Five most profitable business sectors you would want to invest in Pakistan
Although many of Pakistan's business sectors are underdeveloped, its economy is majorly surviving due to five industries.
In the past five years, Pakistan’s business sector has shown considerable growth. Pakistanis can expect further economic growth as countries like France, United Kingdom, Turkey, and China have started to show interest in trade with Pakistan. Moreover, private sector companies’ investments and The China Pakistan Economic Corridor (CPEC) are paving the way to more possibilities. According to a study published by Harvard, Pakistan’s economic growth will surpass China’s in the next 20 years.
Although many of Pakistan’s business sectors are underdeveloped, its economy is majorly surviving due to five industries. Date from the Karachi Stock Exchange (KSE) indicates that the top companies that witnessed substantial growth and profitability from 2013 to 2017 belonged to these five sectors.
What are the five most profitable business sectors in Pakistan?
FMCG is possibly the most primary business sector in Pakistan. This industry includes companies like Colgate Palmolive, Unilever, Nestle, and Engro Foods that are consistently growing and becoming more profitable, along with a few multinational players that cover the entire market. FMCG flaunts a vast market that is still in the growing stage.
Chemicals and Fertilizers
The chemicals and Fertilizer industry, by far, has the biggest market. It houses companies like ICI Pakistan, Fauji Fertilizer, Engro Fertilizers and Chemicals, Abbot, Lucky Cement, and more. All these dominate the market and enjoy strong economic growth and profitability.
The automotive sector in Pakistan forms an oligopoly dominated by global players like Toyota, Honda, and Suzuki. However, rapidly increasing disposable income and the country’s transport needs make this business sector attractive and profitable. Potential automakers are now being allowed to set up car assembly plants in Pakistan to cater to these needs.
The textile industry of the country is recognized all over the world. 57% of Pakistan’s overall exports come from this business sector. However, the government is unable to facilitate and streamline the textile sector’s growth. Regardless, critical players in this industry, like Premium Textile and Din Textile, enjoy high profits.
The energy and Petroleum sector’s products are inevitable and indispensable. In Pakistan, energy and petroleum needs are growing at a fast pace. Studies state that the country’s energy needs will surpass 50,000 MW by 2025. This statistic alone indicates the growth and profitability of this industry.
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