Pakistan-France bilateral trade in 2022
During the first 10 months of 2022, French exports to Pakistan increased by 32.8% to 425.1 Million Euros. This development is part of a dynamic growth of French exports, which had already recorded an increase of 27% over the same period in 2021. However, the rebound observed does not allow attaining the historical peak of the year 2016 (556 Million Euros).
Bilateral trade between France and Pakistan represents 11.9% of the total European bilateral trade with Pakistan. France ranks 6th in bilateral trade between EU countries and Pakistan, after Germany, Italy, the Netherlands, Spain and Belgium.
The structure of French exports - traditionally concentrated on pharmaceutical products and electric turbines - is changing. In 2022, agricultural products occupied the first place due to delivery of 240,000 tons of wheat in the summer of 2022. Pharmaceutical preparations occupied the second place in the first 10 months of 2022 with 74.9 Million Euros. Finally, we note the increase in sales of automotive equipment (31.84 Million Euros against 17.1 Million Euros in 2021), due to the opening of a CKD production line by Peugeot in Karachi, in partnership with Lucky Motors Corporation.
French exports in "Chemicals, perfumes and cosmetics" category suffered due to the customs measures on the import of luxury goods put in place between May and August 2022. They came down by nearly 20%, to 48.7 Million Euros (compared to 55.1 Million Euros in the same period of 2021). French exports of "industrial and agricultural machinery" which had reached 82.6 Million Euros in 2021 came down to 55.1 Million Euros over the first 10 months of the year 2022, recording a decrease of 20%, due to the strengthening of exchange controls put in place by the State Bank of Pakistan. Given the low level of foreign exchange reserves, these measures are likely to be extended into 2023.
Pakistan's exports to France have grown strongly (+37.2% to 1.23 Billion Euros) in the first 10 months of 2022, compared to 901.4 Million Euros in the equivalent period of 2021. Pakistani exports remain dominated by textiles, leather and footwear, benefitting fully from the GSP+. However, Pakistan’s exports are beginning to diversify with a 14% increase in "miscellaneous manufactured products", which are now the second largest export item (7%) at 74 Million Euros. There has been a sharp rise in Pakistani exports in the “chemical products, perfumes and cosmetics” category (these are essential oils, particularly components used in perfumes such as rose concentrate, of which Pakistan is one of the world's leading producers), which reached 55.3 Million Euros , an increase of 1485%.
The balance of bilateral trade for the first 10 months of 2022 shows a deficit of 812.1 Million Euros for France compared with 581.6 Million Euros in 2021. The increase in French exports to Pakistan (+35%) is less strong than the increase in French imports from Pakistan (+37.2%).
The focus of all reforms efforts is to facilitate investment
We are 24th Largest Economy
Pakistan offers liberal investment regime.
is a blanket term for various types of specialized zones.
Pakistan is home to the world’s sixth largest population with a growing middle class. As of 2018, there are approximately 17 million middle class households and 102 million middle class individuals.
The food and beverage processing industry is the 2nd largest industry of Pakistan after textiles, accounting for 27% of the value-added production and 16% of employment in the manufacturing sector.
Food processing accounted for an annual average of $223.5m in FDI from 2012-2018.
The three major industry groups are (1) frozen food (2) value addition in major food crops and (3) fruits, vegetables and intermediate products.
Pakistan was awarded the Generalized Scheme of Preferences (GSP) Plus Status (Zero to Low Duty) by the European Union in 2014 which has the potential to greatly uplift the exports of processed food products.
With a population approaching 210 million, Pakistan is the 6th most populous nation in the world and continues to grow at a high rate of 2.4% per annum.
Transport itself contributes 22.3% of the services sector GDP and accounts for approximately 6% of the nation’s total employment.
Gross Domestic Product (GDP) growth is 5.3% in 2016-17 and is forecasted to continue to grow to 5.8% in 2019.
International transport is connecting Pakistan via its border crossings, ports and airports to its neighboring countries and further abroad. Pakistan’s economy relies on these international connections, including a large Pakistani workforce in the Gulf States that fly in and out. In addition, there is a growing emphasis to increase trade with the Central Asian region.
Pakistan is the 8th largest exporter of textile products in Asia.
It is 4th largest producer and 3rd largest consumer of cotton.
It comprises of 46% of the total manufacturing sector and provides employment to 40% of the total labor force.
5% of the total textile companies are listed on the stock exchange. There are 423 textile industries working in the country.
Pakistan has supply base for almost all man-made and natural yarns and fabrics, including cotton, rayon and others. This abundance of raw material is a big advantage for Pakistan due to its beneficial impact on cost and operational lead time.
Pakistan’s Automobile industry contributes (2.8%) to its GDP and 30 billion rupees to the national exchequer in terms of taxes and duties.
Pakistan is home to the world’s sixth largest population with a growing middle class. There are approximately 17 million middle class households and 102 million middle class individuals as of 2018.
Pakistan’s automobile industry is fastest growing in Asia. The production and sales have both grown by 171% and 172.5% respectively between (2014 and 2018), all of which has been fueled by the Automotive Development Policy introduced in 2016.
On the 18th of March 2016, Economic Coordination Committee (ECC) passed the "Automotive Development” Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants. In response various car manufacturers have expressed their interest in entering the market including, but not exclusive to, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai.
The 4th Industrial Revolution is currently taking place and it is digital. The actual size of the 2016 digital economy was $11.5 trillion globally, which was 15.5% of the global GDP. The base digital assets comprise one-third, or $3.8 trillion, while digital spillover effects account for the remaining two-thirds, $7.5 trillion.
Pakistan, which has about 60% of its 200 million population in the 15 to 29 age group, represents an enormous human and knowledge capital. Pakistan has more than 2000 IT companies & call centers and the number is growing every year. Pakistan has more than 300,000 English-speaking IT professionals with expertise in current and emerging IT products and technologies, 13 Software technology parks, More than 20,000 IT graduates and engineers are being produced each year coupled with a rising startup culture.
In accordance with Pakistan Vision 2025 and the Digital policy of Pakistan 2018, the ICT industry size is targeted to reach $20 billion by 2025.
Pakistan is the 5th most populous country in the world, with 220 million citizens, more than 60 million strong labor force and a growing middle class.
Out of total population, 36.38% resides in urban areas whereas 63.62 lives in rural parts.
There is a growing demand for houses due to a 2.4% annual population growth rate as per census 2017.
The country’s construction industry accounts for 2.53% of Gross Domestic Product (GDP) according to the Pakistan Economic Survey. The sector employs 7.61% of the employed Pakistani labour force.
GFCF in private sector grew by 20.6% between FY2019 and FY2020. Private sector GFCF amounted over 95% of the total.
China Pakistan Economic Corridor (CPEC) has given a boost to the construction sector through the influx of infrastructural projects including highways, power plants, and dams.
Pakistan is rich in its tourist destinations offering a diverse range of choices for different types of tourists. The country is home to one of the oldest civilizations in the world, has innumerable locations of scenic beauty, world’s highest mountains, many religious and historic places, unique arts and crafts and a rich culture and heritage.
The British Backpacker Society ranked Pakistan as the world's top adventure travel destination in 2018, describing the country as "one of the friendliest countries on earth, with mountain scenery that is beyond anyone’s wildest imagination”
Pakistan is home to a number of UNESCO world heritage sites like, Archaeological Ruins at Moenjodaro, Buddhist Ruins of Takht-i-Bahi and Neighbouring City Remains at Sahr-i-Bahlol, Fort and Shalamar Gardens in Lahore, Historical Monuments at Makli, Thatta, Rohtas Fort and Taxila.