Features of Pakistan’s Trade Policy 2007-2008
Government of Pakistan has announced trade policy
for year 2007-2008 on 18th July 2007. Following are the main features of the
trade policy:
1.
President Musharraf’s economic reforms agenda has led Pakistan
through a period of impressive economic growth.
2.
Pakistan now confidently on the road to
achieve the dual objective of sustainable economic growth and eradication of
poverty.
3.
For the first time in the history of Pakistan’s
exports have crossed the barrier of US $ 17 billion.
4.
Services exports for 11 months of the year 2006-07, were
US $ 3.1 billion
5.
Defence exports for 2006-07 were US $ 63 million.
6.
During the first 11 months of 2006-07, the exports of
Textiles Group increased by 6%, Engineering goods by
8.7%, Gems by 15.9%, and Jewellery by 120%.
7.
Exports of some textiles products have almost doubled in
the first 11 months of 2006-07.
8.
We need to address a host of Challenges like low
competitiveness, low productive capacity, export diversification, low quality
products, export industries, unprecedented demand for energy, market access for the EU and US requirement of compliance with
social, environment, and health standards.
9.
Pakistan likely to benefit from Global
tariff reductions, expansion in Services sector and growth in Electronics and
electrical goods.
10.
Rs. 49 billion has been disbursed under Long Term
Financing of Export Oriented Projects (LTF-EOP) scheme.
11.
The government shares 50% of the financial transfer cost for
relocation of export oriented industry to Pakistan.
12.
Sales tax regime reviewed for the entire Textile Chain,
and for Leather products, Surgical Goods, Carpets, and Sports Goods.
13.
Sales tax on textiles machinery and on most raw materials,
intermediaries and finished goods zero-rated.
14.
Customs duty and sales tax on import of machinery for
marble and granite, poultry and meat, gems and jewellery, horticulture and
pharmaceuticals sectors also zero rated.
15.
Research and Development (R&D) support being provided
to textiles, clothing and leather footwear.
16.
Expo Pakistan
now held annually at Expo Centre in Karachi
since 2005.
17.
TDAP is executing the Industrial Cluster Development
Programme in collaboration with UNIDO.
18.
Financial Assistance upto 50%
being provided to pharmaceutical companies for registration of their products
in foreign countries for export.
19.
Textiles and Garment cities being set up.
20.
Rs. 69.4 million disbursed to the Textile Garments and
Home Textiles Skill Development Board.
21.
Major institutional reforms have been carried out during
the past year.
22.
TDAP has replaced EPB.
23.
Trade Bodies Law revamped and Rules framed.
24.
Reforms carried out to energize the Insurance Sector in Pakistan.
25.
On recommendation of Ministry of Commerce, a new band of
zero tariff announced by CBR.
26.
Specific action plans and projects being developed to
improve the state of domestic commerce.
27.
Foreign Trade Institute of Pakistan being restructured into
Trade Competitiveness Institute of Pakistan.
28.
The role of NTC being Redefined to fit the emerging global
scenario,
29.
Trade Competitiveness indicators developed and under
constant review for meaningful policy recommendations and interventions:
30.
The Ministry to support the development of Transit Trade
and Transport Logistics to propel the country’s trade, particularly its
exports.
31.
National Trade Corridor Improvement Programme (NTCIP) is a
roadmap for improving the transportation logistic chain.
32.
Pakistan School of Fashion Design will also offer its
curriculum at the Karachi & Islamabad Chapters of the School.
33.
With China,
a historic comprehensive FTA is now effective as of 1st July 2007.
34.
In order to gain a foothold in ASEAN, Pakistan is
working on a two-pronged strategy.
35.
FTA with Malaysia
will be enforced within this year.
36.
SAFTA (The South Asian Free Trade Area Agreement) is operative
since 1st July 2006.
37.
The Pakistan-Sri Lanka FTA operational since June 2005.
38.
Pakistan vigorously pursuing an FTA with
the Mercosur countries.
39.
Pakistan pursuing PTA negotiations with Russia.
