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Overseas Pakistan Services

Potential Sectors


Economies are ranked on their ease of doing business, from 1 - 183, with first place being the highest. The ease of doing business index averages the economy's percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic. The rankings are from the Doing Business 2010:

Reforming through Difficult Times report, covering the period June 2008 to June 2009.

the World Bank recognized Pakistan the 85th most business friendly country in the world in its annual 'Ease of Doing Business' report. Recent reforms improved our position and helped sustain our position as the first most business friendly location in our region.

Following is the list of Most potential Sectors for Investment in Pakistan.


Sector Significance

Agriculture is the largest sector of the Pakistani economy, contributing 23 percent to the GDP and involving 42 percent of the total labor force. Livestock is the largest of the various agriculture sub sectors. Net foreign exchange earnings from livestock products and by products like meat, skins, hides etc were more than Rs. 53 billion in 2003-04 (Source: FAO-Economic & Social Department Reports) that is about 11 percent of the overall export earnings of the country.

Livestock accounts for 46.8 percent of agricultural value added and about 10.8 percent of the GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. The farm gate value of milk is estimated to be more than Rs. 390 billion. Pakistan is the Fifth largest producer of milk in the world with a total production of 28 billion liter of milk a year, whose value is more than that of the combined value of wheat and cotton, from a total herd size of 27 million milch animals (buffaloes and cows).

There is a consensus among the stakeholders and the development experts that Pakistan's Dairy Sector has immense potential for growth. The same has not been realized due to various gaps. The vital missing link being lack of shared vision and strategy for the development and lack of effective collaboration among the stakeholders including support institutions and the government agencies to implement the agreed strategy.

Strategy Development:

Realizing the significance of the sector in terms of contribution to GDP, employment and importance to serve as a vehicle to alleviate poverty especially among the rural population, Ministry of Industries, Productions and Special Initiatives Government of Pakistan identified Dairy Sector as one of the key sectors for development on priority basis. A Strategy Working Group (SWOG) was constituted by Federal Minister for Industries, Production and Special Initiatives Mr. Jahangir Khan Tareen to develop Diary Sector Development Strategy. The SWOG includes members from prominent stakeholders of the Dairy Industry who are working together voluntarily to identify issues and propose strategic framework to up-grade Dairy Sector. SMEDA provided support and facilitated the group in the entire process.

As a result of SWOG deliberations since its formation in July 2004, the private sector led group has progressed significantly towards strategy development through consensus of the stakeholders and achieved many mile stones towards implementation of the same.

An outline of the development strategy and a brief account of strategy development process along with the salient milestones achieved are resented in the following lines.

Study of existing reports; including a Sector Development Study Report compiled by SMEDA.


Strategy Working Group selected New Zealand and Australia as Best Models and India as a Comparable Model for benchmarking of Dairy Sectors in these countries for dairy sector in Pakistan. An international Dairy Expert from New Zealand Visited Pakistan in December 2004 as the first step. Initial comparisons were made and initiatives were rationalized. Australia was added as a benchmark country to capture new initiatives identified by the expert.

A delegation comprising members of the Strategy Working Group visited New Zealand and Australia in February 2005 to study the dairy sector in these countries. The purpose of the visit was to benchmark dairy sector and learns how to improve dairy sector in Pakistan based on experiences of these two benchmarked countries. Study tour to India is also planned to study a comparable model and also to seek technical assistance from AMUL (India) related to policy reforms in Pakistan. The Final Policy Proposal would be formulated after study tour of India.

Consensus, Approval and Implementation:

SWOG and SMEDA initiated a series of interactions with key stakeholders across the dairy value chain and support institutions including Universities and Educational Institutions, Support Agencies of the Government of Pakistan like PCSIR, NSRP. PRSPs, etc to understand the needs and demands of the stakeholders, identify gaps and missing/week links and identify possible solutions to the problems facing the sector. A strategy formulated as a result was presented to the Prime Minister of Pakistan The Prime Minister of Pakistan has approved the strategy and proposed initiatives including establishment of a fully functional company for the better management of the sector. Pakistan Dairy Development Company 'Dairy Pakistan' is in the process of registration as an independent not-for-profit company to further refine sector strategy and design, implement initiatives identified for the development of the sector.

Policy Reforms

SMEDA is acting as a facilitator and support platform by developing a Policy Reform Package for the Dairy Sector. A white paper on policy and regulatory reforms would be finalized after study tours to India in December 2005.


The art & craft of fine quality jewellery manufacturing are deeply rooted in the traditional heritage and history of Pakistan. It was however in the Mughal period that the artisan class of goldsmiths arose to attain a distinct status in the subcontinent. The most famous among the various jewellery types that emerged during the times of the Mughals include, Minakari, Kundan, Polki, and Nauratan, etc. Presently, metropolitan cities of Lahore and Karachi are the major hubs of jewellery manufacturing. There are more than thirty major cities and nearly three hundred smaller cities/mandi towns where jewellery manufacturing and trading clusters cater to domestic demand. In addition, there are at least 45,000 villages where jewellers operate as single-shop, manufacturing and selling units to meet the demand of rural population.

Pakistan is a country with a population of more than 150 million people and a rich tradition of craftsmanship in jewellery manufacturing. Skilled/semi-skilled labour force is available at relatively lower rates, which offers a comparative advantage to the country. Their skill enhancement through training would lead to greater competitiveness.

Currently, Pakistan imports more than one hundred and twenty tones of gold per annum, which makes it the eighth largest consumer of gold in the world. In the year 2002, Pakistan exported gems & jewellery worth US$32 million (which went down to US$28.2 million in 2003). Although, the volume of exports of gems & jewellery from Pakistan is of no great significance in the total global trade of US$84.4 billion and much lower than India, which is our biggest regional competitor, but the growth potential of exports in the sector is huge.

Pre Feasibility Reports

Dairy Farm(25 animals)
Gold Jewellery Manufacturing & Retail Shop
Leather Garment Manufacturing Unit
Mini Flour Mill
Software House

Source: SMEDA

For More Reports Visit: Http://www.smeda.org.pk

Welcome Overseas Pakistan  

Top Links
  Pakistani Newspapers
  Pakistani Channels
  Government Websites
  Pakistani Magazines
  Research & Survey
  Pakistani Embassies

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