Pakistan Trade, Pakistan Industries, India Pakistan Trade Unit

Export: $20.58 billion f.o.b. (2007 est.), US 21%, UAE 9%, Afghanistan 7.7%, China 5.3%, UK 5.1% (2006).
Export Commodities: textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs.

Import: $30.99 billion f.o.b. (2007 est.), China 13.5%, Saudi Arabia 10.3%, UAE 9.6%, US 6.3%, Japan 5.6%, Kuwait 4.6%, Germany 4% (2006).
Import Commodities: petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea.

Major Pakistani imports from the UK are specilalised industrial machinery, power generation machinery, telecommunication and broadcasting equipment, chemicals, pharmaceuticals and medical products and Metalliferous ores and metal scrap.

Major Pakistani exports to the UK are textiles, rice, leather/leather products, carpets and fruit.

Sectors

The UK is the fourth largest exporter among OECD countries to Pakistan. In 2006 the UK exported £ 489.9 million worth of goods to Pakistan. Pakistan exported some £ 523.3 million worth of goods to the UK in 2004.

The UK is the second largest overseas investor in Pakistan with US$860.1m and 16.7% market share (July 06 - June 07). There are over 100 British companies operating in Pakistan.

Textile manufacturers has invested heavily in the balancing and modernisation of their production facilities, hence this sub-sector has shown significant improvement in the productivity. The motor vehicle sector has seen tremendous growth following the increasing availability of cheaper financing which has also fuelled the construction sector. Telecoms, ICT and Power expansion along with oil and gas expansion are set to attract further companies and investment.

Improved industrial productivity has resulted in a significant increase in imports., particularly in the import of machinery, raw materials and industrial chemicals. The import target for the FY05 has been revised from US$ 16billion to US$ 18.5billion.

Pakistan is a large country with a reasonably well developed infrastructure which holds the potential for a significant amount of business for UK companies. Because of our historical and commercial ties many Pakistani Businesses see Britain as the country of first choice to do business with. English is the language of business and with our long standing trading links, many British companies are well established in Pakistan. It is, however, a long-term market with some potential pitfalls.

Principal commercial centres and towns:

Punjab: Cement, Oil, Steel manufacturing, Leather, Textiles, Automotive, Education, Telecommunication, Sports goods, Machinery, Electrical appliances, Surgical instruments, Metals, Bicycles and rickshaws, Floor coverings, Processed foods, Paper and paperboards, Fertilisers, Sugar, Telecommunications.
Sindh: Port, Tourism, Textiles, Steel, Leather, IT/telecommunication, Construction, Education, Financial service, Automotive, Fisheries.
Baluchistan: Exploration, Mining, Ports and shipping, Fisheries
North West Frontier Province: Manufacturing, Electronic goods, Food processing, Mining.

Islamabad is the Federal capital and as such the political and administrative centre of the country. Karachi is the capital of Sindh and the commercial centre of Pakistan having the country's main port. Lahore, the capital of Punjab, is also an important commercial centre.

Pakistani Relations with the UK

Relations between the UK and the people of Pakistan are warm and close, made even more so by the substantial number of Pakistani origin British citizens (some 800,000) who live in the UK. During President Musharraf's visit to the UK in December 2004, he and the Prime Minister delivered a joint statement on UK – Pakistan, A Partnership for peace and prosperity. President Musharraf and the Prime Minister have continued to hold annual bilateral talks, most recently during the Prime Minister's visit to Pakistan in November 2006.

