Post on 07-Apr-2018
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Pakistans Market AccessPakistans Market AccessInitiativeInitiative
Challenges and OpportunitiesChallenges and Opportunities
Pakistans Market AccessPakistans Market AccessInitiativeInitiative
Challenges and OpportunitiesChallenges and OpportunitiesByBy
Ministry of CommerceMinistry of Commerce2828thth August 2005August 2005
ByBy
Ministry of CommerceMinistry of Commerce2828thth August 2005August 2005
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Policy FocusPolicy Focus
Domestic DimensionDomestic Dimension Strengthen the Production BasesStrengthen the Production Bases
Improve QualityImprove Quality
Ensure ComplianceEnsure Compliance Enhance Design CapabilitiesEnhance Design Capabilities
Develop Human Resource with referenceDevelop Human Resource with reference
to Technical Skillsto Technical Skills Provide volumes for achieving EconomiesProvide volumes for achieving Economies
of Scale.of Scale.
Domestic DimensionDomestic Dimension Strengthen the Production BasesStrengthen the Production Bases
Improve QualityImprove Quality
Ensure ComplianceEnsure Compliance Enhance Design CapabilitiesEnhance Design Capabilities
Develop Human Resource with referenceDevelop Human Resource with reference
to Technical Skillsto Technical Skills Provide volumes for achieving EconomiesProvide volumes for achieving Economies
of Scale.of Scale.
Contd..Contd.. 2
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Contd.Policy FocusContd.Policy Focus
Foreign DimensionForeign Dimension Expand Market Access AbroadExpand Market Access Abroad
Improve Countrys Business Image AbroadImprove Countrys Business Image Abroad
Showcase Pakistans strengths to foreignShowcase Pakistans strengths to foreignbuyersbuyers
Launch new Trade DiplomacyLaunch new Trade Diplomacy
Trade not Aid Approach.Trade not Aid Approach.
Envoys ConferencesEnvoys Conferences
Warehousing: New and existing marketsWarehousing: New and existing markets
Expo Pakistan: Annual Mega ExhibitionExpo Pakistan: Annual Mega Exhibition
Foreign DimensionForeign Dimension Expand Market Access AbroadExpand Market Access Abroad
Improve Countrys Business Image AbroadImprove Countrys Business Image Abroad
Showcase Pakistans strengths to foreignShowcase Pakistans strengths to foreignbuyersbuyers
Launch new Trade DiplomacyLaunch new Trade Diplomacy
Trade not Aid Approach.Trade not Aid Approach.
Envoys ConferencesEnvoys Conferences
Warehousing: New and existing marketsWarehousing: New and existing markets
Expo Pakistan: Annual Mega ExhibitionExpo Pakistan: Annual Mega Exhibition
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Macro Economic ReformMacro Economic ReformMacro Economic ReformMacro Economic Reform
Trade PolicyTrade Policy
Tariff PolicyTariff Policy
Investment PolicyInvestment Policy
Fiscal PolicyFiscal Policy
Monetary PolicyMonetary Policy
Trade PolicyTrade Policy
Tariff PolicyTariff Policy
Investment PolicyInvestment Policy
Fiscal PolicyFiscal Policy
Monetary PolicyMonetary Policy
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Trade Policy ReformTrade Policy ReformTrade Policy ReformTrade Policy Reform
S.no.S.no. CategoryCategory StatusStatus
11 Import/Export RegimesImport/Export Regimes LiberalizedLiberalized
22 CCI & E DepartmentCCI & E Department AbolishedAbolished
33 Import licensingImport licensing AbolishedAbolished
44 License fee @ 6%License fee @ 6% AbolishedAbolished55 Import/Export RegistrationImport/Export Registration AbolishedAbolished
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Top rate brought down to 25%Top rate brought down to 25%
Number of slabs reduced from 42 in 1985Number of slabs reduced from 42 in 1985to 16 in 1995, 7 in 1999 and 5 in 2005.to 16 in 1995, 7 in 1999 and 5 in 2005.
Discriminatory SRO Regime eliminatedDiscriminatory SRO Regime eliminated
Level playing field provided byLevel playing field provided bytariffication of concessional duties.tariffication of concessional duties.
SMEs access to low tariff raw materialsSMEs access to low tariff raw materialsenhanced.enhanced.
Top rate brought down to 25%Top rate brought down to 25%
Number of slabs reduced from 42 in 1985Number of slabs reduced from 42 in 1985to 16 in 1995, 7 in 1999 and 5 in 2005.to 16 in 1995, 7 in 1999 and 5 in 2005.
Discriminatory SRO Regime eliminatedDiscriminatory SRO Regime eliminated
Level playing field provided byLevel playing field provided bytariffication of concessional duties.tariffication of concessional duties.
SMEs access to low tariff raw materialsSMEs access to low tariff raw materialsenhanced.enhanced.
Contd..Contd..
