EmergingMarketIQ

South Asia · updated 24 September 2026

🇵🇰 Doing business in Pakistan

230M population market with significant macro challenges.

Current-conditions alert (ELEVATED, 2026-09-24): Severe fuel and LNG supply stress from the Hormuz closure (heavy reliance on Gulf crude and Qatari LNG); Pakistan has acted as a mediator in US–Iran talks.

Conditions are changing fast — check current government travel and trade advisories before acting.

4.4/10structural score · risk High
4.4/10current conditions
US$248kfirst year, 10-person team (indicative)
$407 BillionGDP · pop. 255 Million
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Structural scores

Regulatory4.2
Tax4.5
Foreign investment4.2
Political stability3.5
Infrastructure4.6
Talent5.4

Highlights: Large young population · IMF programme dependency · Currency instability

Key industries

Textiles & Garments → Stable

Pakistan is worlds 4th largest cotton producer and major garment exporter. Textile sector employs 40% of industrial workforce.

Main investors: China, UAE, UK, US

Agriculture → Stable

Agriculture contributes 24% of GDP. Pakistan is a major exporter of rice, cotton, wheat and sugarcane.

Main investors: China, UAE, Saudi Arabia, Netherlands

Technology & IT Services ↑ Growing

Pakistan exports $2.6B in IT services. Karachi and Lahore are growing tech hubs with strong freelance developer community.

Main investors: US, UK, UAE, Saudi Arabia

Energy & Power → Stable

CPEC energy projects have added 10,000MW of capacity. Renewable energy is a growing priority under IMF programme.

Main investors: China, Saudi Arabia, UAE, US

Sector priorities

  1. Technology & IT Outsourcing — PSEB support, competitive talent costs and strong English proficiency making Pakistan increasingly attractive for IT outsourcing.
  2. Agriculture & Food Processing — Large agricultural base with low processing value add creating significant opportunity for food technology and processing investment.
  3. Renewable Energy — Pakistan solar and wind potential is among South Asias highest. Government AEDB incentives support renewable project development.

Talent & work permits

Pakistan has a young population with 64% under 30. English widely used in business. Strong IT and engineering talent at competitive cost.

  • Foreign workers: Work permit required from Ministry of Interior. Employer sponsored. Process can take 8 to 16 weeks.
  • Localisation: No formal localisation quota outside of some sectors. Companies expected to prioritise local hiring as general practice.
  • Key consideration: Pakistan offers some of the most cost competitive English speaking IT talent globally making it attractive for technology outsourcing.

How to enter: first four steps

Pakistan market entry requires careful planning given macro instability. SECP registration is straightforward but FX and repatriation planning is critical.

  1. Register with SECP — Securities and Exchange Commission of Pakistan online portal for company incorporation
  2. Register with FBR — Federal Board of Revenue for NTN national tax number and sales tax registration
  3. Open PKR and USD accounts — establish banking relationships with HBL, UBL or MCB before commencing operations
  4. Register with BOI — Board of Investment for foreign investment facilitation and repatriation approval processes

Indicative cost: 10-person team

US$19kmonthly run-rate
US$9kone-off setup
US$248kfirst year all-in
PKRlocal currency

Professional-services mix (1 senior, 5 professional, 2 admin, 2 support), Grade-A office, registration, legal, audit and tax compliance. Model estimate, not a quote. Model your own team size and industry →

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Common questions

Is Pakistan a good market to enter in 2026?

Pakistan scores 4.4/10 on EmergingMarketIQ’s structural index (risk: High). 230M population market with significant macro challenges. Current-conditions score: 4.4/10 (Pakistan relies heavily on Gulf crude and Qatari LNG; the Hormuz closure has caused fuel and power supply stress and inflation pressure. Pakistan hosted US–Iran talks in April 2026.) — updated 24 September 2026.

How much does it cost to set up a 10-person office in Pakistan?

Our cost model estimates about US$248k for the first year (≈US$19k per month run-rate plus ≈US$9k one-off setup) for a 10-person professional-services team. Indicative only.

What are the first steps to set up a company in Pakistan?

Register with SECP — Securities and Exchange Commission of Pakistan online portal for company incorporation Then: Register with FBR — Federal Board of Revenue for NTN national tax number and sales tax registration Then: Open PKR and USD accounts — establish banking relationships with HBL, UBL or MCB before commencing operations Then: Register with BOI — Board of Investment for foreign investment facilitation and repatriation approval processes

Source: EmergingMarketIQ country dataset — current conditions, alerts, GDP (World Bank 2025) and FX updated 24 September 2026; structural scores reviewed 24 September 2026. Rules, rates and conditions change — verify with local counsel before acting. Not legal, tax or investment advice.