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Law presentation ....

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

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Law presentation ....

  1. 1.  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.
  2. 2.  Socio economic problems Law & order and political situations Technical problems
  3. 3.  Power crises Illiteracy Inflation corruption Unemployment
  4. 4.  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.
  5. 5.  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. 7.  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
  8. 8.  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.
  10. 10.  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.
  11. 11.  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
  12. 12.  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.
  13. 13.  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.
  14. 14.  Security issues Strikes Bhatta Kidnapping and robbery Terrorism and religious extremist
  15. 15.  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 .
  16. 16.  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.
  17. 17.  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.
  18. 18.  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.
  19. 19.  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/
  20. 20. The technology is spreading like a wild fire. How manypeople five years ago could have thought that even in asmall towns and villages of Pakistan, one would access tomobile telephones. 95 million Pakistanis have mobile phonestoday. You can use this technology in order to provide thembanking services, information on climate/weather, agricultureextension, health, education etc. It is a powerful tool whichcan leapfrog a lot of time which we have wasted. Usingtechnology particularly the information/communicationtechnology for the betterment of social and economicproblems of Pakistan is something which needs to be donebut it cannot be done the way we have compartmentalizedthis into different ministries. A more holistic andcomprehensive approach that deploys technology forpoverty reduction has to be put in place.
  21. 21.  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
  22. 22. The World Bank recognized Pakistan,105th rank in Ease of Doing Business,while the 90th rank in starting abusiness in the world, in its annualDoing Business report.
  23. 23.  Cost advantage Asset leverage Natural resource Quality advantage Loyal customers Supply chain Pricing Real estate Unique products Consistency in taste.
  24. 24. FROM 2003-2011
  25. 25.  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)
  26. 26. MONTHLY/2011 In millions, PKR
  27. 27.  Ambassador Jamil said Pakistans 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.
  28. 28.  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
  29. 29.  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
  30. 30.  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”.