Live Issue... Agencies heed call of new Asian Tiger

For global investors, the developments represent an unwelcome shift back in time - before Musharaff came to power and ushered in a period of economic stability and unparalleled growth, averaging six to seven per cent over the past four years. The world's advertising networks have not been slow to take notice, with JWT, MindShare and, most recently, Ogilvy, all making acquisitions in the world's sixth most populous country.

For Ogilvy regional chairman Miles Young, the decision to acquire affiliate Interflow was prompted at least partly by the impressive economic environment. "Our perception is that Pakistan is the next Asian tiger," says Young. "You've got surging per capita income, 13 million people coming out of poverty and one of the highest GDP rates in the Asian region."

JWT's outgoing CEO of its Asia-Pacific South region, Patrick Pitcher, points out that - in common with many developing markets - growth is being led by the FMCG, telecommunications and financial sectors. "Senior clients are very optimistic about growth, and lots of MNCs and retail chains are very interested in entering," he notes.

Omar Alavi, strategic planning director at BBDO affiliate Manhattan International, believes the current instability poses little threat to growth in Pakistan, particularly to the booming telcos and consumer banks. Within the next four to five years, continuing economic expansion is likely to see the agency map redrawn. "You will see offers being made that are increasingly hard to refuse by the current ownership," says Alavi. "It's a good thing where globalisation and standardisation are concerned. When you advertise in Pakistan, you are looking at an audience that is becoming literate."

With growth, however, often comes pain. As Khalid Rauf, MD at Lowe & Rauf, explains, Pakistan's agencies still need to develop in a range of areas. "Not to say that there has not been any significant development, but areas of best practice, systems, talent training, and client education need far more input than is being provided presently," says Rauf.

Talent remains a pressing issue. While Young remains confident about account servicing and planning, concerns have been voiced about the strength of Pakistan's creative pool. "It is one of the weakest countries in the region creatively," says Pitcher. "The average work is not bad, but there are not really the highs or pinnacles."

Alavi disagrees, noting that an innate conservatism among clients and consumers means that agencies are wary of pushing the bar too much. A local awards show would probably help, which makes the resumption of the Dawn Aurora awards this year after a 15-year gap a positive signal. Neither Alavi nor Rauf, however, appear overly impressed. "Good creativity is not award-driven, but winning awards does certainly provide motivation to creatives which arguably leads to better creativity," says Rauf.

"I wouldn't call creativity a weakness," adds Alavi. "I would term it more agreeable to what clients want. Once we get over the fear of what the masses will have to say, then you will see a big difference."