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1 22/06/2012 Presentation title 1 PAKISTAN Jason Mumtaz UK Trade & Investment Office British High Commission, Islamabad

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2 22/06/2012 2 Pakistan - “Negative Publicity” Only negative or terrorist related incidents are highlighted about Pakistan. Yes, Pakistan is facing the menace of religious terrorism / militancy for many years. Yes, there have been terrorist attacks primarily against Pakistan security forces and civilian targets. But people of Pakistan are resolute to remove this cancer from the society and fight extremism. Also, there is another side to this picture, which I would like to share.

KARACHI FASHION WEEK:

3 KARACHI FASHION WEEK 3 Pakistan - “What we want you to know” Extremists are in minority. Pakistani people in general are broad minded, cultured and secular. Good Example is the Fashion week held in Karachi early this year. It is an annual event. Designers from Pakistan, Malaysia, Sri Lanka and UAE displayed their latest creations.

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4 4 People of Pakistan are hardworking and resilient in adverse situations. Sialkot is one of the manufacturing hubs of Pakistan. This city produces world class surgical and sports goods. 99% of the products are exported to EU and North American market earning approx..US$1billion annually. Inaugurated in 2007, Sialkot International Airport was the first project of its kind. It was funded purely by the business community of Sialkot at a cost of approx. US$20m. Pakistan - “What we want you to know”

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5 UK Companies in Pakistan

Pakistan - “What we want you to know”:

6 Pakistan is an ideal springboard to International Growth. Pakistan has the potential to become one of Asia’s premier trade, energy and transport corridors. Proximity to Middle-East, Africa, China and Europe. Recent developments to realize this vision include: Gawadar port, located at the Straits of Hormuz, to be linked by road & rail to Afghanistan, Iran and China and onwards to Central Asia, Middle East & Europe. Geographical location suites transit trade. Land locked energy rich Central Asia Booming & energy deficit China Booming South Asia Capital & Energy surplus Middle East Pakistan - “What we want you to know”

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7 7 Pakistan - “What we want you to know”

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8 According to World Bank, over the period of 1980-2007 Pakistan exhibited one of the developing world’s highest average growth rates of 5.8% (second only to China’s 9.9%). Pakistan has a middle class of some 30 million with an average per capita income of US$10,000 a year on purchasing power parity basis. Pakistan has a huge and active Diaspora that provides its large sums in remittances and has the potential brain power to jump-start Pakistan's economy and society. UK is home to 1million people of Pakistani origin who send between £500m to £1billion to family members in Pakistan every year. Pakistan has the eighth largest pharmaceutical industry in the world. Pakistan has the seventh largest pool of scientists and engineers in the world and has 200,000 IT professionals. Pakistan has world’s second largest mountain, K2. 4 out of 14 highest peaks are in Pakistan. Pakistan for many years has been one of the largest contributor of troops to UN peacekeeping operations. Pakistan has world’s fifth largest deposits of gold and copper at Reko Diq, Baluchistan. Pakistan has become the leading CNG user in the World with over 2million vehicles using CNG as fuel and more then 3,000 CNG stations operating in the country. Pakistan Unique Selling Proposition: “did you know that….”

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9 STRONG LINKS: UK has Strong Historic and Trade links with Pakistan. Joint Trade is around £1b. British products and services are held in high esteem in Pakistan. UK is the second largest foreign direct investor in Pakistan. There are over 100 British companies operating in Pakistan. English-speaking workforce. UK is the largest market for Pakistani goods in EU. ATTRACTIVE POLICIES: UK and Pakistan have Bilateral investment protection & double taxation treaties. Government of Pakistan has Pro-business regulatory regime, which allows 100% remittance of capital and profits in many sectors. Pakistan has good transport & communication links. Enabling legislation based on UK Law. Why do business in Pakistan?

