Doing Business with Pakistan

Exporting goods to Pakistan involves several steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Pakistan’s import regulations and product standards.

2. Identify Your Product’s HS Code

   • Determine the Harmonized System (HS) code to understand tariffs and regulations.

3. Prepare Documentation

   • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

4. Check Tariff and Non-Tariff Barriers

   • Verify any tariffs and ensure compliance with Pakistan’s non-tariff measures.

5. Choose a Reliable Freight Forwarder

   • Select a logistics provider experienced in shipping to Pakistan.

6. Comply with Labeling and Packaging Regulations

   • Ensure your products meet Pakistani labeling and packaging standards.

7. Arrange for Insurance

   • Secure insurance to cover potential shipping risks.

8. Customs Declaration

   • Submit a customs declaration electronically, often through your freight forwarder.

9. Pay Applicable Duties and Taxes

   • Calculate and pay any required import duties and taxes.

10. Track and Confirm Delivery

    • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

• Pakistan Customs
  • Website: Pakistan Customs
• Trade Development Authority of Pakistan (TDAP)
  • Website: TDAP

Importing goods into Pakistan involves several steps. Here’s a detailed guide:

1. Research Import Regulations

   • Understand Pakistan’s import laws and product-specific regulations.

2. Obtain Necessary Licenses

   • Check if your products require special import licenses or permits.

3. Classify Your Goods

   • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.

4. Prepare Documentation

   • Gather required documents: commercial invoice, bill of lading, packing list, and certificate of origin.

5. Choose a Customs Broker

   • Hire a licensed customs broker to assist with the import process.

6. Comply with Labeling and Packaging Standards

   • Ensure products meet Pakistani labeling and packaging requirements.

7. Submit Customs Declaration

   • File a customs declaration electronically through the Pakistan Single Window system.

8. Pay Duties and Taxes

   • Calculate and pay any applicable import duties and taxes.

9. Arrange for Transportation and Delivery

   • Coordinate with a logistics provider to transport goods to their final destination.

10. Track and Confirm Receipt

    • Monitor shipment progress and confirm delivery upon arrival.

Key Contacts

• Pakistan Customs
  • Website: Pakistan Customs
• Trade Development Authority of Pakistan (TDAP)
  • Website: TDAP

Incorporating a company in Pakistan involves several key steps. Here’s a detailed guide:

1. Choose a Business Structure

   • Decide on the type of company: Private Limited Company, Public Limited Company, etc.

2. Reserve a Company Name

   • Check availability and reserve your company name through the Securities and Exchange Commission of Pakistan (SECP).

3. Prepare Founding Documents

   • Draft the Memorandum and Articles of Association.

4. Open a Bank Account

   • Open a business bank account and deposit the required minimum capital.

5. Submit Incorporation Documents

   • File the incorporation documents with the SECP online through their eServices portal.

6. Obtain a National Tax Number (NTN)

   • Register with the Federal Board of Revenue (FBR) for tax purposes.

7. Register for Sales Tax

   • If applicable, register for sales tax with the FBR.

8. Register with Social Security Institutions

   • Enroll employees with the Employees Old-Age Benefits Institution (EOBI) and other relevant bodies.

Costs

• Registration Fee: Varies based on company type and capital.
• Additional Costs: Legal fees, stamp duties, and other administrative expenses.

Key Contacts

• Securities and Exchange Commission of Pakistan (SECP)
  • Website: SECP
• Federal Board of Revenue (FBR)
  • Website: FBR

Setting up a manufacturing plant in Pakistan involves several key steps. Here’s a detailed guide:

1. Conduct a Feasibility Study

   • Analyze market demand, location, and resources.

2. Choose a Business Structure

   • Decide on the type of business entity, such as a Private Limited Company.

3. Register the Company

   • Register your company with the Securities and Exchange Commission of Pakistan (SECP).

4. Secure Financing

   • Arrange funding through loans or investors.

5. Select a Location

   • Choose an industrial area with access to infrastructure and resources.

6. Obtain Necessary Permits and Licenses

   • Apply for construction permits, environmental approvals, and industry-specific licenses.

7. Design and Construct the Facility

   • Hire architects and contractors to design and build the plant.

8. Purchase and Install Equipment

   • Acquire machinery and ensure it meets safety and operational standards.

9. Hire and Train Employees

   • Recruit skilled workers and provide necessary training.

10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

• Securities and Exchange Commission of Pakistan (SECP)
  • Website: SECP
• Board of Investment (BOI)
  • Website: BOI

Registering a trademark in Pakistan involves several steps. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Search the Intellectual Property Organization of Pakistan (IPO-Pakistan) database to ensure your trademark is unique.

2. Prepare Your Application

   • Gather necessary details including the trademark design and the list of goods/services it will cover.

3. Submit the Application

   • File your application with IPO-Pakistan, either online or in person.

4. Examination Process

   • IPO-Pakistan examines the application for compliance and conflicts with existing trademarks.

5. Publication for Opposition

   • If approved, the trademark is published in the official journal for a period during which others can oppose it.

6. Receive Registration Certificate

   • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

• Application Fee: Approximately PKR 3,000 for each class (subject to change).

Key Contacts

• Intellectual Property Organization of Pakistan (IPO-Pakistan)
  • Website: IPO-Pakistan

Resolving commercial disputes in Pakistan involves several steps. Here’s a detailed guide:

1. Consult Legal Counsel

   • Engage a lawyer familiar with Pakistani commercial law.

2. Attempt Negotiation

   • Try to resolve the dispute amicably through direct negotiation with the other party.

3. Mediation

   • Consider mediation with a neutral third party to facilitate a resolution.

4. Arbitration

   • Use arbitration for a binding resolution. Pakistan recognizes and enforces arbitration agreements.

5. Litigation

   • If other methods fail, file a lawsuit in the appropriate court. Be prepared for a formal legal process.

6. Enforcement of Judgments

   • Once a decision is reached, ensure it is enforced through the relevant authorities.

Costs

• Legal Fees: Vary based on the complexity and length of the dispute.
• Court Fees: Required for litigation and depend on the case specifics.

Key Contacts

• Ministry of Law and Justice
  • Website: Ministry of Law and Justice
• Pakistan Bar Council
  • Website: Pakistan Bar Council

When considering business in Pakistan, it’s important to understand various factors:

Social and Cultural Factors

• Language: Urdu is the national language; English is widely used in business.
• Business Etiquette: Emphasizes respect, building personal relationships, and understanding local customs.

Political Factors

• Government: Federal parliamentary republic with ongoing efforts to improve the business environment.
• Regulations: Business-friendly policies, but bureaucratic processes may require navigation.

Economic Factors

• Currency: Pakistani Rupee (PKR).
• Foreign Investment: Encouraged, especially in special economic zones with incentives.

Foreign Exchange

• Exchange Rate: Subject to fluctuations; businesses should monitor currency risks.
• Regulations: Managed by the State Bank of Pakistan, with some restrictions on currency exchange.

Rule of Law

• Legal System: Based on British law and Islamic principles; provides a framework for business operations.
• Intellectual Property: Protected under national laws, aligned with international standards.

Infrastructure

• Transport: Developing infrastructure with key projects in roads, ports, and energy.
• Utilities: Ongoing improvements in energy and utilities, though challenges remain.

Key Contacts

• Board of Investment (BOI)
  • Website: BOI
• State Bank of Pakistan
  • Website: State Bank