Reducing Cost of Doing Business

Railway Services

Extra inland freight costs erode export competitiveness on a range of exports. The cost of transport through roads is expensive as compared to rail and water. Therefore, a task force will be established to conduct expeditious work on improving railway services for exports. The task force will be headed by Secretary Railways and will comprise Secretaries Commerce, Planning & Development and Board of Investment. While the Secretariat of the task force will be in the Ministry of Railways, the funds required for studies/consultancies shall be met from the STPF allocations. Task Force will submit its report to the Cabinet Committee on Production & Exports, along with an action plan.
Trade Facilitation in Pakistan


Inland Water Navigation

A task force will be setup to conduct expeditious work on improving inland water navigation for exports. This task force will be headed by the Secretary Water & Power and comprising Secretaries Ports and Shipping, Commerce, Planning & Development, Communication, Chairman WAPDA, respective provincial Departments of Irrigation and Chairman Inland Water Transport Development Company. The Secretariat of the task force will be in Ministry of Water & Power. The task force will submit its report to the Cabinet Committee on Production & Exports, along with an action plan.

Exporters‟ Tax Refund

Lengthy delays and administrative hurdles in refunds of sales tax as well as other taxes and levies are cited by exporters as the principal cause of liquidity crunch and increasing their financial cost of doing business. Accordingly, the payment of all tax refunds in full will be made expeditiously.





Regulatory Measures

The regulatory amendments in the Import and Export Policy Orders 2013 have been developed after extensive consultation with private sector and relevant ministries and government organizations. These amendments would further facilitate Pakistan‟s trade and contribute to the ease of doing business by simplifying the procedures and strengthening the regulatory processes.

a)      Import of Plastic Waste And Scrap

Procedure for import of the Plastic Scrap is subject to the conditions laid down in the Import Policy Order 2013 including, inter alia, submission of environmental audit report which is not possible for the units importing for the first time. The aforementioned condition will, therefore, not apply in case of units importing plastic scrap for the first time.


b)      Import of Shredded Tyres

Import of waste and scrap of second-hand/used tyres is allowed in favor of industrial consumers subject to fulfilment of environmental requirements of using tyres as a fuel as prescribed by the Federal/Provincial Environmental Authorities. Existing facility is not extended to Pyrolysis plants. The pyrolysis plants, which are duly registered with the respective EPAs and FBR, will also be allowed now to import such scrap subject to the same terms and conditions as are prescribed for industrial consumers plus environmental audit report.


c)      Import of Air Pistols

Import of air guns is presently allowed. The import of Air Pistols, and slugs, will also be allowed now.


d)      Import of Aerial Vehicles and Night Vision Goggles

At present, there is no restriction either on the import of the aerial vehicles with HD Camera and having high-speed WIFI Transmission capability with ground station or on Night Vision Goggle. Since these articles could be misused, the import needs to be regulated. The import of the above mentioned equipment will, therefore, be allowed subject to the NOC from Ministry of Defence.

e)      Import of 3D Printers

At present there is no restriction on the import of 3D Printers. To check the misuse

of 3D Printers, the import will, thus, only be allowed with prior permission from the

Ministry of Interior.


f)       Import of Mobile Phones

In compliance to the Supreme Court of Pakistan order in suo-moto case No. 16 of

2011, the terminal equipment such as mobile hand sets and tablets will not be allowed

to be imported without PTA‟s Type Approval Certificate.


g)      Import of Security Papers

Pakistan Security Printing Corporation (PSPC) will be exempted from taking NOC

from  Security  Paper   Limited   (SPL)   for  importing  security   papers   for  its   own

requirement.


h)      Import of Inputs by Manufacturer-Cum-Exporters

The import of inputs reflected in the restricted list will also be allowed to be imported by manufacturer-cum-exporter under DTRE, Temporary importation, Bonded Warehouses, Common Bonded Warehouses and Export Oriented Unit Schemes subject to conditions mentioned therein.

