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Country Commercial Guides FY 1999: Pakistan

IX.   BUSINESS TRAVEL

A.  Business Customs

Effective June 3, 1994, Pakistan officially shifted to a formal
five-day (Sunday through Thursday) work week, with government
offices scheduled to function from 9 to 5.  The GOP announced
that it made this change as an energy-conservation measure and
there has been significant opposition to the it.  Prior to that
date, a six-day work week (Saturday through Thursday) prevailed,
with mid-afternoon closing throughout the work week.  Friday is
the official religious holiday and all government offices and
most commercial establishments are closed.  

Pakistan is an Islamic Republic and imports of alcohol are not
permitted.  Liquor is, however, available for non-Muslim
foreigners at many four-and five-star hotels, but generally only
in their rooms.  Both men and women should dress modestly in
public in deference to local sensitivities.  

B. Travel Advisory and Visas

Travel Advisory - Violent demonstrations, rallies, and
processions may occur on short notice and may make it advisable
for foreigners to avoid particular regions or particular urban
districts.  Since a local situation can change rapidly, U.S.
travelers should exercise caution, read the local
English-language newspapers, and check with the consular sections
of the U.S. Embassy or nearest U.S. consulate to ascertain
whether there is any situation to which they should be alert.

Visas - All U.S. citizens are required to have a valid passport
and Pakistani visa for entry into Pakistani.  Visas are not
available at airports on entry; they must be obtained at
Pakistani missions abroad.  In the United States, Pakistani visas
may be obtained at the Embassy of Pakistan in Washington or at
Pakistani Consulates in New York and Los Angeles; applications
may be made by mail to the Pakistani Consulate in New York only.

Business visitors, however, may be granted a 30-day visa on
arrival at airports in Pakistan, according to a recent policy
announcement. 

To obtain a Pakistani visa, an applicant must submit a completed
visa application, a current passport photograph, a valid passport
and proof of onward/return transportation.  Applicants for
business visas are required to submit a letter from their
company.  Visas in U.S. passports are issued gratis, but
applications by mail must include a self-addressed stamped
envelope covering return of the passport by registered mail.  In
general, tourist visas may not be modified or extended.  The
period of validity may be extended for periods of up to 6 months
by applying to the Ministry of Interior in Islamabad.   (Note:
Visitors are advised to confirm current procedures by contacting
the appropriate Pakistani diplomatic or consular post covering
their jurisdiction prior to undertaking travel.)

Visitors are allowed to import the following items free of duty: 
one camera and ten rolls of film; 200 cigarettes or 50 cigars or
one-half kilogram of manufactured tobacco; one personal computer
along with accessories valued up to 50,000 rupees (approximately
$1600 at June 1994 exchange rate) if imported by professionals
who require the use of the computer as a tool in their work; etc. 
Personal effects, such as cameras, typewriters, tape recorders,
binoculars, may be admitted duty-free, provided they are
accompanied by a document certifying that they will be
re-exported on the owner's departure.  The import of alcohol is
strictly prohibited; if alcohol is found, it will be seized by
customs officials.  Export permits are not normally required, but
any antiques purchased in Pakistan should be cleared with museum
officials in Karachi or Lahore to ensure that their export is not
prohibited.  

U.S. citizens resident in, or visiting Pakistan, are encouraged
to register with the U.S. Embassy in Islamabad or the U.S.
Consulates in Karachi, Lahore, or Peshawar (see Appendix C for
addresses and telephone numbers).  Foreigners planning to remain
in Pakistan for more than 30 days must register at the nearest
district Foreigners'  Registration Office.

Visitors entering or leaving the country are limited to holding
100 rupees.  There is no restriction on the amount of foreign
currency which may be brought into the country if it is declared
on a customs receipt upon arrival; absent declaration on arrival,
the limitation on foreign currency which can be legally taken out
of Pakistan is the equivalent of $500 per person or $2000 per
family.  Travelers may exchange currency only at banks and hotels
authorized by the State Bank of Pakistan.  Reconversion
facilities for unspent rupees are available.

Cholera, smallpox, and yellow fever immunizations are required
for travelers arriving from infected areas.  An AIDS (HIV)-free
certificate is also required for travelers intending to stay in
Pakistan for more than one year.  Malaria prophylaxis is
recommended by some physicians and various strains of hepatitis
are prevalent in Pakistan.  Travelers to Pakistan should check
with their physician or the local office of the U.S. Public
Health Service for information on any unusual circumstances that
might necessitate additional protection.  There are medical
facilities in Karachi and Islamabad comparable in standard to
those in the West, but good quality care is lacking in most other
areas.