Tariff ReformsTariff ReformsTariff ReformsTariff Reforms
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Duties on hundreds of tariff linesDuties on hundreds of tariff lines
comprising industrial inputs i.e. Rawcomprising industrial inputs i.e. RawMaterials and Capital Goods graduallyMaterials and Capital Goods graduallyreduced to 0reduced to 0--5%5%
ParaPara--tariffs abolished i.e. Iqra, Importtariffs abolished i.e. Iqra, ImportSurcharge, Regulatory Duties, FloodSurcharge, Regulatory Duties, FloodRelief Surcharge, etc.Relief Surcharge, etc.
Tariff discrimination betweenTariff discrimination betweenCommercial and Industrial importsCommercial and Industrial importseliminatedeliminated
Duties on hundreds of tariff linesDuties on hundreds of tariff lines
comprising industrial inputs i.e. Rawcomprising industrial inputs i.e. RawMaterials and Capital Goods graduallyMaterials and Capital Goods graduallyreduced to 0reduced to 0--5%5%
ParaPara--tariffs abolished i.e. Iqra, Importtariffs abolished i.e. Iqra, ImportSurcharge, Regulatory Duties, FloodSurcharge, Regulatory Duties, FloodRelief Surcharge, etc.Relief Surcharge, etc.
Tariff discrimination betweenTariff discrimination betweenCommercial and Industrial importsCommercial and Industrial importseliminatedeliminated
Contd.Tariff ReformsContd.Tariff Reforms
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Tariff ReformsTariff ReformsTariff ReformsTariff Reforms
Top Rate ReductionsTop Rate ReductionsYear Year Top RateTop Rate
19851985 120%120%
19901990 90%90%19941994 65%65%
19971997 45%45%
19991999 35%35%
20002000 30%30%
20012001 25%25%
Source: Central Board of RevenueSource: Central Board of Revenue8
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Investment Policy ReformsInvestment Policy ReformsInvestment Policy ReformsInvestment Policy Reforms All economic sectors open to Foreign DirectAll economic sectors open to Foreign Direct
InvestmentInvestmentIndustrial, Agricultural andIndustrial, Agricultural andServices.Services.
Equal treatment to local and foreign investors.Equal treatment to local and foreign investors.
100 % foreign equity allowed100 % foreign equity allowed
No Government sanction required.No Government sanction required.
Remittance of Royalty, Technical & FranchiseRemittance of Royalty, Technical & FranchiseFee, Capital, Profits, Dividends allowed.Fee, Capital, Profits, Dividends allowed.
Foreign investment fully protected throughForeign investment fully protected throughForeign Private Investment (Promotion &Foreign Private Investment (Promotion &Protection) Act 1976, Protection of EconomicProtection) Act 1976, Protection of EconomicReforms Act 1992 and Foreign CurrencyReforms Act 1992 and Foreign Currency
Accounts (Protection) Ordinance, 2001Accounts (Protection) Ordinance, 2001
All economic sectors open to Foreign DirectAll economic sectors open to Foreign Direct
InvestmentInvestmentIndustrial, Agricultural andIndustrial, Agricultural andServices.Services.
Equal treatment to local and foreign investors.Equal treatment to local and foreign investors.
100 % foreign equity allowed100 % foreign equity allowed
No Government sanction required.No Government sanction required.
Remittance of Royalty, Technical & FranchiseRemittance of Royalty, Technical & FranchiseFee, Capital, Profits, Dividends allowed.Fee, Capital, Profits, Dividends allowed.
Foreign investment fully protected throughForeign investment fully protected throughForeign Private Investment (Promotion &Foreign Private Investment (Promotion &Protection) Act 1976, Protection of EconomicProtection) Act 1976, Protection of EconomicReforms Act 1992 and Foreign CurrencyReforms Act 1992 and Foreign Currency
Accounts (Protection) Ordinance, 2001Accounts (Protection) Ordinance, 2001 9
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Monetary Policy ReformsMonetary Policy ReformsMonetary Policy ReformsMonetary Policy Reforms
State Bank AutonomyState Bank Autonomy
Banking and Capital marketBanking and Capital market
Reforms.Reforms.
Cost of Capital reducedCost of Capital reduced
Exchange rate stabilizedExchange rate stabilized
Substantial improvement in liquiditySubstantial improvement in liquidity
State Bank AutonomyState Bank Autonomy
Banking and Capital marketBanking and Capital market
Reforms.Reforms.
