Country Profile

Infrastructure, telecommunications, energy and textiles are all potential sectors of interest for foreign firms and investors looking to do business in Pakistan. However, corruption remains a major obstacle to companies operating in the country, along with macro-economic uncertainty and lingering security risks.

While companies are likely to encounter corruption across all sectors, certain industries and firm profiles are more at risk than others. Collusive contracting and kickbacks remain widespread in the energy and infrastructure sectors, while industries driven by fast-moving consumer durables, such as telecommunications, seem to be becoming more resistant to such practices.

Larger firms are generally less vulnerable to coercive corruption, and the positive effects of foreign bribery laws, such as the UK Bribery Act, can be gradually felt percolating through multinationals’ value chains as local firms become increasingly sensitive to the compliance requirements of foreign companies.