Basic Situation Of Investment In Pakistan

The security situation in Pakistan is grim. There are problems of active terrorist organizations, Muslim sectarian conflicts, lack of control over tribal forces by the central government, and internal disharmony within the regime. Karachi's security situation is the most complex in the first big city.

Based on the all-weather strategic partnership between China and Pakistan, the Pakistan government provides military protection to Chinese enterprises in Pakistan.

According to Khaled, at present, about 13 thousand Chinese citizens are involved in the construction of 100 projects in Pakistan.

In order to protect the safety of Chinese citizens in Pakistan, the Pakistani government deployed 10 thousand soldiers to provide protection for them.

In addition, Pakistan has passed a series of bills in Congress to protect the interests of foreign investors. Pakistan has also signed bilateral investment protection agreements with many countries in the world.

In a report issued by the world bank in 2013, Pakistan ranked thirty-fourth in the category of "protecting investors".

According to Salim, Pakistan has flexible financial and foreign exchange policies, and there are no restrictions on foreign investors' possession and pfer of land. In addition to a few industries, Pakistan is open to investment in all fields, and foreign capital shares can reach 100%.

In the 2012/2013 fiscal year, Pakistan's GDP is about 238 billion 200 million US dollars, GDP1368 per capita, which belongs to the middle and lower income countries, and inflation is more serious in recent years.

The geographical distribution of Punjab's economy is most developed (the provincial capital is the second largest city of Lahore), the most concentrated Chinese enterprises.

In terms of industrial structure, agriculture, industry and service industries account for 25.1%, 21.1% and 53.8% of GDP respectively, but the service industry mainly relies on low-end services such as wholesale and retail (about GDP17%), mostly attached to agricultural products (24.45, -0.82, -3.24%), and the development of high-end services such as finance and insurance (about GDP5%) is slow.

Pakistan has about 197 million people, sixth of the world's largest population, and 63% of the rural population.

In 2010, about 50.67% of the population lived below the poverty line.

Although the population below 30 is over 100 million, the quality of the Pakistani population with a large young population is not high.

In 2011, the literacy rate of the whole country was only 53.74%, and the labour force participation rate was only 56.4%, especially the female labor force participation rate was only 25.6%. The official unemployment rate in 2012~2013 fiscal year was 6.2%.

Compared with China's rising labor and land costs, Pakistan's labor and land costs are relatively low, and China's investment in Pakistan has increased rapidly since 2007. By the end of 2013, China's Pakistan's investment in Pakistan had increased.

The stock amounted to US $2 billion 343 million.

Infrastructure construction in Pakistan is extremely backward. It is estimated that Pakistan's annual economic loss due to infrastructure bottlenecks is about 4%~6% of GDP.

The highway density of Pakistan highway is only 0.32 km / sq km, and the speed of road pportation is slow. The expressway and national highway which account for 5% of the total mileage of the highway bear 80% of the total pport volume, the railway facilities are old, and the flight problems are frequent.

At the same time, Pakistan's own maritime capability is weak and its inland navigation capacity is insufficient.

The cargo throughput of Karachi port and Gasim port in 2013 were 38 million 850 thousand tons and 24 million 800 thousand tons, respectively, which accounted for 95% of the total international trade volume of goods.

Power shortage has been an important obstacle to the economic development of the country.

It is estimated that the annual economic loss of the electricity gap will be 2% of GDP.

At present, the national power gap is about 5000~8000 MW, and the power grid construction is backward, and the pmission loss rate is 25%.

The shortage of power in 2011 was extremely serious. About 35% of Pakistan's power shortage was due to continued power outage and natural gas supply.

The production base is relocated to Africa and China.

In 2013, the electricity tax increased by an average of 50%. The tannery industry could not afford to sustain such a sharp rise in price and export margins below 1%.

In addition to weapons, high-strength explosives, radioactive materials, coinage and alcohol production, Pakistan's all economic sectors are open to foreign investment.

And there is no foreign exchange control in Pakistan.

Foreign investors can remit all capital, capital gains, dividends and profits.

At the same time, the Pakistani securities market is fully open to foreign investment, and foreign investors enjoy the same rights as domestic investors and capital can be freely remitted.

In November 2006, the establishment of Haier Lu Ba Economic Zone in Lahore provided a new platform for Chinese enterprises to invest and develop businesses.

In November 2013, according to Masood Khalid, Ambassador of Pakistan to China, the Palestinian government set up 4 new special economic zones, which are located in Gwadar, Karachi, Lahore and Peshawar.

He said that the profits generated by Chinese enterprises when investing in 4 special economic zones can be brought back to China in 100%, and that the Pakistani government will implement a zero tariff policy when introducing the equipment of Pakistan to the Chinese enterprises when the factory is built. When the products are exported from Pakistan, the Pakistani government will also provide export subsidies. The Chinese government will not impose capital gains tax on the Pakistani government in the first 5 years of its investment in Pakistan.

In addition, Pakistan has 21 export processing zones (6 have been built), offering various preferential treatment for foreign trade.