i)        Import of Specialized Vehicles including Transit Mixer

The import of second hand/used specialized vehicles mentioned in the Import Policy Order will be allowed subject to pre-shipment inspection in the exporting country from any of the internationally recognized companies listed in the said Order to the effect that such vehicles are (a) Euro-II compliant, (b) manufactured as such by the original equipment manufacturers (OEM) and (c) not older than five years.

j)        Import of Pesticides

The import of pesticides will, inter alia, be allowed subject to prior Pre-Shipment Inspection (PSI) certification issued by the recognized PSI agencies to be specified by the Department of Plant Protection.

k)      Import of Digital Enhanced Cordless Telecommunication (DECT) 6.0 Phone




Digital Enhanced Cordless Telecommunication Phones (DECT) 6.0 are causing interference in frequencies allocated with recently launched 3G/4G services across Pakistan. The import of such phones will be banned to ensure compliance to provisions of the PTA Act 1996.

l)        Import of Poultry and Poultry Products

The ban on import of poultry and poultry products will be lifted from South Korea, Russia, Kazakhstan, Mongolia, Turkey, Greece, Croatia, Italy, Azerbaijan, Ukraine, Iraq, Bulgaria, Slovenia, Slovakia, Austria, Bosnia and Herzegovina, subject to certification from respective veterinary authority of the exporting country that birds are only from such flocks where no incidence of Bird-Flu has been reported for the last eleven years.

m)    Import of Plug Wrap Paper

The import of plug wrap paper will also be allowed to manufacturer of cigarette filter rods, duly registered with the Federal Board of Revenue. Presently it is only importable by cigarette manufacturers.

n)      Import of Mercury and Mercury Compounds

At present there is no restriction on the import of mercury and mercury compounds. Pakistan as signatory to Minimata Convention on mercury has to phase out its use in the manufacturing processes till 2020. Its import will be restricted to industrial consumers having valid environmental approval from the concerned Federal/ Provincial Environmental Protection Agency/Department.

o)      Import of Two or Three Wheeler Auto Vehicles

At present import of two or three wheeler vehicles is allowed subject to one time certification of each model by PSQCA that the vehicle conforms to the prescribed Pakistan Standard. The condition of Euro-II compliance will, therefore, be put in place for import of these vehicles.

p)      Import of Ozone Depleting Substances

Obtaining authorization for import of ozone depleting substances from Ministry of Commerce will be dispensed with. Ministry of Climate Change will however, continue to determine the quota policy in this regard.



q)      Import of cars under Disabled Persons Scheme

The words “duty free” will be replaced with the words “exempt from customs duty” provided in the disabled scheme for import of cars. Furthermore, new three wheeler motor cycles will also be allowed under the Scheme.

r)       Allowing the re-consignment

The goods rejected or denied import will be allowed to be re-consigned or returned to the foreign exporter subject to the laws and regulations pertaining to the trade of contraband goods.

s)       Fireworks

While import of explosives is allowed on the restricted list of Import Policy Order, import of fireworks is banned. To remove this anomaly, fireworks will be placed on the restricted list, with the conditions of compulsory physical examination by explosives expert and that Department of Explosives of Ministry of Industries shall allow import only to applicants and companies having valid licenses under the Explosives Rules, 2010.

t)        Export of Gift Parcels

The export of gift parcels will not include items borne on the banned list of exports.

u)      Export of Relief Goods to Afghanistan

The humanitarian relief organizations will be allowed to export goods (excluding banned/ restricted) to Afghanistan without form-E subject to the provision of encashment certificate of foreign exchange from authorized dealers.

1.1.1     Standardization

An inter-ministerial working group comprising Ministries of Science & Technology, Commerce and National Food Security & Research will be constituted to work on quality standardization and harmonization of Pakistan standards besides, revision of list of pre-shipment inspection companies in the Appendix D and H of IPO.