Cost of Capital reducedCost of Capital reduced
Exchange rate stabilizedExchange rate stabilized
Substantial improvement in liquiditySubstantial improvement in liquidity
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Establishment of Technology UpEstablishment of Technology Up--gradationgradation
FundFund Launching Enterprise Capacity Building SchemeLaunching Enterprise Capacity Building Scheme
Improving Countrys Business ImageImproving Countrys Business Image
Freight SubsidyFreight SubsidyInland and OffshoreInland and Offshore Establishment of Zones for AgriEstablishment of Zones for Agri--ProductsProducts
and Fisheriesand Fisheries
Establishment of Special Export ZonesEstablishment of Special Export Zones
Establishment of Garment CitiesEstablishment of Garment Cities
Rehabilitation of Industrial EstatesRehabilitation of Industrial Estates
Establishment of Combined EffluentEstablishment of Combined Effluent
Treatment PlantsTreatment Plants
Establishment of Technology UpEstablishment of Technology Up--gradationgradation
FundFund Launching Enterprise Capacity Building SchemeLaunching Enterprise Capacity Building Scheme
Improving Countrys Business ImageImproving Countrys Business Image
Freight SubsidyFreight SubsidyInland and OffshoreInland and Offshore Establishment of Zones for AgriEstablishment of Zones for Agri--ProductsProducts
and Fisheriesand Fisheries
Establishment of Special Export ZonesEstablishment of Special Export Zones
Establishment of Garment CitiesEstablishment of Garment Cities
Rehabilitation of Industrial EstatesRehabilitation of Industrial Estates
Establishment of Combined EffluentEstablishment of Combined Effluent
Treatment PlantsTreatment Plants
Major Trade Policy InitiativesMajor Trade Policy InitiativesMajor Trade Policy InitiativesMajor Trade Policy Initiatives
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Facilitation of Garment Exports throughFacilitation of Garment Exports throughTextile Garment PackageTextile Garment Package
Incentivizing export of Horticulture ProductsIncentivizing export of Horticulture Products Encouraging Women EntrepreneursEncouraging Women Entrepreneurs Opening Land Route Trade with AfghanistanOpening Land Route Trade with Afghanistan
Strengthening Trade DiplomacyStrengthening Trade Diplomacy Attracting Buyer Driven FDI for ExportAttracting Buyer Driven FDI for Export
Sourcing from PakistanSourcing from Pakistan ZeroZero--Rating of Sales for Textile ChainRating of Sales for Textile Chain Support for Quality Assurance and LabSupport for Quality Assurance and Lab
AccreditationAccreditation Strengthening of SMEs Industrial ClustersStrengthening of SMEs Industrial Clusters
Relocation of Industries to PakistanRelocation of Industries to Pakistan
Facilitation of Garment Exports throughFacilitation of Garment Exports throughTextile Garment PackageTextile Garment Package
Incentivizing export of Horticulture ProductsIncentivizing export of Horticulture Products Encouraging Women EntrepreneursEncouraging Women Entrepreneurs Opening Land Route Trade with AfghanistanOpening Land Route Trade with Afghanistan
Strengthening Trade DiplomacyStrengthening Trade Diplomacy Attracting Buyer Driven FDI for ExportAttracting Buyer Driven FDI for Export
Sourcing from PakistanSourcing from Pakistan ZeroZero--Rating of Sales for Textile ChainRating of Sales for Textile Chain Support for Quality Assurance and LabSupport for Quality Assurance and Lab
AccreditationAccreditation Strengthening of SMEs Industrial ClustersStrengthening of SMEs Industrial Clusters
Relocation of Industries to PakistanRelocation of Industries to Pakistan
Contd.Major Trade Policy InitiativesContd.Major Trade Policy InitiativesContd.Major Trade Policy InitiativesContd.Major Trade Policy Initiatives
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Two Pillars of Export StrategyTwo Pillars of Export StrategyTwo Pillars of Export StrategyTwo Pillars of Export Strategy
Drive Volume and Value of ExportsDrive Volume and Value of Exports
Create enabling environment for theCreate enabling environment for theabove to succeedabove to succeed
Drive Volume and Value of ExportsDrive Volume and Value of Exports
Create enabling environment for theCreate enabling environment for theabove to succeedabove to succeed
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Strategy to Drive Volume and ValueStrategy to Drive Volume and Value(Pillar(Pillar I)I)
Enhancing world market share of CoreEnhancing world market share of CoreProduct Categories in top 10 MarketsProduct Categories in top 10 Markets
Pursuing Value Addition through capacityPursuing Value Addition through capacitybuilding and capability enhancement ofbuilding and capability enhancement of
exportersexporters Export Product DiversificationExport Product Diversification
Geographic DiversificationGeographic Diversification
Translating traditional ties with CountriesTranslating traditional ties with Countriesinto commercial opportunitiesinto commercial opportunities
Leveraging International Trade Blocs /Leveraging International Trade Blocs /
Agreements for enhanced Market AccessAgreements for enhanced Market Access
Enhancing world market share of CoreEnhancing world market share of CoreProduct Categories in top 10 MarketsProduct Categories in top 10 Markets
Pursuing Value Addition through capacityPursuing Value Addition through capacitybuilding and capability enhancement ofbuilding and capability enhancement of
exportersexporters Export Product DiversificationExport Product Diversification
Geographic DiversificationGeographic Diversification
Translating traditional ties with CountriesTranslating traditional ties with Countriesinto commercial opportunitiesinto commercial opportunities
