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Executive Report on Strategies in Pakistan
ICON Group International, June 2007, Pages: 391


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How to Strategically Evaluate Pakistan

Perhaps the most efficient way of evaluating Pakistan is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries

Demand/Market Potential Driven Firm







Relative Accessibility

Accessibility/Supply Averse Firm








Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market - neither a market-driven nor a cost-driven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities.

Latent Demand and Accessibility in Pakistan

This report provides an extremely detailed overview of factors driving latent demand and accessibility in Pakistan. Latent demand is largely driven by economic fundamentals. But, latent demand only represents half of the picture. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks.

Chapter 2 deals with macro-accessibility. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Pakistan:
Openness to Trade in Pakistan
Openness to Direct Investment in Pakistan
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks

Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are also covered in Chapter 2, which is presented from the perspective of an American firm, though it is equally applicable to most firms entering Pakistan. This chapter has been authored by local offices of the U.S. Government. I have included a number of edits to clarify the provided information as it relates to the general strategic framework.

In Chapter 3, I summarize the economic potential for Pakistan over the next five years for hundreds of industries, categories, and products. The goal of this chapter is to report my findings on the real economic potential, or latent demand, represented by Pakistan when defined as an area of dominant influence. The data presented are the result of various spatial econometric and time-series forecasting models which, for each category presented, are applied to forecast and allocate latent demand across all countries of the world and major distribution centers or centers of dominant influence within each country. This is accomplished knowing that economic fundamentals (e.g. income) generally vary from one country to another within a given country over time. In this chapter, I report the allocation for each category for Pakistan as an area of dominant influence in the Middle East and, potentially, the world.

The report concludes with trade indicators for Pakistan. Often, the amount of trade flowing into and out of a country is a strong indicator of trading partners, trade openness, and related latent demand. Trade indicators are purely statistical in nature. Although international trade is not a direct measure of latent demand, it does provide an indicator of general market conditions with respect to trade flows and trade openness in Pakistan.

As a whole, this report presents a strategic assessment of Pakistan by considering an extremely broad set of factors affecting both latent demand and accessibility, as outlined in the following chapters.

MACRO-ACCESSIBILITY IN PAKISTAN
Economic Fundamentals and Dynamics

Since the late 1980s Pakistan has pursued in fits and starts a program of market-oriented economic adjustment. While the emphasis has been on reform and development and encouragement of foreign direct investment, the results have been mixed due to frequent changes in government. The Government of Pakistan attempted to re-establish credibility with the international financial institutions and bilateral donors by pursuing an ambitious economic reform program, with an emphasis on enhancing macroeconomic stability, instituting structural reforms to promote private sector and export-led industrial development, and reversing past neglect of key social sectors such as health, education and population planning.

Pakistan has made considerable progress under this program, but key challenges remain for its $63 billion economy. Specifically, the government has sought to reduce fiscal and external imbalances, reduce trade barriers, modernize the financial sector, privatize state-owned industries, reform the tax system, encourage private investment in the critical energy sector, and offer specific incentives to attract foreign investment, which is considered critical to the overall development effort. The Government has prioritized the oil and gas sector, small and medium sized enterprises, information technology and agriculture as major areas of focus. These efforts have enjoyed renewed support from the IMF and other international financial institutions, which included Stand-By Arrangement and a Poverty Reduction and Growth Facility (PRGF) program with the IMF and loans from the World Bank and the Asian Development Bank in the areas of structural reforms, micro-financing, small and medium-sized enterprises and energy sector. After the successful completion of the Stand-By Arrangement, the conclusion of a $1.3 billion Poverty Reduction and Growth Facility program with the IMF signals the government’s intention to continue with the comprehensive structural adjustment process initiated three years ago. It also helped to facilitate further debt rescheduling through the Paris Club that has significantly lessened the burden of loan repayments.

Various problems have plagued Pakistan’s progress. Domestic political instability and sporadic ethnic and sectarian violence remain a problem along with the influx of million Afghan refugees. Policy inconsistency, weak implementation and corruption have dampened investor interest and economic growth in Pakistan.

