After re-launching of British Airways operations from Pakistan more UK companies are expected to start their businesses in this growing market. The British Deputy High Commissioner and Director Trade Elin Burns while talking to a group of reporters here on Thursday said Pakistan is South Asia's second largest economy with a population set to rise to 400 million by 2050, a growing middle class of between 50 to 70 million and an affinity for UK expertise, products and brands. She said there are good opportunities to increase bilateral trade between the two friendly countries.
UK-Pakistan bilateral trade in 2017 was £2.9 billion in goods and services. In 2017 Pakistan exported £1.8 billion of goods and services to the UK thus trade balance remained in favour of Pakistan. The UK is Pakistan's largest export market in Europe (followed by Germany and Spain); and second largest globally ahead of China and after the US. The UK is Pakistan's largest export market globally for services. In 2017 the UK exported £1.1 billion of goods and services to Pakistan. Pakistan is the UK's 54 largest export market. The Deputy High Commissioner said UK Government would like to see more UK-based companies doing business in, and with, Pakistan.
The UK was the third largest source of FDI in 2017 after China, which accounted for 54 percent of total inflows. In 2017 UK FDI to Pakistan totaled £186 million ($240 million), accounting for 6 percent of total inflows of FDI to Pakistan in that year.
She said the UK is committed to supporting Pakistan to trade its way out of poverty. "As we leave the EU, we want to deepen our trade relationship with Pakistan", she said. The UK Government is committed to maintaining the same levels of preferential access that Pakistan receives to UK markets under the EU's scheme. It is important that Pakistan continues to make progress on its international obligations in order to retain its EU GSP+ status, including protecting minority rights, and steps to reduce the scale and scope of the death penalty, she added. Elin Burns said that Pakistan has the potential to emerge as an increasingly strong trading partner for the UK. Currently around 120 British firms operate and invest in Pakistan. Major UK businesses succeeding in Pakistan include Mott MacDonald in infrastructure development (who played an integral role in the development of the new Islamabad Airport); Unilever and Reckitt Benckiser in consumer goods; Standard Chartered and UBL in banking; GlaxoSmithKline in pharmaceuticals (who sell seven products every second in Pakistan) and Shell in oil and gas, as well as UK brands including Debenhams, Toni & Guy, Monsoon & Accessorize.
Key sectors for UK businesses in Pakistan include professional services, energy and infrastructure, education, defence & security and retail and consumer goods. The China Pakistan Economic Corridor - $54 billion worth of Chinese energy and infrastructure projects - also presents opportunities for UK business.
She said UK export finance has doubled its available support for exports to Pakistan to £400 million. UKEF, the UK's export credit agency, has doubled support for Pakistan to £400 million meaning additional capacity to help UK exporters win, fulfill and get paid for export contracts, and to help Pakistan's buyers access finance to source high-quality UK goods and services. British consumers benefit from access to global markets, including Pakistan, through the variety, quality and cost effectiveness of imported goods. Pakistan is keen to expand and diversify its export base and is already competitive in products such as textiles, garments, surgical instruments, steel, and sporting goods. In fact, the footballs used in this year's World Cup will be made in Pakistan.
There are also opportunities for British businesses to benefit by integrating Pakistani firms into their supply chains. Pakistan is the ninth largest English speaking nation in the world. It has good telecommunication, banking and air transport links with the UK, further enhanced by the newly opened international airport, serviced by many international airlines with regular flights to the UK.
Benefits for UK businesses trading with Pakistan include: a common business language and shared legal tradition, an affinity and familiarity for UK companies and brands, and a large consumer market of 208 million with a growing middle class estimated to be between 50 million and 70 million. Strengths of the Pakistan market include: sixth most populous country with two thirds of the population under the age of twenty-five, strong business and consumer base, and strong links with Pakistani migrant communities in the UK.
The British Airways three-per-week service from Heathrow begins June 02, 2019 with tickets on sale from Thursday (December 20) starting at £499 return British Airways' newest aircraft type, the Boeing 787 Dreamliner, will operate in to Islamabad's newly-opened airport.
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