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10 10 PAKISTAN – Key statistics 6 TH Largest country in the world Population : 172 million Age Structure : 19years or below: 58% : 20-39years 27% GDP (2009-10) : US$ 172 billion GDP Growth Rate (2009-10) : 4.1% Per capita income (2009-10) : US$1095 Total Imports (Jul09-Apr10) : US$ 28.1 billion Total Exports (Jul09-Apr10) : US$ 15.9 billion Labour Force : 53 million Rate of Inflation : 13.3% UK Exports : £ 458m UK Imports : £ 646m Moody’s Rating : B3

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11 FCO Travel Advice, Nov 2010: “ There has been a general increase in criminal attacks and public order incidents across the country . It is assessed that in many areas this is due to growing frustration as a result of the effects of the flooding and the slow response to the humanitarian crisis. These incidents have on occasion included attacks on aid agencies and the looting of aid convoys. Although the majority of these incidents have generally been spontaneous or opportunistic in nature. Militant groups have condemned the presence of foreign aid agencies in Pakistan. There is a high threat from terrorism and sectarian violence throughout Pakistan. US Department of State, Nov 2010: A number of extremist groups within Pakistan continue to target U.S. citizens and other Western interests and Pakistani officials. Terrorists have demonstrated willingness and capability to attack targets where U.S. citizens are known to congregate or visit. Terrorist actions may include, but are not limited to, suicide operations, bombings -- including vehicle-borne explosives and improvised explosive devices -- assassinations, carjackings, assaults, and kidnappings . International views on Pakistan’s security…..

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12 Public Sector : Government’s top priority is to provide security to its citizens and defeat terrorists. It plans to invest US$610.283 million on public safety affairs for the year 2010-11. Government has increased its budget by 48.5% to US$ 960 million for police reforms across the country. Government is equipping law enforcement agencies with the latest equipment, technologies and surveillance systems for effective control of metropolitan activates. Government is enhancing security arrangements of its key buildings and infrastructure. Government has established National and Provincial Disaster Management Authority to effectively work with the donor community and undertake relief and rescue work in the recent flood effected regions. There is increase in demand of equipment/hardware related to rescue and relief operations in Natural Disaster hit regions of Pakistan. Government plans to undertake several projects during 2010-11 to enhance its security and border control. Private Sector: Both corporate sector and citizens are investing heavily to enhance security apparatus of their facilities and protect their property. There is growing use of CCTV, access panels, intruder alarm system, personal security and anti-car theft systems etc. There is increased use of armored vehicles by Pakistani elite/politicians of Pakistan. Fire, Safety and Security opportunities exists in Oil &Gas, infrastructure/Construction, Emergency & Rescue and Transport/Communication Sectors. Pakistan - Impact of security situation & recent floods on public and private sector expenditure:

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13 Construction of new shopping malls, hotels, airports, industrial cities, expansion of existing port facilities is increasing demand for security and fire fighting equipment. Currently there are 155 fire stations working in major cities combating 900-1000 fires per year. Natural disaster like 2005 earthquake in northern Pakistan and recent floods have brought multi-faceted challenges like population displacement, injuries, shelter and food supply. There are 33 Airports, 3 Sea Ports, 13 Dry Ports, 20 National Highways and 10 Motorways in Pakistan. Road network is over 260,000Km. 80% of Pakistan’s Commercial Traffic uses road network. 13 Pakistan “A Promising Marketplace for Fire & Security Industry”

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14 Pakistan is emerging as an important market place for security products in both public and private sector. The country is experiencing rapid growth in the demand for safety equipment, personal protection, surveillance, access control system. As a result, the sector has registered imports of over US$1billion in 2009-10. Major products include, Safety and Security US$654m, Emergency & Rescue US$155.24m, Fire Fighting US$105.78m and Work Safety US$94.68m. Pakistan “A Promising Marketplace for Fire & Security Industry”