While Pakistan’s economic fortunes remain closely linked to cotton and the textile products, the government has made some progress in diversifying the economy, and is committed to improving the quality of life for poorer citizens through the poverty alleviation strategy. This strategy comprises the initiation of small infrastructure projects in the poorest and low-income urban and rural areas, a food stamp program and the establishment of micro credit bank.

There are significant possibilities for U.S. and other foreign suppliers and investors in Pakistan. However, realizing these opportunities will require sustained and sound economic policies by the government as well as actions to improve political stability and better develop human resources.

Government Intervention Risks

Since the late 1980s, the GOP h as been pursuing a gradual strategy of deregulation, reduction of the public sector role in the economy, and opening the economy to international competition. The government has sought to reduce its direct productive or controlling role, and instead focus on creating the conditions to foster private sector investment and activity. While it has made much progress in this effort, the state remains an important player in the Pakistani economy, especially in the financial sector. Government-owned industrial enterprises employ almost 50,000 workers and remain important in such key sectors as energy, steel, engineering and agro-processing.

Monetary and Exchange Policy

Following the government’s freezing of foreign currency accounts in 1998, there was a large-scale conversion from foreign currencies to rupees. The GOP has attempted to reverse this trend by promising not to tamper with foreign currency accounts.

Balance of Payments Issues

The GOP has continued policies to liberalize and deregulate the exchange and payments regime. Prior to mid-1998, Pakistan followed a fixed exchange rate system with periodic step devaluation to make up for the inflation differential with major trading partners. At the end of July 1998, the country moved to a dual exchange rate system consisting of a fixed official exchange rate and floating interbank market exchange rate. Under this system all authorized transactions were conducted at the composite rate, which was weighted average of official exchange rate and the inter-bank floating rate. The inter-bank floating rate was determined by the market mechanisms, The dual exchange rate was replaced with a market-based unitary exchange rate system from May 19, 1999. On July 20, 2000, the market based unitary exchange rate system was replaced with the floating of Pak rupee against the U.S. dollar, which can be classified as managed floating. (IMF).

Infrastructure Development

Ports
Pakistan has two significant seaports - The Karachi Port and Port Mohammed bin Qasim. Keti Bunder and Gwadar on Balochistan’s Makran Coast are two proposed harbor-cum min port sites for future facilities. Karachi is the main port, handling the majority of all dry and liquid cargo. American President Lines (APL) and Karachi International Container Terminal (KICT) are providing specialized integrated container services at Karachi Port Trust (KPT).

Railroads
Pakistan Railways, an autonomous agency under the Ministry of Railways, operates the railroad system. The system is primarily broad-gauge, but there are also segments of meter-gauge and narrow-gauge track. There has been a marked shift in freight traffic from rail to highways, a trend that the GOP hopes to stabilize and reverse. Railways carry about 15 percent of freight traffic and road vehicles 85 percent. The rail system comprises 781 stations and 45 halts. Rolling stock includes about 559 locomotives, 4,250 passenger coaches, and 23,459 freight cars.

Highways
The World Bank reports that Pakistan’s road network is notable for its poor condition. About fifty percent of the road network is unpaved and over two-thirds of paved arterial roads do not have enough carriage way width for two lanes. The majority of paved and unpaved roads are in poor condition. According to the World Bank, on average, poorly maintained roads can cause 30-40 percent higher transportation costs. At both federal and provincial levels, Pakistan provides insufficient funding for road maintenance.

Air Transport
Karachi’s Quaid-e-Azam International Airport’s Jinnah Terminal opened in August 1992, and it is the principal international gateway to Pakistan, although Islamabad, Lahore, Peshawar, Faisalabad and Quetta also have a number of international flights. An airport departure tax and a foreign travel tax are levied on international passengers. As of July 2003, the foreign travel tax is a flat Rs. 1,500; the departure tax ranges from 400 to 600 rupees, depending on the class of travel; and in addition, there is a 20 percent Central Excise Duty on purchase of local air tickets and 1.5 percent Capital Value Tax on purchase of international tickets. There is a fuel surcharge of Rs. 250, Rs. 300 war risk surcharge per coupon, Rs. 250 stamp duty on international and Rs. 25 on domestic travel, excise duty is charged as 9 % of the face value of the ticket and further 5% of the value derived.

