Pakistan’s economy has long been known for its resilience and potential for growth, and this year has brought several developments that highlight its dynamism and promise. Here are the top 5 latest business news in Pakistan that every aspiring entrepreneur and investor should know:
1. Pakistan’s Stock Market Surge: The Pakistan Stock Exchange (PSX) has seen a dramatic surge in the first half of 2021. The KSE-100 index, which represents the top 100 companies listed on the PSX, has surged by more than 20% in the year to date. This has been driven by a combination of factors, including a large influx of foreign investment, better-than-expected corporate earnings, and improving economic fundamentals. Pakistan’s government has also taken steps to attract foreign investment in local stock markets by offering tax incentives and streamlining regulations.
2. Record Foreign Remittances: Pakistan witnessed a record surge in remittances, mainly from the United States, Middle East, and Europe, in the fiscal year 2020-21. The country recorded a 27.4% growth in remittances, reaching an all-time high of $29.4 billion, surpassing the previous record of $21.8 billion set in 2019-20. This surge is noteworthy, given the global downturn caused by the Covid-19 pandemic, and this is now facilitating the government to achieve sustainable development goals, which is an encouraging sign for small and medium businesses.
3. Boost in E-Commerce: Covid-19 has only accelerated the growth of e-commerce in Pakistan as people continue to shop from the comfort of their homes. Several startups and e-commerce platforms have thrived in this environment, including Daraz.pk, which recently became Pakistan’s first unicorn, Careem, and other online grocery chains. Online sales are projected to reach $4.3 billion by 2023, and entrepreneurs are now capitalizing on this boom by innovating e-commerce alternatives, making it one of the most lucrative areas to invest in Pakistani markets.
4. Digital Revolution: The Information Technology sector in Pakistan has also been on the rise, with significant investment and growth in recent years. The country ranks third in the global freelance-industry index, and several startups have emerged, including KeepTruckin, a freight-hauling software-based startup that was recently valued at $2 billion. In addition, the government has launched various initiatives, including Pakistan’s first-ever Digital Pakistan Policy and the “Kamyab Jawan” program, to facilitate the digitization of government services and promote digital skill development among the youth.
5. Agriculture Exports Boom: Pakistan’s agriculture sector has always been regarded as the backbone of the country’s economy, accounting for over one-quarter of its GDP. The government’s focus on encouraging and supporting the export of agricultural goods has led to an increase in overseas sales. Pakistan’s agricultural exports increased by 43 percent in March 2021, reaching $2.3 billion, the highest figure in the country’s history. Pakistan has the potential to become a global food-basket through its innovation and will to facilitate the flourishing business landscape.
In conclusion, Pakistan has seen a positive growth pattern in 2021, especially in the five industries discussed above. These developments are a testament to the country’s potential to emerge as an economic powerhouse, and the government, entrepreneurs, and investors should continue to build on these opportunities. The focus on growth in the stock market, foreign remittances, e-commerce, IT, and agriculture exports paints a promising and thriving landscape for businesses, proving if advised properly, capitalizing on these prospects could prove tremendously lucrative.
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