Leveraging International Trade Blocs /Leveraging International Trade Blocs /
Agreements for enhanced Market AccessAgreements for enhanced Market Access 15
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Strategy for Creating an EnablingStrategy for Creating an EnablingEnvironmentEnvironment (Pillar(Pillar--II)II)
Strategy for Creating an EnablingStrategy for Creating an EnablingEnvironmentEnvironment (Pillar(Pillar--II)II)
Reducing cost of doing businessReducing cost of doing business Improving industrial & commercialImproving industrial & commercial
infrastructureinfrastructure Tariff rationalization, decontrol &Tariff rationalization, decontrol &
liberalisation of investmentliberalisation of investment Quality & Standards management toQuality & Standards management to
reinforce confidence inreinforce confidence in Made in PakistanMade in Pakistan Social, environmental & security complianceSocial, environmental & security compliance
Business image building of PakistanBusiness image building of Pakistan Export related skills developmentExport related skills development Protection of Intellectual Property RightsProtection of Intellectual Property Rights Developing SME sector as vendors &Developing SME sector as vendors &
exportersexporters
Reducing cost of doing businessReducing cost of doing business Improving industrial & commercialImproving industrial & commercial
infrastructureinfrastructure Tariff rationalization, decontrol &Tariff rationalization, decontrol &
liberalisation of investmentliberalisation of investment Quality & Standards management toQuality & Standards management to
reinforce confidence inreinforce confidence in Made in PakistanMade in Pakistan Social, environmental & security complianceSocial, environmental & security compliance
Business image building of PakistanBusiness image building of Pakistan Export related skills developmentExport related skills development Protection of Intellectual Property RightsProtection of Intellectual Property Rights Developing SME sector as vendors &Developing SME sector as vendors &
exportersexporters 16
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ChallengesChallengesChallengesChallenges
Rapidly growing importsRapidly growing imports
Exports as key for economic turnaroundExports as key for economic turnaround
Infrastructure deficienciesInfrastructure deficiencies
Shortage of skilled manpowerShortage of skilled manpower
Conformity to quality and standardsConformity to quality and standards
Maintaining fiscal stabilityMaintaining fiscal stability
Rapidly growing importsRapidly growing imports
Exports as key for economic turnaroundExports as key for economic turnaround
Infrastructure deficienciesInfrastructure deficiencies
Shortage of skilled manpowerShortage of skilled manpower
Conformity to quality and standardsConformity to quality and standards
Maintaining fiscal stabilityMaintaining fiscal stability
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Required InfrastructureRequired InfrastructureRequired InfrastructureRequired Infrastructure
Physical InfrastructurePhysical Infrastructure
Financial InfrastructureFinancial Infrastructure
Legal InfrastructureLegal Infrastructure
Intellectual InfrastructureIntellectual Infrastructure
Technological InfrastructureTechnological Infrastructure
Social InfrastructureSocial Infrastructure
Physical InfrastructurePhysical Infrastructure
Financial InfrastructureFinancial Infrastructure
Legal InfrastructureLegal Infrastructure
Intellectual InfrastructureIntellectual Infrastructure
Technological InfrastructureTechnological Infrastructure
Social InfrastructureSocial Infrastructure
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Institutional StrengtheningInstitutional StrengtheningInstitutional StrengtheningInstitutional Strengthening
Export Promotion Bureau (EPB)Export Promotion Bureau (EPB)
Foreign Trade Institute of PakistanForeign Trade Institute of Pakistan(FTIP)(FTIP)
National Tariff Commission (NTC)National Tariff Commission (NTC)
Pakistan Standards and Quality ControlPakistan Standards and Quality ControlAuthority (PSQCA)Authority (PSQCA)
Pakistan National Accreditation CouncilPakistan National Accreditation Council(PNAC)(PNAC)
Pakistan Intellectual Property RightsPakistan Intellectual Property RightsOrganization (PIPRO)Organization (PIPRO)
Export Promotion Bureau (EPB)Export Promotion Bureau (EPB)
Foreign Trade Institute of PakistanForeign Trade Institute of Pakistan(FTIP)(FTIP)
National Tariff Commission (NTC)National Tariff Commission (NTC)
Pakistan Standards and Quality ControlPakistan Standards and Quality ControlAuthority (PSQCA)Authority (PSQCA)
Pakistan National Accreditation CouncilPakistan National Accreditation Council(PNAC)(PNAC)
Pakistan Intellectual Property RightsPakistan Intellectual Property RightsOrganization (PIPRO)Organization (PIPRO)
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The economy picked up further inThe economy picked up further inFY2005, with GDP growth coming in atFY2005, with GDP growth coming in atover 8.4% for the first time in 8 years.over 8.4% for the first time in 8 years.
With sound macroeconomic fundamentalsWith sound macroeconomic fundamentalsachieved and key sectors strengthenedachieved and key sectors strengthenedby reforms implemented in the 4by reforms implemented in the 4--55years, the economy is well positioned toyears, the economy is well positioned to
sustain 7% or more growth in thesustain 7% or more growth in themedium term.medium term.
The economy picked up further inThe economy picked up further inFY2005, with GDP growth coming in atFY2005, with GDP growth coming in atover 8.4% for the first time in 8 years.over 8.4% for the first time in 8 years.
