Steel:

Long Steel products, flat steel products, piped products, semi-finished products.

Pakistan Steel Mills, Abbas Steel Industies, Aisha Steel Mills, Amreli, Mughal – major players

Customer base for steel commodities in automotive, defense, transportation, appliances.

Increase in the private housing sector projects and launching of Govt’s housing program; higher public
spending and cpec related investment.

China is the most attractive market for delivery right now. There is a bottleneck of high quality steel
production on China market. It is necessary to notice that steel-casting China enterprises wide use
importing ore and depend heavily on foreign suppliers. Pakistan can capitalize on that opportunity –
strength

Weaknesses – old plant and machinery, limited capacity to fulfil demand, lack of infrastructure, high tax,
declining skilled workforce

Iron and steel industry has gained importance due to cpec and increased construction activities in the
country. Iron and steel industry, however, remains small and fragmented in spite of surging demand due
to the aforementioned factors.

The price of iron ore has increased from approximately $28 in 2003 to $85 in current times.

Textile:

One of the most booming industries of the country and contributes to 60% of the country’s exports.
Pakistan is ranked as the 8th largest textile exporter in Asia. Major players include Gul Ahmed, Nishat,
Kohinoor, Crescent. Major demand comes from USA, UK, China, Germany, Spain. Bangladesh and India
are the biggest competitors. 8.5% contribution to the gdp. Exports peaked in 2014 and saw a downward
trend from 2015 to 2016. However, it has been resurgent from 2017 onwards.

Insurance:

Conventional business includes life insurance, such as health insurance, marriage plan, child education.
Non-life insurance includes auto insurance, property insurance, home care.

Takaful business inclues family takaful, general takaful. Reinsurance includes Pakistan Reinsurance
Company Limited.

Relatively small compared to its peers in the region. Growth can be attributed to the change in
perception of insurance. Situation has been improving over the past 5 years. State Life holds the largest
share with 49%, Jubilee is second with 29% in the life insurance sector.

In non-life business, it’s Adamjee, Jubilee General and EFU General that stand out the most.
PRCL is the sole reinsurer in Pakistan. Secp has made it mandatory for all insurance companies to
maintain reinsurance arrangements at all times. In 2018 secp approved prcl to offer sharia compliant
reinsurance.

Cement:

First cement plant established in 1921. Currently, Pakistan has 29 plants. Pakistan’s cement has better
quality but at a higher price. Export to Middle East and Africa (which is declining due to cheap Iranian
Cement in Afghanistan and anti-dumping duties in Africa). Coal is majorly imported due to lower quality
coal of Pakistan.

Main players include Cherat, Lucky, Kohat, Bestway, Attock, Fauji.

APCMA plays a significant role in protecting the cement industry; coordinationg various activities in
respect of formulation of government policies for the cement industry; representation on all major
policy making bodies concerned with cement.

Production capacity has more than doubled over the last decade to 49.4 mt/annum. Top 5 cement
manufacturers comprise 58% of the total installed capacity.

Cement consumption in the north was 3.018 million, which saw an increase of 41.68% increase
compared to last year. In south zone, it was 0.719 million, which saw an increase of 21.7% increase
compared to last year. Domestic consumption increased by 37.3%. Exports rose by 80.75% from 0.32m
to 0.59m.

Banking:

The most emerging market currently is Islamic Banking, and the industry consists of 21 Islamic Banking
institutions; 5 of which are full-fledged Islamic banks, led by Meezan. The assets of the industry grew to
Rs 2.272 trillion by the end of 2017. The market share of Islamic banking assets and deposits in the
overall banking industry increased to 12.4pc from 14.5pc by December 2017.

• Major products include: Murabaha

• Ijarah

• Mushararka

• Salam

• Istisna

• Qarz-e-hasna
Conventional banks include the likes of HBL, NBP, SCB, Faysal, Alfalah, UBL. HBL is the top bank of the
country, in terms of total assets. It is followed by NBP and UBL. HBL also holds 25% of the market share,
which is the largest of any bank.

Banks are making profits and defaults have declined as well. However, political instability and economic
uncertainty remain the main problem.

Tobacco:

China is the largest consumer of cigarettes, as more cigs are now smoked there than the next top 29
countries. Followed by Russia and USA. The top brands include Marlboro, Camel, B&H, Newport, Pall
Mall.

PMI is the leading tobacco company, followed by British American Tobacco.

Automobile Industry:

Involved with the production and assembly of passenger cars, LCVs, trucks, buses, tractors, bikes,
rickshaws.

The major assemblers are Indus Motor Company, Honda Cars Ltd, Pak Suzuki Motor Company. This
suggests an oligopolistic market structure with imperfect competition. The industry is highly
competitive. Rigid competition within the market leaders.

Current companies include AGTL, ATLH, Indus, HINO, PSMC.

The market leader is Suzuki with 39%, followed by Toyota (19%) and Honda (17%). Almost 25% are
imports.

Oil and Gas:

Can be divided into Exploration, Transportation and Marketing & Distribution.

Accounts for almost 32pc of the total primary energy supply mix in Pakistan, which is the 20th largest
consumer of gas in the world. Pakistan has 1197 million barrel of oil reserves, out of which 865 have
been extracted.

The laws pertaining to this industry include Mines Act 1923; Act 1948, including Amendment of 1976;
ITO 2001 (Fifth Schedule). The rules and regulations are laid down in Pakistan Petroleum Rules 1949;
Third Party Access Rules 2011; Oil and Gas Regulations 1974.

Main players include Mari Petroleum, OGDC, Pakistan Oilfields and Pakistan Petroleum.
Power:

It is the major instrument of socioeconomic development and CPEC has had an important role as well.
The domestic consumption is 51.18%, followed by industrial use at 29.5%.

Major power producers include WAPDA, K-Electric, IPPs, PAEC. IPPs include Nishat Chunian Power, Atlas
Power, Attock Gen, Bestway Power, Blue Star.

Rise of electronics usage has increased the demand over the last 5 years. The increase in generational
capability has not been able to keep up with the surge in demand.

Major projects in the country include Diamer-Bhasha Dam, Kohala Hydropower Project, Hub Coal Power
Project and a few others.