Pakistan'S "2015-18 Year Strategic Trade Policy Framework" Released

Graham Dastjil Khan, Minister of Commerce of Pakistan, issued the new "2015-18 year strategic trade policy framework" (hereinafter referred to as the "framework"). This is the third time the Ministry of Commerce issued the medium-term trade policy framework and is the guiding document for the next three years of trade development.

The framework is divided into four parts: first, to review the trade situation in the 2014-15 fiscal year; two, the main objectives and the implementation framework; three, the specific policy measures; and four, the short-term export promotion measures.

The main contents are as follows:

I. foreign trade in the 2014-15 fiscal year

In the 2013-2015 years, the growth rate of Global trade was 0.5%, 2.4% and 2.8% respectively, which was lower than 3% for three consecutive years.

Under the combined influence of external demand and domestic disadvantages, exports in the 2014-15 fiscal year fell by 4.78%.

On the export side, the export of Pakistan textiles has achieved a certain increase, thanks to the EU's ultra GSP treatment. However, the decline of international cotton prices has damaged cotton, cotton yarn and cotton fabric exports.

In addition, drugs, medical products,

Exports of furniture, handicrafts and jewellery have increased significantly.

In terms of imports, the import volume of Pakistan increased as a result of lower demand elasticity. Imports of chemical products, machinery, foodstuffs, metal products and pport vehicles increased by 11%, 14.9%, 18.5%, 20.3% and 21.7% respectively.

Two, main objectives and Implementation Framework

According to the framework, the Ministry of Commerce has fully considered the current global trade environment and the export trend of Pakistan, and listened to the views of stakeholders including the all Palestinian industry and Commerce Association, local chamber of Commerce, representative enterprises, scientific research institutions, think tanks, trade institutions and relevant government departments. It has drawn lessons from and learned from the experience of the 2009-12 and 2012-15 two medium-term trade framework, and formulated four main objectives: first, the export volume increased to 35 billion US dollars in the 2017-18 fiscal year; two is to increase export competitiveness; three is to change the mode of economic growth from the current factor driving mode to the efficiency and innovation driven mode; four is to increase the share of regional trade.

To achieve the above goals, the framework puts forward 4 key support and 4 pillars.

The 4 key support is competitiveness (quality infrastructure, labor productivity, public facilities, technological progress), two is standard adaptability (integration of local standards and international standards, protection of patent rights, dispute resolution mechanism), three is policy environment (monetary policy, tax system, industrial collaboration, investment policy), and four is market diversification (multilateral market, regional market and bilateral market).

One of the 4 pillars of the strategy is to diversify products and increase the added value of products (R & D investment, add value and brand building), two is to open up the market (to increase the existing market share, to open up new markets, and to trade and foreign trade), three is to strengthen and build the system (structural adjustment, capacity building, and establish new institutions), and the four is to promote trade facilitation (reducing business costs and standardization).

(1) diversification of products and enhancement of added value of products.

1, encourage technological upgrading.

It provides investment support for the newly established enterprises to import machinery and equipment 20% (1 million rupees caps per year).

To provide financial support to existing enterprises for upgrading and importing machinery and equipment 50% (1 million rupee capping) each year.

2, improve product quality.

In order to encourage enterprises to enhance product design and promote innovation in leather, pharmaceutical, medical products and aquatic products export enterprises and small and medium-sized enterprises, the eligible enterprises will provide the maximum allowance of 5 million rupees, while the comprehensive facilities Center for medical products will also be set up.

3, support brand building.

In order to change the status quo of products such as Pakistan medical products, sporting goods and cutters, with less independent brands and low profit margins, the government will provide equal subsidies to SMEs and export enterprises to facilitate their patent applications, brand cultivation and standard certification activities.

4, export tax rebates.

In order to reduce the business cost and enhance the competitiveness of products in the non textile industry, we continue to implement the policy of 4% export tax rebates for specific industries (fish and fish products, processed foods, meat and meat products, sporting goods, footwear, leather products, surgical instruments, tableware, agate products, pharmaceuticals, electric fans, auto parts, pportation equipment, electrical machinery, etc.) and new export volume (FOB price) over the fiscal year 10% and above.

5, machinery purchase subsidy for small and medium-sized agricultural products processing enterprises.

