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Strategic Trade Policy Framework 2009 12 Trade Policy 2009


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Title: Strategic Trade Policy Framework 2009 12 Trade Policy 2009

Strategic Trade Policy Framework 2009 - 12Trade
Policy 2009
  • Ministry of Commerce July 27, 2009

Scheme of Presentation
  • Policy Statement
  • Trade Review
  • Challenges Opportunities
  • Synopsis of Strategic Trade Policy Framework
  • Proposed Trade Policy Initiatives
  • Over arching
  • Sector Specific
  • Trade Diplomacy

  • In line with Manifesto of Pakistan Peoples Party,
    the Trade Policy Aims at
  • Growth with Equity
  • Greater Opportunities for Gainful Employment
  • Sound Marco-economic Framework for Trade
  • Concern with Poverty Eradication and
    Environmental Protection
  • Investing in Human Resource
  • Targeting Poverty Alleviation
  • Promoting Private Sector as Engine of Growth
  • Focus on Small Scale Sector Particularly

Policy Statement
  • The Ministry of Commerces endeavor is to
    provide medium term policy framework with focus
    on improving supply side to achieve sustainable
    export growth.
  • The policy thrust would be to enhance quality,
    improve business processes through structural
    transformation and transferring resources to
    achieve production and export of a more
    sophisticated and diversified range of products

Trade Review
  • Imports and Exports 2008-09

  • Exports 07-08 US 19.1 Billion
  • Export Target 08-09 US 22.1 Billion
  • Actual Exports 08-09 US 17.8 Billion
  • Export Growth - 6.7
  • Provisional
  • WTO estimated a 9 shrinkage in global trade
  • Pakistan is less hurt than competitors- Export
    growth in China declined by 24, India by 31 and
    Bangladesh by 14

Exports Review
  • Exports were 6.7 less than 2007-08 due to
  • Exogenous factors - demand shrinkage, financial
    crisis and ensuing protectionist policies.
  • Domestic Factors - Power shortages/outages, high
    financial cost, bad law order situation and
    competitiveness erosion
  • Traditional sectors like textile (- 9.5),
    Leather (- 29) declined, whereas Rice (8),
    Engineering goods (26), Jewelry (35) recorded
    growth in exports

Exports Historical
Export of Major Commodity Groups (US Billion)
Export Profile 2008-09
Export Destinations
Import Review
  • Imports were US 34.8 billion in 2008-09 as
    compared to US 40 billion in 2007-08 , a
    decrease of 13
  • Lower imports are attributed mainly to demand
    shrinkage of items in Transport Group (-41), and
    Textile Group (-29) whereas imports of Petroleum
    decreased by 17 due to drop in international
    prices of crude oil imports of fertilizer were
    lower both in terms of value (39) and quantity

Imports Historical
Import of Major Commodity Groups (US
Balance of Trade (US Billion)
Challenges 1/3
  • External Factors
  • Economic downturn in our major markets
  • Consumer confidence erosion in USA and its
    ripple effects in EU
  • Economic slowdown
  • Buyers perception of Pakistan as a supplier of
    low quality products and inability to deliver in
    bulk and in time.
  • Negative travel advisories.

Challenges 2/3
  • Domestic Factors
  • High cost of finance
  • Energy Crisis (Electricity and Gas)
  • Law and Order
  • Lack of International Competitiveness
  • Investment declined to 19.7 of GDP as against
    22.0 of last year
  • Large Scale Manufacturing growth declined by
    7.7 (Jul-Mar) as against increase of 4.8 in

Challenges 3/3
  • Sliding Down the Competitiveness Index
  • (Ranking among 131 countries)

  • Favourable market access owing to bilateral trade
  • Potential of doubling the value- addition of
    cotton of which Pakistan is the 4th largest
  • Strong resource base in many sectors (food,
    building stones, gems jewelry, leather, rice,
    cement, light engineering)
  • Growing Services Sectors

  • Pakistan is fortunate to be less hurt by global
    recession and this has placed Pakistan in a
    position to take rebound opportunity if -
  • Supportive Targeted policies are adopted to
    help export sector increase competitiveness
    improve product sophistication
  • Supply side constraints like power shortages and
    high cost of finance are removed
  • Law Order situation is improved

