it is fruitful or not to open a new venture in pakistan

2.  Starting a business takes talent,
determination, hard work, and
persistence
 It also requires a lot of research and
planning.
 To become a successful business owner
you need to learn how to manage and
grow your business.

3.  Socio economic problems
 Law & order and political situations
 Technical problems

4.  Power crises
 Illiteracy
 Inflation
 corruption
 Unemployment

5.  The power crisis is costing businesses across
Pakistan tens of millions of dollars in lost
production in our particular business the
production of pulses and harvesting have
been a huge hit of this issue.
 As the government of Pakistan has planned a
program for 2012 to start solar and wind energy
generation.
 Installing turbines from the Karachi to Gwadar
coastline has enormous potential for
generating wind energy. Wind towers can
generate between 7,000 to 10,000 MW of
electricity that will overcome the shortage of
4000MW.

6.  Literacy is defined as persons aged 15 or
above who can “read” and “write”.
 According to this definition, Pakistanis
officially reported to have 50% literacy rate.
Which means half of its population is
illiterate.
 But as the government has appraised
educational standards and deployed huge
budget for educational sector with a rapid
increase in Literacy rate to 60% and
increasing.

7. A RAPID INCREASE DURING THE PAST YEARS.

9.  The word “inflation” refers to a general rise in
prices measured against a standard level of
purchasing power.
 The inflation rate in Pakistan was last reported
at 11% percent in October of 2011.
 Common reason of inflation is a rise in
production costs, which leads to an increase in
the price of the final product. For example, if
raw materials increase in price, this leads to the
cost of production increasing, this in turn leads
to the company increasing prices to maintain
their profits

11.  Pakistan regulated inflation through
controlling the trade deficit of the
country and increasing export thus
supporting local business going world
wide.
 Government of Pakistan has made way
for local businessmen to export and
expand Thus increasing GDP.

12. AS THE EXPORT AND
REHABILITATIVE PROGRAMS
BY GOVT INCREASED GDP
PC Income

13.  It is a widely held view that corruption in
Pakistan is widespread, systematic, and
that it is entrenched at all levels of
government
 The important business publication such
as World Economic Forum‟s Global
Competitiveness Report (2007-08) says
that corruption is the third greatest
problem for companies for doing
business in Pakistan.

14.  A World Bank report containing an assessment of
the Pakistan‟s Infrastructure Capacity (PICA) dated
February 2008 states that 15% of Pakistan‟s
Development budget for 2007-08 was lost in the
procurement process alone due to corruption
 While the Securities and Exchange Commission has
set up a relatively fast system of e-Services to help
businesses register and to over come corruption
,other procedures takes the average time of
setting up new businesses to 21 days and around
PKR 75000 to acquire land and an average of Rs
25,432 to avoid tax auditing including bribe.
› http://www.doingbusiness.org/data/exploreeconomies/p
akistan/starting-a-business

15.  Unemployment is also regarded as a major social
problem.
 Major portion of Pakistan‟s population consists of youth
and a large number of young people who have the
ability and are willing to work are unemployed.
 Unemployment has a direct impact on all businesses.
People buy products and services and if they do not
have a job they will buy less products and services. That
is why increasing unemployment often results in many
businesses reducing inventories because they expect to
sell less.
 The unemployment is gradually decreasing with the
help of City government (CDGK) and other
governement institutions are hiring people and
providing them social jobs such as a new culture of city
wardens at traffic signals controlling signals and other
jobs. Thus increasing jobs.

17.  As the unemployment Decreasing and
employments increasing in the society
the more buyers are entering market
thus increasing demand.
 Regarding our business the food industry
is always on the peak as no matter what
the situation is people are willing to buy
edibles as it is the basic necessity of life.
 With more competitive prices in the main
market of Jodia Bazar more potential
buyers are diverting here thus giving us
advantage for selling more.

20.  Security issues
 Strikes
 Bhatta
 Kidnapping and robbery
 Terrorism and religious extremist

21.  Political strikes are destroying daily
businesses.
 The effects of strikes on business are
negative.
 Thus Government of pakistan has
announced that no political party can
call strike unless approved by
government.
 Thus reducing unannounced strikes and
shutdowns .

22.  Karachi is the financial hub of the country
may not remain a lucrative money-making
metropolis for much longer if its business
community continues to face hardships.
 Businessmen are receiving „bhatta parchis‟
or extortion receipts from mafia groups
across the city who demand money to
provide them protection but threaten them
with dire consequences if the demands are
not met.

