US challenges in Pakistan market

In Pakistan, the main competitors of US companies are suppliers from China, Europe, Japan and South Korea, which sometimes provide credit terms for major projects and government tenders on which they are difficult to compete with US suppliers. State-owned Chinese companies are increasingly expanding into markets traditionally dominated by Western companies. To promote economic development, Pakistan and China are implementing the China-Pakistan Economic Corridor (CPEC). In 2015, Islamabad and Beijing formally agreed to provide China with a financing value of more than US$62 billion through CPEC, targeting at energy sector and other infrastructure projects.

Although they are considered of high quality and high demand, US goods are often more expensive than other imported products, and Pakistani companies have found that US companies are slow to respond to their business consultations. Some US companies even choose to ship goods from the regional offices to Pakistan.

Potential investors in Pakistan are confronting many of the challenges facing by other developing economies, such as regulatory risks and lack of decision-making transparency in public sector. Pakistan is a diversified and challenging market that requires adaptability and sustainability. Without reliable local partners, it is often difficult to sell in this market, so choosing the right local partner and careful planning are critical to success. US companies willing to invest time to develop market influence may be rewarded in the long run.

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