Pakistan is a developing country and a country that is growing exponentially with each passing day. The country has been opening up to new opportunities and ventures every day and the new businesses opening up are promising in creating employment and revenue generation in the country. The business community in Pakistan is also very strong as there are not only huge companies and multinationals in the businesses, but several sole traders too. these sole traders come from varied backgrounds and own huge market shares in their respective industries. There are several markets (physical markets) in the country, each designated to a type of product or service and then, in those markets there are families, partners and sole traders owning huge businesses.
Keeping in mind Pakistan’s geographical location, strategic importance and historical trends, there are certain businesses and products that the country specializes in. There are several entrepreneurs who own businesses in such markets and are doing wonders each day. Some of those industries in Pakistan are textile, sports goods, pharmaceutical equipment and agricultural products.
Ahead, we will be discussing some of the top businesses in Pakistan. These are businesses from the most popular industries in the country and the ones which are usually sure to give a good proportion of profit to the entrepreneur.
To discuss about the top best businesses in a country or any place, it is important to first choose the base of judgement that is to be used in order to rate the business in their importance hierarchy. Multiple ways can be used like return on investment (ROI), number of workers employed, percentage of market share owned, revenue generation, highest margin of profit and so on. In our analysis, we will be using the first metric i.e. return on investment (ROI) to rate the best businesses in Pakistan.
So, Let’s get started with the 10 Top Businesses in the Country:
1) Medical business:
It is hard to evaluate if this is unfortunate, inhumane or just unethical, but a business that benefits out of humans’ unwell being is one of the best profit-making businesses. No matter if the business structure is of a retail store selling medicines to normal individuals, wholesalers supplying medicines to these retailers or companies manufacturing medicines and researching into new medical ventures, everyone is making a hefty share of profit. Due to malnutrition and low quality of nutrition in the country, every third or fourth person in the country is going through some kind of disease. Diseases like diabetes are extremely common and insulin demand is extremely high. The return on investment in the retail sector of medical business is around 15% to 50%. On the other hand, in wholesale, the return on investment varies between 3% to 8% which is really good provided that the volume traded in wholesale is really high.
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One of the reasons of it being a successful business is that no matter what happens and no matter what conditions persist, people cannot stop taking medicines. They can stop buying clothes or spending on luxurious goods but not medicines.
There are huge markets in large cities of the country like Karachi completely devoted to cloth business such as kapra market in the old city area of the city, Rabi center at Tariq road, cooperative market in Saddar area and so on. A cloth business in Pakistan guarantees a return to as much as 60% on some products which is huge. Pakistan has a population of above 220 million and all these people need to wear clothes obviously. Hence, it is a market with huge consumer base. Most of these people wear clothes that are locally manufactured and are available in such markets. There is a very small proportion of people who wear imported branded clothes. The city of Faisalabad is a hub of textile business in the country and a lot of manufacturers of cloth and wholesalers have their businesses running there.
Pakistani people are known a lot for their love of food and trying new foods as well as having traditional ethnic foods. Hence, a food business in the country is one of the most gross and profitable businesses to own and operate. Here, we are not just talking about big food chains like KFC, McDonald’s and Burger King, but also small roadside food vendors who sell traditional food or snacks. The culture of street food is very popular in the country and a lot of people are capitalizing on it. People might be amazed to see the profit margins and amounts of even a roadside small vendor in Karachi. For example, some street vendors on the famous burns road of Karachi.
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This is one of the hottest topics and businesses in the country for the past 10 years or so. People have started purchasing real estate for motives other than just living in it. the motives are trading or simply investment. This boosted after the government regulations regarding black money started to become more stringent and people had to put their money somewhere, so they started purchasing real estate.
5) Grocery Distribution and Stores:
The distribution and even retail of grocery goods is very profitable in the country primarily due to the large population and the culture of cooking at home normally. Distributors get goods from companies and wholesale the same to the retailers while retailers sell the goods to the individuals and walk-in customers.
People have been stepping into the automobile business at an increasingly alarming rate lately. No matter if you own a showroom or not, no matter if you have enough capital to purchase a car, you can still do the automobile business. All you need is a person willing to sell their car and another person who is willing to purchase and you can make a substantial amount of money on this scenario.
7) Smartphone business:
The smartphone culture in Pakistan has been on a rise just like any other country around the globe. The mobile market in Saddar area of Karachi sees hundreds of thousands of customers each day who make purchases worth million of rupees. And that is just one market in the country. The return on investment is great for retailers, distributors and agency owners too. People have also moved to online medium for this business and it has been very fruitful.
Education has become a very successful business and not just schools, but colleges, universities and tuition centers too. This has gained popularity over the past 5 years or so when the culture of O’levels and A’levels took a leap and people felt a need to send their children to tuition centers. Education is now commercialized; popular teachers have now become products and the profit margins are huge.
People have started to become more and more fitter and conscious of their health and fitness. A lot of people who were gym freaks themselves and had the knowhow of its functionality, opened their own gyms after they saw the opportunity and are now reaping huge benefits out of it.
The country has a culture where people throw huge parties on a lot of occasions, be it a wedding a birthday party, promotion or whatnot. Hence, in all these things, they do need caterers to cook food for their guests and this business has been gaining increasing popularity too and has a great return on investment (ROI).