With sound macroeconomic fundamentalsWith sound macroeconomic fundamentalsachieved and key sectors strengthenedachieved and key sectors strengthenedby reforms implemented in the 4by reforms implemented in the 4--55years, the economy is well positioned toyears, the economy is well positioned to
sustain 7% or more growth in thesustain 7% or more growth in themedium term.medium term.
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PakistanPakistan
ADBs Asian Development Outlook 2005ADBs Asian Development Outlook 2005
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Market Access InitiativesMarket Access InitiativesMarket Access InitiativesMarket Access Initiatives
BilateralBilateral
RegionalRegional
BilateralBilateral
RegionalRegional
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ECOTA(Economic Cooperation Organization Trade Agreement)ECOTA(Economic Cooperation Organization Trade Agreement)
ECO member countries are: Pakistan, Iran, Afghanistan, Turkey,
Azerbaijan, Kazakhstan, Tajikistan,Turkmenistan, Kyrgyzstan and Uzbekistan.
Agreement was signed - July 2003. Initial Agreement = reduction of maximum
tariff slab to 15% within 8 years. On a fast track initiative, reduction of tariff
to 10% on all traded items in 5 years. 3rd Ministerial meeting of ECO states washeld in July, 2005.
ECO member countries are: Pakistan, Iran, Afghanistan, Turkey,
Azerbaijan, Kazakhstan, Tajikistan,Turkmenistan, Kyrgyzstan and Uzbekistan.
Agreement was signed - July 2003. Initial Agreement = reduction of maximum
tariff slab to 15% within 8 years. On a fast track initiative, reduction of tariff
to 10% on all traded items in 5 years. 3rd Ministerial meeting of ECO states washeld in July, 2005.
REGIONALREGIONALREGIONALREGIONAL
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SAFTA was signed on 6 January 2004 atSAFTA was signed on 6 January 2004 atIslamabad.Islamabad.
The Agreement shall come into force on 1stThe Agreement shall come into force on 1st
January 2006.January 2006. Tariff Reduction to 0Tariff Reduction to 0--5%: vulnerable5%: vulnerable
sectors protected through Sensitive Listsectors protected through Sensitive List
NonNon--Least Developed Countries (NonLeast Developed Countries (Non--LDCs)LDCs) IndiaIndia PakistanPakistan -- 7 years (2013)7 years (2013)
Sri LankaSri Lanka 8 years (2014)8 years (2014)
SAFTA was signed on 6 January 2004 atSAFTA was signed on 6 January 2004 atIslamabad.Islamabad.
The Agreement shall come into force on 1stThe Agreement shall come into force on 1st
January 2006.January 2006. Tariff Reduction to 0Tariff Reduction to 0--5%: vulnerable5%: vulnerable
sectors protected through Sensitive Listsectors protected through Sensitive List
NonNon--Least Developed Countries (NonLeast Developed Countries (Non--LDCs)LDCs) IndiaIndia PakistanPakistan -- 7 years (2013)7 years (2013)
Sri LankaSri Lanka 8 years (2014)8 years (2014)
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SAFTA(South Asian Free Trade Area)SAFTA(South Asian Free Trade Area)
Contd..Contd..23
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LDCs (Bangladesh, Bhutan, Nepal,LDCs (Bangladesh, Bhutan, Nepal,Maldives)Maldives)--(2016)(2016)
Pakistan, India, Sri Lanka for LDCsPakistan, India, Sri Lanka for LDCs33
years (2009)years (2009) Current Negotiations:Current Negotiations:
Sensitive lists; rules of origin;Sensitive lists; rules of origin;
technical assistance and revenue losstechnical assistance and revenue losscompensation mechanism for thecompensation mechanism for theLDCsLDCs
LDCs (Bangladesh, Bhutan, Nepal,LDCs (Bangladesh, Bhutan, Nepal,Maldives)Maldives)--(2016)(2016)
Pakistan, India, Sri Lanka for LDCsPakistan, India, Sri Lanka for LDCs33
years (2009)years (2009) Current Negotiations:Current Negotiations:
Sensitive lists; rules of origin;Sensitive lists; rules of origin;
technical assistance and revenue losstechnical assistance and revenue losscompensation mechanism for thecompensation mechanism for theLDCsLDCs
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Contd.SAFTAContd.SAFTA
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Preferential Trading Arrangement (PTA) with DPreferential Trading Arrangement (PTA) with D--88(Bangladesh, Egypt, Indonesia, Iran,(Bangladesh, Egypt, Indonesia, Iran,Malaysia, Nigeria, Pakistan, and Turkey)Malaysia, Nigeria, Pakistan, and Turkey)
Two meetings heldTwo meetings held
Next meeting dueNext meeting due
Trade Preferential SystemTrade Preferential System (TPS) with(TPS) with OICOIC
Negotiations initiatedNegotiations initiatedSlow progress due to divergent views in a largeSlow progress due to divergent views in a large
membership of OICmembership of OIC
Gulf Cooperation Council (GCC)Gulf Cooperation Council (GCC)
Agreement signed in August 2004 envisagingAgreement signed in August 2004 envisagingestablishment of Free Trade Area with Pakistanestablishment of Free Trade Area with Pakistan