The new Allama Iqbal International Airport is the latest landmark of Lahore, which amply represents Pakistan’s advancement in the aviation sector. The strategic location of Lahore at the confluence of major air-routes between Europe and the Far East firmly positions Allama Iqbal International Airport to be a hub in the region with great economic advantage.

New airports and improvements in runways are also planned for Islamabad, Peshawar, Karachi, Sialkot and other cities.

Pakistan International Airlines (PIA)
State-owned Pakistan International Airlines (PIA) is the main Pakistani carrier on international routes followed by Shaheen International that competes with PIA on the domestic route. After July 2000, the domestic market saw the emergence of private sector carriers, namely Aero-Asia, Bhoja Air Safe Air and Shaheen Air International. PIA and its domestic competitors serve 36 destinations in Pakistan. Bhoja Air and Safe Air discontinued their operations after Bhoja Air went bankrupt and Safe Air could not meet up to the ICAO safety requirements. Karachi’s Jinnah International Terminal is the country’s main hub for international carriers, and there is also limited international service by several international carriers from Islamabad and Lahore. No U.S. carriers presently serve Pakistan.

The Government of Pakistan has opened the domestic aviation market to private sector competition. Apart from the Pakistan International Airlines, two private carriers, namely Aero Asia and Shaheen Air International are operating on local and international routes.

Shaheen Air International (SAI)
SAI currently has a fleet of four aircraft. It has three TU-154B aircraft of Russian origin on wet lease, 1 YAK-42D. TU-154 is a medium-range aircraft with a seating configuration of 164 (all economy class). SAI was exploring various other options for its long-term fleet structure. One of the options under consideration in the past was to increase the number of TU-154 aircraft - this would mean that SAI continues to operate the Russian system on wet lease. It was an easier course to adopt because the financial outlays would not be very burdensome. Currently, SAI is planning to induct four Boeing 737-400, to increase operations in the international sectors.

SAI is presently operating 22 domestic and 28 International Flights per week.

Aero Asia
The Aero Asia fleet comprises of a Boeing 737-200, DC-9, YAK 42 and BAC 1-11 aircraft. It operates in all the major routes of Gulf region. Aero Asia had a larger operating base in 1997 as the airline maintained a fleet of eight aircraft, which included seven BAC Rombac 1-11 (UK. origin) and one Russian TU-154. Four of these aircraft had been acquired on wet lease and the remaining four had been obtained through a lease purchase agreement. Currently, on International sectors Aero Asia is operating to Dubai, Abu Dhabi, Muscat, ALAin, and Doha from all the major gateways of Pakistan. On domestic sectors Aero Asia is operating to Islamabad, Lahore, Peshawar, and Multan Currently, Aero-Asia flies to all major cities in Pakistan and to Almaty in Kazakhstan and Bishkek, Kyrghyzstan. It has also received approval to fly on the Quetta-Mashad (Iran) route. Aero Asia has plans of taking up two-used medium-range aircraft on lease.

Telecommunications
The telecommunication services sector in Pakistan has grown very rapidly and offers significant potential for future growth. The government of Pakistan accords the telecommunication industry a very high priority. The government welcomes foreign private investment in this sector, especially joint ventures that bring in new technology and help improve the level of efficiency and expertise of the local partner. Following sub sectors of Pakistan’s telecom industry offer major growth opportunities in the near term future: cellular telecommunications, payphone services, wireless local loop and Internet services.

In pursuance of the government’s policy, the Pakistan Telecommunication Company Limited (PTCL) is in the process of modernizing and expanding the telecommunication infrastructure. The policies, including the recently introduced telecom deregulation policy, being followed by the Government of Pakistan have created new opportunities for private investors to enter the telecom market for which certain services of PTCL are being utilized. The private sector has invested more than 8.0 billion Rupees in telecom services. Efforts of the private sector have been encouraging, as cellular telephone service, card pay phones and radio paging services have grown very rapidly.

The Pakistan Telecommunication Company Limited (PTCL) is the dominant telecommunication carrier in the country with a monopoly on fixed lines, domestic and international services. It owns a PDH based fiber optic backbone transmission network in the country. PTCL has been given a 25-year (renewable) license by the PTA for providing basic telephone services.

