TABLE OF CONTENTS



I.   COMMERCIAL OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . .  1

II.  LEADING PROSPECTS FOR U.S. EXPORTERS. . . . . . . . . . . . . . . .  2
     A.   Best prospects for Agricultural Exports. . . . . . . . . . . .  2
     B.   Best prospects for Industrial Exports. . . . . . . . . . . . .  2

III. ECONOMIC TRENDS AND OUTLOOK . . . . . . . . . . . . . . . . . . . .  4
     A.   Major Trends and Outlook . . . . . . . . . . . . . . . . . . .  4
     B.   Principal Sectors. . . . . . . . . . . . . . . . . . . . . . .  5
          1.   Economic Growth . . . . . . . . . . . . . . . . . . . . .  5
          2.   Agriculture . . . . . . . . . . . . . . . . . . . . . . .  6
          3.   Industry. . . . . . . . . . . . . . . . . . . . . . . . .  9
          4.   Energy. . . . . . . . . . . . . . . . . . . . . . . . . . 14
          5.   Minerals. . . . . . . . . . . . . . . . . . . . . . . . . 17
     C.   Government Role in Economy . . . . . . . . . . . . . . . . . . 18
          1.   Monetary policy . . . . . . . . . . . . . . . . . . . . . 18
          2.   Fiscal Policy . . . . . . . . . . . . . . . . . . . . . l 19
          3.   1994-95 Budget. . . . . . . . . . . . . . . . . . . . . . 20
          4.   Privatization . . . . . . . . . . . . . . . . . . . . . . 21
     D.   Balance of Payments. . . . . . . . . . . . . . . . . . . . . . 22
          1.   Balance of Payments Situation . . . . . . . . . . . . . . 22
          2.   Foreign Exchange Policies and Reserves. . . . . . . . . . 24
          3.   Remittances from Overseas Workers . . . . . . . . . . . . 24
          4.   Foreign Trade . . . . . . . . . . . . . . . . . . . . . . 24
     E.   Trade and Investment Barriers. . . . . . . . . . . . . . . . . 25
     F.   Labor Force. . . . . . . . . . . . . . . . . . . . . . . . . . 27
     G.   Major Third Country Competitors in Specific Markets. . . . . . 27
     H.   Infrastructure for Goods and Services Distribution and Major
          Infrastructure Projects Under Way. . . . . . . . . . . . . . . 28

IV.  POLITICAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . 31
     A.   Nature of the Bilateral Relationship with the U.S. . . . . . . 31
     B.   Government and Political System. . . . . . . . . . . . . . . . 31
     C.   History. . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
     D.   Political Issues Affecting the Business Climate. . . . . . . . 34

V.   MARKETING U.S. PRODUCTS AND SERVICES. . . . . . . . . . . . . . . . 35
     A.   Distribution and Sales Channels. . . . . . . . . . . . . . . . 35
     B.   Use of Agents/Distributors:  Finding a Partner . . . . . . . . 36
     C.   Franchising. . . . . . . . . . . . . . . . . . . . . . . . . . 36
     D.   Direct Marketing . . . . . . . . . . . . . . . . . . . . . . . 37
     E.   Joint Ventures . . . . . . . . . . . . . . . . . . . . . . . . 38
     F.   Steps to Establishing an Office. . . . . . . . . . . . . . . . 38
     G.   Selling Factors/Techniques . . . . . . . . . . . . . . . . . . 39
     H.   Advertising and Trade Promotion. . . . . . . . . . . . . . . . 40
     I.   Pricing Products . . . . . . . . . . . . . . . . . . . . . . . 41
     J.   Sales Service/Customer Support . . . . . . . . . . . . . . . . 42
     K.   Selling to the Government. . . . . . . . . . . . . . . . . . . 42
     L.   Protecting Your Product from IPR Infringement. . . . . . . . . 43
     M.   Need for a Local Attorney. . . . . . . . . . . . . . . . . . . 43

VI.  TRADE REGULATIONS AND STANDARDS . . . . . . . . . . . . . . . . . . 45
     A.   Tariff and Import Taxes. . . . . . . . . . . . . . . . . . . . 45
     B.   Customs Valuation. . . . . . . . . . . . . . . . . . . . . . . 45
     C.   Import Licenses. . . . . . . . . . . . . . . . . . . . . . . . 45
     D.   Export Controls. . . . . . . . . . . . . . . . . . . . . . . . 46
     E.   Import/Export Documentation. . . . . . . . . . . . . . . . . . 46
     F.   Temporary Entry. . . . . . . . . . . . . . . . . . . . . . . . 46
     G.   Labeling, Marking Requirements . . . . . . . . . . . . . . . . 47
     H.   Prohibited Imports . . . . . . . . . . . . . . . . . . . . . . 47
     I.   Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . 47
     J.   Free Trade Zones . . . . . . . . . . . . . . . . . . . . . . . 47
     K.   Membership in Free Trade Arrangements. . . . . . . . . . . . . 48