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15 15 At the Federal Level, Ministry of Interior (MOI) is responsible for enforcing rule of law in the country and making life of its citizens and foreign visitors safe and secure. Similarly, all the four provinces have Home departments responsible for Police, Prisons and Internal Security. MOI has 8 departments. They are: 1) Civil Armed Forces: Pakistan Rangers, Frontier Corps and Pakistan Coast Guards. Their role is to secure and check illegal border crossing, prevent smuggling, enforce drug control and assist the Provincial Governments in maintaining law and order as and when requested. 2) Immigration and Passport: The Department of Immigration and Passport deals with issuance of passports, visa, Pakistan citizenship, dual nationality, registration of birth of children of Pakistani citizens born aboard etc. 3) National Alien Registration Authority: There are estimated 2.35m illegal immigrants in Pakistan. 4) National Database and Registration Authority : To develop a sophisticated database management system at national level for use by authorized Government agencies thus computerizing major functions of Federal and Provincial Governments. 5) Federal Investigation Agency: It is premier Federal Law Enforcement Agency. 6) National Police Academy: Country’s premier institution for education and training of middle and senior level law enforcement officers. 7) Islamabad Capital Territory Police: Imparting policing functions in the federal capital. 8) Central Jail Staff Training Institute: It is the only institution to impart basic and professional training to all the Prison staff / Reclamation personnel for four Provinces, Azad Kashmir and Northern Areas. Overview: Ministry of Interior Government of Pakistan

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16 16 Business Opportunities Major Public Sector Safety & Security Projects (2010-11): Automated Finger Print Identification System - US$ 10.6m Constabulary Set-up & Up gradation - US$ 73.40m Emergency Warning, Response & Rescue Projects - US$ 11.7m National Wide Integrated Radio Trucking System - US$ 23.12m National Forensic Science Agency - US$ 41.32m Machine Readable Passports & Visas - US$ 78.6m Police Record and Office Management Information System - US$ 16.64m Satellite Projects - US$ 276.8m Security Infrastructure in Conflict Area - US$ 35.54m

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17 17 Other opportunities…. New International Airport in the Federal Capital is due for completion by 2013. Government is also planning to build a new International Airport in Gwadar, Baluchistan. A number of Power Generation Projects are being constructed in the country under private sector. There is a multibillion dollar Mashal LNG import project in the pipeline.This project will help meet the growing energy demand of the country. There is an ongoing expansion project of Qasim International Container Terminal at Port Qasim, Karachi. Its capacity will be increased three folds. New blocks are being awarded to O&G companies in Pakistan to encourage Exploration and Production activity in the country. MOI to strengthen security apparatus of the four major cities of the country is working on a project called “Save City”. The objective is to beef up security in Islamabad, Rawalpindi, Karachi and Lahore. Modern equipment would be used to strengthen the security such as CCTV cameras, explosive detectors and scanners which would be installed at all important places along with entry and exit points. After the successful launch of Western Styled Modern Emergency Service (Rescue 1122) in Punjab back in 2004, service is now operational in AJ&K and KP Province, while there are similar plans for Sindh Province. Rescue 1122 is responsible for handling all types of emergencies, including fire. The above will subsequently require investment in security and related equipment and will offer opportunities for British companies.

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18 18 Trading Culture and General Advice: Trading Culture: Selective / sole tendering is a common procurement method for security goods and service in both public and private sectors. Therefore relationship building with the RIGHT CONTACTS is extremely critical. Projects are also offered to EPC companies to undertake work on turnkey basis. Business in Pakistan is done through personal contacts and local presence in the form of local agent is essential. Suitable agent can lobby with both public and private sector organisation to win contracts. Both public and private sector organisations in Pakistan expect after sales services where local knowledge and expertise is vital to satisfy the customer’s needs. Pakistan is a price conscious market but quality is also considered for key projects. British products and services are held in high esteem in this market. General Advice: Be pro-active and aggressive. Take a strategic, long term view. Personal Relationships count.

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19 19 What can we do for you? UKTI Pakistan 60 years of collective experience. Teams in three locations, Karachi, Lahore and Islamabad. Comprehensive local market analysis & introductions. Pre-visit briefing –mentoring, appointment making, bespoke receptions, meetings and seminars/product launch events;

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20 20 Use of official premises for example for a product launch, reception, press conference DHC Residence Conference Room DHC Garden for Conference DHC Garden for Reception

Jason Mumtaz UK Trade & Investment Office British High Commission, Islamabad Email: Jason.Mumtaz@fco.gov.uk Web: www.ukinpakistan.fco.gov.uk www.ukti.gov.uk/pakistan :

21 Jason Mumtaz UK Trade & Investment Office British High Commission, Islamabad Email: Jason.Mumtaz@fco.gov.uk Web: www.ukinpakistan.fco.gov.uk www.ukti.gov.uk/pakistan 21

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