In order to reduce the productive waste of agricultural products, increase farmers' income and benefit from foreign exchange, 50% of the small and medium-sized export enterprises such as meat, fruits, vegetables, olives, nuts, gelatine and dates are provided to the small and medium-sized export enterprises such as Cape Province, federally administered tribal areas and Baluchistan provinces.

(two) developing the market

1, improve the existing market share.

The Ministry of Commerce will carry out a series of lobbying and public information activities, and actively respond to the EU's review of the ultra GSP treatment to be carried out by the European Union in 2016 to ensure that Pakistan continues to maintain the EU's ultra GSP treatment.

At the same time, we should strengthen market information service, actively carry out various exhibitions and economic and trade diplomacy activities, and maintain and expand the existing market share.

2, develop new markets.

Through market research, organizing trade delegations and exhibitions, making full use of the resources of the import and export bank, and actively developing the markets of Africa, CIS and Latin American countries.

3, developing economic and trade diplomacy.

The Ministry of Commerce will continue to implement multilateral, regional and bilateral Trident trade diplomacy strategy.

We will actively join multilateral trade arrangements such as trade facilitation agreement (TFA), information technology agreement (ITA) and government purchase agreement (GPA), and strengthen cooperation with regional organizations such as GCC, ASEAN and SAARC, and launch bilateral trade negotiations with Thailand, Korea, Turkey, Iran, China, Malaysia, Indonesia, Nigeria and Jordan.

4, strengthen regional interconnection.

As soon as possible, the Pakistan Afghanistan cross-border trade agreement is not resolved as soon as possible; the negotiation process of the Afghanistan Pakistan Tajikistan cross border trade agreement is accelerated; the pit trade agreement between China, Pakistan, Kyrgyz and Kazakhstan is restarted; meanwhile, the regional trade office under the Ministry of Commerce has taken the lead in promoting the institutional framework of Pakistan Afghanistan and Central Asia regional economic integration.

(three) institutional strengthening and construction

1, rebuild / restructure the Ministry of Commerce and related trade promotion agencies.

In order to adapt to the high competitive environment of international trade and improve service efficiency, the Ministry of Commerce and its affiliated trade promotion agencies urgently need to meet the reform requirements of specialization, professionalism and flexibility.

The Palestinian government will set up an inter departmental committee composed of representatives of the Ministry of Commerce, the Ministry of Commerce, the Ministry of Finance and the Ministry of foreign affairs within 60 days after the publication of the framework to guide the restructuring, specialization and empowerment reform of the Ministry of Commerce.

In addition, the major trade promotion agencies (TDAP) and the horticultural development and Export Commission (PHDEC) will also be restructured.

2. An intellectual property organization is added to the Ministry of Commerce.

Referring to the practices of China, the United States, India and Thailand, the organization of intellectual property rights (IPR) will be set up in the Ministry of Commerce to promote the innovation and production of marketable and tradable knowledge products.

At the same time, the Pakistan Intellectual Property Organization (IPO-P) will also be placed under the Ministry of Commerce.

3, expand the Trade Development Fund.

Since the 2015-16 fiscal year, the Ministry of finance has pferred the trade development surcharge to the trade development fund to change its previous move to about 20%.

4, strengthen capacity building.

In the past two years, the Ministry of Commerce has newly established the domestic trade department, the trade dispute settlement organization (TDRO) and the Service Trade Development Commission.

In order to give full play to the above functions, the Ministry of Commerce will provide technical support and vocational training, and strengthen its capacity building on the basis of previous needs assessment.

The existing Institute of foreign trade development (PITAD) will strengthen the function of the think tank and talent cultivation. The national customs Commission (NTC) will strengthen the implementation of the trade relief law and provide intellectual support for the promotion of trade competitiveness.

In addition, the Ministry of Commerce and the trade development department will conduct performance reviews on 11 talent training and product upgrading institutions, and enhance human capital training and industrial competitiveness on this basis.

5. The new export promotion committee.

Following the recent establishment of the Export Promotion Council for trade in services and the leather export promotion committee, the Ministry of Commerce will also set up a pharmaceutical and cosmetic Export Promotion Committee and a rice development and Export Promotion Committee.

(four) facilitate trade facilitation.

1, reduce business costs

(1) enhance the efficiency of railway and waterway pport services.

