PAKISTAN

Logistic and forwarding services in Pakistan

Pakistan

Capital City
Islamabad

Population
182,1 Mio.

National languages
Urdu, English

Currency
Pakistani Rupee

Gross national product (GNP)
USD 232,29 Mrd.

GNP per person
USD 1’275

Financial exports to Switzerland
CHF 273,66 Mio.

Financial imports from Switzerland
CHF 107,8 Mio.

Bilateral relations Switzerland–Pakistan

The long-standing bilateral relations between Switzerland and Pakistan are good. A range of economic agreements has aided the development of bilateral trade.

Economic cooperation

Switzerland has traditionally run a trade surplus with Pakistan and has been one of the country’s biggest direct investors for many years. Many Swiss companies operate in Pakistan, some with their own production sites. These firms are mainly based in Karachi and employ around 12,000 people.
In 2014 Swiss exports to Pakistan fell by 1.5% to just under CHF 274 million according to the current provisional figures. Imports, however, rose by 10.5% to approximately CHF 108 million.

 

Business language

English (national language: Urdu).

 

Dimensions and weights

Metric dimensions and weights system.

 

Currency

National currency Pakistani Rupee (pR) = 100 Paisa (PS)

ISO code: PKR

 

Customs tariff

Harmonised system. Customs clearance based on the transaction value.

 

Import control

Import licences are generally no longer required.

The presentation of an L/C confirmation from the State Bank of Pakistan is generally sufficient for import. In the case of transactions processed without L/C, ask the importer about the necessary import documentation.

Where a licence is required, the goods may not be shipped before this licence is granted or after it expires. The term of the licences is generally 12 months, for capital goods it is 12 to 18 months (where applicable extensions of up to 24 months are possible). The import programme also includes the “negative list” (list of banned goods) and the “restricted list” (import bans or imports subject to special conditions e.g. quotas).

The import of goods from Israel is prohibited and may also not take place via third countries.

Standard VAT rate: 17%

 

Terms of payment and tenders

The foreign currency market is free. Payment against irrevocable letters of credit is advisable. Payment transactions are generally processed in EUR or USD.

 

Designations of origin

Goods originating from outside of Pakistan with any designations which may cause the conclusion to be drawn that the goods originate in Pakistan must be labelled with the country of origin (“Made in …”). Despite the lack of compulsory provisions, to avoid any difficulties it is advisable to mark the designation of origin in a permanent manner on both the goods and the boxes. Avoid terms such as extra, special, first class and the like.

Follow the precise instructions given by the importer.

 

Marking/labelling

Standard markings with the addition of the country of origin.

Goods including chemicals, medications, textiles and cotton yarn are subject to special labelling regulations. Ask the importer.

 

Packaging

Seaworthy packaging. Signing the boxes with “Made in …” are recommended. Moderate weight of the boxes. The packaging must protect the goods well from moisture, heat and insects, so use boxes with sheet zinc or tin.

 

Product samples

Samples are subject to customs duties. Samples for trade fairs can be temporarily imported duty free if a customs security is paid. ATA Carnet only permitted for trade fairs and exhibitions and professional equipment. Information can be provided by the Chamber of Industry and Commerce. The shipment of samples which are subject to customs duties as “packages” is not permitted.

 

Shipping and accompanying documents

Standard and:

a) 6 uncertified commercial invoices indicating the FOB and CIF value, the country of origin, the import licence number and the harmonised system number. Original signature.

b) Certificates of origin are not generally required, but if so these are certified by the Chamber of Industry and Commerce. As the origin, indicate “Swiss” in the case of Swiss goods, or “European Union” for goods originating from UE.

c) Bills of lading uncertified. Order bills of lading are possible with an indication of a notify address.

d) For postal items up to 31.5 kg: 1 foreign dispatch note, 1 customs declaration in English.

e) Recommendation: include a packing list.