Recent outgoing high-level visits from the UK have included:

· Secretary of State for Foreign and Commonwealth Affairs, David Miliband - July 2007
· Attorney General, Lord Goldsmith - Mar 2007
· Secretary of State for Foreign and Commonwealth Affairs, Margaret Beckett - Feb 2007
· The Lord Mayor of London, John Stuttard - Feb 2007
· Minister of State for Trade, Investment and Foreign Affairs, Ian McCartney - Nov 2006
· Prime Minister Tony Blair - Nov 2006
· HRH The Prince of Wales - Oct 2006

Recent Ministerial visits from Pakistan have included:

· President Pervez Musharraf – Sep 2006
· Prime Minister Shaukat Aziz – March 2006
· Foreign Minister Khurshid Kasuri – Jan 2006

UK Development Assistance

The United Kingdom's Department for International Development (DFID) is working with the Pakistan government, multilateral and bilateral partners, civil society and the private sector to achieve the Millennium Development Goals through support that is consistent with the Government of Pakistan's Poverty Reduction Strategy Paper (PRSP). DFID's work in Pakistan focuses on three priority areas:

Increasing incomes of the poor by enhancing their ability to access assets, finance and markets, promoting a strong investment climate supported by appropriate safety nets.
Improve service delivery, including in education, health, water and sanitation to the poor, within a devolved government structure.
Increasing greater accountability of the state to its citizens enabling the poor, and socially excluded, particularly women, to participate in decision making at all levels of devolved government.

In addition to assistance to federal (or national) programmes, DFID is concentrating its assistance on two provinces, Punjab and the North West Frontier Province (NWFP).

DFID-Pakistan, based in Islamabad, became a fully operational devolved office in December 2004 with full-delegated authority for the delivery of the programme in country. DFID's new Country Assistance Plan was launched in March 2005 by Gareth Thomas MP, Parliamentary-Under Secretary of State for International Development. Over the next three years, DFID expects to spend £238 million. The programme will be delivered through a combination of technical assistance and budget support designed to encourage the Government of Pakistan to allocate more it its own resources to the social sectors and to strengthen it's own budgeting and planning systems.

Trade and Investment with the UK

The trade between the two countries, the United Kingdom and Pakistan is progressing but is still not up to the mark and leaves much to be desired at. The trade volume between the two countries during 2003-04 was $ 1.38 billion where Pakistan’s exports were US$ 940.9 million against imports from U.K. of $ 438.2 million. Foreign direct investment in Pakistan by U.K. increased during the year 2004-05 to US$ 181.5 million from US$ 64.9 million during 2003-04.

UK exports to Pakistan were worth £464m in 2005 and £489m in 2006. Britain and Pakistan have always enjoyed good trade relations and many Pakistani businesses see Britain as the country of first choice to do business with. The UK is the fourth largest OECD exporting country to Pakistan, with an 9.2 percent share of the market. It is listed as the third largest investor in the country.

The LCCI President Mian Misbahur Rehman, Senior Vice President Sohail Lashari also spoke on the occasion. Sir Ghulam Noon said that the United Kingdom is one of the major shareholders in Pakistan’s industry and this volume of investment could go to new heights if concerted efforts are made in right direction. He said that in this age of technological advancement, only those businesses would survive who would keep pace with fast changing global scenario.

Cultural Relations with the UK

Relations between Pakistan and the United Kingdom are currently at their peak with around 1 million British citizens claiming Pakistani heritage, and US$2bn worth of trade flowing between the two countries each year. There have recently been two high-level visits - those of the Prince of Wales and the Prime Minister, this illustrates how important the relationship between Pakistan and the United Kingdom is.

Source: British high commission

Human Rights

The British Government is concerned about human rights violations in Pakistan, particularly the situation of minorities. The cases of individuals facing the death penalty on blasphemy charges have attracted parliamentary and public interest in the UK. Other human rights issues of concern include discrimination against the Ahmadi community, forced marriages, honour killings, child and bonded labour and the treatment of women, particularly in rural communities.

With our EU partners we will continue to urge the Pakistani authorities to redouble their efforts to bring the perpetrators of human rights violations and terrorists acts to justice. We continue to urge the Government of Pakistan to fully guarantee the fundamental rights of all Pakistani citizens, particularly the most vulnerable (women, minorities and children) as laid down in the Constitution of Pakistan and in accordance with international human rights standards.