Kim Janghoon

Pakistan offers great business opportunities with multiple prospects and impediments. Among variety of businesses, one may consider doing cosmetic business in Pakistan, which has a tremendous potential considering the country’s burgeoning population. As a Korean citizen, who has had the opportunity to live in Pakistan now for past couple of years, my experience and analysis of job market convinced me that starting a cosmetic business in this country as a South Korean entrepreneur would certainly be lucrative opportunity: given the growing demand owing to huge percentage of young female population. With the growing popularity of Korean beauty (K-beauty) trends in Pakistan, there is a strong market for innovative, skin-friendly, and result-driven cosmetics.

However, to succeed in this competitive industry, it is crucial to navigate regulatory approvals, import procedures, branding strategies, and consumer preferences effectively. By establishing a strong supply chain, leveraging digital marketing, collaborating with local influencers, and ensuring compliance with Pakistani standards, you can build a thriving cosmetic brand in Pakistan and tap into its rapidly expanding beauty market.

According to Statista, the projected value of beauty and personal care market is estimated around $5.10 billion with prospects of annual growth rate of 2.18%. In 2025, the Beauty and Personal Care market in Pakistan is projected to generate revenue of US$5.10 billion. In the year 2025, the revenue of cosmetic market amounts to $783 million. In terms of imports, Pakistan’s cosmetics imports are projected to reach US$275 million by 2026, up from $233 million in 2021, indicating a steady growth rate of 2.8% annually. ​

On the other hand, Korean beauty products are witnessing growing popularity which is evidenced by K-Beauty, Beauty Glance, Korean Megastore Belle and Korean Store. According to a survey, Pakistani consumers are greatly interested in technologically advanced and innovative skincare solutions with particular focus on skin whitening, pore treatment and anti-aging products. In brief, the Pakistani cosmetic market offers substantial opportunities for introducing Korean beauty products due to their renowned efficacy and credibility. The growing consumer interest in innovative skincare solutions, coupled with the expanding market size, makes it a favourable environment for new businesses in this sector.

Nonetheless, there are certain challenges for doing this business in Pakistan. In this regard, i have found few impediments during my stay and journey of getting ground information regarding the start, feasibility, process, launch, execution and sustainability of cosmetic business in Pakistan. These impediments include business registration, legal requirements such as licensing and regulatory approvals, importing or manufacturing unit, marketing, financial uncertainty, logistics and infrastructure. For instance, the registration process with the Security and Exchange Commission of Pakistan (SECP), getting approval from Board of Investment (BOI) and Tax Registration processes are time consuming and are under different roofs which become quite difficult for a foreign national. Unfortunately, absence of any digital platform that could provide online information regarding the processes and modalities makes entrepreneur endeavour more discouraging. Furthermore, cosmetic products that contain medicinal ingredients are also required approval or licensing from Drug Regulatory Authority of Pakistan (DRAP). Another important impediment in this pursuit appeared in the form of cumbersome processes from Pakistan Customs which appeared most irritating while doing this business. Moreover, Pakistan has strict import regulations, high tariffs, and changing duty structures for foreign cosmetics. Apart from these, less online payment culture and issues of uninterrupted supply chain are other impediments that we
found while doing research and making feasibility report.

For an entrepreneur’s perspective, the aforementioned issues need government attention and concerned authorities considerations for creating ease of doing business. In this regard, following suggestions, may encourage entrepreneurs to start business in Pakistan. Firstly, there should be online or digital platform that should provide relevant information regarding the issues such as getting license, approvals and certificates from the concerned authorities. Secondly, there should one window platform for getting these requirements done under as this practice is being exercised in countries such as South Korea and even UAE. It provides better image and generate ease of doing business in Pakistan. Last but not least, tariffs and custom duties should be minimum at least for foreign students like me who areseeking business opportunities while studying here.

Kim Janghoon is pursuing BS in International Relations from Bahria University,
Islamabad