Strategic Trade Policy Framework 2009- 12
Main Features
  • Three years strategic framework
  • Review mechanism
  • Well-defined business processes
  • Shift from Comparative Advantage to Competitive

Trade Policy Objectives 1/2
  • People centric Poverty alleviation and
    employment generation through export led growth
  • Enhance the competitiveness of Pakistans exports
  • Increase the sophistication level of Pakistans
    exports by increasing the technology component
    and value addition.
  • Trade Facilitation
  • Process Improvement
  • Aligning Tax Reform with Trade Facilitation with
    the aim to reduce the cost of doing business
  • Address supply side constraints power shortage
    high financial cost
  • Reduce anti-export bias

Trade Policy Objectives 2/2
  • Reducing Cost of Doing Business
  • Protection and promotion of SMEs
  • Focus on products with higher sophistication
  • Promote agricultural development through exports
  • Enable Pakistani exporting companies overcome the
    negative effects of global demand contraction

Slide 94
Focus Sectors of STPF 2009 - 12
Textiles Support to initiatives in Textile Policy
Services Develop and implement a comprehensive
export plan
  • Focus Sectors
  • Policy Thrusts
  • Pharmaceuticals
  • Leather
  • Gems Jewelry
  • Engineering Goods
  • Surgical. Medical, Dental, Beauty care
  • Agriculture food
  • Halal Products
  • Increasing overall competitiveness
  • Moving up the sophistication ladder
  • SMEs Cluster development
  • Creating supply and demand side linkages
  • Improving Domestic Commerce in these sectors

Strategic Trade Policy Framework 2009-12
  • Linking Trade Policy 2009-12 with other
    development strategies by synergising the
    Functional Linkages between
  • trade and industry
  • trade and investment
  • trade and education
  • trade and science technology
  • trade and social protection policy

Overarching Goals of Strategic Trade Policy
Framework 2009-12
  • Ensuring sustainable energy supply
  • Reducing cost of capital
  • Reforming domestic commerce
  • Promotion of Trade in Services
  • Consolidating gender sensitive trade policies
  • Greening of Exports
  • Connecting Supply and demand better

Trade Policy Formulation Process
  • Invitation of Proposals from all Chambers
    Association registered under TO Ordinance,
    Ministries, Provincial Governments, Departments,
  • Meeting of the Advisory Council
  • Short listing of Proposals received in response
    to invitation or in the Council meeting
  • Firming up the proposals in consultations with
    major Chambers/ Associations and relevant
  • Drafting of the Policy
  • Presentation to the Prime Minister
  • Submission to the Cabinet
  • Issuance of SROs and notifications subject to

Breakup of Proposals Considered
Strategic Trade Policy Framework 2009-12
  • Proposed Initiatives

Proposed Trade Policy Initiatives
  • Required to be Funded
  • Estimated Cost Rs. 35.22 Billion
  • Period 2009-12

Addressing Supply-Side Constraints
  • New Initiatives

Financing at Reasonable Markup
  • Businesses need short to medium term certainty in
    the interest rate for investment. Currently,
    there is no policy instrument provided by the
    government or private sector for providing
    finance at fixed interest rates for a short to
    medium term
  • It is proposed that a fund may be created to
    hedge markup rate hikes. The fund shall be
    managed by an organization (TDAP/ NIC) of the
    Ministry of Commerce and shall be financed from

Reliability of Electricity Supply
  • The electricity shortages is an irrefutable fact
    and is adversely affecting industrial
    productivity. While little can be done, in short
    term, to increase the quantum of supply there is
    possibility for introducing an element of
    predictability of power supply.
  • It is therefore proposed that Electricity
    Distribution Companies (DISCOs) being bodies
    corporate should enter into agreements with
    clusters of industries whereby electricity is
    supplied at mutually agreed times. The agreements
    should have punitive and compensation legally
    enforceable clauses the compensation could be in
    the form of electricity charges credit etc.

