Automark

Dear Readers in an increasingly globalized economy, foreign investment plays a pivotal role in the growth and development of emerging markets like Pakistan. However, the integration of foreign partners into the local economy brings with it a set of socio-economic responsibilities that must be addressed by both regulators and businesses. This article explores the socio-economic responsibilities of regulators and foreign partners in Pakistan, particularly concerning customer advance payments for products in production / yet to be supplied, the steps taken to safeguard customer interests, and the key performance indicators (KPIs) that can be established to protect all stakeholders involved.

Socio-Economic Responsibilities of Regulators

Regulators in Pakistan, such as the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP), have a crucial role in ensuring a stable and conducive environment for foreign investment. Their responsibilities encompass several key areas:

1. Establishing a Legal Framework: Regulators must develop and enforce a comprehensive legal framework that governs foreign investments. This framework should align with international standards while addressing local needs, covering areas such as labor laws, environmental regulations, and corporate governance.
2. Monitoring Compliance: Continuous oversight is essential to ensure that foreign partners adhere to established regulations. This includes conducting regular audits, inspections, and requiring detailed reporting from businesses to maintain accountability.
3. Consumer Protection: Protecting consumers from unfair practices is a fundamental responsibility of regulators. This involves implementing policies that ensure product safety, transparency in pricing, and mechanisms for dispute resolution.
4. Promoting Fair Competition: Regulators must prevent monopolistic practices and promote a competitive market environment. This ensures that foreign partners do not exploit their market position to the detriment of local businesses and consumers.
5. Facilitating Economic Development: Regulators should create an environment that encourages foreign investment while simultaneously promoting local businesses. This can be achieved through incentives for foreign partners to invest in local infrastructure and community development projects.

Socio-Economic Responsibilities of Foreign Partners

Foreign partners operating in Pakistan also bear significant socio-economic responsibilities, which include:

1. Compliance with Local Laws: Foreign businesses must adhere to the legal framework established by regulators, including labor laws, environmental regulations, and tax obligations. Compliance fosters trust and stability in the business environment.
2. Economic Contribution: Foreign partners should actively contribute to the local economy by creating jobs, investing in local suppliers, and supporting local businesses. This not only stimulates economic growth but also enhances the overall socio-economic landscape.
3. Community Engagement: Engaging with local communities is essential for foreign partners. This includes investing in social initiatives that improve the quality of life for residents, suchas education, healthcare, and infrastructure development. By fostering positive relationships with local communities, foreign partners can enhance their reputation and ensure sustainable operations.

4. Transparency and Accountability: Foreign partners should maintain transparency in their operations, particularly regarding financial transactions and business practices. This includes clear communication about advance payments, production timelines, and any potential risks involved. Accountability mechanisms should be in place to address any grievances from customers or local stakeholders.
5. Sustainability Practices: Implementing sustainable business practices is crucial for foreign partners. This involves minimizing environmental impact, ensuring ethical labor practices, and contributing to the long-term well-being of the communities in which they operate. Sustainable practices not only protect the environment but also enhance the brand image and customer loyalty.

Protecting Customer Interests: The Role of KPIs

To safeguard customer interests, particularly in scenarios involving advance payments for products in production, it is essential to establish clear Key Performance Indicators (KPIs). These KPIs serve as measurable values that indicate how effectively a company is achieving its key business objectives. Here are some critical KPIs that can be implemented:

1. On-Time Delivery Rate: This KPI measures the percentage of products delivered on or before the promised date. A high on-time delivery rate indicates reliability and helps build customer trust, especially when advance payments are involved.
2. Quality Assurance Metrics: Establishing quality control KPIs, such as defect rates or customer satisfaction scores, ensures that products meet the required standards. This is vital for maintaining customer confidence, particularly when they have made advance payments.
3. Customer Complaint Resolution Time: This KPI tracks the average time taken to resolve customer complaints. A shorter resolution time reflects a company’s commitment to customer service and can help mitigate dissatisfaction related to advance payments.
4. Financial Transparency Index: This KPI assesses the level of transparency in financial dealings, including how advance payments are managed. It can include metrics such as the frequency of financial reporting and the clarity of communication regarding payment usage.
5. Production Efficiency Ratio: This KPI measures the efficiency of the production process, indicating how well resources are utilized to meet production targets. High efficiency can lead to timely product delivery, which is crucial for maintaining customer satisfaction.
6. Customer Retention Rate: This KPI measures the percentage of customers who continue to do business with the company over a specific period. A high retention rate suggests that customers are satisfied with the products and services, which is particularly important when advance payments are involved.
7. Supplier Performance Metrics: For companies relying on external suppliers, tracking supplier performance through KPIs such as delivery accuracy and quality of materials can help ensure that production timelines are met, thereby protecting customer interests.

