Pakistan Pest Analysis

                                        Market Audit

                              PEST Analysis:

Political Environment:

Politically Pakistan is a corrupt country. There politicians just come into power to make money.  Since From 1971, 2 big Families Bhutto and Nawaz Sharif are ruling Pakistan. Since from independence Pakistan’s Army declared Martial Law 3 times. First Martial Law in 1958, second in 1969 and Third in 1977. In 1999 Military ruled Pakistan again but this time they came from huge public support, they did not imposed any Martial Law. According to transparency.org whenever army came into power they destroyed Pakistan’s Economy. Let talk about corruption before Army and after Army. In 1999 Pakistan was ranking 87, same year Army took charge of Pakistan and ruled since 2007. In this 8 year of long tenure Pakistan’s corruption ranking decreased from 87 to 138. After 2007 when civil government took charge again Pakistan’s corruption ranking went up from 138 to 126.

                                   For our nuclear plant project Pakistan’s current Government is best for us because they are already working with Chinese investors in the same project, so we will do joint venture with government. Our target market will be Baluchistan and KPK(Khyber Pakhtoon Khwa) province because these provinces are borrowing electricity from Punjab and Singh Provinces. Because of our joint venture with government our investment and whole project will be secure.

Economic Environment:

Pakistan’s GDP is $257 billion and PPP is $928 billion with growth rate of 4.24%. Pakistan’s PPP ranks 26th in all over the world. Pakistan’s imports are larger than its exports. Every year Pakistan exports $30.41 billion of goods and services to United Stated, China, UAE, Afghanistan and Germany which includes Linens, cotton and Yarn, Rice, cement and Refined Petroleum. Pakistan imports Food, machinery, Transport Vehicles, Textile, Fertilizers, Raw Material, Refined Petroleum and Crude Oil from China, UAE, Kuwait, Saudi Arabia and Malaysia

Social Environment:

Since independence Pakistan is facing thousands of social issues. According to finance Minister of Pakistan minimum daily wage is 2$ and more than half of the country is living below the poverty line. In 2007 – 2008 minimum wages was 1.25$ and 17.2 percent people were living below the poverty line. Majority of students cannot afford schools and those who can they are facing poor education system. Child Labor is another main issue in Pakistan, those parent who cannot send their children to school they send them to work. Women on work face discrimination because of their gender. Health system is totally destroyed, some people sell fake medicines in order to generate more revenue. There is no value of human beings. Majority of politicians are corrupt. Bribery is common in majority of society, without bribery no one can start his business. From grass root to top level everyone is corrupt. Let me give you example of police. Suppose in Pakistan if you are going from one city to another and police stops you in a check post they will not let you go even you have all complete documents because they will expect you to give them some money which is completely illegal.

Technological Environment:

Cameco is one of the largest uranium producers in the World. Uranium comes in 2 forms U-235 and U-238. U-235 is what is used in Power plants and U-238 is used in plutonium Bombs. One pound of Uranium has as much energy as three million pounds of Coal.

Currently Pakistan has 4 nuclear reactors which are producing 20 bombs per year. According to US report within a decade Pakistan will be third largest nuclear force after USA and Russia if they keep producing bombs like this. In Pakistan 3 power plants are operational which are producing 690MW of electricity right now and 7 are under construction which will be operational by 2016, 2017 and 2020.

Opportunities:

Pakistan has lot of opportunities for Local and foreign investors.  Pakistan has 796095 KM sq of Land which got huge natural resources like Coal, Oil and Gas, Gold, Copper and zinc. Pakistan has all four seasons. Pakistan has around 180 million population which has divided into upper, lower and middle class.

For us Pakistan is best country to invest our money in. Pakistan’s upper, Lower and middle all classes will take advantage. By 2017 we will complete our project. Currently 70% of Pakistan’s industries are closed. Our investment will boost Pakistan’s economy and will create Millions of jobs. Industries will start working again will generate huge revenue and government will receive taxes. It will benefit millions of households. As I mention before Baluchistan and KPK borrow electricity from other provinces, we do not have any competitor in Baluchistan and KPK. In Pakistan Provinces are sovereign to produce their own electricity and whatever they produce they just pay GST to the government. China is just investing in Punjab and Sindh Province, which is good for us and this is a huge advantage for us. Government will also be involved in our project because of which it will be hard for new competitor to exist. Our mission is to target all Domestic, Commercial, Industrial, Agricultural, Public Lightning and Bulk supply Sectors. Once industries will start working again then more people will get jobs. When more people will get job then they will be able to consume more electricity and will also be able to pay their bills.

Thread:

As we know that Pakistan is unsecure country as well. After 911 around 4 million Afghanis move to Pakistan and they declared Jihad against Pakistan army because they think that Pakistan army is supporting USA against their country. After 911 we have seen lot of causalities in Bomb blasts and suicide attacks. After 2013 we saw huge improvement in Pakistan’s economy because Pakistan Army started operation against Pakistan Taliban in North Waziristan and cleared around 90% of area from Taliban. Pakistan Rangers started operation in Karachi and arrested 1000’s of target killers, most of them belonged to different political parties.