The recent shift in regulations has accelerated Pakistan’s industries need to be more competitive in order to compete with Indian manufacturers. This has created an increased demand for industry consolidation to gain benefits from economies of scale, technical expertise, distribution, branding, and other competitive advantages. As WTA is in the forefront of these regulatory changes, we can provide the latest insights into the changing landscape and its implications for South Asian manufacturers.
India has recently given its in-principal agreement and will soon allow foreign direct investment from Pakistan by amending its Foreign Exchange Management Act. Both countries have also agreed to try and increase bilateral trade from the current $2.7 billion a year to $6 billion by 2013-14. We offer our clients opportunities the opportunity to capitalise on these latest trends through mergers and acquisitions within Pakistan or through forming joint ventures with Indian manufacturers.
Pakistan’s industrial sector landscape has significant opportunities and challenges in competing for global and domestic markets. Just in a few industrial sectors alone, the scope is immense. For example, in Pakistan, there are currently there are over 100 companies assembling various other vehicles including buses, trucks, tractors, rickshaws and motorcycles, over 1,700 automotive parts manufacturers; 450 electric fan manufacturers; over 2,300 surgical companies; and over 600 pharmaceutical companies.