Located in South Asia, Pakistan is the world’s 5th largest country in terms of population. The country shares its eastern border with India, the northwestern border with China, the western border with Iran, and the northern border with Afghanistan.
The nation’s economy has always been through ups and downs because of a rapidly growing population, political differences, and multi-tiered investment from foreign investment. The administration plans to bring in various plans to invite foreign investment and create various job opportunities.
Overview of Pakistan
Population: 220 million (2021)
GDP: 296 billion USD (FY21)
The economy of Pakistan is semi-industrial as most of its economy is dependent on the Indus River. The nation’s GDP is expected to grow by 5.04% in 2026 and is currently one of the most highly developing countries in the world. The unemployment rate of Pakistan in 2020 was 4.45% and has remained stable in recent years.
The key growth areas in Pakistan’s economy are situated in Karachi, Lahore, and most of the urban centers in Punjab. The country is going under economic liberalization where it is privatizing various government sectors to attract foreign investment and promote a sustainable economy. Pakistan also ranks in the list of top 10 emerging economies in manufacturing hubs.
A brief glimpse of the industries -
- The administration of the Pakistan government is forecasting a 5% future growth rate which is one of the highest in Southern Asia. The poverty rate in Pakistan rose to 5% in 2020 from 2.3% in 2018. The COVID-19 pandemic is one of the main reasons behind the downfall of the country’s economy.
- The PPP or Pakistan’s purchasing power parity is nearly 1 trillion USD as the Pakistan Rupee is highly depreciating year after year. The downfall of the Pakistan Rupee will make the country an ideal choice for foreign investment as iconic brands would love to pay lowered wages to employees.
- The government is keenly interested in uplifting EVs or Electric Vehicles, Biomedical, Electromagnetic, and Semiconductor industry standards. Apart from Lahore and Karachi, Pakistan’s new emerging PDC or Pakistan Digital City “Haripur'' is developing quickly as Samsung and Realme launch their assembly line-up in the nation.
- The World Bank and International Finance Corporation report ranked Pakistan at 108 out of 190 countries to ease business. As it is easy to do business in the country, most auto-sector giants like Renault, Hyundai, Kia, and Volkswagen plan to enter the country for development.
- Exxon Mobil, America's largest oil and gas drilling company, has started an off-shore drilling project in Pakistan again after a 30-year gap.
- Some well-developed nations like Qatar have promised to invest 3 billion USD as direct investments to boost Foreign-Exchange reserves.
- The average internet speed in Pakistan ranks 117, with the average download speed being 19.90 Mbps in mobile and 11.72 Mbps in fixed broadband. The upload speed is 11.51 Mbps in mobile and 10.33 Mbps in fixed broadband.
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Cost of Living in Pakistan
The cost of living in Pakistan depends on where you stay; for example, Karachi and Larkana are two of the most expensive cities in Pakistan based on the statistics of PBS or the Pakistan Bureau of statistics. Abbottabad and Faisalabad also fall under the most expensive cities to live in Pakistan. The country is quite cheaper when compared to North America and European nations.
The average cost of living in Pakistan for one person is 50,000 PKR, including rent. The cost might also rise if any other expenses like education and health care charges are included.
Hiring Cost in Pakistan
The hiring cost in Pakistan is widely dependent on the type of industry, skilled or unskilled labor, and type of job role. The average cost of hiring in Pakistan is around 4,750-8,000 PKR, and the amount may rise if you go with premium recruitment agencies. You may have to pay for initial training, traveling, and HR costs while hiring in Pakistan.
Salary Structure For Various Roles in Pakistan
Employment Laws in Pakistan
- The government has eased various laws to attract multinational companies as they offer good earning opportunities for both skilled and unskilled labor.
- Although the authorities have eased restrictions, the nation is quite strict with labor laws.
- The government has also raised the minimum wage for unskilled labor to 6,000 PKR from 4,600 PKR.
- The employer must also cover accidental coverage through insurance policies for workers who work in manufacturing industries or the ones who are deployed at risky jobs.
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