TRADE POLICY INITIATIVES 2015-18
In order to achieve STPF goals,
the following measures will be undertaken in each of the four pillars.
Product Sophistication and Diversification
 |
| Pakistan TRADE POLICY INITIATIVES 2015-18 |
Technology
Up-gradation
On the basis of research and
consultations with stakeholders, it has been identified that use of inefficient
technologies is the principal constraint in exports of selected sectors i.e.,
fans, home appliances, rice, cutlery and sports goods. In order to increase the
sophistication level and to realize true potential of these sectors, following
incentives for technology up-gradation will be provided in the shape of
investment and mark-up support:
a.
20% investment support upto a
maximum of Rs. 1 (one) Million per annum per company will be available for
import of new plant and machinery.
b.
50% of markup support on
up-gradation of technology will be provided for import of new machinery/plant,
subject to a maximum of Rs. 1 (one) Million per annum per company
Product
Development
Leather, pharmaceutical,
fisheries and surgical instruments are sectors with higher export potential.
These sectors can lead to a quantum jump in total exports. In order to further
boost export in these sectors, following incentives will be undertaken:
a.
Matching grant upto a maximum of
Rs. 5 (five) Million for specified plant and machinery or specified items to
improve product design and encourage innovation in SMEs and export sectors of
leather, pharmaceutical and fisheries
b. Common
Facility Center for surgical sector will be established
The manufacturing in surgical
instruments, sports and cutlery sectors in Pakistan is largely done under the
brands of foreign companies, resulting in lower prices for manufacturers in
these sectors. Brand development needs special attention. Currently, there is
no policy instrument provided by the government or private sector for providing
finance for this purpose. The Government will, therefore, provide matching
grant to facilitate the branding and certification for faster growth of the SME
and export sector in Pakistan‟s economy through Intellectual Property
Registration (including trade and service marks), Certification and
Accreditation.
Drawback
of Local Taxes and Levies
To reduce the cost of doing
business and increase the competitiveness of the value added non-textile
selected sectors*, draw-back for local taxes and levies will be given to
exporters on free on board (FOB) values of their enhanced exports if increased
by 10% and beyond (over last year‟s exports) at the rate of 4% on the increase.
This is an ongoing initiative announced in the Budget 2014-15 which will be
continued for STPF 2015-18.
*
The selected sectors are fish and fish preparations, meat and meat
preparation, spices, gloves, football and other sports goods, leather garments,
other leather manufactures, footwear, surgical goods/medical instruments,
cutlery, electric fans, transport equipment, auto parts, machinery specified
for particular industries or other machinery and other electric equipment,
furniture and pharmaceutical.
Plant and
Machinery for Agro Processing SMEs
Raw and semi-processed
agricultural produce being currently exported can get higher values if exported
as processed food. Lack of necessary processing facilities result in the
wastage of large quantities, thus restricting the income of farmers.
To reduce the wastage of produce,
increase income of the farmers and foreign exchange earnings, following
measures will be undertaken in the selected agriculture sectors*:
a.
50% support on the cost of
imported new plant and machinery for specified under-developed regions**
b.
100% mark-up support on the cost
of imported new plant and machinery on all Pakistan basis
** Rural Sindh, KPK, FATA, Baluchistan, Southern
Punjab and GB
Market Access
Enhancing
Share in Existing Markets
Sustaining
GSP Plus in European Union
Pakistan‟s exports have sustained
despite all the challenges due to the market access in EU countries after the
grant of GSP Plus. Pakistan is complying with the mandatory 27 conventions
relating to environment, narcotics control, drugs, human rights and labour to
retain this market access. In the wake of upcoming review of the GSP Plus in
2016, the Ministry of Commerce will launch a robust public information campaign
to disseminate and sensitize stakeholders and the public on compliance issues.
Extensive information
dissemination on opportunities available under market access secured by
Pakistan, and other export promotional activities like exhibitions and
delegations, will continue to be an integral part of the strategy for
sustainability and enhancement of share in the existing markets.
