Bosch continues to expand its activities in South Asia with the establishment of an office in Pakistan’s second-largest city, Lahore. This is Bosch’s first location in Pakistan. The company says it will focus initially on the sale of power tools and security systems as well as products and solutions from its automotive aftermarket division.
“Pakistan’s current government plans to strengthen infrastructure and the energy sector. This will have great appeal for foreign investors,” said Ina Lepel, the German ambassador to Pakistan, at the opening of the new Bosch branch. “Bosch’s activities are an important milestone on the path toward bilateral business relationships with Pakistan.”
The country is now one of the region’s emerging nations. With annual population growth of more than 2 percent, Pakistan has one of the highest growth rates in Asia. From 1950 to 2015, the population grew approximately five-fold, to 190 million inhabitants. In comparison, Germany has a population of around 82 million, while Japan has 127 million. Pakistan is the sixth most populous country in the world, making it a very attractive market indeed for the Bosch Group.
“On account of the growing population and the low median age of 22, we see good business opportunities in Pakistan for Bosch in the long-term,” said Steven Young, president of the Bosch Group in the Turkey and Middle East region.
According to the International Monetary Fund, Pakistan’s economy is likely to post steady growth of around 5 percent per year up to 2020. The reasons for this include the low inflation rate and a steadily growing middle class, which is forecast to increase in size in the years ahead by around 6 percent annually. Both factors are having an overall positive effect on local purchasing power. For example, GDP per capita has doubled over the past 10 years, and is now at more than $1,400 USD (just under 1,300 euros).
Lahore is located in Punjab, the most populous province in Pakistan, with more than 100 million inhabitants.