Conclusion

In conclusion, foreign partners must prioritize building strong relationships with local communities, ensuring transparency and accountability, and implementing sustainable practices to foster a positive business environment. By doing so, they not only enhance their reputation but also contribute to the overall well-being of the regions in which they operate.

Moreover, establishing clear Key Performance Indicators (KPIs) is essential for protecting customer interests, especially in scenarios involving advance payments. By focusing on metrics such as on-time delivery rates, quality assurance, customer complaint resolution times, financial transparency, production efficiency, customer retention, and supplier performance, companies can effectively monitor their performance and make necessary adjustments to meet customer expectations.

Ultimately, a commitment to these principles will lead to improved customer satisfaction, stronger community ties, and sustainable business growth. Foreign partners that embrace these strategies will be better positioned to navigate the complexities of international operations while ensuring that they meet the needs of both their customers and the communities they serve.

This exclusive article has been published in Automark Magazine’s October-2024 printed and digital edition. Written by #Aqeel Bashir

Nothing describes the amity between the man and the machine better than a good long ride, one after the other, whenever possible. The man hunched over the handle bars, sitting in the saddle for long hours, I wonder if it is a sedentary lifestyle or a sporty one. He is not on the road but a part of it and the surroundings at the same time.

As if my recent Kashmir trip, (where I explored Ganga Top in Bagh District, Lasdana, Toli Pir Top and Banjosa lake) had not been enough. I set out on another amazing ride from Islamabad after a brief gap of three days. The destination was my hometown, Joharabad in District Khushab and since I was riding my bike so I had to take the highway skirting through Chakwal and Kallar Kahar to reach Joharabad, because unfortunate as it is, motorcycles are not allowed on the Motorway. It was a travel in time as I was on the Chakwal-Kallar Kahar road after 27 years, which was the regular old route before M2 was opened for the traffic.

The plan was to ride nonstop till Kallar Kahar and then proceed on the Kallar Kahar-Cho a’ Saiden Shah road to visit Kattas Raj Temples. Lucky for me that the August weather was not in its usual frenzy so the ride and the Kattas Temple visit was quite comfortable despite the sunshine.

Kattas Raj Temples have a great significance in the Hindu religion and the place witnessed regular visits of yatrees from all over India before the partition. After partition, the temples were abandoned and rather went into oblivion. This was my second visit of the temples, the first one being in 2006 when the whole area gave a deserted look, the historic pavements covered in leaves that had been lying there for decades.

After 2007 some uplift work was done here upon special request of the Indian government and later in 2017, upon the orders of the Supreme Court of Pakistan, a lot of renovation work was carried out here so the site is now in a very decent shape for its visitors. Hindu yatrees visit the area in November every year, regularly since 2012.

The history of Kattas Raj Temples dates back to the year 700AD when its construction was completed. Legend has it that lord Shiva was in deep grief after the death of his wife Satti and he arrived at thisplace in deep sorrow, and as he wept his tears filled the area that turned into a pond. There are twelve temples here, almost all still in a very good condition despite all these years, which speaks for the brilliant craftsmanship of the engineers of the time.

The pond has a depth of about 25 to 30 feet and followers of Hindu faith believe that their sins are washed away if the take bath in the pond water. The pond had almost dried up by the year 2010-11, whereafter a tube-well was installed close to it, which now regularly supplies fresh water to the pond. Bathing in the pond is prohibited for the visitors though.