Insurance Cover for Visiting Buyers
  • Purchasers, inspectors and sourcing agents of
    overseas buyers are reluctant to travel to
    Pakistan and the exporters have to meet them in
    other countries. This increases cost of doing
    business. It has been learnt that apart from
    travel advisories that stop the
    purchasers/importers from coming to Pakistan but
    also the fact that the insurance companies refuse
    to cover the period of stay in Pakistan on usual
    rate of premium.
  • A scheme may be launched for picking up the full
    cover for stay in Pakistan for valid insurance
    policy of visiting buyers/ buyers

Trade Facilitation
  • Existing Initiatives to be Continued

Facilitating Presence in International Markets
  • To encourage local firms to have international
    presence and thereby increase the profitability
    following initiatives were taken in previous
    trade policies
  • Support for Opening Exporters Offices Abroad
  • Support for Opening Retail Sales Outlets Abroad
  • It is proposed that the above initiatives may be
    allowed to be continued throughout the period of
    STPF 2009-12

Warehousing Facility
  • To make inroads into non-traditional markets and
    / or to introduce non-traditional products in
    traditional markets a warehouse scheme was
    launched and a warehouse was established in
    Kenya. The changing patterns of trade require
    direct to store deliveries and thereby need of
    warehouse even in traditional markets.
  • It is proposed that the warehousing scheme may be
    continued and its scope expanded to include
    traditional markets and traditional products.

Support for Compliance Certification
  • In the previous three years government announced
    50 subsidy for various quality, environmental
    and social certifications. To encourage further,
    the subsidy was progressively increased to 100
    of the cost of certification when a manufacturing
    units gets four of the specified certifications.
  • It is proposed that the initiatives may be
    continued in the Trade Policy 2009 and list of
    certifications may be expanded by TDAP in
    consultation with the Industry.
  • (i) ISO 9000, (ii) ISO 140001, (iii) OHSAS
    18001, (iv) SA 8000, (v) WRAP, (vi) EKOTEX, (vii)
    BSCI, (viii) BRC

Sector Specific
  • New Initiatives

Compensating Inland Freight Charges
  • Extra cost on inland transportation erodes export
    competitiveness of a range of developmental
  • It is proposed that a scheme may be launched to
    compensate inland freight cost to exporters of
    cement, light engineering, leather garments,
    furniture, soda ash, hydrogen peroxide, sanitary
    wares including tiles, finished marble/ granite/
    onyx products. The scheme may be funded from
    Export Investment Support Fund

Technology, Skill and Management Up-gradation
Fund for Value Added Products
  • All final use products do require continuous
    research and development for enhancing
    competitiveness either by technology
    up-gradation, skill development or by improved
    management systems. A fund dedicated to support
    these activities is required.
  • It is proposed that a Technology, Skill and
    Management Up-gradation fund of Rs. 3 billion may
    be established.

Brand Promotion Support for Surgical Instruments,
Sports goods Cutlery
  • The manufacturing in these sectors is largely
    done under the brands of foreign companies, and
    that result in lower prices for manufacturers in
    these sectors.
  • It is proposed that surgical instruments, sports
    goods cutlery sector may be granted 25 subsidy
    on brand promotional expenses like advertisement
    in recognized trade journals, certification cost.
  • Term Surgical includes surgical, medical,
    dental, veterinary, beauty care (manicure/
    pedicure etc.) and like instruments

Product Development and Marketing Fund for Light
  • Engineering sector is dynamic and resilient but
    it is fragmented. This sector has shown promising
    growth during 2008-09 with an export growth of
  • In order to increase the sophistication level
    realize true potential of this sector, it is
    proposed that a special fund of Rs 2.5 Billion
    may be created for product development
    marketing for light engineering sector.