VII. INVESTMENT CLIMATE. . . . . . . . . . . . . . . . . . . . . . . . . 50
     A.   Openness to Foreign Investment . . . . . . . . . . . . . . . . 50
     B.   Conversion and Transfer Policies . . . . . . . . . . . . . . . 51
     C.   Expropriation and Compensation . . . . . . . . . . . . . . . . 52
     D.   Dispute Settlement . . . . . . . . . . . . . . . . . . . . . . 52
     E.   Performance Requirements/Incentives. . . . . . . . . . . . . . 54
     F.   Right to Private Ownership and Establishment . . . . . . . . . 54
     G.   Protection of Property Rights. . . . . . . . . . . . . . . . . 55
     H.   Regulatory System:  Laws and Procedures. . . . . . . . . . . . 55
     I.   Efficient Capital Markets and Portfolio Investment . . . . . . 56
     J.   Political Violence . . . . . . . . . . . . . . . . . . . . . . 58
     K.   Bilateral Investment Agreements. . . . . . . . . . . . . . . . 59
     L.   OPIC and Other Investment Insurance Programs . . . . . . . . . 59
     M.   Labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
     N.   Foreign Trade Zones/Free Ports . . . . . . . . . . . . . . . . 59
     O.   Capital Outflow Policy . . . . . . . . . . . . . . . . . . . . 60
     P.   Foreign Direct Investment Statistics . . . . . . . . . . . . . 60
     Q.   Major Foreign Investors. . . . . . . . . . . . . . . . . . . . 61

VIII.     TRADE AND PROJECT FINANCING. . . . . . . . . . . . . . . . . . 62
     A.   Brief Description of Banking System. . . . . . . . . . . . . . 62
     B.   Foreign Exchange Controls Affecting Trading. . . . . . . . . . 65
     C.   Availability of Financing. . . . . . . . . . . . . . . . . . . 65
     D.   Export Financing . . . . . . . . . . . . . . . . . . . . . . . 67

IX.  BUSINESS TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . 70
     A.   Business Customs . . . . . . . . . . . . . . . . . . . . . . . 70
     B.   Passport, Visa, and Entry Requirements; Foreigner
          Registration . . . . . . . . . . . . . . . . . . . . . . . . . 70
     C.   Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
     D.   Business Infrastructure. . . . . . . . . . . . . . . . . . . . 72

Appendix A - Country Data - Pakistan . . . . . . . . . . . . . . . . . .  i
     I.   Country Profile. . . . . . . . . . . . . . . . . . . . . . . .  i
          Population . . . . . . . . . . . . . . . . . . . . . . . . . .  i
          Population Growth Rate . . . . . . . . . . . . . . . . . . . .  i
          Religions. . . . . . . . . . . . . . . . . . . . . . . . . . . ii
          Government System. . . . . . . . . . . . . . . . . . . . . . . ii
          Languages. . . . . . . . . . . . . . . . . . . . . . . . . . . ii
          Work Week. . . . . . . . . . . . . . . . . . . . . . . . . . . ii
     II.  Domestic Economy . . . . . . . . . . . . . . . . . . . . . . .iii
     III. Foreign Trade. . . . . . . . . . . . . . . . . . . . . . . . . iv

Appendix B - Data on Best Prospects for U.S. Exports . . . . . . . . . .vii
     I.   Agricultural Export Prospects. . . . . . . . . . . . . . . . .vii
     II.  Industrial Export Prospects    . . . . . . . . . . . . . . . .xii

Appendix C:   U.S. and Pakistan Contacts . . . . . . . . . . . . . . . xxii
     I.   Pakistan Government  . . . . . . . . . . . . . . . . . . . . xxii
     II.  Commercial Banks . . . . . . . . . . . . . . . . . . . . . . xxvi
     III. Research Firms . . . . . . . . . . . . . . . . . . . . . . xxviii
     IV.  Chambers of Commerce . . . . . . . . . . . . . . . . . . . . .xxx
     V.   Pakistan Trade Associations. . . . . . . . . . . . . . . . . xxxi
     VI.  U.S. Government Contacts . . . . . . . . . . . . . . . . . xxxiii
     VII. U.S. Based Multipliers . . . . . . . . . . . . . . . . . . . xxxv
     VIII.     Miscellaneous . . . . . . . . . . . . . . . . . . . . . xxxv

Appendix D - Market Research . . . . . . . . . . . . . . . . . . . . xxxvii
     I.   Industry Subsector Analyses. . . . . . . . . . . . . . . . xxxvii
     II.  Agriculture Reports. . . . . . . . . . . . . . . . . . . .xxxviii

Appendix E - Trade Events Schedule . . . . . . . . . . . . . . . . . . . xl