Exploring
New Markets
In order to diversify our export
markets, an outreach strategy for Africa, Commonwealth of Independent States
(CIS) and Latin America is being adopted. As part of the market
penetration/outreach strategy, these new markets will be explored through the
following initiatives:
a. Market
Research
b. Opening
of new Trade Missions
c. Exhibitions
and Delegations
d. Linkages
through Export Import Bank [EXIM Bank]
Trade
Diplomacy
The Ministry of Commerce will
continue working on its three-pronged strategy of trade diplomacy in the
multilateral, regional and bilateral arenas for increasing market access.
‐
Entering into multilateral
arrangements for better market access such as Trade Facilitation Agreement
(TFA), Information Technology Agreement (ITA), Government Procurement Agreement
(GPA)
b. Regional
‐
Enhancing access to regional
markets such as GCC, ASEAN, SAARC, Afghanistan and CARs
c. Bilateral
‐
Negotiating bilateral
preferential access with Thailand, South Korea, Turkey, Iran, China, Malaysia,
Indonesia, Nigeria and Jordan
Regional
Connectivity
Despite immense
potential, the regions of South and Central Asia are amongst
the least
integrated regions of the world
with intra-regional trade
less than 5%
primarily
caused by high costs due to infrastructure, missing links and lack of transit
agreements.
Opportunities are, therefore, immense for greater regional connectivity
and enhanced cooperation through transit trade agreements. The Ministry of
Commerce
is working on achieving shared prosperity through better connectivity and
transit
trade through the following initiatives:
a.
Resolution of outstanding issues
in Afghanistan Pakistan Transit Trade Agreement (APTTA)
b.
Negotiation and early conclusion
of Afghanistan, Pakistan and Tajikistan Transit Trade Agreement (APTTTA)
c.
Effective implementation of
Transports Internationaux Routiers (TIR) Convention
d.
Reactivation of Quadrilateral
Transit Trade Agreement (QTTA) among Pakistan, China, Kyrgyz Republic and
Kazakhstan
e.
Taking institutional lead on
formulation of a Pakistan-Afghanistan-Central Asia regional economic
integration framework through a Regional Trade Office, established at the
Ministry of Commerce
Institutional Development and Strengthening
Restructuring/ Reorganization of Ministry of Commerce and Trade
Promotion Organizations
In a
highly competitive environment of international trade, the Ministry of
Commerce
and its attached organizations are challenged to adopt professionalism,
specialization,
agility and pro-activeness for an effective service delivery. In order to
address these challenges, an exhaustive performance review and organizational
analysis of the Ministry of
Commerce and its trade related attached organizations have recently been
carried out.
The need assessment of human
resource for the Ministry has established that almost 80% of positions of
officers in the Ministry are of technical nature which require professional
expertise and experience in trade promotion, international trade law and trade
diplomacy. Administrative anomalies impede the Ministry from developing and
deploying professional human resource in the Ministry. For instance, Commerce
& Trade Group officers are posted on deputation in Ministry of Commerce
i.e., Ministry of Commerce cannot post to its own offices the C&T Group
officers who are under its administrative control. Similarly, unlike Foreign
office, MOC has administrative limitations in management of trade offices
abroad.
An inter-ministerial Committee
headed by the Secretary Establishment with Secretaries of Commerce, Finance and
Foreign Affairs as members will be set up for restructuring,
professionalization and empowerment of Ministry of Commerce. The Committee will
finalize its recommendations within 60 days.
Trade Development Authority of
Pakistan (TDAP) and Pakistan Horticulture Development and Export Board (PHDEC)
are our main trade promotion organizations. However, they are under-resourced
and are not geared to face export promotion challenges. To boost their
performance, restructuring of these organizations will be done in consultation
with relevant stakeholders on modern lines to cater for export promotion needs.
Placement of Intellectual Property Organization–Pakistan (IPO-P) in
Ministry of Commerce
Posts
0 Comments