KARACHI: Edward Hertzman, Director of business development at Synergies Worldwide, a global apparel sourcing company, said that doing business in Pakistan costs 25% less than doing business in China and about 15% cheaper than other countries.
Addressing the ‘Multilateral Investment and Trade Conference, 2011’ here on Thursday, he said that “Although strikes and instability affect production, Pakistan offers the lowest cost alternative in the region”.
Newly appointed Governor of the State Bank of Pakistan, Yaseen Anwar said Pakistan had made great progress in the past three years in increasing foreign exchange reserves and remittances while reducing the current account deficit.
He said there was huge investment potential in small and medium size enterprises (SMEs) and housing and agriculture sectors. Terming them “engines of growth,” Anwar said Pakistan needed to develop its capital market to promote investment in the three sectors.
He further said that a Pakistani cow produced 1,000 litres of milk a year on average. “However, the average yearly milk production of a cow in the United States is 10,000 litres.” He said Pakistan should also use modern ways to enhance milk production.
Anwar said Pakistan topped the microfinance regulatory framework ranking by The Economist. He said the State Bank had taken measures to promote branchless banking in Pakistan to help those people who couldn’t afford conventional banking.
Multinational companies (MNCs) operating in the country had never faced any problem in repatriating their profits, he said, adding that even during the bad financial period in the late 1990s, MNCs had easily repatriated their profits.
Nestle Pakistan Managing Director James Donald said that the company had consistently doubled its turnover every three years during the two decades of its operations in Pakistan. He said he was “bowled over” by the work ethic of Pakistanis. “I’ve been with Nestle for 40 years. But nowhere have I witnessed such a strong work ethic.”
Donald said Nestle operated the world’s largest milk factory in Pakistan, whose performance standards were used as global benchmarks. He said the share of packaged milk in Pakistan’s milk industry was only 10 to 15%.
“The sale of packaged goods is directly proportional to the rise in per-capita GDP, which means the potential for growth in this sector is astronomical,” he added.
Delegates from Australia, Belgium, France, Germany, Italy, Japan, Malaysia, Russia, Sri Lanka, Switzerland, United States and United Kingdom participated in the conference.
Published in The Express Tribune, October 21st, 2011.
Correction: An earlier version of this story misstated that doing business in Pakistan costs 25% less than doing business in India and Bangladesh. This has now been changed to China. The error is regretted.
COMMENTS (20)
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Doing business in any country of south Asia is better and cheaper than China. It is sickening to see the real mentality of Chinese people, here is an example. I can assure you that it cannot happen in any city of south Asia.
http://youtu.be/erVNnvaQvX4
world's response
http://youtu.be/_JoVQolS5hg
http://youtu.be/dUTWlvKfgcI
@ Santosh
Why so much hate and sarcasm for my beloved country??? Is it typical Indian? I hope not!
@Nasir
Not true! ALL Indians I know would devoutly hope that Pakistan & Afghanistan can turn into some Asian facsimile of Switzerland & Austria, in every way: economic, social & political.
Both jointly could then harness their strategic location between West, East & South Asia to become vibrant economies and agents for positive growth all around them far into the future.
It is always better to work towards a realistic, thoughtful future rather than one comprised of braggadocio and empty religious or cultural posturing. no matter the source.
iba marketing club ! way to go
@All Indians I am not surprised why all Indians are so upset about this news. Whatever investment is made in Pakistan, it would be a small portion as compared to the progress and growth of India. But the problem with Indians is that they always like negative news about Pakistan and when there is a bit good about Pakistan they become shocked.
@john india is not heaven.
Yeah - but you don't have to hire security teams to protect your people in China. No one wants to do business in a hostile environment. Get rid of the terrorist and religious fanatics and then preach the "low cost" line.
@optimist: That is why businessmen worldwide are visiting Pakistan and doing business. You must mean those Turkish who leased Pakistan that power-generation ship - which is producing 51 of the 245 MW it promised but collecting full fees. I also want to do business in Pak if I can find the right connection in the govt that gives me such a sweet deal.
I was presently surprised to find about many businesses in London interested in investing in Pakistan. Soon you’ll read many good news items about this (i mean billions of pounds being invested in 2012)!! You must have met me in London... I'm just waiting for the right connection in the Pakistan govt. Perhaps next year when IK is elected, then I and all of Jemima's friends will bring our billions.
ok. so the cheapest work force provider china becomes expensive then all the industries should be shifting to pakistan!!! hurray... next china is pakistan itself.
News title and link viewing different
News title: Doing business in Pakistan is 25% cheaper than China News link: http://tribune.com.pk/story/278453/doing-business-in-pakistan-is-25-cheaper-than-india-bangladesh/
Yeah Pakistanis aspire to become the sweatshop of the world.
Its 25% cheaper when you exclude the bribes
"that doing business in Pakistan costs 25% less than doing business in India or Bangladesh." ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
All the savings are due to loadshedding: no electricity no bills .......and no output!
Compared to India Pakistan's markets are very cheap and offer a very good return on investment. Pakistan's stock market is the 2nd best performing market in asia pacific after indonesia. so who says making investment in Pakistan is not safe. our companies are offering highest level of dividend yields, yet their stock prices are 200% lower then India.
I fully concur with his argument that SMEs, housing and agriculture sectors are truly the engines of growth.
However, both supply and demand side must work in tandem to achieve the desired results.
I think the action will improve the situation of the textile processing sector through:
• Improvements to product and processes; • Savings on raw materials and energy, thus reducing production costs; • Increased competitiveness through the use of new and improved technologies; • Reduced concerns over environmental legislation; • Reduced liability associated with the treatment, storage and disposal of hazardous wastes; • Improved health, safety and morale of employees; • Improved company image; and • Reduced costs of end-of-pipe solutions.
Lets just improve our security situation, and only God knows how high we can go...
Not for power intensive industries it is!
There are many plus points about doing business in Pakistan. That is why businessmen worldwide are visiting Pakistan and doing business. . I was presently surprised to find about many businesses in London interested in investing in Pakistan. Soon you'll read many good news items about this (i mean billions of pounds being invested in 2012)!!
He is missing the point..Doing business in India and Bangladesh is 100% Safer than Pakistan...