Pakistan has requested G.C.C. for initiation ofPakistan has requested G.C.C. for initiation ofnegotiation. First round is expected in September,negotiation. First round is expected in September,
20052005
Preferential Trading Arrangement (PTA) with DPreferential Trading Arrangement (PTA) with D--88(Bangladesh, Egypt, Indonesia, Iran,(Bangladesh, Egypt, Indonesia, Iran,Malaysia, Nigeria, Pakistan, and Turkey)Malaysia, Nigeria, Pakistan, and Turkey)
Two meetings heldTwo meetings held
Next meeting dueNext meeting due
Trade Preferential SystemTrade Preferential System (TPS) with(TPS) with OICOIC
Negotiations initiatedNegotiations initiatedSlow progress due to divergent views in a largeSlow progress due to divergent views in a large
membership of OICmembership of OIC
Gulf Cooperation Council (GCC)Gulf Cooperation Council (GCC)
Agreement signed in August 2004 envisagingAgreement signed in August 2004 envisagingestablishment of Free Trade Area with Pakistanestablishment of Free Trade Area with Pakistan
Pakistan has requested G.C.C. for initiation ofPakistan has requested G.C.C. for initiation ofnegotiation. First round is expected in September,negotiation. First round is expected in September,
20052005 25
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The FTA with Sri Lanka was signed in June2002.
Operational since 12 June, 2005.
The FTA with Sri Lanka was signed in June2002.
Operational since 12 June, 2005.
BILATERALBILATERALBILATERALBILATERAL
Sri LankaSri LankaSri LankaSri Lanka
Contd..Contd..
PakistanPakistan(No. of items)(No. of items)
Sri LankaSri Lanka(No. of items)(No. of items)
Immediate concession list (ICL)Immediate concession list (ICL) 206206 102102
No concession list
(NCL)
No concession list
(NCL) 540540 6
976
97
Tariff on items (other than NCL) will beeliminated:
Tariff on items (other than NCL) will beeliminated:
Pakistan - 3 years
Sri Lanka 5 years
Pakistan - 3 years
Sri Lanka 5 years 26
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ChinaChinaChinaChina PTA signed with China in November 2003 isPTA signed with China in November 2003 is
operational since 1st January 2004.operational since 1st January 2004. In December 2004 during the official visit ofIn December 2004 during the official visit of
the Prime Minister to China it was announcedthe Prime Minister to China it was announcedto initiate extension of PTA, Joint Feasibilityto initiate extension of PTA, Joint Feasibility
Study on FTA and to negotiate an EarlyStudy on FTA and to negotiate an EarlyHarvest Programme.Harvest Programme.
Following achievements made during visit ofFollowing achievements made during visit ofthe Chinese Premier On 5th April 2005:the Chinese Premier On 5th April 2005:--
Completion of Joint Study andCompletion of Joint Study andcommencement of FTA negotiations; andcommencement of FTA negotiations; and
Early Harvest Programme was finalized.Early Harvest Programme was finalized.
PTA signed with China in November 2003 isPTA signed with China in November 2003 is
operational since 1st January 2004.operational since 1st January 2004. In December 2004 during the official visit ofIn December 2004 during the official visit of
the Prime Minister to China it was announcedthe Prime Minister to China it was announcedto initiate extension of PTA, Joint Feasibilityto initiate extension of PTA, Joint Feasibility
Study on FTA and to negotiate an EarlyStudy on FTA and to negotiate an EarlyHarvest Programme.Harvest Programme.
Following achievements made during visit ofFollowing achievements made during visit ofthe Chinese Premier On 5th April 2005:the Chinese Premier On 5th April 2005:--
Completion of Joint Study andCompletion of Joint Study andcommencement of FTA negotiations; andcommencement of FTA negotiations; and
Early Harvest Programme was finalized.Early Harvest Programme was finalized.
Contd..Contd.. 27
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PakistansPakistans ProductsProducts Bed-linen, table linen & other home
textiles, towels, cotton & blendedfabrics, synthetic yarn, synthetic fabrics,mangoes, oranges, dates, tarpaulin andmarble articles like tiles, surgical goods,sports goods & cutlery etc., dyes, guargum, industrial alcohol and medicines, etc.
ChinasChinas ProductsProducts Some organic chemicals & machinery for
textile, leather production, etc.
PakistansPakistans ProductsProducts Bed-linen, table linen & other home
textiles, towels, cotton & blendedfabrics, synthetic yarn, synthetic fabrics,mangoes, oranges, dates, tarpaulin andmarble articles like tiles, surgical goods,sports goods & cutlery etc., dyes, guargum, industrial alcohol and medicines, etc.
ChinasChinas ProductsProducts Some organic chemicals & machinery for
textile, leather production, etc.
