International Trade Policies

PAKISTAN

Nitish Moningi -1517

Name: Pakistan Symbol: PRS Minor Unit: 

1/100 = Paisa Inflation: 8.60% Coins: 

Freq Used: ₨1, ₨2, ₨5 Banknotes: 

Freq Used: ₨10, ₨50, ₨100, ₨500, ₨1000 Central Bank: 

State Bank of Pakistan 

CURRENCY: $1 = 104.82 PRS

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PaKistan Currency

REGULATORY EFFICIENCY• Starting a business takes 19 days & 10 

Procedures• Licensing requirement takes 250 days

OPEN MARKETS• Average Tariff Rate is 9.5%

• FDI promoted through “Investment Policy 2013”

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Balance O f Payment Systematic record of a nation’s total payments to foreign countries, including the price of imports, the outflow of capital and gold, and the total receipts from abroad, including the price of exports and the inflow of capital and gold

MEANING CURRENT BOP OF PAKISTAN

According to the Economic Survey of Pakistan 2013-14, It is showing a deficit of $ 8.3 billion

A - LIMITED EXPORT CAPACITY 1. Consumption Oriented Society 2. Less Modernization of Machinery 3. Foreign Debts Servicing B - UN-RESTRICTED IMPORT NEEDS 1. Rise in Oil Prices 2. Import Oriented Industry 3. Defence Needs

MEASURES TO CORRECT ADVERSE BOP

 Export Manufactured goodsExport MarketingImport of Only Essential ItemsSubstitutes for Imported 

Items

REASONS FOR BOP DEFICIT

FOREIGN POLICY OBJECTIVE  Promoting Pakistan as a dynamic, progressive, moderate, and democratic Islamic 

country. Friendly relations countries of the world. Security and geo-strategic interests. Commercial and economic cooperation. Safeguarding the interests of Pakistani Diaspora abroad. Ensuring optimal utilization.

International Policies

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http://www.mofa.gov.pk/content.php?pageID=objectives

Mc Donald's Franchise

Franchise Model McDonalds granted the franchise license to Lakson Group of Companies.Lakson Group is a conglomerate whose business portfolio includes Tobacco, Insurance, and consumer goodsFast-food industry thrives on footfall of customers and high volume sales at low prices instead of premium pricing strategies.A service fee of 4% of monthly gross sales is charged from the franchisees.McDonalds do not provide any financial assistance to the franchisee.Presence in more than 120 countries and 20% revenue comes from these Franchise.

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(2012). Retrieved Jan 25, 2012, from www.McDonalds.com.pk.

Mc Donald's

Lahore, Pakistan in 1998.34 restaurants in 8 major cities of Pakistan.Launched in Gulbarga and Lahore (mostly middle class people lives).The market share of fast food industry in Pakistan is around 13 percent.McDonalds has 43% market share in fast-food industry in PakistanA strong low-cost leadership as its business strategy. Adults desire change more often; while, children remain more loyal in Pakistan.Mc Donald opted for Value pricing in Pakistan “giving more for less”.

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http://www.mcdonalds.com.pk/

Main threats faced by Mc Donald

The first threat faced by the company was to convince the public that “halal” meat or chicken is used for preparation Of products.Competition from newer formatted chains like Subway, coffee shops & grilled outlets, which are perceived healthier.Bird flu and Mad cow fear resulted in the fear of eating at Mc D.McDonalds has invested Rs. 30 billion in the country and pays Rs. 10 billion towards taxes.

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(2012, Jan). Retrieved jan 25 jan, 2012, from www.McDonalds.com.pk.

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PESTELPOLITICAL FACTOR Government policies do not affect the 

company.

ECONOMICAL FACTOR Middle class Profits of Mc donald Pakistan dwindled.

SOCIAL FACTOR Acceptance of the fast food by youths

TECHNOLOGICAL FACTOR McDonalds has an edge over others in terms of 

technology

ENVIROMENTAL FACTOR De-Compostion of bio degradable and non bio

degradable waste

LEGAL FACTOR socio-cultural market signs e.g Halal requirements. Tax obligations, employment standards, and 

requirements to a degree of quality 

SWOT ANALYSES OF MCDONALDS PAKISTAN

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STRENGTHS• Strong image.

• Less Cost.• Quality.

OPPORTUNITY profit potential.

Increasing disposable income 

THREATS• Double digit inflation 

prevailing in the country.

• Entry of new Competitor

WEAKNESS• middle- income 

class.• Prone to attack by 

niche players

Thank You