
Dates are constructed on the year 2014, as holidays are based off of the Islamic lunar calendar. Noting dates every year is necessary to stay clear of productivity. Pakistan’s Independence Day: August 14th Eid-ul-Fitr: July 29th, 30th, & 31st Eid ul Azha: October 5th, 6th, & 7th Iqbal Day: November 9th Quaid-i-Azam’s Birthday: December 25th Islamic month of Ramadan: June 29th – July 28th During Ramadan Muslims do not eat, drink, or smoke from sunrise to sunset, they will also work fewer hours closing business as early as 12 o’clock in the afternoon. (World Bank Group) (World )
Manufacture Lucky Knits Pvt Limited Phone: +92 21 6321311 Address: L A 2 B, Block 2, Federal “B� Area, Karachi, Karachi, Pakistan, 75950 Companies: Streetwear Inc. FR Industries Inc. VF Imagewear Inc. Pakistan Port: Muhammad Bin Qasim, Pakistan Karachi, Pakistan US Port: The Port of Charleston, SC The Port of Los Angeles, CA Georgia Ports Authority, Savannah Georgia New York/Newark Area, NY Fabrics: cotton, polyester, and spandex Garments: tops, bottoms, and under garments
Kay & Emms Private Limited
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Masood Textile Mills Ltd. Mill & Manufacture Phone: +92 41 8787932 Address: Sargodha Road, Faisalabad, Punjab, Pakistan, 38800 Companies: Hanesbrands Inc. USA Underwear LLC Fruit Of The Loom Pakistan Port: Muhammad Bin Qasim, Pakistan Karachi, Pakistan US Port: The Port of Charleston, SC The Port of Los Angeles, CA New York/Newark Area, NY Georgia Ports Authority, Savannah Georgia Port of Virginia, Norfolk, Virginia Fabrics: cotton, denim, polyester, spandex, lycra, lace and jersey Garments: Bikinis, undergarments, and hosiery (delicate)
Artistic Apparels Pvt. Ltd.
Mill & Manufacture Phone: +92 21 4300077 Phone: +92 41 111111335 Address: Plot No. 42, K Block 6, SharahAddress: 16/7, Civil Lines, Club Road, EFaisal, P.E.C.H.S Karachi, Pakistan, 75400 Faisalabad, Pakistan, 38090 Companies: Macys Merchandising Group Companies: Vanity Shop Of Grand Forks Inc. Levi Strauss & Co. Inno Knits LLC USA H & M Hennes & Mauritz To The Ordeinternational Intimates Pakistan Port: Muhammad Bin Qasim, Pakistan Pakistan Port: Muhammad Bin Qasim, Pakistan Karachi, Pakistan Karachi, Pakistan US Port: New York, New York US Port: New York/Newark Area, NY New York/Newark Area, NY New York, New York The Port of Los Angeles, CA The Port of Los Angeles, CA Port of Virginia, Norfolk, Virginia Houston, Houston, Texas Port of Long Beach, Long Beach, California The Port of Charleston, SC Fabrics: cotton, denim, polyester, spandex, and Fabrics: cotton, satin, polyester, spandex, lycra elastic, lace, lycra and jersey Garment: denim jeans, tops, other bottoms Garments: intimates, bikinis, boy-shorts, bottoms tops, dresses
Style Textile Pvt Ltd. US Apparel & Textiles (Pvt) Ltd. Phone: +92 42 5123065 Address: 126/3, Kot Lakhpat Industrial Estate, Lahore, Punjab, Pakistan, 74200 Companies: Nike Inc. Nike USA Adidas International Trading BV Pakistan Port: Muhammad Bin Qasim, Pakistan Karachi, Pakistan US Port: The Port of Los Angeles, CA The Port of Charleston, SC Georgia Ports Authority, Savannah Georgia Fabrics: cotton (organic & non organic), polyester, Garments: (sportswear) knit pants, knit pullovers, knit jackets, and knit t-shirts
Mill & Manufacture Phone: +92 42 5340034 Address: 3 km Defence Raiwind Road, Lahore, 53700, Pakistan, Companies: Levi Strauss Co. Meezan Bank Ltd. Wicked Fashions Pakistan Port: Muhammad Bin Qasim, Pakistan Karachi, Pakistan United States Ports: New York/Newark Area, NY The Port of Los Angeles, CA The Port of Charleston, SC Fabrics: cotton, denim, polyester, viscose, and nylon Garment: denim jeans, tops, other bottoms
Transportation
International Air Ports
Airport of Karachi Airport of Islamabad Airport of Lahore
Water Ports
The Port of Karachi Port Muhammad Bin Qasim Port of Gwadar
Shipping Companies
Mediterranean Shipping Company
27 Port New York DAYS $3,839.96 - $4,244.17
Port Muhammad Bin Qasim
United Arib Shipping Company
52 Georgia Ports Authority DAYS $3,932.20 - $4,346.12
The Port of Karachi
Evergreen Line
The Port of Karachi
45 DAYS
Norfolk, Virgina
$3,716.16 - $4,107.34
www.msc.com/pak www.uasc.net/en http://www.evergreen-line.com/ worldfreightrates.com/en/
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WORK CITED
Central Intelligence Agency. (2014). Pakistan. In the World Factbook. https://www.cia.gov/library/publications/the-worldfactbook/geos/pk.html “Doing Business in Pakistan: 2014 Country Commercial Guide for U.S. Companies.” U.S. Commercial Service. USADC. 2014. Panjiva.com “Pakistan - Culture, Customs & Etiquette.” Culture Crossing. N.p., n.d. Web. 1 May 2015. <http://guide.culturecrossing. net/basics_business_student.php?id=157>. “Pakistan Information.” The Federation of International Trade Associations. N.p., n.d. Web. 2 May 2015. <http://fita.org/ countries/pakistan.html>. “Pakistan - Language, Religion, Culture, Customs and Etiquette.”Kwintessential. Kwintessential, n.d. Web. 6 May 2015. <http://www.kwintessential.co.uk/resources/global-etiquette/pakistan.html>. World Bank. 2014. Doing Business 2015: Going Beyond Efficiency. Washington, DC: World Bank Group. DOI: 10.1596/9781-4648-0351-2. License: Creative Commons Attribution CC BY 3.0 IGO “U.S. Relations With Pakistan.” U.S. Department of State. U.S. Department of State, 10 Sept. 2014. Web. 6 May 2015. <http://www.state.gov/r/pa/ei/bgn/3453.htm>. WTO document WT/TPR/G/311, 17 February 2015. WTO document WT/TPR/S/311, 17 February 2015. Youngblood-Coleman Ph. D., Denise. Country Review: Pakistan. 2015. Houston, Texas: CountryWatch Publications, 2015. Country Review: Pakistan. 1 May 2015.
Elizabeth Rose Johnston Global Sourcing FASM 4 Grace Canape