Exporting to Pakistan

Find out more below

There are many complications involved when it comes to exporting goods overseas. Exporting outside the EU can be a much less straightforward process, involving different licenses, tax prices and export declarations, depending on whereabouts you’re exporting to. Check out our guide on exporting to Pakistan below to make sure that you get it right.

Exporting to Pakistan from the UK

Exporting to Pakistan from the UK is much simpler than you might think. In 2014, UK goods exported to Pakistan were worth £618 million.  English is the main business language used in Pakistan, with over 100 UK businesses currently trading with Pakistan every single day. This includes some of the UK’s big names in retail and haircare, such as Debenhams, Toni and Guy and Unilever, who are all currently trading there. Despite this, the most popular exports to Pakistan from the UK are industrial machinery and telecom and broadcasting equipment, with chemicals and pharmaceutical products also popular.

Pakistan is ranked as 128th in the world by the World Bank for ease of doing business index, much higher than both India and Bangladesh. Its geographical location positions it perfectly for trading within Asia and Northern India making it a key player in the export market.

The Benefits of Importing to Pakistan

There are many benefits of exporting to Pakistan for your business. Pakistan is extremely investor friendly and home to over 600 foreign companies currently. Over 50% of its population are under the age of 25, meaning there is a strong, young educated workforce with a thriving business and consumer base ready to do business with. On top of this, there is a growing middle class of consumers in Pakistan and as the UK is already home to many Pakistani communities, there are many existing links with the UK making it a much stronger market to export to.

Challenges faced when exporting to Pakistan from UK

Despite all the positives there are some challenges to be faced when importing into Pakistan:

  • Pakistan does experience periods of political unrest which can lead to sectarian violence which can be damaging to businesses.
  • Regular power shortage problems can escalate the costs when doing business
  • Weak labour law enforcement and lack of standards of Intellectual Property Rights can compromise your service quality.
  • Customs tariffs when importing goods into Pakistan can change regularly with the current rate being around 35%. You can also be expected to pay port charges, clearance charges, transportation and additional duties for certain products on top of this.

Importing Goods into Pakistan

Import restrictions are in place when importing goods to Pakistan with a list of prohibited items to be found here. Clearance through customs in Pakistan differs whether you’re importing documents with no commercial value or dutiable goods and an invoice is required for all shipments with a declared value. There are some restrictions which are in place to protect local businesses and all imports must comply with local regulations.

With Pakistan’s growing economy, a demand for more creative, innovative and high quality goods has emerged leading to a larger and more appealing export market with endless opportunities for UK businesses to get involved with.