Trade & Investment

For January to April 2011, UK exports of goods to Pakistan were £145 million (up 11% on the same period last year), and Pakistan exports to the UK were £276 million (up 22% on the same period as last year).

Bilateral trade in 2010 was £1.186 billion. UK exports were down by 5% while imports from Pakistan were up by 16% for 2010 compared with 2009.

Major exports from the UK to Pakistan are specialised industrial machinery, power generation machinery, Telecom & Broadcasting Equipment, chemicals, pharmaceutical and medical products and Metalliferous ores and metal scrap. Major imports to UK from Pakistan are textiles (yarn, fabric, garments, towels & bedding), rice, leather and leather products, carpets and fruit. The UK is the fourth largest trading partner among OECD countries. There are over 100 British companies operating in Pakistan .

Major players include Unilever, Shell, GlaxoSmithKline, Standard Chartered Bank, HSBC and Barclays. International Power (previously UK owned) has been purchased by GDF Suez Global, with headquarters in France , the development arm is based in the UK .

Thanks to its pro-business regulatory regime, which allows 100% remittance of capital and profits in many sectors, experienced international firms are comfortable doing business in Pakistan and make impressive profits. British pharmaceutical firms have a 31% share of the market. There is a substantial and growing presence in the health, education and retail sectors. Karachi boasts the largest Toni and Guy hairdressing salon in the world. However, the security situation, corruption, power cuts and law and order are all issues that concern investors and potential investors.

FDI

UK FDI to Pakistan was £182 million in 2009/10 (source: State Bank of Pakistan 17 March 2011) and £175 million in 2008/09. (source: Pakistan Board of Investment 14 April 2010). Pakistan FDI to UK was £98 million in 2008 ( source BIS, Statistics and Analysis, 14 April 2010 ).

Key sectors for UK investment in Pakistan are Financial Services, Oil & Gas Exploration, Petroleum Refining, Electricity Generation, Pharmaceutical, Publishing, Industrial Chemicals, Cement and FMCG.