 On one side lies the Berragi Haveli where they used to have a library at the time. Decorative artwork adorns the ceiling of Ramachandra temple, and the colours are eye catching. Havan Kund, where Hindus would always keep a fire burning, now gets a fire that remains alive throughout the day although outside the temple. I always feel that historic buildings are veiled by a sense of mystery. A visit of such enigmatic relics tends to flash an image in your mindas though you have traveled back in time.

Kattas Temples should be preserved as a heritage asset, it is unfortunate how neglected this place has been in the past. As against last time, I was happy to see that now the site is under proper management. I captured some video clips with brief history of the temples, which will be available on my youtube channel “7th gear by Talal.”

I resumed my journey after the visit of the temples. Lunch at the TDCP resort Kallar Kahar was as delicious as the ride had been fabulous. This was my first ride on the bike through the Kattha mountain range as well and I thoroughly enjoyed it. Some of the mountains here present an amazing look, like the walls of a huge fort.

The sun was fading in my eyes as I reached the outskirts of Joharabad. It was a day long trip of about 270km as I reached my hometown, but my journey is far from over!

This exclusive article has been published in Automark Magazine’s October-2024 printed and digital edition. Written by #Talal Hussain Malik

The United States, a highly developed mixed economy, continues to lead as the world’s largest economy by nominal GDP, and is second only to China in terms of purchasing power parity (PPP). In 2024, the U.S. holds the sixth highest per capita GDP (nominal) and eighth by PPP, reflecting its strong economic output and high standard of living.

Key to this economic strength is the nation’s productivity, bolstered by a well-developed transportation infrastructure and rich natural resources. American households enjoy high average incomes, ranking sixth among Organization for Economic Co-operation and Development (OECD) member states. Despite having the highest median household income in 2021, income inequality remains one of the highest among developed nations. The U.S. plays a pivotal role in global trade, being the world’s largest importer and the second largest exporter, with free trade agreements spanning key partners such as Canada, Mexico, and South Korea.

The flexibility of the U.S. labor market, though offering fewer job security guarantees due to its hire-and-fire policies, adds to the economy’s adaptability and efficiency in responding to market demands.

The Aftermarket Auto Parts Industry in the U.S.

One sector witnessing continuous growth is the U.S. aftermarket auto parts industry. As of 2022, this market was valued at USD 18.2 billion, with projections indicating growth to USD 22.7 billion by 2032. This represents a compound annual growth rate (CAGR) of 2.50% from 2024 to 2032. The consistent rise in vehicle ownership and the aging fleet of cars in the U.S. contribute to the expansion of the aftermarket industry. Consumers increasingly seek cost-effective alternatives for vehicle maintenance, repair, and upgrades, making aftermarket parts an essential segment of the broader automotive market.

Furthermore, the tractor market, which reached a value of USD 23.7 billion in 2021, is expected to grow modestly, reaching USD 24.5 billion by 2027. This slow but steady expansion underscores the importance of agricultural machinery within the U.S. economy and aligns with the broader growth of industrial sectors.

Key Economic Indicators:

• Population: 333 million
• GDP Annual Growth: 3.1%
• GDP Per Capita: USD 76,239
• Inflation Rate: 2.5%
• Interest Rate: 5.50%
• Government Debt to GDP Ratio: 123.8%
• Import Tariffs: 1.5% to 14% (Vary by parts)

Key findings

The products with greatest export potential from United States to World are Motor vehicles for the transport of <10 persons, Soya beans, and Human & animal blood, blood fractions & immunological products. Soya beans shows the largest absolute difference between potential and actual exports in value terms, leaving room to realize additional exports worth $27 bn. (Source: ITC)

Transportation Options

• By Air: The travel duration between these cities in a non-stop flight is usually  around 16h 35 m. Karachi to New York flights 
• By Sea:The quickest way to get from Karachi to New York by ship will take about 31 days 18h and departs from Port Qasim (PKBQM) and arrives into New York (USNYC). There are vessels departing 2-4 times a week on this route.

Key Events in USA 2024~2025

Upcoming Exhibitions

In conclusion, while the U.S. economy continues to thrive, with sustained growth and innovation in key sectors like the aftermarket auto parts industry, challenges such as income inequality and fluctuating market conditions remain. However, the flexibility of its labor market, strong trade relationships, and technological advancements are expected to keep the U.S. economy on a growth trajectory for years to come.