C.  Holidays

List of Pakistani holidays for 1998:                            
Eid-ul Fitr                        Jan 29, 30, 31
Pakistan Day                       March 23
Eid-ul-Azha                        Apr. 7, 8, 9
May Day                            May 1     
9th/10th of Muharram               May 6, 7
Milad-An-Nabi                      July 7
Independence Day                   August 14
Defense of Pakistan                September 6
Day
Death Anniversary of
Quaid-i-Azam                       September 11
Iqbal Day                          November 9
Birthday of                        December 25
Quaid-i-Azam

*     (Based on the Islamic lunar calendar and may differ in
       the event by one or two days from the expected dates.)

During the Islamic month of Ramazan (Ramadan), observant Muslims
do not eat, drink, or smoke between sunrise and sunset.  During
this month, travel is more difficult, the pace of business
activity slows (many offices close by mid-day), and it is
therefore more difficult to accomplish business objectives. 
Ramazan begins 29 or 30 days before the feast of Eid-ul-Fitr.


D. Business Infrastructure

Transportation - Karachi's Quaid-i-Azam International Airport,
whose Jinnah Terminal opened in August 1992, is the principal
international gateway to Pakistan, although Islamabad, Lahore,
Peshawar and Quetta also have a number of international flights. 
An airport departure tax and a foreign travel tax are levied on
international passengers. (As of June 1998, the foreign travel
tax is a flat 1,500 rupees; the departure tax ranges from 400 to
600 rupees, depending on the class of travel); and in addition,
there is a 20 percent Central Excise Duty on purchase of local
air tickets and 1.5 percent Capital Value Tax on purchase of
international tickets.

State-owned Pakistan International Airlines (PIA) is the main
Pakistani carrier on international routes; Shaheen International
and Aero-Asia have recently started flying to the Middle-East and
the Central Asian Republics.  As of June 1998, the domestic
market is shared by PIA and three small private sector carriers,
Aero- Asia, Bhoja Air and Shaheen Air International.  PIA and its
domestic competitors serve 36 destinations in Pakistan. 
Karachi's Quaid-i-Azam International Airport is the country's
main hub for  international carriers, and there is also limited
international service by several international carriers from
Islamabad and Lahore.  No U.S. carriers presently serve Pakistan. 


Pakistan's highway system is variable in quality.  Although there
are fast and comfortable luxury coaches on some routes, flying or
private or hired cars would be the preferred mode of inter-city
travel.  Traffic drives on the left.  Yellow taxis are available
in most large and small population centers.  With the exception
of Karachi, taxi fares have to be negotiated.  Car rentals are
available in major cities; rental of cars with drivers is
recommended.  Private car ownership is recommended for long-term
residents; visitors require an international driving license.

Language - The official language of Pakistan is Urdu.  However,
almost all Pakistanis involved in business and commerce of a
certain scale have an adequate command of English.

Communications - Internal mail delivery is inexpensive and fairly
reliable.  Airmail letters take about six to eight days to reach
Europe and about eight to ten days to reach the U.S. Delivery of
private courier packages (i.e. DHL, Federal Express, TNT, UPS) is
delayed due to customs clearance.  This normally takes 2 or 3
days.  Delivery times for sea freight are considerably longer and
more variable.

Twenty-four hour telegram, facsimile, and telex services are
available at post and telegraph offices and many larger hotels. 
Cellular phones are available for visiting businessmen and are
at times more reliable for international communications than the
local conventional telephones.  Internet facility and e-mail
services are currently available in all the major cities of
Pakistan.

Lodging - There are international-standard hotels in the major
cities of Pakistan.  Four and five-star hotels in business
centers include the Avari Towers, Sheraton, Pearl Continental,
Marriott and the Holiday Inn Crowne Plaza in Karachi; the Avari,
Pearl Continental and Holiday Inn in Lahore; the Faisalabad
Serena in Faisalabad; the Marriott, Holiday Inn and Best Western
in Islamabad; the Pearl Continental in Rawalpindi; the Pearl
Continental in Peshawar; and the Quetta Serena in Quetta.  Quoted
rates for Islamabad hotels in June 1998 ranged from 8,000 (plus
12.5 percent tax) rupees for a single, to 9,000 (plus 12.5
percent tax) rupees for a double; however various discounts may
be available in competitive markets.  The hotel rates in Karachi
may be slightly lower than those of Islamabad.