PTCL has a fairly extensive network in the major urban areas. It has a total installed capacity of 4.33 million lines; 3.66 million of which are operational. Approximately 99 percent of PTCL’s network is digital. In its first four years the PTCL installed nearly 2 million telephone lines, about 200 percent increase in total capacity. The telephone density is 2.57 telephones per thousand people, which is higher than in some countries of the region.

PTCL is also taking major steps to improve rural communications. TDMA, digital remote units and other technologies are being used to extend telephone services to the rural areas in order to provide public call offices in all villages with a population as small as 1,000 using the latest technology of wireless local loop (WLL). PTCL has also upgraded its data network. Now, 64 K-bit transmission is widely available to subscribers for the national network as well as for overseas destinations. With the introduction of optic fiber link, the PTCL has started to provide ISDN lines to its subscribers, thus enabling them to use these lines for data transmission as well as audio-visual communications.

Pakistan is connected with most countries through satellite links, for which it has earth station complexes, while with the neighboring countries it has terrestrial, coaxial cable, and Microwave links. A submarine cable links Pakistan with UAE. Work has been completed to link Karachi with Southeast Asia/Middle East/Western Europe (SEA-ME-WE-III) submarine optic fiber cable, thus paving the way for integration of Pakistan in the global information highway. Pakistan has also acquired a satellite to provide advanced communications and broadcasting services.

Apart from the fixed line telephony, at present there are four cellular mobile phone operators offering services to almost 1.3 million customers throughout Pakistan. In addition, there is one radio paging company; seven card-phone licensees; seventy telex, facsimile and PABX service providers; two manufacturers of large digital exchanges; 60 ISPs, and more than twenty data network operators in the private sector.

Political Risks
Economic Relationship with the United States

Pakistan and the United States have had bilateral diplomatic relations since Pakistan’s creation in 1947. Pakistan is a member of the United Nations (UN), the Organization of the Islamic Conference (OIC), the Economic Cooperation Organization (ECO), and the South Asian Association for Regional Cooperation (SAARC). Pakistan has worked effectively to promote and support peacekeeping operations in Somalia, Bosnia, Haiti, East Timor, Sierra Leone and Congo.

The United States has traditionally been Pakistan’s leading trading partner and largest source of private foreign capital, but tariff disputes relating to independent power projects may affect future inflows of U.S. investment into Pakistan.

President Clinton visited Pakistan briefly in March 2000 and addressed the nation in a live broadcast. Anti-American sentiment runs high in some quarters as the clergy and the media, particularly the Urdu press, thrive on anti-Americanism. Yet the lure of America is quite strong. The American Embassy in Islamabad attracts more visa applicants than any other diplomatic mission.

Major Political Issues Affecting Business Climate

In 1988 Pakistan began moving toward a two-party system, dominated by the Pakistan Muslim League (PML) and the Pakistan People’s Party (PPP). Both parties favored a liberalizing, market-oriented economic policy. This consensus, together with the macroeconomic discipline of structural economic adjustment programs adopted with the full support of the International Monetary Fund (IMF) and the World Bank, had a positive impact on the business climate. Alternating administrations between the PML and the PPP during the decade following the restoration of democratic government was difficult, however, with a corrosive impact on political stability.

As in many developing countries, corruption is an unwelcome, but ubiquitous, part of the business climate in Pakistan. Recent anecdotal reports suggest that this problem may be having a sclerotic impact on the economy. Efforts to reduce opportunities for corruption by improving management systems, for example, in the customs and tax services are under way. The military government has vowed to eliminate the culture of corruption. Also, important business organizations, including the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), have made curbing corruption a principal plank of their policy agendas.

Political System

Democracy has not yet taken root in Pakistan. The military has intervened several times in Pakistan’s history, and the military is an important political player even when it is not in power. The latest military intervention took place on October 12, 1999, and elected institutions were initially suspended and then dissolved.

Under the constitution, the parliament consists of two houses, a National Assembly elected directly through universal suffrage, and a Senate elected largely by the provincial legislatures. (The National Assembly elects the senators from the Federally Administered Tribal areas also known as FATA and the FATA senators are chosen by the MNAs from FATA). The Prime Minister is the head of government and is elected by the National Assembly. The President is the head of state. An Electoral College consisting of the National Assembly, the Senate, and the provincial assemblies chooses him.