To enhance the international competitiveness of the railway and waterway services with the lowest inland pportation cost and enhance the product's competitiveness, the Palestinian government will set up two special working groups composed of the Ministry of railways, the Ministry of planning, the federal investment committee, the provincial authorities and the water pport development company. The special task force will enhance the efficiency of railway and waterway pportation on the export sector, and submit it to the Congress production and export committee together with the action plan.

(2) improve export tax rebate efficiency.

In order to change the current long period of tax rebate and administrative obstacles affecting the liquidity and financial costs of export enterprises, the government will vigorously improve the efficiency of full export tax rebates.

2, trade regulation measures for specific products

(1) facilitate the import of plastic scrap.

The relevant provisions of the import policy act of 2013 were amended to remove the requirement for the initial import of plastic waste and scrap materials to submit environmental audit reports.

(2) expand the scope of imported tire import enterprises.

The pyrolysis plants registered under the environmental protection department (EPAs) and the Federal Tax Commission (FBR) will also be allowed to import scrap tyres and their debris as required.

(3) allow air pistol imports.

Allow the import of air pistols and their bullets.

(4) strengthen the import control of aircraft and night vision devices.

We must strengthen the import control of aircraft equipped with high-definition cameras and high-speed WIFI pmission devices and night vision devices. The import of related products must be confirmed by the Ministry of defense.

(5) strengthen the import control of 3D printers.

In order to prevent improper use, the import of 3D printer must be obtained without objection from the Ministry of interior.

(6) strengthen mobile phone import control.

In response to the relevant provisions of the high court, import of mobile phones and laptops and other terminals must be approved by the PTA (TAC).

(7) facilitate the importation of securities paper.

Cancellation of Pakistan Securities printing company (PSPC) import security paper must be obtained by the securities paper company (SPL) without objection.

(8) relax import restrictions on raw materials for processing exporters.

For raw materials listed on the list of restricted imports, the processing exporters may implement imports under the conditions of compliance with the relevant policy conditions such as the raw materials tax rules, temporary imports, bonded warehouses and export oriented plans.

(9) relax import restrictions on special vehicles.

The import restrictions of second-hand special vehicles should be relaxed, but the relevant vehicles must pass the pre shipment inspection of the international quality testing companies listed in the bill, comply with the European -II standard, and be manufactured by the original equipment manufacturer for a period of not more than 5 years.

(10) relax restrictions on pesticide imports.

The import of related commodities must be examined before shipment by the commodity inspection unit recognized by the plant protection department of the Ministry of food safety.

(11) prohibit the importation of digital cordless communication system (DECT) 6 telephone.

In view of this type of telephone interference in 3G/4G communication signals, according to the request of the 1996 bill of Pakistan Telecommunications Authority, the import ban was decided.

(12) cancellation of import restrictions on poultry and their products in countries such as Korea.

The import restrictions on poultry and their products from South Korea, Russia, Kazakhstan, Slovenia, Turkey, Greece, Croatia, Italy, Azerbaijan, Ukraine, Iraq, Bulgaria, Slovenia, Australia, Bosnia and Herzegovina were eliminated.

However, the quarantine department of the exporting country must produce relevant documents to prove that there has been no avian influenza outbreak in the origin of the product for at least the past 11 years.

(13) expand the scope of importing enterprises for forming paper.

Cigarette filter manufacturers can import molded paper after registration with the Federal Tax Commission. Only cigarette manufacturers are eligible to import.

(14) strengthen import restrictions on mercury and its compounds.

As a signatory to the Minamata convention, Pakistan is committed to halt the use of mercury and its compounds in the production process before 2020, so manufacturers must obtain permission from the federal or local environmental protection department when importing such products.

(15) to strengthen import restrictions on two wheeled / three wheeled vehicles.

In addition to meeting the current standards in Pakistan and obtaining the standards and the type approval of the quality control bureau (PSQCA), the import of two wheel / three wheeled vehicles must also meet the European -II standard.

(16) import department responsible for replacing ozone layer disrupting substances (ODS).

The import quota management of import ozone layer disrupting substances shall be pferred from the Ministry of Commerce to the Ministry of climate change.

(17) expand the applicable scope of disabled cars.

The "tax-free" expression in the arrangements for the import of disabled persons is changed to "tariff free". Meanwhile, motor tricycles for disabled persons are also included in the scope of application.