40.
Sub-Group on trade formed under the aegis of the
Pakistan-EU Joint Commission.
41.
Pakistan seeking FTAs
with certain Non EU countries in Europe.
42.
Reconstruction Opportunity Zones would qualify for duty
free entry into the United
States.
43.
Ministry of Commerce to continue with the Rapid Export
Growth Strategy (REGS).
44.
Our LTF-EOP amended to cover both the export oriented
units and compact spinning.
45.
New scheme introduced for of Export Oriented Units (EOUs).
46.
Equity Fund created for brand acquisition, and encouraging
SPS Compliance.
47.
First Year Allowance on investment in Plant Machinery and
Equipment allowed for investment in selected sectors.
48.
PEFGA Board to be restructured for better export credit
risk management.
49.
Social, Environmental & Security, Compliance Board to
be set up in TDAP.
50.
Export Skills Development Council to be established in
TDAP.
51.
International consultants to be hired for selected
companies for Reaching International Standards.
52.
Support for various Compliance Certifications increased to
100%.
53.
Government to provide assistance for opening exporters’
offices abroad.
54.
Government to provide assistance for brand promotion.
55.
Increase cost sharing of rentals to 4 years,@ 75%, 50%, 25%, and 10% per year Retail Sales
Outlets.
56.
Overseas Business Support units to be set up in three
countries.
57.
Government to share 50% cost of BRC Certification to rice
exporters with established their brands.
58.
Sales tax or duty drawbacks as well as federal excise duty
refund against goods exported to ISAF and Defence Logistics Agency zero rated.
59.
Tools and equipment for jewellery production which are not
available or are substandard will now be importable.
60.
New value addition requirements for export of gold
jewellery manufactured from imported gold prescribed.
61.
Import of silver and platinum for the manufacture and
export of jewellery made therefrom allowed.
62.
Import of semi-finished carpets allowed the on temporary
basis for processing.
63.
Financial assistance to be provided to investors for
developing export quality slaughterhouses.
64.
Government to share cost of audit/accreditations and
bio-equivalence for pharmaceutical exporters.
65.
International consultants to review Japonica rice
opportunities from an international perspective and develop concept for
increasing production of the right variety.
66.
Vegetable oils exported to Afghanistan to have ingredients
information printed in ‘Dari’ and ‘Pushto’ languages.
67.
Import of duty free footwear samples extended to
manufacturers as well.
68.
Domestic Commerce to be revitalised.
69.
Our import policy based on liberalisation, deregulation,
and facilitation.
70.
Increase in imports reflects higher imports of machinery
and raw materials and high prices of petroleum products.
71.
The bulk of the increase in imports is made up by the
Petroleum group (31%), machinery (30.2%), raw material for textiles (10.6%),
and chemical industries (6.5%).
72.
Imports of mobile phones have increased by 27.6%.
73.
Construction companies registered with Pakistan
Engineering Council can now import secondhand Plant,
Machinery and Equipment.
74.
Prime movers of 380 Horsepower and above EURO III
compliant, upto four year old, allowed for import.
75.
All Pakistan
based Associations and individual companies allowed the facility of temporary
import of permissible products for display in exhibitions.
76.
Charitable institutions and hospitals allowed to import motorized wheel chairs whether new or in used
condition as donations and gifts.
77.
Import of mountaineering equipment and materials by
mountaineering expeditions on import-cum-export basis allowed without having
recourse to Ministry of Commerce.
78.
Authority to grant exemption from sales tax registration
delegated to Collector of Customs concerned.
79.
Import of formaldehyde allowed only to industrial
consumers with valid licenses.
80.
Importers to be liable to penalty on import of stolen and
chassis tampered vehicles under the personal Baggage, Gift and Transfer of Residence
schemes.
81.
HS code in the Trade Policy to be harmonized with the HS
2007 version.
82.
Eight digit PCT codes to be reflected in IPO to facilitate
the automated clearances.
83.
Rules of origin to be defined and made part of Import
Policy Order.
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