The general standard of rental housing is quite good.  Most
houses and apartments are rented unfurnished and have three or
more bedrooms with attached baths.  Leases typically are for two
years and require one year's rent in advance.  In mid-1998, the
average rental for an unfurnished three-bedroom house in Karachi
ranged from 40,000 to 60,000 rupees per month.

Utilities - Electric current in Pakistan is 220/240 volts AC. 
Two and three-prong plugs are in common use.  Voltage
fluctuations and power cuts are common; sensitive electric
equipment, such as computers, televisions, and stereos, should be
fitted with voltage regulators.  Natural gas is used for cooking
in larger cities.  The water supply is erratic in parts of
Karachi, requiring delivery by water tanker to residences in some
areas.  The Islamabad/Rawalpindi area also experiences serious
water shortages.  

Office Rental - Prevailing monthly rents for prime ground floor
office space (mid-1998) are approximately 55 to 70 rupees per
square foot in Karachi, 40 to 60 rupees in Lahore, and 40 to 45
rupees in Islamabad.  Rents for office space above ground level
become progressively lower.  Tenants are generally responsible
for utilities.  It is common practice for a one or two-year lease
to require a security deposit of one year's rent.

Schools - Karachi, Islamabad, and Lahore have privately-run
schools that follow the U.S. system of education.  The Karachi
American School and the International School of Islamabad offer a
high-quality academic program through the 12th grade.  The
significantly smaller Lahore American School, which has a
majority Pakistani student body, also offers K-12 classes.  There
is also a K-Grade 6 school in Peshawar.  

Food and Drink - Pakistani food combines elements of Mughal
Indian and Middle East cuisines and tends to be spicy. 
Specialties include kababs, tikka (barbecued spiced chicken,
mutton, or beef), korma (meat curry), koftas (meat balls), and
pulao (spicy fried rice).  The staples are nan, chapati, and
paratha (unleavened breads).  Some Western dishes are available
in major hotels and in restaurants in larger cities; the most
common international restaurants are Chinese.  Pizza Hut and
Kentucky Fried Chicken have opened a few outlets in Karachi and
Lahore, and McDonald's plans to start operations in Karachi and
Lahore later in 1998.  Alcohol is served only to non-Muslim
tourists in their hotel rooms and is expensive.


E. Temporary Entry of Goods

All business travellers to Pakistan are allowed to bring
temporary entry items including the following: currency, personal
clothing and handbag/briefcase, jewellery not exceeding Rs.
100,000, watch and traveling clock, toilet goods in reasonable
quantity, spectacles and other physical aids, electric iron,
electric shaver, camera with maximum 5 rolls of film, standard
movie/video camera, binoculars, portable musical instruments,
portable tape recorder, portable computer, invalid chair in use,
200 cigarettes or 50 cigars or tobacco (half a pound), perfume
and toilet water upto half a pint, confectionery and 
non-alcoholic beverages not exceeding Rs. 10,000 in value, and
gifts and souvenirs not exceeding Rs.50,000 in value.

The 1998-99 Trade Policy also allows import of 3 percent samples
along with medicines containing new chemical formulations.  This
facility is valid for a period of three years from the date the
medicine is registered with the Ministry of Health.  This
exemption does not apply to narcotics, psychotropic and other
similar drugs.

Construction companies and contracting firms are allowed to
import machinery on a temporary basis upon authorization from the
Ministry of Commerce.  Under the new policy, the period of
temporary importation has been enhanced from the existing one
year to three years.


F.  Information on Typical Product Pricing Structures

See Pricing Products in section IV.
Note:  The "Guide for Business Representatives" available for
sale by the Superintendent of Documents, U.S. Government Printing
Office, Washington, D.C. 20402; tel: (202) 512-1800; fax: (202)
512-2250.  Business travellers to Pakistan seeking appointments
with the U.S. Embassy (Islamabad) officials should contact the
Commercial Section in advance.  The Commercial Section can be
reached by telephone at 92-51-826161, or by fax at 92-51-823981.