By Mashood Khan
Director – Mehran Commercial Enterprises – Expert Auto Sector / Former Chairman PAAPAM

This exclusive article has been published in Automark Magazine’s October-2024 printed and digital edition.

The International Energy Agency (IEA) focuses that the use of fossil fuels, especially unabated coal, must be phased out with in next ten years, if we have to achieve a net-zero target in line with the goals set out in the Paris Agreement. COP-28 as one of its key outcomes also finally emphasized the need to transition away from fossil fuels, calling countries to accelerate their energy transition programs. With decreasing cost of technologies, innovative financing mechanisms and global trends, decarbonization efforts not only improve the environment profile, but they also make a better economic case over the longer run.

However, despite these opportunities, “energy transition has a cost and logistical needs” that are imperative to drive this transition. Further, the poly-crisis-driven by Post COVID recovery challenges, regional turmoil, supply chain issues and economicus-certainties has limited fiscal space of underdeveloped and developing countries that are entrapped in debt burdens. Many of the Asian as well as some of the Pacific countries have faced significant socio-economic losses further decreasing the capital availability for a swift and effective energy transition. In the backdrop of these opportunities and challenges, it is high time for these countries to develop coordinate plans and joint response for mobilizing the necessary finance and analyze the needed reforms of the international financial structure.

Energy insecurity and climate vulnerability of Asian Region. Asia is a home of almost 4.5 billion people that account for almost 60% of the globa lpopulation. However, ongoing economic crisis the region is facing a three-fold challenge of socio-economic development, energy security and environmental sustainability. According to Asian Development Bank (ADB)around 350 million people in Asia does not have access to reliable electricity while 150 million does not have access to it at all. The increasing energy demand limited non-renewable resources and high reliance on fossil fuels (68% fossil fuels in power generation), the region is highly exposed to price volatility and economic risks. Now at the same time, the region is also confronting an increasingly challenging climate landscape, characterized by morefrequent and severe climate-related disasters such as heatwaves, cyclones, droughts and floods.
The region currently accounts for 60% of global emissions from power generation, leading to increased climate vulnerability. This is particularly concerning as it compounds the existing vulnerabilities of a region that is home to some of the world’s most vulnerable communities.

Pakistan is listed in developing country with tough political and economic conditions, posing a serious challenge to develop a policy that supports the energy transition from fossil fuels to renewables. Pakistan is blessed with a huge 3425.796 GW renewable energy potential including wind (346 GW), solar (2,900 GW), hydro (59,000 GW), geothermal (100 GW) and biomass (20 GW) even though Pakistan is producing electricity mostly from imported fossil fuels (coal, furnace and natural gas) with 58.8% share followed by 25.8% hydro, 8.6% nuclear and only 6.8% from solar and wind sources. Renewables contribute only 32.6% in the total energy mix of Pakistan.

Ministry of Energy (Power Division), Government of Pakistan developed a policy entitled, “Alternative and Renewable Energy (ARE) Policy 2019” with the aim of increasing the renewable capacity by 30% by 2030 with most of the electricity produced from indigenous energy sources including biomass, wind and solar. However, this target cannot be achieved with the present transmission and distribution network. The Asian Development Bank (ADB) claims that except for China, the countries under its Central Asia Regional Economic Cooperation (CAREC) project would have to invest from USD 25 billion to USD 49 billion to upgrade their power transmission and distribution infrastructure. The big challenge Pakistan is facing the ageing power grid infrastructure with limited network capacity is a major bottleneck for supporting the integration of renewables while maintaining grid stability. To enable the power grid to evacuate power from both renewable and non-renewable energy projects, more investment is needed to upgrade the power network infrastructure, including its modernization and digitalization.

Energy storage is also vital for a renewable-powered energy future. It bridges the gap between intermittent renewable energy generation and stable energy demand in terms of energy supply and grid reliability. Nowadays, batteries have gained considerable ground as the power of many of the technologies that will enable the transition towards net zero. Research, development and infrastructure investments in energy storage are vital for the widespread adoption of renewable energy.