23.  The minimum a shopkeeper has to pay
on average is around Rs25,000 – an
amount which often increases
depending on the size of the business
and the earnings.
 The businessmen are afraid because the
illegal mafias are not accountable. They
loot, kill and grab properties without fear
and no one has ever been
apprehended. Target killers have been
identified on many occasions but none
arrested. No one has been punished for.

24.  Kidnapping for ransom has always been
a disturbing crime.
 Many businessmen are getting
kidnapped for high ransom.
 But the main reasons behind it is
unemployment and government
compensating it have bravely fought
with it.

25.  The whole world looks at Pakistan as a land of
terrorists.
 As Pakistan fought war against terrorism and has
demolished the roots of extreme terrorism from all
over the Pakistan.
 It has attracted most of the foreign investment from
all over the world as well as creating a business
friendly environment.
 Chinese and Pakistani Government has established
a Currency swap Agreement with Pakistan to
promote trade and exchange.
 http://tribune.com.pk/story/311893/currency-swap-
agreements-easing-pressure-on-the-rupee/

26. The technology is spreading like a wild fire. How many
people five years ago could have thought that even in a
small towns and villages of Pakistan, one would access to
mobile telephones. 95 million Pakistanis have mobile phones
today. You can use this technology in order to provide them
banking services, information on climate/weather, agriculture
extension, health, education etc. It is a powerful tool which
can leapfrog a lot of time which we have wasted. Using
technology particularly the information/communication
technology for the betterment of social and economic
problems of Pakistan is something which needs to be done
but it cannot be done the way we have compartmentalized
this into different ministries. A more holistic and
comprehensive approach that deploys technology for
poverty reduction has to be put in place.

27.  The World Bank recognized Pakistan as in
the top ranked countries in the region for
"ease of doing business 2012”.
 Pakistan is the 83rd most business friendly
country in the world in its annual 'Ease of
Doing Business' report.
 As Recent reforms improved our position
and helped sustain our position as the first
most business friendly location in our region.
› http://www.pakboi.gov.pk/index.php?option=com_conte
nt&view=article&id=101&Itemid=34

28. The World Bank recognized Pakistan,
105th rank in Ease of Doing Business,
while the 90th rank in starting a
business in the world, in its annual
'Doing Business' report.

29.  Cost advantage
 Asset leverage
 Natural resource
 Quality advantage
 Loyal customers
 Supply chain
 Pricing
 Real estate
 Unique products
 Consistency in taste.

30. FROM 2003-2011

31.  Acquisitions (skilled farmers)
 Asset leverage ( Engro Pakistan)
 Financial markets (raise money through
debt, etc)
 Emerging markets and expansion abroad
 Innovation ( Olpers )
 Online
 Product and services expansion
 Takeovers (Nestle Pakistan)

32. MONTHLY/2011
In millions, PKR

33.  Ambassador Jamil said Pakistan's exports of food
products to Gulf Cooperation Council (GCC)
region stand at one billion dollar and the UAE
shares around fifty percent of the total bill. He said
Pakistan was participating in the SIAL food fair for
the first time which had become a truly
international brand and added that it was an
opportunity to meet leading food suppliers of the
Middle East.
 Prime Minister Yusuf Raza Gilani at his chamber in
the Parliament House to UAE Delegations said that
Pakistan produces high-quality mango, apple,
citrus, date, guava, apricot and other fruits in
abundance that contributed to GDP of pakistan.

34.  The food products that contributed to
positive growth included fish and fish
preparations, exports of which increased
from $106.742 million last year to $125.959
million during the first five months of this
year, showing an increase of 15.83 percent.
 Exports of fruits also increased by 13.94
percent
 The exports of leguminous vegetables
(pulses) witnessed 100 percent increase

35.  Wheat and spices exports from the
country also urged by 100 percent
and 9.10 percent
 exports of meat and meat
preparations increased from $56.669
million to $73.789 million, showing an
increase of 30.20 percent
 Exports of oil, seeds and kernals
increased by 125.23 percent
 Copyright APP (Associated Press of Pakistan),
2011

36.  As every country has pros and cons so does
Pakistan, but that doesn‟t mean there is
nothing being done or can be done.
 Regardless of many socio economic and
political problems prevailing in society we
still opt to open a business venture in
Pakistan.
“Lots of problems creates lots of
opportunity, to solve them, the one who
catches them wins the game”.