Enhancing Sophistication in Surgical Instruments
Center of Excellence
  • Shortage of well-trained skilled manpower is
    impeding growth of surgical instruments
    manufacturing industry.
  • It is proposed that Ministry of Industries and
    Production may establish a center of excellence
    for catering to the training, designing, research
    development needs of surgical instruments
    sector at Sialkot
  • Term Surgical includes surgical, medical,
    dental, veterinary, beauty care (manicure/
    pedicure etc.) and like instruments

Enhancing Sophistication in Leather Apparel
  • Leather apparel industry needs to adapt to
    changing trends for which they need expert input
    for improving quality and efficiency.
  • It is proposed that use of EISF may be allowed
  • Providing on the floor expert advisory /
    consultancy services to leather apparel
    manufacturers cum exporters.
  • Matching grant to establish design studios or
    design centers in their factories.
  • Establishing RD Centers in Karachi and Sialkot
    by PLGMEA for providing Research Development
    support to Leather Garments Leather Goods

Freight Subsidy on Export of Live Sea Food
  • Live sea food fetch very high prices in
    international markets as compared to frozen
    products, minimum price ratio is 1.10. In fact,
    maximum value addition is through export of live
    sea food. This product offers immense potential
    in export markets.
  • It is, therefore, proposed to grant 25 freight
    subsidy if live seafood products are exported by
    air. This will also compensate exporters to
    overcome losses incurred due to mortality.

Support on Export of Processed Food
  • Raw and semi-processed agricultural produced
    being currently exported can get higher values if
    exported as processed food. However, TBTs on
    processed food require compliance to more
    sophisticated standards and thereby higher cost
    of production
  • It is proposed that processed food exports may be
    supported initially by reimbursing RD cost _at_ 6
    of the exports the quantum mode of support to
    be adjusted after a detailed study but not later
    than May 2010.

Introduction of PAKGAP Standard
  • Good Agricultural practices are essential to
    ensure food safety both locally and in export
    markets and thereby a better acceptability our
    agricultural sector is lacking recognized
    agricultural practices standards.
  • It is proposed that PAKGAP (Pakistan Good
    Agricultural Practices) standards initially for
    five major horticultural exports (citrus, mango,
    date, potato and onion) may be worked out by MoST
    and implemented by MINFA in collaboration with

Conversion of PHDEB into a company
  • Pakistan Horticulture Development Export Board
    is a EDF funded project of the Ministry of
    Commerce. Due to its undefined status it can
    neither seek international assistance which is
    otherwise available nor contribute fully to the
    development of the sector. It has therefore being
    changed into a corporate body.
  • It is proposed that, on incorporation, OM
    expenses of PHDEB may be funded for a period of
    three years.

Improving Supply Chain of Leather Sector Exports
Flaying Machines
  • It is estimated that a minimum of 25 hides and
    skins are rendered useless from butcher cuts.
    There is an imminent need to introduce flaying
    machines in abattoirs but local governments have
    limited resources to install and run flaying
  • It is therefore proposed that EISF may be used
    for providing matching grants to district
    governments for installing flaying machines.

Improving Supply Chain of Leather Sector Exports
Finished Leather
  • Finished leather is one of the major export
    products an intermediate product in which
    substantial value addition can be achieved by
    adopting modern production processes and creating
    trendy finishes. There is a need to encourage
    tanneries to upgrade production and designing
    facilities and to facilitate them for complying
    with international standards.
  • It is therefore proposed that EISF may be allowed
    to be used for-
  • Sharing 25 financial cost of setting up of
    design centers and labs in the individual
  • To provide matching grant for setting up of
    effluent treatment plants in individual

Services Export Development Fund
  • Services sector has immense potential for earning
    foreign exchange however high pre-project costs
    are a deterrent to its expansion. Support to
    Services Sector in tendering process and
    preparing prefeasibility / feasibility studies
    shall be instrumental in helping the sector to
    achieve its potential.
  • It is proposed that a Services Export Development
    Fund may be established to provide assistance in
    the form of reimbursable grants, to Pakistan
    service exporters for Tendering or negotiating
    for international projects and for conducting
    pre-feasibility or feasibility studies for
    international projects.

Halal Products - Cost sharing of Certification
  • Halal Products (Food non-food) is an over
    trillion dollar market. Pakistan despite being a
    Muslim country is being left behind and one of
    the major reason is lack of recognized halal
    standards. MoST is charged with working out the
    standards and setting up a Halal Certification
  • It is proposed that till the time the Halal
    Certification Board is setup, the government may
    subsidize the cost of certification by
    internationally recognized bodies by 50.