The constitution requires that the President be a Muslim and provides for a five-year term. For all practical purposes, the Prime Minister has to be a Muslim as well. The wording of the oath takes it for granted that the Prime Minister, too, will be a Muslim. Pakistan is divided into four provinces: Punjab, Sindh, Baluchistan, and the Northwest Frontier Province (NWFP). Each province has its own directly elected provincial assembly, a government headed by a Chief Minister, and a Governor appointed by the President upon recommendation by the Prime Minister.

The 342-member National Assembly is elected for a five-year term and the 100-member Senate for six-year term. Half of the senators retire every three years. The National Assembly seats are currently apportioned 12 to the Federally-Administered Tribal Areas (FATA) and two to the federal capital of Islamabad, with ten additional seats reserved for religious minorities. (Under a system of separate electorate, Muslims voted for Muslim candidates and non-Muslims vote for non-Muslim candidates. Most members of minorities don’t like this system saying that it had cut them off from mainstream politics. Before the 2002 elections, the system of joint electorate was introduced, to the joy of minorities). Each of the four provinces has 22 senators; there are eight senators from the FATA and four from the federal capital area. Indirect elections for half the members of the Senate are held at three-year intervals.

The constitution guarantees the independence of the judiciary but in reality it has never been completely independent. The Supreme Court is the highest court in the country; High Courts in the provincial capitals of Lahore, Karachi, Peshawar, and Quetta stand at the head of the provincial judicial systems. The Musharraf government obliged the judges of the Supreme Court and high courts by raising their retirement age and many of the lawyers think it was a kind of bribery. Pakistan’s press publishes freely for the most part. However, self-censorship is widely practiced by journalists and the government to influence content uses advertising and other tactics. The total circulation of daily newspapers is about one million, an abysmally low figure for a country of over 145 million. Hardly 10% of the people regularly read newspapers and over 90% of them read Urdu papers that are not noted for their objectivity, fairness or accuracy. In fact, they thrive on propaganda against the United States and India. Pakistan Television (PTV) is strictly controlled by the state and is known for its acerbic propaganda against India and the domestic political opposition. However, private TV channels and radio stations have been allowed in the country.

Pakistan came into existence in August 1947 with the partition of British India. The creation of a separate Muslim nation was accomplished largely through the efforts of Mohammed Ali Jinnah, Pakistan’s first Governor General. In 1947-48, Pakistan and India fought the first war over the Muslim-majority territory of Kashmir, claimed by both states. The conflict ended in stalemate and Kashmir remains disputed territory, divided by a heavily militarized Line of Control. Kashmir continues to be the biggest obsession of the Pakistani establishment and the media. It is often described as the jugular vein of Pakistan.

Pakistan initially consisted of two parts, East Pakistan and West Pakistan, separated by 1,000 miles of Indian territory. In 1970 the Awami League swept the elections in East Pakistan and gained a majority in the country as a whole. The Pakistan People’s Party (PPP), founded and led by Zulfikar Ali Bhutto, won a majority of the seats in West Pakistan. The outcome was a country completely divided with neither major party having support in the other part.

Negotiations to form a coalition government broke down and in March 1971 a brutal military action was unleashed on East Pakistan. Hundreds of thousands of people were killed and many more fled to India. In December 1971 India militarily intervened and the independent nation of Bangladesh came into being. The leadership of the western part of Pakistan was handed over to Zulfikar Ali Bhutto, who became President and first civilian chief martial law administrator.

A new constitution, Pakistan’s third, came into effect in August 1973 and Bhutto became the Prime Minister. His government implemented portions of the PPP’s socialist manifesto, restructuring the economy, increasing the prominence of the public sector, and nationalizing many industries. Bhutto’s centralizing policies and autocratic ways galvanized the opposition, which challenged his sweeping victory in the March 1977 national elections. In July 1977, Bhutto was deposed by the Chief of Army Staff, General Ziaul Haq, who became President in 1978. Bhutto was hanged in April 1979. Under Zia, the Government of Pakistan became increasingly Islamised and benefited from supporting mujahideen efforts to counter the Soviet troops in Afghanistan. Non-party elections were held in 1985 to the National Assembly and the four provincial assemblies. In August 1988, General Zia, along with U.S. Ambassador Arnold Raphel and many other senior officials, died in an air crash.