Contd.ChinaContd.ChinaContd.ChinaContd.China
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PTA signed in March 2004 Tariff reduction (average)
Pakistan 338 items 18% Iran 309 items 18%
It is expected that the Agreement will be
operational at an early date.
PTA signed in March 2004 Tariff reduction (average)
Pakistan 338 items 18% Iran 309 items 18%
It is expected that the Agreement will be
operational at an early date.
IranIranIranIran
The Framework Agreement on PTA wassigned on 19th January 2004.
First round of Technical Negotiation was heldfrom 25 27 May 2004 in Islamabad. Drafttext of PTA and wish lists were exchanged.
Negotiations ongoing-- Pakistan is requesting
Turkey to expand its offer list.
The Framework Agreement on PTA wassigned on 19th January 2004.
First round of Technical Negotiation was heldfrom 25 27 May 2004 in Islamabad. Drafttext of PTA and wish lists were exchanged.
Negotiations ongoing-- Pakistan is requesting
Turkey to expand its offer list.
TurkeyTurkeyTurkeyTurkey
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Joint statement on Comprehensive EconomicJoint statement on Comprehensive EconomicPartnership (CEPT) was signed on 21stPartnership (CEPT) was signed on 21stAugust, 2003. First Meetings on CEPT wasAugust, 2003. First Meetings on CEPT washeld in Islamabad on 25held in Islamabad on 25--26th Oct, 2004.26th Oct, 2004.
Both sides have agreed to initiateBoth sides have agreed to initiatenegotiations on establishing CEPTnegotiations on establishing CEPT which wouldwhich wouldlead to FTA.lead to FTA.
The CEPT will include:The CEPT will include:i)i) Areas of Economic Cooperation;Areas of Economic Cooperation;
ii)ii) FTA; andFTA; andiii)iii) Liberalization of trade in goods,Liberalization of trade in goods,
services and investment.services and investment.
Joint statement on Comprehensive EconomicJoint statement on Comprehensive EconomicPartnership (CEPT) was signed on 21stPartnership (CEPT) was signed on 21stAugust, 2003. First Meetings on CEPT wasAugust, 2003. First Meetings on CEPT washeld in Islamabad on 25held in Islamabad on 25--26th Oct, 2004.26th Oct, 2004.
Both sides have agreed to initiateBoth sides have agreed to initiatenegotiations on establishing CEPTnegotiations on establishing CEPT which wouldwhich wouldlead to FTA.lead to FTA.
The CEPT will include:The CEPT will include:i)i) Areas of Economic Cooperation;Areas of Economic Cooperation;
ii)ii) FTA; andFTA; andiii)iii) Liberalization of trade in goods,Liberalization of trade in goods,
services and investment.services and investment.
ASEAN COUNTRIESASEAN COUNTRIESASEAN COUNTRIESASEAN COUNTRIES
IndonesiaIndonesiaIndonesiaIndonesia
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SingaporeSingapore First meeting of Joint Study Group heldFirst meeting of Joint Study Group held
at Islamabad in February, 2005.at Islamabad in February, 2005. Decided to negotiate FTA in the nextDecided to negotiate FTA in the next
meeting.meeting.
MalaysiaMalaysia During the visit of the Prime Minister ofDuring the visit of the Prime Minister of
Malaysia to Pakistan on 15Malaysia to Pakistan on 15--18 February,18 February,2005, it was decided to negotiate2005, it was decided to negotiatebilateral FTA.bilateral FTA.
3 meeting of the TNC have been held so3 meeting of the TNC have been held sofar.far.
SingaporeSingapore First meeting of Joint Study Group heldFirst meeting of Joint Study Group held
at Islamabad in February, 2005.at Islamabad in February, 2005. Decided to negotiate FTA in the nextDecided to negotiate FTA in the next
meeting.meeting.
MalaysiaMalaysia During the visit of the Prime Minister ofDuring the visit of the Prime Minister of
Malaysia to Pakistan on 15Malaysia to Pakistan on 15--18 February,18 February,2005, it was decided to negotiate2005, it was decided to negotiatebilateral FTA.bilateral FTA.
3 meeting of the TNC have been held so3 meeting of the TNC have been held sofar.far.
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Laos DPRLaos DPR
Cabinet has approved to initiateCabinet has approved to initiatenegotiations with Laos.negotiations with Laos.
Date of the meeting is being fixedDate of the meeting is being fixedthrough diplomatic channels.through diplomatic channels.
ASEAN + 1ASEAN + 1
High level visits from Pakistan to ASEANHigh level visits from Pakistan to ASEANcountriescountries
Laos DPRLaos DPR
Cabinet has approved to initiateCabinet has approved to initiatenegotiations with Laos.negotiations with Laos.
Date of the meeting is being fixedDate of the meeting is being fixedthrough diplomatic channels.through diplomatic channels.
ASEAN + 1ASEAN + 1
High level visits from Pakistan to ASEANHigh level visits from Pakistan to ASEANcountriescountries
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BangladeshBangladesh
First round of negotiations were held inFirst round of negotiations were held inDhaka in November 2003. FinalizationDhaka in November 2003. Finalizationof negotiation is expected by the end ofof negotiation is expected by the end of
this yearthis year
NepalNepal
Cabinet has approved negotiations withCabinet has approved negotiations withNepal.Nepal.