Compliance with Safety Standards
  • Safety Standards Certification by Underwriters
    Laboratories (UL) increases the level of
    acceptability of manufactured products
    particularly domestic electrical appliances in
    international markets.
  • It is proposed that 50 cost of UL certification
    may be subsidized.

Sector Specific
  • Continuing Initiatives

Cluster Development
  • It was decided in last years Trade Policy that
    Trade Development Authority of Pakistan(TDAP)
    will establish 11 new clusters such as
    surgical/sports wear/gloves/leather etc to
    facilitate small units. 
  • Since export clusters are essential for
    development promotion of non-traditional
    products, it is proposed to continue with this
    initiative in current trade policy to gain
    maximum benefit from the establishment of these

Support on Export of Motorcycles
  • Export of Motorcycles was facilitated through RD
    support of US 50 (Rupee Equivalent)/ Unit.
    However the disbursement was started in end of FY
  • It is proposed that the support may be continued
    till June 2010.

  • Pharmaceutical sector was given following
    incentives in previous years
  • Support for hiring medical representatives abroad
  • Support for registration of pharmaceutical
    products abroad
  • Support for bioequivalence certification
  • The sector has responded well
  • It is proposed that the above initiatives may be
    allowed to be continued throughout the period of
    STPF 2009-12

Matching Grant for Paddy Harvesters and Paddy
  • A large number of export consignments of rice are
    being rejected due to aflatoxin infestation a
    condition attributed to high moisture contents of
  • The possibilities of aflatoxin infestation can be
    minimized by introducing paddy harvesters and
    paddy dryers which the farmers are reluctant to
    procure due to high cost.
  • It is proposed that matching grants may be given
    to farmers / rice millers for purchase of paddy
    harvesters and paddy dryers.

Zero Rating of Exports and Adhoc Relief _at_1
  • Exporters are forced to export indirect taxes,
    estimated to be around 9 of the cost of
    production. Trade Policy 2008 proposed a study to
    calculate the burden of these taxes and pending
    that to give interim relief to fourteen sectors
    in shape of additional duty drawback _at_1 of
    export value. Though the proposal was approved by
    the Cabinet, FBR did not allow additional duty
  • It is proposed that the exports may be completely
    zero rated and till such time the decision to
    give additional duty drawback to specified
    sectors may be implemented as an interim relief
    measure in Trade Policy 2009 the sectors are
    tents canvas, electric machinery, carpets, rugs
    and mats, sports goods, footwear, surgical/
    medical/ veterinary/ beauty care instruments,
    cutlery, onyx products, electric fans, furniture,
    autoparts, handicrafts, jewelry and

Assistance to Horticulture Sector
  • It was decided in trade policy 2008-09 that a
    farm to port cool chain will be established, till
    completion of cool chain, support for cool chain
    and cold storages for horticulture will be given
    at 8 or 50 of the markup, which ever is lower.
  • It is proposed that this facility for
    horticulture may be continued.

  • New Initiatives

Greening of Industry
  • Energy efficiency of the boilers being used by
    our industries can be enhanced by 30 thereby
    reduce the cost of production. Service providers
    for conversion of boilers are available but are
    reluctant to come to Pakistan.
  • To encourage conversion of boilers for increasing
    efficiency the government should underwrite the
    agreement between service providers and the

Trade Policy Initiatives
  • Process Re-engineering

Reducing Cost of Doing Business
Import of Used Drilling Rigs
  • Oil and gas and petroleum sector companies are
    allowed import of second hand plant and
    machinery equipment required for their project in
    Pakistan subject to pre-shipment certification to
    the effect that such plant, machinery and
    equipment are in good working condition and are
    not older than 10 years.
  • Since drilling rigs usually have a useful life of
    around 20 years it is proposed that the age limit
    for them may be enhanced to 20 years subject to
    PSI certification.

Import of Specialized Machinery
  • There are various restrictions on import of
    specialized machinery and transport equipment
    e.g. Concrete Transit Lorries, Concrete Pumps,
    Crain Lorries, Concrete PlacingTrucks, Dump
    Trucks, Waste Disposal Trucks, cement bulkers and
    Prime Movers. These conditions include age
    restrictions, actual use etc.
  • It is therefore proposed that Import of
    specialized machinery/ transport equipment by
    actual users (construction companies etc.) in
    used condition provided they fulfill emission
    standards and have sufficient productive life
    irrespective of the age.

Trade-in of Machinery
  • There is a possibility for Industrial Users to
    trade-in new, refurbished or up-graded machinery
    with their obsolete machinery. Current import and
    export regimes do not provide for trade-ins
    whereas if allowed it could reduce the
    expenditure on BMR.
  • It is therefore proposed that Industrial
    importers be allowed to import new, refurbished
    and upgraded machinery on the basis of trade-in
    with their old, obsolete machinery. Likewise
    export of their old/obsolete machinery for trade
    in with new, refurbished or upgraded machinery
    may also be allowed.

Advance Remittance for Expeditious Imports
  • State Bank of Pakistan has discontinued the
    facility to remit US 10,000 per invoice, as
    advance payment, for import of spare parts,
    consumables/ raw materials etc. The
    discontinuation of the facility has increased the
    cost and time to effect urgent imports.
  • It is proposed that facility to remit US 10,000
    per invoice, as advance payment, for import of
    spare parts, consumables/ raw materials etc may
    be restored by State Bank of Pakistan.

Waiver of Size Restrictions on Import of
Secondary Quality Iron Steel Plates/ Sheets/
  • Import of secondary quality iron and steel
    sheets/plates / coils is allowed provided the
    sizes are over 48" (length) x 20 (width). The
    size restriction is irrational and difficult to
    implement. The industrial users face difficulties
    in getting clearance of unsorted scrap which adds
    to cost of doing business.
  • It is proposed that minimum size restrictions on
    import of secondary quality iron and steel
    sheets/plates / coils may be waived off.

Reducing Cost of Doing Business
  • Sector Specific

Reducing Cost of Doing Business Gems Jewelry
  • To promote Gems and Jewelry sector, the Cabinet
    in Trade Policy 2008, approved waiver of customs
    duties and sales tax on import of Gold, Diamonds,
    Silver, Platinum ,Palladium and precious stones.
    The waiver was not extended to pearls and other
    synthetic or reconstructed precious or semi
    precious stones though these are increasingly
    being used in jewelry production. Further FBR
    didnt comprehensively implement the decision.
  • It is proposed to exempt natural pearls and other
    synthetic or reconstructed precious or semi
    precious stones from customs duty and sales tax.
    Implementation of Cabinet decision may be

Pharmaceuticals Exports - Facilitation
  • Marketing of pharmaceutical products involve
    number of complexities in the international
    territory including need for extensive sampling
    at product launching stage.
  • It is therefore proposed that limit for
    physicians' samples may be enhanced to 20
    (current limit 10) at the time of launch with
    first shipment

Special EOU Status to Engineering Units
  • Currently, units that export 100 of their
    production enjoy the status of Export Oriented
    Units and the benefits thereof. Since,
    engineering industry, particularly auto motive
    parts manufacturing industry has vast export
    potential but cannot export all of its production
    in initial stages it needs special treatment.
  • It is proposed that engineering units may be
    allowed EOU facility on export of 50 of their
    production for the first three years. After that
    engineering units should be allowed this facility
    on export of 80 of their production.

Export Related
Export of Edible Oil in Bulk
  • At present export of edible oil from Pakistan is
    allowed in retail packs. The permission for
    export in Bulk should be allowed. There have been
    export demands for domestic edible oils like sun
    flower, canola and cotton seed.
  • It is therefore proposed that export in bulk of
    these oils (sun flower, canola and cotton seed)
    may be allowed.

Export of Pulses
  • Currently exports of all types of pulses is
    banned due to domestic supply reasons. There is a
    growing international demand for this item.
    Opportunities exist for exporting pulses obtained
    on processing of imported inputs.
  • It is proposed that exports of pulses obtained on
    processing of imported inputs may be allowed
    subject to necessary safeguards against export of
    indigenous pulses. Regulatory duty on such
    exports may be waived off.