Energy Efficiency has also gained global attention among policymakers in recognition of its pivotal role in enhancing energy security, affordability and environmental sustainability. Addressing Pakistan’s energy challenges also requires a strategic shift towards energy efficiency. In response to growing energy demand, the focus has traditionally remained on capacity expansion rather than conservation. This approach has led to increased capacity payments and inefficient energy use. Enhancing energy efficiency presents a significant opportunity to curtail energy imports, offering a cost-effective solution to address national energy challenges. This approach not only mitigates environmental concerns but also eases production costs and fosters economic growth.

The International Energy Agency (IEC) reveals that energy efficiency, the ‘first fuel’ in clean energy transitions, offers swift, cost-effective CO2 mitigation, reducing energy bills and enhancing energy security. Institute for European Energy and Climate Policy released a recent study, ‘’Energy Efficiency visible in the energy mix’. If something isn’t visible, it won’t be prioritized, which is one of the reasons energy efficiency does not come first in planning, policy-making and investment. For energy efficiency to be considered on a level playing field with other energy resources, energy efficiency improvements need to be monitored and then energy efficiency data needs to be integrated into the overall energy picture. The energy transition will also open doors for green job creation, enable businesses, attract foreign investment and stimulate economic growth.
As a climatevulnerable nation, Pakistan can mobilize substantial global funding under a ‘Just Energy Transition Partnerships (JETPs)’. These partnerships facilitate targeted and catalytic funding, mobilizing resources from various channels to support the energy transition.This requires a comprehensive action plan based on a holistic approach along with clear targets, timelines, policy continuity and stakeholder engagement. In this way, Pakistan can pave the way for a sustainable and green energy future.

This exclusive article has been published in Automark Magazine’s October-2024 printed and digital edition. Written by #Asif Masood

Pakistan’s automotive industry is a significant contributor to the country’s economy in its GDP. However, to sustain growth and competitiveness, it is crucial to foster a strong linkage between the industry and academia.

Benefits of Industry-Academia Linkage:

1. Innovation and Research: Collaboration between industry and academia drives innovation, leading to the development of new technologies and products.
2. Skilled Workforce: Academia can provide the industry with a skilled and knowledgeable workforce, reducing the need for costly training.
3. Curriculum Development: Industry input helps academia develop relevant curricula, ensuring graduates meet industry needs.
4. Entrepreneurship: Collaboration can lead to the creation of new startups and businesses, driving economic growth.
5. Sustainability: Joint research and development can focus on sustainable practices, reducing environmental impact.

Challenges and Opportunities:

1. Gap between Industry Needs and Academic Curriculum
2. Limited Research Funding
3. Lack of Collaboration and Communication
   To address these challenges, initiatives like:
4. Industry-Academia Partnerships
5. Research Grants and Funding
6. Regular Industry-Academia Forumscan be established

Way Forward Strategy:
Coordinated linkage between industry and academia is the critical bridge in solving business related production, technology, and management problems.
This initiative may include; identification of priority sectors for carrying out industry academia linkages projects for any research that can be commercialized and has a significant economic impact, or for such business improvement projects that can be replicated across a number of firms and industries.
Capacity of the Offices of Research, Innovation and Commercialization (ORICs) under HEC can be further developed and provide financial support for research commercialization and business improvement projects.
Development in the fields of Information Communications Technology (ICT) are indeed revolutionary in nature; Information and knowledge are expanding in quantity and accessibility. ICT contributes directly to spread fruits of sustainable development and reduce traditional geographical barriers, providing an opportunity for all to access local and global markets in a more equitable manner.

Industry-Academia Linkage (IAL) can be defined as the goals and objectives of interaction and collaboration between industry and academia. The backbone of academia is innovation, philosophy, and theory, but industry depends on broad, commercially viable ideas for its survival. Instead, the university is a computer, and the industry is a tool.

To better understand this gap, think of a professor who gives thousands of lectures on swimming but does not get in the water until he retires, and he remains closed and unfinished. Then there is the issue of supply and demand gap between industry and academia. Curriculums were written decades ago, but the industry is advancing every day. In today’s world, the market conditions and the speed of the industry are faster than ever. That is why a ‘machine’ enters the factory floor; he knew right away that he didn’t know for sure…the paper was out of the syllabus…! The second half of the learning journey comes from the psychological impact on machines.

