Strategic Trade Policy Framework 2009 12 Trade Policy 2009

1
Strategic Trade Policy Framework 2009 - 12Trade
Policy 2009

• Ministry of Commerce July 27, 2009

2
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

3

• 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
  Environment
• 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
  Agriculture

4
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

5
Trade Review

• Imports and Exports 2008-09

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Exports

• 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

7
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

8
Exports Historical
9
Export of Major Commodity Groups (US Billion)
10
Export Profile 2008-09
11
Export Destinations
12
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
  (45)

13
Imports Historical
14
Import of Major Commodity Groups (US
Billion)
15
Balance of Trade (US Billion)
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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.

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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
  2007-08

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Challenges 3/3

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

18
19
Opportunities

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

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Inference

• 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

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Strategic Trade Policy Framework 2009- 12
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Main Features

• Three years strategic framework
• Review mechanism
• Well-defined business processes
• Shift from Comparative Advantage to Competitive
  Advantage

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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

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Trade Policy Objectives 2/2

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

Slide 94
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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
  instruments
• 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

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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

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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

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Trade Policy Formulation Process

• Invitation of Proposals from all Chambers
  Association registered under TO Ordinance,
  Ministries, Provincial Governments, Departments,
  Academia
• 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
  ministries
• Drafting of the Policy
• Presentation to the Prime Minister
• Submission to the Cabinet
• Issuance of SROs and notifications subject to
  approval

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Breakup of Proposals Considered
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Targets
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Strategic Trade Policy Framework 2009-12

• Proposed Initiatives

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Proposed Trade Policy Initiatives

• Required to be Funded
• Estimated Cost Rs. 35.22 Billion
• Period 2009-12

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Addressing Supply-Side Constraints
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• New Initiatives

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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
  EISF.

35
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.

36
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
  representatives.

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Trade Facilitation

• Existing Initiatives to be Continued

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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

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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.

40
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

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Sector Specific

• New Initiatives

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Compensating Inland Freight Charges

• Extra cost on inland transportation erodes export
  competitiveness of a range of developmental
  products.
• 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

43
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.

44
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

45
Product Development and Marketing Fund for Light
Engineering

• Engineering sector is dynamic and resilient but
  it is fragmented. This sector has shown promising
  growth during 2008-09 with an export growth of
  32.1.
• 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.

46
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

47
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
  for-
• 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
  Exporters.

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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.

49
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.

50
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
  PHDEB.

51
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.

52
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
  machines.
• It is therefore proposed that EISF may be used
  for providing matching grants to district
  governments for installing flaying machines.

53
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
  tanneries.
• To provide matching grant for setting up of
  effluent treatment plants in individual
  tanneries.

54
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.

55
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
  Board.
• 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.

56
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.

57
Sector Specific

• Continuing Initiatives

58
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
  clusters.

59
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
  2008-09.
• It is proposed that the support may be continued
  till June 2010.

60
Pharmaceutical

• 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

61
Matching Grant for Paddy Harvesters and Paddy
Dryers

• A large number of export consignments of rice are
  being rejected due to aflatoxin infestation a
  condition attributed to high moisture contents of
  paddy.
• 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.

62
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
  drawback.
• 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
  pharmaceuticals

63
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.

64
Miscellaneous

• New Initiatives

65
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
  industry.

66
Trade Policy Initiatives

• Process Re-engineering

67
Reducing Cost of Doing Business
68
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.

69
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.

70
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.

71
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.

72
Waiver of Size Restrictions on Import of
Secondary Quality Iron Steel Plates/ Sheets/
Coils

• 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.

73
Reducing Cost of Doing Business

• Sector Specific

74
Reducing Cost of Doing Business Gems Jewelry
Sector

• 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
  expedited.

75
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

76
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.

77
Export Related
78
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.

79
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.

80
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
  preparation.
• 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.

81
Import Related

• Regulatory

82
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.

83
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
  Convention.

84
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
  allowed.

85
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.

86
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.

87
Trade Policy Initiatives

• Import Facilitation

88
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.

89
Disabled Persons Import of Motorized Wheel
Chairs

• 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
  user.

90
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.

91
Import Related

• Liberalization

92
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
  death.

93
thank you
94
Pakistan's low degree of Structural
Transformation and Diversification
95


Pakistan's exports ranked by sophistication and
share in total exports. All of them RCAgt1
Slide 24
SITC R2, Aggregate 4
96
Other Manufactures US Million
Slide 09