Enactment of G.I Law
  • Absence of sui generis law on Geographical
    Indication (G.I) has exposed Pakistani G.I
    products particularly Basmati rice to
    infringements. The draft G.I law is under
  • It is proposed that G.I law may be enacted on
    fast track basis and Trade Development Authority
    of Pakistan (TDAP) may be given the mandate to
    apply for and to hold G.I registration of
    Pakistani products.

Import Related
  • Regulatory

Controlling Import of Poppy Seeds
  • Presently there is no restriction on import of
    Poppy seeds as far as the origin is concerned.
    Single convention binds the signatories to import
    poppy seeds only from the countries where it is
    legally produced.
  • In view of the international commitments it is
    proposed that source of import of opium poppy
    seeds may be restricted to the countries where it
    is legally produced.

Controlling Import of Scrap/Waste Plastics
  • Presently import of waste, parings and scrap of
    polyethylene and polypropylene is restricted to
    industrial consumers while import of other
    plastics is allowed on commercial basis.
  • To regulate import of such scrap, it is proposed
    to restrict import of all types of plastic scrap
    to industrial consumers only and strictly in
    accordance with the Provisions of the Basel

Import of Used Computer Components
  • At present old and used computers and peripherals
    thereof are freely importable but the import of
    used components (RAM, Casing, Motherboard,
    Processors etc) is banned. Thereby depriving the
    low income strata of computer use.
  • In order to encourage use of computers by low
    income segment of population, it is proposed that
    import of old used computer components may be

Restricting Import of Used CRT Monitors
  • Second hand Cathode Ray Tubes (CRT) monitors are
    being imported and used as televisions thereby
    posing a threat to local television industry
    excessive import of first worlds e-waste is also
    a threat to the environment.
  • It is therefore proposed that import of CRT
    monitors may be disallowed unless imported
    alongwith used computers.

Protecting Local Vaccine Producers
  • Local manufacturing of vaccines is of strategic
    importance and now local companies have started
    venturing into this high tech segment. Unhindered
    import of vaccines is a discouraging factor.
  • It is proposed that to encourage local
    manufacturing, import of vaccines may be allowed
    only from World Health Organization (WHO)
    approved plants.

Trade Policy Initiatives
  • Import Facilitation

Import of Donated Ambulances
  • Only such used ambulances (not more than 15 years
    old) that are donated by "reputable
    organizations" are allowed for imports by
    charitable organizations/ trusts/ hospitals.
  • It is proposed that import of used ambulances
    that fulfill certifiable standards and have
    minimum 10 years of useful life may be allowed
    when donated by any organization / individual to
    charitable or non-profit organizations, trusts
    or hospitals.

Disabled Persons Import of Motorized Wheel
  • Secondhand / used motorized wheel chairs are
    presently importable only by charitable
    institutions and hospitals whereas actual users
    cannot do so.
  • To facilitate disabled persons it is proposed
    that import of one Secondhand / used duty free
    motorized wheel chair may be allowed to actual

Disabled Persons - Import of Duty Free Cars
  • Disabled persons are allowed waiver of import
    duty which is in excess of 10 on CKD kits that
    are imported for assembling of car for them.
    Restricting disabled persons to use locally
    assembled cars limits the choice to few makes
    there have been persistent complaints of
    non-availability of customized vehicles among the
    local makes. Previously duty free import of
    customized cars by disabled persons was allowed.
  • To facilitate disabled persons to actively
    participate in economic activity, the facility to
    import duty free customized cars, not above
    1350cc of engine capacity, may be allowed.

Import Related
  • Liberalization

Transfer of Residence (TR) Rules - Amendment
  • In case a passenger who brings/imports vehicle
    under TR scheme dies before the issuance of TR,
    there is no provision in Import Policy Order for
    release of such vehicle.
  • It is proposed that vehicle imported by a
    overseas Pakistani, under TR rules, may be
    released to legal heir(s) in case of his / her

thank you
Pakistan's low degree of Structural
Transformation and Diversification

Pakistan's exports ranked by sophistication and
share in total exports. All of them RCAgt1
Slide 24
SITC R2, Aggregate 4
Other Manufactures US Million
Slide 09
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