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Benefits of Making Business in Pakistan | Buy & Sell Business

<br>At MergersCorp we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction.<br><br>Find more at: http://mergerscorp.com

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Benefits of Making Business in Pakistan | Buy & Sell Business

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  1. BENEFITS OF MAKING BUSINESS IN PAKISTAN WWW.MERGERSCORP.COM

  2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

  3. BENEFITS OF MAKING BUSINESS IN PAKISTAN WWW.MERGERSCORP.COM

  4. Country Overview Pakistan is bordered by Afghanistan, China, India, and Iran. Within Pakistan's landscape there is the flat fertile Indus plain in east, nurtured by the Indus, the country's longest river and a key water resource. Pakistan's north is mountainous. The nation's highest mountains are in the Himalayas in north east. Pakistan's largest and least populated province is Balochistan situated on the Balochistan Plateau in the south and west. The country occupies an area of 796,095 km², compared it is slightly larger than Turkey (783,562 km²) or slightly less than twice the size of the U.S. state of California. Some areas of Pakistan are extremely dangerous whereas others are absolutely safe for tourists. Pakistan has one of the largest contiguous irrigation systems in the world, known as the Indus Basin Irrigation System (IBIS). The System comprises six major rivers, that is, the Indus, Jhelum, Chenab, Ravi, Sutlej and Kabul, and their catchments. The Algonkian speaking Indians called the river 'Father of Waters' as it's the largest river in North America, channeling two Canadian Provinces and 31 states.

  5. Executive Summary Islamabad, city, capital of Pakistan, on the Potwar Plateau, 9 miles (14 km) northeast of Rawalpindi, the former interim capital. Islamabad city was built during the 1960s to replace Karachi as Pakistan's capital. The development of the country was focused on Karachi and President Ayub Khan wanted it to be equally distributed. He wanted Islamabad to be a modern and clean city, especially in comparison to other cities in Pakistan. Almost all of the people of Pakistan are Muslims or at least follow Islamic traditions, and Islamic ideals and practices suffuse virtually all parts of Pakistani life. Most Pakistanis belong to the Sunni sect, the major branch of Islam. There are also significant numbers of Shīʿite Muslims. Pakistan population is projected to increase by 4,363,526 people and reach 211,854,070 in the beginning of 2021. If external migration will remain on the previous year level, the population will be declined by 251,064 due to the migration reasons.

  6. Introduction – Doing business in Pakistan Being a growing economy, Pakistan is one of the great places where you can start your business. The new foreign policy of Pakistan has changed so many things in the country. The small business sector in Pakistan has very high potential and there are so many opportunities for aspiring entrepreneurs and businessmen. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile. The Textile industry in Pakistan is the largest manufacturing industry in Pakistan. If you’re looking to help people by providing the most basic necessities such as food, then consider this business idea. The Meal Sharing Company works with existing restaurants to provide meals for the poor. Pakistan has a large import and export economy with neighboring nations as well as many international countries.

  7. Conducting business in Pakistan More and more foreign investors recognize Pakistan as a market to invest in. If you are planning to invest in Pakistan, here are the types of legal entities that you can choose from. 1¬) Private Limited Company 2) Single Member Company 3) Public Limited Company

  8. Taxation in Pakistan A Federal Excise Duty (FED) is levied on goods manufactured or imported into Pakistan at a rate of 17%. The sales tax on services, which replaces federal excise duties for services, is levied at rates ranging from 13% to 16%. Taxes are required to meet the expenditure that a country needs to serve its people. Pakistan operates through hybrid system whereby Federal Board of Revenue (FBR) collects taxes on goods and the provinces levy on services. The FBR revenue is only 10% of the GDP, which is one of the lowest in the world. Super tax is levied for tax year 2019 at the rate of 2% (reduced from 3% for tax year 2018) of a person's income where the income is at least PKR 500 million during the tax year. The rate is 3% for banking companies (reduced from 4% for tax year 2018).

  9. Trade Pakistan's exports continue to be dominated by cotton textiles and apparel. Imports include petroleum and petroleum products, chemicals, fertilizer, capital goods, industrial raw materials, and consumer products. China is by far the biggest trading partner of Pakistan. Thanks to CPEC the trade between both the countries has increased and it has encouraged other countries to invest in Pakistan as well. The main exports of Pakistan are cotton, textiles, and apparel. In 2017, Pakistan exported $24.8B and imported $55.6B, resulting in a negative trade balance of $30.9B. In 2017 the GDP of Pakistan was $304B and its GDP per capita was $5.53k. The top export destinations of Pakistan are the United States ($3.5B), Germany ($1.9B), China($1.85B), the United Kingdom ($1.46B) and Afghanistan ($1.39B). The top import origins are China ($15.2B), the United Arab Emirates($6.95B), Saudi Arabia ($2.53B), Indonesia($2.46B) and Japan ($2.37B).

  10. Banking in Pakistan Pakistan's banking sector consists of commercial banks, foreign banks, Islamic banks, development finance institutions (DFI's), and micro-finance banks. Presently there are 26 commercial banks, 6 DFI's, and 11 micro-finance banks operating in the country. Further details about banking in Pakistan are available here. The bank operated 475 conventional banking branches, including 18 sub-branches, 10 overseas branches, 153 Islamic banking branches, and an offshore banking unit.As of 2016, the bank's total assets amounted to US$8.29 billion and net profit reached US$71.42 million. As per State Bank of Pakistan data, there are 50.565 million bank accounts in Pakistan, giving a penetration rate of 24.34%.In addition, there are 15,053 bank branches, 14,148 ATMs, and 53,269 POS machines active in the country.

  11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

  12. Looking to Buy or Sell a Business? CONTACT US NOW FOR A FREE BUSINESS VALUATION WWW.MERGERSCORP.COM

  13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com

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