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Overseas business risk for Pakistan
Information on how UK companies can control risks when doing business in Pakistan.
This report provides key information on security and political risks that UK businesses may face when operating in Pakistan.
Political
Former Prime Minister Imran Khan of the Pakistan Tehreek-e-Insaf (PTI) party was elected in 2018 but removed from office following a no confidence motion in April 2022. Following this, National Assembly members elected former opposition leader Shehbaz Sharif of the Pakistan Muslim League - Nawaz (PML-N) as Prime Minister. The PML-N are joined in coalition with the Pakistan People’s Party (PPP) and a number of smaller parties, together forming a majority under the banner of the Pakistan Democratic Movement (PDM). The current government’s five-year term is due to expire in August 2023 after which a caretaker government with limited powers will take charge until elections are held. Elections are due in October or November 2023. Political turbulence remains a feature of Pakistan’s democracy.
Pakistan has 1 federal administrative territory (Islamabad Capital Territory), 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan), and 2 administrative regions in Pakistan-administered Kashmir (Azad Jammu & Kashmir and Gilgit-Baltistan).
Pakistan is a parliamentary democracy with a bicameral parliament at the federal level (the National Assembly and Senate) and unicameral parliaments at provincial level (the Provincial Assemblies of Punjab, Sindh, Khyber-Pakhtunkhwa, and Balochistan). The federal and provincial governments are cabinet-style, with mostly elected ministers and some appointed advisers managing government departments, led by a Prime Minister (nationally) or Chief Minister (provincially).
Under the 18th Amendment to the Constitution of Pakistan, passed in 2010, the provinces were granted significant autonomy. Budget allocations between the federal centre and provinces are decided via the National Finance Commission award. The President is a mostly ceremonial Head of State, as are provincial governors. The military plays a large role in strategic decisions in Pakistan.
Economic
Pakistan is undethe advice of their lawyers, should they seek it. The UK government does not provide legal advice to private companies and individuals in relation to their commercial activities. Companies considering operating in either Pakistan or India should also consider the advice in FCDO Travel Advice.