There is not yet any chain of stores in Pakistan, though the situation may change soon. Quite recently the concept of garment chain stores was introduced, whereby many such chains have started selling locally manufactured garments mainly in the large cities like Karachi and Lahore.
The segment of wholesale distribution is quite well-developed in Pakistan. It consists of around 1,000 - 1,500 wholesalers. Karachi is the main hub for wholesale distribution of goods.
Moreover there are a dozen shopping malls in the country, mainly located in Karachi and Lahore.
Pakistan has signed Bilateral Investment Treaties (BITs) with nearly 40 countries. It has also signed ‘Double Taxation Agreements’ with nearly 50 countries.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
According to the Trade Policy-2006 of Pakistan, the import of 30 items is banned into the country. This ban is based on religious, environmental, security, and health issues.
Moreover the government reserves the power to grant sector-specific duty exemptions, concessions, and protections under Statutory Regulatory Orders (SROs), though the use of SROs has decreased during recent years.
Customs duties in Pakistan are levied on ad-valorem basis. The maximum customs duty is 25%. In addition to the customs duty, the government charges 15% sales tax on the duty paid value of a variety of goods imported into the country. Customs duty and other charges are payable in rupees. For more details, visit: Pakistan Customs
Government of Pakistan allows duty-free import of samples (not for commercial use) provided a bank guarantee or indemnity bond is provided to Customs to ensure that the items will be returned.
The same is applicable to the re-export of goods; but with a minimum value-addition of 2.5% over their FOB price.
By rail: Pakistan Railways provides an important mode of transportation to the farthest corners of the country, catering to the large-scale movement of both freight and people. The railway network in Pakistan extends over 12,634 km.
By Road: The road transport network in Pakistan is relatively outdated (built before 1947 during the British Raj), although new motorways are now being constructed. However it is relatively easy to transport goods by road from one place to another within the country.
By sea: The port of Karachi is the most important and the busiest port in the country. It is administered by Karachi Port Trust (KPT). Other ports include ports of Qasima and that of Gwadar. The Pakistani ports have a strategic location in connecting Central Asian countries and the Gulf countries.
By air: Only those foreign air transport companies which have signed an agreement with Pakistani authorities are authorised to work with or in Pakistan. The Pakistani airports belong to the public sector. The airports of Karachi, Lahore and Islamabad have considerable international activity.
Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.
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Type of production
The industrial sector contributes nearly 25% to the GDP. The major industries are textile production (the biggest earner of foreign exchange), oil refining, metal processing, and cement & fertilizer production.
The automotive industry is one of the emerging industries in Pakistan. There are around 20 automobile/motorcycle manufacturing units in assembling operations.
Further to the privatisation of the cement plants, and the recentboom in the construction industry, cement manufacturing is performing very well.
The pharmaceutical sector with a large presence of the main international corporations is a major player now in the country.
The leather goods industry and, to a limited extent, the metal surgical instruments sector, mostly based in Sialkot, are impressive exporters.
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