Industry-Academic Links (IAL) are ideal for business organizations, academic institutions, and even countries. Without following this concept, Industrial Revolution is not possible. In conducting applied research, this interaction must be reciprocal. Distributing projects among students is another problem. It’s like four people living together in a four-bed house but not knowing which of them is sleeping. Engineers have to study for 18 hours to enter an accredited university, but after entering an accredited university, they don’t suffer like medical students and accounting students. The laboratories in most of the technical institutions are old, unprepared and incomplete. There are no shops in universities, but medical schools have training centers.

Pakistan is no different from other South Asian countries in facing the negative effects of this inequality. There is still a gap between technology and curriculum, especially in the Third World. Last year, Pakistan was ranked 88th among 132 countries in the 2023 Global Innovation Index.

Pakistan’s human resource index ranking 164 out of 193 countries is a source of ridicule for us. Therefore, foreign organizations are interested in students who want to be accepted to support education in the country they are visiting. Pakistan, like other South Asian countries, is lagging behind in developing quality products and exporting them to the world due to lack of research and development. In Pakistan, only 60% of the 200 public and private universities accredited by HEC cooperate with private sector organizations and public institutions. Unfortunately, most of this 60% is only on paper or thrown away.

Funding cuts are the biggest reason. In contrast, public universities have no money to spend; Private universities need funding. Low budgets are allocated to research and development, which is scarce in an age where day-to-day management is outdated. In R&D, we rank at 113th out of 132 projects. Because it is strongly related to economic growth, without a land base, the hope for self-fulfillment and research and development is like a fantasy.
Basically, we are a nation that likes to take chances, take shortcuts, and quickly pursue degrees, whether or not we want them. Students say that education is responsible and exhausting. The curriculum needs to be changed. Links between academia and industry should be strengthened. HEC has to play a role in making certain things official. Public awareness should be raised through many activities.

Industry
Responsibilities

• Supervise academic projects
• Provide corporate trainings
• Support & finance initiatives
• Resource sharing
• Curriculum advisory

Academia
Responsibilities

• Engage industrial professionals
• Industrial relevance in research
• Students counselling
• Creative thinking lessons
• Engage in policy studies

Students
Responsibilities

• Gain technical skills
• Lateral thinking
• Understanding system dynamics
• Innovate ideas
• Prepare project deliverables

This exclusive article has been written by Abid Saeed san published in Automark magazine’s September-2024 printed/digital edition.

I was going through news related to EV consumer market trend for the past 4-5 years and found many articles indicating shifting consumer trend of American and European consumers towards strong hybrids and ICE’s back from EV’s. Many articles suggested that this perhaps means “Death to EV’s” and labelled it “End of EV hype” globally for the world of tomorrow. However as per my analysis things look a bit different when I foresee the world of tomorrow.

The American and most importantly European consumer market are the first adopters of EV revolution, backed by the very important cause of climate change and global warming. The EU governments funded this revolution by incentivizing the NEV’s for consumers making them more attractive and affordable.

However we have to remember that the EU consumer market primarily consists of an ageing generation which is susceptible to change and very skeptical to adopt new tech. Take the example of NFC based “Tap and Pay” via cell phone or “Scan to Pay” which is not a very common sight in EU countries, the consumers prefer the old school payment method of payment via Credit / Debit card and even In some countries like Germany, the preferred payment medium till date remains cash. This clearly demonstrates a conservative mindset of a consumer who is afraid to adopt changing trends.

However the Chinese consumers being younger than their American/EU counterparts adopt new technologies rapidly. They shifted directly to the “Tap and Pay” concept skipping the Card payment option altogether. This mindset clearly demonstrates adaptability to newer and changing technologies.

Based on this analysis we can safely say that to understand the consumer trend of the world of tomorrow, we need to closely observe what Chinese consumer is adapting today. As the younger generation of EU countries takes control of the consumer market tomorrow, they shall follow the same trend as well. This means one thing only, a shift from conventional ICE’s to NEV’s in EU and American markets in a span to 5-10 years.