Date of the first meeting being fixedDate of the first meeting being fixedthrough diplomatic channels.through diplomatic channels.
BangladeshBangladesh
First round of negotiations were held inFirst round of negotiations were held inDhaka in November 2003. FinalizationDhaka in November 2003. Finalizationof negotiation is expected by the end ofof negotiation is expected by the end of
this yearthis year
NepalNepal
Cabinet has approved negotiations withCabinet has approved negotiations withNepal.Nepal.
Date of the first meeting being fixedDate of the first meeting being fixedthrough diplomatic channels.through diplomatic channels.
SOUTH ASIASOUTH ASIASOUTH ASIASOUTH ASIA
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USAUSAUSAUSA Pakistan signed a Trade and InvestmentPakistan signed a Trade and Investment
Framework Agreement (TIFA) with USA inFramework Agreement (TIFA) with USA inJune 2003.June 2003.
The First round of TIFA Talks was held onThe First round of TIFA Talks was held on2828--30th September, 2004 at Washington.30th September, 2004 at Washington.
Bilateral Investment Treaty negotiationsBilateral Investment Treaty negotiationsinitiated:initiated:
Draft BIT discussed at LondonDraft BIT discussed at London(7th(7th --11th Feb, 2005)11th Feb, 2005)
Second Round due in IslamabadSecond Round due in Islamabad(2005)(2005)
U.S was requested to start FTA negotiations.U.S was requested to start FTA negotiations.
Pakistan signed a Trade and InvestmentPakistan signed a Trade and Investment
Framework Agreement (TIFA) with USA inFramework Agreement (TIFA) with USA inJune 2003.June 2003.
The First round of TIFA Talks was held onThe First round of TIFA Talks was held on2828--30th September, 2004 at Washington.30th September, 2004 at Washington.
Bilateral Investment Treaty negotiationsBilateral Investment Treaty negotiationsinitiated:initiated:
Draft BIT discussed at LondonDraft BIT discussed at London(7th(7th --11th Feb, 2005)11th Feb, 2005)
Second Round due in IslamabadSecond Round due in Islamabad(2005)(2005)
U.S was requested to start FTA negotiations.U.S was requested to start FTA negotiations.
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AfricaAfrica
Ministry of Commerce is evaluating proposalMinistry of Commerce is evaluating proposalfor initiating PTA with South Africa andfor initiating PTA with South Africa andAlAl--Maghreb countries (Tunisia, Algeria andMaghreb countries (Tunisia, Algeria andMorocco).Morocco).
ThailandThailand -- JapanJapan Pakistan is desirous to have a PTA /FTAPakistan is desirous to have a PTA /FTA
with Thailand, Japan.with Thailand, Japan.
Bangkok AgreementBangkok Agreement
Pakistan keen to join Bangkok Agreement.Pakistan keen to join Bangkok Agreement.(Bangladesh, China, India, South Korea, Laos and(Bangladesh, China, India, South Korea, Laos and
Sri Lanka)Sri Lanka)
AfricaAfrica
Ministry of Commerce is evaluating proposalMinistry of Commerce is evaluating proposalfor initiating PTA with South Africa andfor initiating PTA with South Africa andAlAl--Maghreb countries (Tunisia, Algeria andMaghreb countries (Tunisia, Algeria andMorocco).Morocco).
ThailandThailand -- JapanJapan Pakistan is desirous to have a PTA /FTAPakistan is desirous to have a PTA /FTA
with Thailand, Japan.with Thailand, Japan.
Bangkok AgreementBangkok Agreement
Pakistan keen to join Bangkok Agreement.Pakistan keen to join Bangkok Agreement.(Bangladesh, China, India, South Korea, Laos and(Bangladesh, China, India, South Korea, Laos and
Sri Lanka)Sri Lanka)35 Contd..Contd.. 35
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MERCOSURMERCOSUR Member countries: Argentina, Brazil,Member countries: Argentina, Brazil,
Uruguay, ParaguayUruguay, Paraguay
During the visit of the President to SouthDuring the visit of the President to South
America initial proposal for FTA wasAmerica initial proposal for FTA wasmade.made.
FTA negotiations initiated.FTA negotiations initiated.
European UnionEuropean Union Trade diplomacy to secure GSPTrade diplomacy to secure GSP
concessions.concessions.
MERCOSURMERCOSUR Member countries: Argentina, Brazil,Member countries: Argentina, Brazil,
Uruguay, ParaguayUruguay, Paraguay
During the visit of the President to SouthDuring the visit of the President to South
America initial proposal for FTA wasAmerica initial proposal for FTA wasmade.made.
FTA negotiations initiated.FTA negotiations initiated.
European UnionEuropean Union Trade diplomacy to secure GSPTrade diplomacy to secure GSP
concessions.concessions.
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Thank YouThank You