General elections were held in November 1988 and the PPP, headed by Benazir Bhutto, daughter of Z. A. Bhutto, won a plurality of seats and formed a coalition government. In August 1990, President Ghulam Ishaq Khan exercised his constitutional right to dissolve the National Assembly, dismiss the Prime Minister, and call new elections. In the general elections held in October 1990, the Islamic Democratic Alliance won the largest number of seats and Mian Nawaz Sharif, leader of its largest component party, the Pakistan Muslim League (PML), became Prime Minister. Nawaz Sharif, the first industrialist to lead Pakistan, continued the trend toward liberalization of the economy and promotion of private sector growth.

In April 1993, President Ghulam Ishaq Khan again dissolved the National Assembly and dismissed the Prime Minister, but a month later the Pakistan Supreme Court reinstated the National Assembly and the Nawaz Sharif government. Continued tensions between the reinstated Prime Minister and the President resulted in governmental gridlock; the Chief of Army staff brokered an arrangement under which both the President and Prime Minister resigned their offices in July 1993. Elections in October 1993 resulted in a plurality for the PPP and Benazir Bhutto secured sufficient additional support to become the Prime Minister. Bhutto’s hold on power received a further boost in November 1993, when Farooq Leghari, a PPP stalwart, was elected President.

In November 1996, however, President Leghari dismissed the Bhutto government, charging it with corruption, mismanagement of the economy, and implication in extra-judicial killings in Karachi. Elections in February 1997 resulted in an overwhelming victory for the PML-Nawaz and Nawaz Sharif was again called upon to form government. In April 1997, Sharif proposed and parliament passed a constitutional amendment removing the President’s power to dissolve the National Assembly and making his power to appoint military services chiefs and provincial governors contingent to the “advice” of the prime minister. A constitutional confrontation between Sharif and the Chief Justice of the Supreme Court resulted in the resignation of Leghari and the subsequent election of the Prime Minister’s own presidential candidate, Rafiq Tarar. This was followed by the removal of Chief Justice Sajjad Ali Shah, an act that damaged the prestige and independence of the judiciary.

Major Political Parties
The three largest political parties are the Quaid-i-Azam group of the Pakistan Muslim League (PML-Q), led by Chaudhry Shujat Hussain, the Muttahidda Majlis-i-Amal (MMA), an alliance of six religious parties, and the Pakistan People’s Party (PPP), led by Benazir Bhutto. However, on the eve of the election Benazir Bhutto allowed the formation of the Pakistan People’s Party Parliamentarians [PPPP] because she was barred from heading any political party that wanted to contest elections. Both PML-Q and the PPPP have a centrist orientation and support private enterprise and the free market. The PPPP espouses a somewhat more activist view of government, especially in the social sector. The PML-Q is slightly to the right of the PPP. The MMA wants to set up a strict Islamic state. (Some cynics say that the army is the biggest political party in Pakistan).

There are several other smaller, but significant, parties. The Pakistan Muslim League-Nawaz headed by Shahbaz Sharif. The Muttahidda Qaumi Movement (United National Movement-MQM) is a party that claims to represent the interests of Pakistan’s mohajirs (Urdu-speaking Muslims and their descendents who migrated from India following the partition). The Awami National Party (ANP) is a Pakhtoon nationalist party in the NWFP. The Jamaat-i-Islami (JI) is the most organized Islamist political party. It has a formidable street power. The Jamiat Ulema-i-Islam (JUI) of Maulana Fazlur Rahman has a significant following among the Pathans of the NWFP and Baluchistan. These are the most important parties in the MMA.

Marketing Strategies
Distribution Channel Options

There are approximately 200,000 retail outlets in Pakistan, of which nearly 50,000 are located in the major cities. About 75,000 of the total are classified as universal stores/outlets. These are further subdivided into the following categories:

Category Size
No. of Outlets

Very Large
300-500

Upscale
5,000-7,000

Medium
10,000-15,000

Very Small
75,000+


A sole proprietor or a joint-family usually owns stores in the latter three categories. Large supermarkets or c


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