Trade Policy of Pakistan

[pic 1]

TOPIC: TRADE POLICY OF PAKISTAN

Submitted By

Mr. Hafiz Faizan Abbasi (FA15-EX-0098)

Mr. Muhammad Danish Arif (FA15-EX-0152)

Mr. Omair Anis (FA12-MB-0071)

Submitted To

Sir Najeeb Rehman Bhutto

MUHAMMAD ALI JINNAH UNIVERSITY

DATED:

6th DECEMBER, 2015

Index

Executive summary

The second strategic trade policy framework 2012-2015 sets out policy guidelines and identifies principal areas of action to strengthen different aspects of Pakistan’s export competitiveness directly or indirectly.

The policy focuses the regional trade, promotion of exports of the institutional framework, creation of regulatory efficiencies, export development initiatives, increase exports from less developed regions of Pakistan, promotion of domestic commerce and strengthen the monitoring and evaluation mechanism.

This policy creates a competitive environment through promoting domestic and foreign investments, catering the changes need in Pakistan’s economy. This will result in creating employment and overcome poverty. The policy is basically focused on service and IT industry because of the past results which shows that the real Gross Domestic Product (GDP) at constant price of service industry is higher than the manufacturing industry.

Services sector is largest and fastest growing sector in the world economy. In case of Pakistan, the shares of services are increasing in all sectors of economy over the period. In fact, the growth rate of services sector is higher than the growth rate of agriculture and industrial sector. Service sector accounts for 54 percent of GDP and little over one-third of total employment. The classification of service sector in Pakistan is distributed in three main sectors i.e. Distributive services, Producer services (financial institutions) and Social Services (Public administration and defense and social community and private services). Further distributive sector is classified into two main services i.e. transport, storage and communication and wholesale, retail trade and hotels and restaurants.

In addition to service sector, Information technology in Pakistan is growing rapidly due to the countries attractive investment environment for entrepreneurs. The Pakistani Technology industry is very different from what it was in the early 1990’s. The major role behind the betterment of this industry is the establishment of PASHA in 1994 who gave a path and opportunities to develop the software industry in Pakistan. Government also supported for the betterment of service sector specially IT industry.

STRATEGIC TRADE POLICY FRAMEWORK 2012-2015

In view of the prevalent challenges, Ministry of Commerce has completed the work on STPF 2012 2015 and presented to the Cabinet.

Its successful implementation would build upon the foundations provided by STPF 2009-12; its prime objective is to enable Pakistani firms to produce and export a more sophisticated and diversified range of products to existing as well as new markets and helps reduce unemployment and poverty in Pakistan.

GOALS OF STRATEGIC TRADE POLICY FRAMEWORK 2012-15

Main goals of STPF 2012-15 are:

1. Make export sector as an engine of growth
2. Enhance Pakistan’s export competitiveness in short as well as long term
3. Increase Pakistan’s cumulative exports to $ 95 billion during 2012 - 15

PRINCIPAL ELEMENTS STRATEGIC TRADE POLICY FRAMEWORK 2012-15

The Ministry of Commerce Pakistan has announced the second Strategic Trade Policy Framework (STPF) 2012-2015 aimed at achieving export target of $95 billion in the next three years.

The major objectives of the STPF 2012-2015 included:

1. Focus on regional trade.
2. Strengthening of the institutional framework for promotion of exports,
3. Creation of regulatory efficiencies,
4. Export development initiatives,
5. Increase exports from less developed regions of Pakistan,
6. Promotion of domestic commerce
7. Strengthening the monitoring and evaluation mechanism. 

·     The ministry has also announced to rationalize Tariff Protection Policy to create a competitive environment through certain reforms:

1. Ensure conformity to international agreements and practices.
2. Promote domestic and foreign investment.
3. Create level-playing field for Pakistani firms in international as well as domestic markets.
4. Due consideration to consumer welfare.
5. Cater to the changing needs of Pakistan’s economy.
6. Create an enabling environment to pursue the legitimate goal of industrialization in Pakistan.

The ministry will also establish Pakistan Land Port Authority to strengthen Regional trade by adopting following measures: