STRATEGIC TRADE POLICY

FRAMEWORK 2009 - 12
TRADE POLICY 2009
 Scheme of Presentation
2

 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
3
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

 Policy Statement
4

The Ministry of Commerce’s 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
 Exports
6

 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
• WTO - 6.7%
estimated a 9% shrinkage in
global trade
* Provisional
• Pakistan is less hurt than competitors-
Export growth in China declined by
24%, India by 31% and Bangladesh by
14%
 Exports Review
7

 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
8

Year Value Change

(FOB $ (%age)
Billion)
2000-01 9.2 -
2001-02 9.1 -0.7
2002-03 11.2 22.2
2003-04 12.3 10.3
2004-05 14.4 16.9
2005-06 16.5 14.3
2006-07 17.0 3.2
2007-08 19.2 13.2
2008-09 (P) 17.8 - 6.7
 Export of Major Commodity
9
Groups (US$Billion)
 Export Profile 2008-09
10
Export Destinations
11

Oceania is a geographical, often geopolitical, region consisting of numerous lands—

mostly islands in the Pacific Ocean and vicinity. The term is used today in many
languages to denote a continent comprising Australia and proximate Pacific islands and
is one of eight terrestrial ecozones.
 Import Review
12

 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%)
 Imports – Historical
13
Year Value Change
(C&F US$ (%age)
Billion)
2000-01 10.7
2001-02 10.3 - 3.6
2002-03 12.2 18.2
2003-04 15.6 27.6
2004-05 20.6 32.1
2005-06 28.6 38.8
2006-07 30.5 6.9
2007-08 40.0 30.9
2008-09(P) 34.8 - 13.0
 Import of Major Commodity
Groups
14 (US$Billion)
 Balance of Trade (US$ Billion)
15
 Challenges
16
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
17
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
 Challenges
18
3/3
Sliding Down the Competitiveness Index
(Ranking among 131 countries)

Indicator Ranking 2007- Ranking 2008-

08 09
Overall Competitiveness 92 101
Infrastructure 72 85
Labour Market Efficiency 113 121
Financial Market 65 71
Sophistication
Technological Readiness 89 100
Innovation & 78 85
Sophistication Factors
Source: Global Competitiveness Report 2008-09, World Economic 18
Forum
 Opportunities
Favourable market access owing to
19


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
 Inference
20

 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
21

Strategic Trade Policy

Framework 2009- 12
 Main Features
22

 Three years strategic framework

 Review mechanism
 Well-defined business processes
 Shift from Comparative Advantage to
Competitive Advantage
 Trade Policy Objectives
23
1/2
People centric : Poverty alleviation and employment
generation through export led growth

1. Enhance the competitiveness of Pakistan’s exports

a) Increase the sophistication level of Pakistan’s exports by
increasing the technology component and value addition.
b) Trade Facilitation
i. Process Improvement
ii. Aligning Tax Reform with Trade Facilitation with the aim to reduce
the cost of doing business
c) Address supply side constraints – power shortage & high
financial cost
d) Reduce anti-export bias
 Trade Policy Objectives
24
2/2

2. Reducing Cost of Doing Business

3. Protection and promotion of SMEs
Slide 94
4. Focus on products with higher sophistication
potential
5. Promote agricultural development through
exports
6. Enable Pakistani exporting companies overcome
the negative effects of global demand
contraction
 Services
Focus Sectors
Textiles
Support to
of STPF 2009 Develop and
implement a
25
- 12Textile
initiatives in
Policy
comprehensive
export plan
Focus Sectors Policy Thrusts
 Pharmaceuticals  Increasing overall
competitiveness
 Leather  Moving up the
sophistication ladder
 Gems & Jewelry  SMEs Cluster development
 Engineering Goods  Creating supply and
 Surgical. Medical, demand side linkages
Improving Domestic
Dental, Beauty care


Commerce in these sectors

instruments
 Agriculture & food
 Halal Products
 Strategic Trade Policy Framework
2009-12
26

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
27

 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
28
Process
 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 and approval
 Targets
Indicator Target 2012
29

Merchandise Exports (US$ From 17.8 to 23.5

Billion)

Competitiveness Ranking From 101 ≤ 75

Engineering Sector Export-Share From 1.5% ≥5%

Value – addition of Cotton From US$

1000/bale to 1500/
bale

Expansion of Regional Trade From 17% ≥25%

30
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
32

Addressing Supply-Side
Constraints
New Initiatives
 Financing at Reasonable
33
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.
 Reliability of Electricity
34
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
35
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.
Trade Facilitation
Existing Initiatives to be Continued
 Facilitating Presence in
37
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
38

 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
39
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
41
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
 Technology, Skill and Management
Up-gradation Fund for Value
42 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
43
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
44 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.
 Enhancing Sophistication in
Surgical Instruments – Center
45
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 instrument*s sector at Sialkot
 * Term Surgical includes surgical, medical, dental,
veterinary, beauty care (manicure/ pedicure etc.) and
like instruments
 Enhancing Sophistication in
46
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 R&D Centers in Karachi and Sialkot by PLGMEA
for providing Research & Development support to Leather
Garments & Leather Goods Exporters.
 Freight Subsidy on Export of
47
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
48
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
R&D cost @ 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
49
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.
 Conversion of PHDEB into a
50
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, O&M
expenses of PHDEB may be funded for a period of
three years.
 Improving Supply Chain of
Leather Sector Exports –
51
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.
 Improving Supply Chain of
Leather Sector Exports –
52
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.
 Services Export
53
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
54
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%.
 Compliance with Safety
55
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.

56

Sector Specific
Continuing Initiatives
 Cluster Development
57

 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.
 Support on Export of
58
Motorcycles
 Export of Motorcycles was facilitated
through R&D 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.
 Pharmaceutical
59

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
60
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.
 Zero Rating of Exports and
61
Adhoc Relief @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 @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
 Assistance to Horticulture
62
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.
63

Miscellaneous
New Initiatives
 Greening of Industry
64

 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.
65

Trade Policy Initiatives

Process Re-engineering
Reducing Cost of Doing
Business
 Import of Used Drilling Rigs
67

 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
68
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
69

 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
70
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/
71
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.
Reducing Cost of Doing
Business
Sector Specific
 Reducing Cost of Doing
Business –Gems & Jewelry
73
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
didn’t 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.
 Pharmaceuticals Exports -
74
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
75
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
77

 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
78

 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.
Import Related
Regulatory
 Controlling Import of Poppy
80
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
81
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.
 Import of Used Computer
82
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.
 Restricting Import of Used CRT
83
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 world’s 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
84
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.
85

Trade Policy Initiatives

Import Facilitation
 Import of Donated
86
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
87
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.
 Disabled Persons - Import of
88
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.
89

Import Related
Liberalization
 Transfer of Residence (TR)
90
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.
 Pakistan's exports ranked by
92
sophistication
and share in total exports. All of them
Commdity Sophistication 1985 1990 1995 2000 2005 2006

Medical Instruments and appliances, nes 20814.00 1.23 0.95 0.89 0.88 0.97 1.00

RCA>1
other sporting goods and fairground amusements, etc 15712.00 1.22 1.87 2.00 1.85 1.76 1.94
Cotton fabrics, woven, bleached, dyed, etc, or otherwise finished 11214.00 3.46 4.11 6.02 3.61 4.78 4.48

Leather of other bovine cattle and equine leather 10168.00 2.21 2.04 1.31 0.92 1.17 1.14
Clothing accessories, knitted or crocheted, nes 9429.00 0.23 0.36 0.73 0.90 1.65 1.95
Fabrics, woven, less 85% of discontinuous synthetic fibres 8683.00 0.10 2.49 3.09 4.00 3.48 3.17
Womens, girls, infants outerwear, textile, not knitted or crocheted; 8585.00 1.24 2.59 1.90 2.44 2.59 2.77

other outer garments of textile fabrics, not knitted, crocheted

Other made-up articles of textile materials, nes 8359.00 0.89 0.93 1.60 2.86 2.79 2.72
Outerwear knitted or crocheted, not elastic nor rubberized; jerseys, 8199.00 0.16 1.16 1.65 3.79 3.23 3.05

pullovers, slip-overs, cardigans, etc

Articles of apparel, clothing accessories of leather 8176.00 2.11 4.49 4.80 4.61 2.96 2.73
Outerwear knitted or crocheted, not elastic nor rubberized; other, 8119.00 0.28 0.96 1.63 1.70 2.18 2.17

clothin• accessories non-elastic knitted or crocheted

Linens and furnishing articles of textile, not knitted or crocheted 7,345 3.66 5.45 5.94 9.30 12.63 13.38

Under-garments, knitted or crocheted; of cotton, not elastic nor 7,122 1.00 2.27 4.27 3.62 3.55 3.87
rubberized
Men's and boys' outerwear, textile fabrics not knitted or crocheted; 6,798 0.28 0.64 1.25 2.75 2.96 3.15

trousers, breeches and the like

Cotton yarn 5,728 10.32 16.91 18.91 13.21 10.14 10.53
Carpets, carpeting and rugs, knotted 5,309 4.57 3.86 1.82 2.33 1.93 1.74
Rice, semi-milled or wholly milled 5,060 8.63 4.64 5.55 5.71 5.82 6.46
Cotton fabrics, woven, unbleached, not mercerized 4,578 5.07 5.15 6.88 6.16 5.15 5.20
Sub-total (%) 46.70 60.90 70.20 70.60 69.70 71.50
Sophistication at the country level 7231.00 7693.00 8268.00 8362.00 8833.00 8,72a

SITC R2, Aggregate 4 Slide 24

 * Other Manufactures US$
Million
93

Slide 09