However, this is a fact that despite their electric adaptability to change Chinese consumer’s have started ageing too. In order to understand the consumer trend of day after tomorrow, we need to follow the youngest generation of them all, the youth of subcontinent. The consumer trend of Indian subcontinent will drive the consumer market of day after tomorrow i.e. 15-20 years from now.

As per my personal observation, the generation of tomorrow riding the waves of AI will greatly rely on Autonomous driving tech based on Electric platforms. This shift may not be very exciting but it is indeed inevitable. Cheers!

Canada’s economy is on a promising trajectory, with the Bank of Canada projecting GDP growth of 1.5% this year, 2.2% next year, and 1.9% in 2026. This upward trend is driven by increased business investment, the completion of the Trans Mountain pipeline, and robust population growth, all of which contribute to a favorable environment for international trade and export opportunities.

Canada’s Economic Landscape

Canada’s economy is anchored by three main industries: services, manufacturing, and natural resources. Each plays a crucial role in shaping the country’s economic output and offers unique opportunities for foreign exporters.

1. Service Industries
   The service sector dominates the Canadian economy, employing more than 75% of the workforce. Key areas within this sector include transportation, education, healthcare, banking, and tourism. With a strong emphasis on services, there are numerous opportunities for international companies to tap into Canada’s growing demand for specialized services, particularly in healthcare, education, and technology.
2. Manufacturing Industries
   Canada’s manufacturing sector is highly diversified, producing a wide range of goods, from aerospace technology to automobiles. As the eleventh-largest auto-producing nation globally, Canada exported $30 billion worth of vehicles in 2022. This makes Canada a prime market for suppliers of automotive components, machinery, and advanced manufacturing technologies.
3. Natural Resource Industries
   Natural resources have long been a cornerstone of Canada’s economy. Industries such as forestry, agriculture, mining, and energy are vital to the country’s export profile. For companies specializing in sustainable resource management, environmental technology, or energy solutions, Canada offers a wealth of opportunities to engage in mutually beneficial trade relationships.

Opportunities in the Automotive Sector

The automotive industry is a particularly attractive sector for exporters looking to enter the Canadian market. With 1.5 million vehicles produced annually, Canada’s automotive industry is thriving. Key players include brands like Ford, Toyota, Chevrolet, Hyundai, and Honda, which dominate the market with their reliable and affordable vehicles.

As the Canadian market continues to evolve, there is a growing demand for hybrid and electric vehicles, presenting an opportunity for companies specializing in green technologies to introduce innovative products that align with Canada’s environmental goals.

Why Canada?

Canada’s stable economy, strategic location, and strong trade relations with the United States make it an ideal market for global exporters. The country’s commitment to free trade, combined with its highly skilled workforce and advanced infrastructure, ensures that businesses entering the Canadian market have the tools and support they need to succeed.

For companies looking to expand their export footprint, Canada’s diverse economy, strong consumer demand, and strategic position in North America make it a market with significant untapped potential.

Key findings

The products with greatest export potential from World to Canada are Motor vehicles for the transport of <10 persons, Motor vehicles for the transport of goods, and Medicaments for retail sale, n.e.s.. Motor vehicles for the transport of <10 persons shows the largest absolute difference between potential and actual exports in value terms, leaving room to realize additional exports worth $8.7 bn. (Source: ITC)

Key Economic Indicators

• Population: 39 million
• GDP Annual Growth: 3.4%
• GDP Per Capita: USD 54,917
• Inflation Rate: 2.5%
• Interest Rate: 4.50%
• Government Debt to GDP Ratio: 69%
• Exchange Rate: 1 USD = 1.36 CANADIAN Dollar
• Import Tariffs: 05% to 08%

Transportation Options

• By Air: Flights from Jinnah International Airport (KHI) to Toronto Pearson International Airport (YYZ) take about 14 hours.
• By Sea: The quickest way to get from Karachi to Montreal (CAMTR) by ship will take about 46 days and 15 hours.

Key Events in CANADA 2025

Upcoming Exhibitions

Mashood Khan
Director – Mehran Commercial Enterprises
Expert Auto Sector / Former Chairman PAAPAM