Group Members:

p Amjad Nawaz
p Sameed Sohail
p Taimur Khalid
p Zaman Ali
Sameed Sohail
 Trade Policy
p Trade policy is a collection of rules and regulations which
pertain to trade.

p Every nation has some form of trade policy in place, with public
officials formulating the policy which they think would be most
appropriate for their country.

p The purpose of trade policy is to help a nation's international

trade run more smoothly, by setting clear standards and goals
which can be understood by potential trading partners. In many
regions, groups of nations work together to create mutually
beneficial trade policies
 Trade Policy
p Things like import and export taxes, tariffs, inspection
regulations, and quotas can all be part of a nation's trade policy.

p Some nations attempt to protect their local industries

with trade policies which place a heavy burden on importers,
allowing domestic producers of goods and services to get ahead
in the market with lower prices or more availability.

p Others abstain from trade barriers, promoting free trade, in

which domestic producers are given no special treatment, and
international producers are free to bring in their products.
 Trade Policy of Pakistan
p In order to address the challenges confronting Pakistan on the
economic fronts, Ministry of Commerce has launched a
comprehensive three years Strategic Trade Policy Framework
(2009-12) document.

p It would provide the reference to different trade measures by

the Ministry of Commerce and other ministries from time to
time.

p The overall objective of the STPF is to achieve sustainable high

economic growth through exports with the help of policy and
support interventions by the government, industry, civil society
and donors.
Amjad Nawaz
 Purpose
p The Strategic Trade Policy Framework sets out the policy guidelines
and identifies the principle action areas

p Need for developing and effectively implementing a national export

competitiveness program.

p To provide the reference to different trade measures by the Ministry

of Commerce and other ministries from time to time.

p To achieve sustainable high economic growth through exports with

the help of policy and support interventions by the government,
industry, civil society and donors.

p For active collaboration of the Pakistan Institute of Trade and

Development (PITAD) within a short span of time.
 Purpose
p Other factors include:
G For growth with Equity
G For greater Opportunities for gainful employment
G For sound macro-economic framework for trade
environment
G For concern with poverty eradication and
environmental protection
G For investing in Human resources
G For targeting Poverty alleviation
G For promoting private sector as engine of growth
G For focus on small scale sector particularly in
agriculture
 Objectives to be obtained
p Enhance the competitiveness of Pakistan·s exports

p Reducing Cost of Doing Business

p Protection and promotion of SMEs

p Focus on products with higher sophistication potential

p Promote agricultural development through exports

p Enable Pakistani exporting companies overcome the negative

effects of global demand contraction
 Export Competitiveness
p First, overcome the most pressing supply-side constraints such
as the shortage of energy, cost of capital and difficulties linked
with adverse travel advisories.

p Second, enhance competitiveness of textile and clothing, with

the help of Textile Policy due to be announced shortly which
focuses on new investments, modernization of machinery and
increasing total factor productivity.

p Third, deepen and diversify export markets particularly our

major trading partners US and EU as well as countries with
which Pakistan has signed a free trade agreement such as China,
Malaysia and Sri Lanka.
Taimur Khalid
 Review of Minister·s Speech
p According to the speech, the government seeks to expand
Pakistan's export product range in the medium term.
p The following measures may affect international commerce:
G 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.´
G To support the textile industry, import duties on sizing chemicals may be
abolished.
G To promote the export of live sea food, the government has decided to grant
25 percent of freight cost to such products exported by air.
G To support exports of processed foods, the government wants to compensate
exporters partially for necessary research and development investments. This
reimbursement could amount to 6 percent of export value.
 Review of Minister·s Speech
p To increase international market access for electrical appliances,
the government decided to bear half the cost of certification
through Underwriters Laboratories.

p In an attempt to increase overall competitiveness, the government

promised to "zero rate" exports completely.

p To allow improved development of pharmaceutical and engineering

services, the government plans to ease export restrictions on the
industries.

p To encourage local vaccine production, the government plans to

restrict imports to World Health Organization-approved plants
only.
 Positive Aspect of Trade Policy
p Ú
 



Ú  
G the Pakistan Institute of Trade and Development Islamabad, an independent
policy think tank of the Ministry of Commerce, would undertake a systematic
evaluation of the impact of Trade Policy 2009-12 on the trade performance of
Pakistan.

p 

 
 

 
G Complete Insurance cover for buyers coming over to Pakistan for buying.

p £  

 

G A fund is planned to be dedicated to support these activities named
Technology, Skill and Management Up-gradation Fund of Rs. 3 billion is being
established.

p º

 

G It has been decided that surgical instruments, sports goods & cutlery sector
would be granted 25% support on brand development activities.
 Export Targets
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 ü

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p The trade policy envisaged an export growth of 6 per cent

(18.8 billion dollars) for 2009-10, 10 per cent (20.7 billion
dollars) for 2010-11 and 13 per cent (23.4 billion dollars)
for 2011-12.
Zaman Ali
 Challenges
p Trade policy 2009-10 would face many challenges.

p The problems being faced by the economy involves infrastructure

deficit, severe energy shortage, poor innovation and technological
infrastructure, low labour productivity, low levels of manufacturing
value addition.

p Furthermore, there is little foreign direct investment in

manufacturing and exportable sectors, lack of surplus, absence of
economies of scale in the production processes.

p All these challenges may make the desired targets difficult to

achieve.
 Reaction of Business Community
p Many businessmen rejected the trade policy 2009-10,
terming it directionless and flawed. Some termed it
wishful list.

p Other labeled it insufficient. Many chambers of

commerce interpreted it differently. But majority
showed their deep concerns about its different
measures, concessions and mechanism.

p Federation of Pakistan Chambers of Commerce and

Industry president said that the trade policy seems a
medium-term policy framework for the next three
years.
 Reaction of Business Community
p Some said that the problems of foreign exchange reserves, higher
trade deficit and consequently low investment, unemployment and
low GDP growth will continue.

p It is the second time that import targets were not mentioned in

the trade policy.

p The government has fixed export growth target of 6 percent for

2009-10 and 2010-11 and 13 percent for each of the successive
years.

p Pakistan Tanners Association (PTA) appreciated the government's

initiative for launching comprehensive leather and leather products
export plan in consultation with the major players of the leather
sector.
 Conclusion
p ´No books it sounds all nice and great, but problem lies in
the implementation stage where our government fails.µ
p After going through the whole trade policy of Pakistan
we conclude that it covers almost each and every aspect
of trade. Policy making is directly linked with
implementation of those policies, and this is the place
where our government fails to graduate from.
p Some of the trade targets were too optimistic, the
ministry failed to understand the condition of the local
industry. Increased decline in manufacturing because of
lack of energy like electricity and gas has affected the
industry on the whole. Therefore increasing the trade
targets means that they won·t be able to achieve those
trade targets.