(18) allowing the rejection or prohibition of the return of imported goods.

Without violating the relevant laws and regulations of prohibited goods trade, goods that are rejected or prohibited from importation can be returned to the exporter.

(19) relax import restrictions on fireworks.

When the explosives were included in the list of restrictions on imported goods and fireworks were forbidden to import, the fireworks were included in the list of restricted imports, but import enterprises must have valid license under the "explosive provisions 2010" and obtain the relevant permission of the explosives division of the Ministry of industrial production, and the explosives experts must also be tested.

(20) reduce the import scope of gift packaging.

The list of prohibited imports is not allowed to be included in the scope of gift packaging.

(21) facilitate exports to Afghanistan.

The humanitarian aid organization is allowed to export to Afghanistan (including prohibited and restricted export commodities) without providing E forms for foreign exchange acceptance certificates.

3. Standardization

The Ministry of science and technology, the Ministry of Commerce and the Ministry of food safety will set up a joint working group to promote the formulation and coordination of quality standards, while adjusting the list of official inspection companies before shipment.

(1) key commodities

Taking full account of export potential and policy effects, the Ministry of Commerce has made bass Marty rice, horticulture and crop products, meat and meat products and jewellery products as short-term focus export promotion products.

1, bath Marty fragrant rice.

At present, Iran and Saudi Arabia account for 55% of the total export market share of the Marty bath rice, and the market share of Pakistan in the two countries is 0.52% and 4.4% respectively.

In order to meet the preferences of the two markets for pre cooked rice, Pakistan has incorporated pre cooked rice production equipment into the framework technology upgrading support project, and will provide funding for the construction of warehousing facilities in both countries. In addition, the government will provide support for the brand cultivation and quality identification of bath Marty rice.

2, horticulture and crop products.

Pakistan's horticultural and crop products have taken a place in the global market. Taking the factors such as product shelf life and pportation time into consideration, Pakistan will focus on the Middle East and Southeast Asia as a key export market, and use Kino, mango, potatoes, onions and fresh vegetables as key export products.

To promote export growth of the above products, the Pakistani government will strengthen institutional reform of the state-run Pakistan horticultural development and export company (PHDEC), and provide support for international certification, packaging and establishment of public facilities centers.

3, meat products.

Pakistan meat products have great potential for exports from Iran and the Middle East. The Pakistani government will provide support for local certification and processing permits for related products, and will also enhance Pakistan's trade and facilitate export convenience for its agencies.

4, jewelry products.

Since the introduction of the 2013 import and export management system of jewellery products, the export of jewellery products has dropped significantly. The Palestinian government will reassess the system to ensure that the legitimate export of jewellery products will not be damaged by excessive regulation.

(two) key markets

1, Iran.

With the relaxation of international economic sanctions against Iran, the trade channels between Iran and neighboring countries are expected to normalize in the next 6-12 months.

The Pakistani government intends to seize the opportunity to actively promote the export of Marty's fragrant rice, Kino orange and meat products to support the enterprises' investment in warehousing facilities, brand cultivation and international certification, and strive to promote the construction of land pport infrastructure and develop bilateral border trade.

2, China.

The Pakistani government will fully explore the export potential of rice, cotton yarn, fabrics and clothing through positive strategic intervention, assist exporters in making full use of the relevant concessions in the China Pakistan Free Trade Agreement, and complete the evaluation and the second stage negotiation of the China Brazil free trade agreement as soon as possible (Fast-track).

3, Afghanistan.

Under the key product strategy of Pakistan peripheral market, wheat, rice, meat products and cement have great potential for export, and Pakistan will push ahead with the construction of Baal railway as soon as possible so as to better connect the bilateral market.

4, the European Union.

Pakistan's exports have benefited from the EU's super GSP in recent years, but only two aquatic products manufacturers have the right to export to Europe. Pakistan will actively promote the five aquatic products processing enterprises currently in the audit stage, which will be allowed to export to Europe at an early date.

In addition, over the past two years, Pakistan has declined in terms of the export of fruit and fruit, and the Pakistani government will actively promote the certification of mango producing and packaging enterprises, and improve the export capacity of European mango under the premise of meeting the requirements of the European Union's sanitary and Phytosanitary (SPS).