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Market Information |
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ector needs to be diversified as bulk of the country’s financing requirements is
currently met by the banks.
While market capitalization of stock market has increased
significantly, new issuance of capital is small.
Similarly, the debt markets constitute
largely of government securities, while the corporate paper market is limited.
Finally, within regional context Pakistan’s financial system despite its growth is still small.
For instance, the financial system of other Asian emerging financial market countries
twice or three times larger in relative terms and the Gulf States have now geared
themselves into regional financial hubs.[ more details ] Fact Sheet On Pakistan
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Background: |
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The Islamic Republic of Pakistan was founded in 1947. East Pakistan (now Bangladesh) seceded in 1971. Since independence there have been several military coups in Pakistan. The last coup was in 1999 when the chief of army staff, Pervez Musharraf, became the chief executive of Pakistan and, in 2001, the country's president. Parliament re-elected him as president in October 2007.He resigned as army chief in November 2007, and stood down as president in August 2008.The general election that took place in February 2008 resulted in a new coalition government led by the Pakistan People's Party and the Pakistan Muslim League (Nawaz); the latter withdrew from the government in August 2008. |
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Political Structure: |
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The prime minister heads the cabinet, but the president chairs the powerful National Security Council, which comprises military chiefs and cabinet members. The president can also dismiss the prime minister,the cabinet and parliament. The National Assembly (the lower house of parliament) was elected in February 2008 for a five-year term. An election to the Senate (the upper house), where the four provinces have equal representation, was held in March 2006. Senators serve terms of six years, and one-half of the seats in the upper house come up for re-election every three years. Provinces are represented in the National Assembly in proportion to the size of their populations. |
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Policy Issues: |
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Although Mr Musharraf oversaw the gradual liberalisation of the economy, political instability
and civil unrest have damaged the business operating environment.The coalition government will need to reassure foreign investors and sustain foreign investment inflows.
Long-term stabilisation will depend on speeding up the privatisation programme, achieving growth in exports and maintaining inflows of remittances through official channels. |
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Taxation: |
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The highest income tax rate stands at 25%, and the lowest at 0.25%. The corporate tax rate is a uniform 35%.Non-residents are exempt from tax on income earned from government securities and stocks. |
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Foreign trade: |
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Merchandise exports (fob) stood US$18.1bn and imports (fob) at US$28.8bn in 2007, resulting in a trade deficit of US$10.6bn. |
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| 2008 Show Report |
 “ It is our first time to join CEMS' Plas, Print, Pack and we are seriously considering participating in next year's staging in Lahore.
International exhibition such as this, in a way stirs up the competitive atmosphere of local manufacturers like us.”
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Mr. Muhammad Ahmed, Regional Manager, Shafiq Sons, Pakistan
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