WT/TPR/S/95 Trade Policy Review
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES
(1) OVERVIEW
1. During the period under review, significant political developments and increased multilateral
commitments at the WTO have contributed to the liberalization of Pakistan's trade and foreign direct
investment regime.  The Government has made efforts to simplify and enhance the transparency of
the relatively complex trade-related regulatory fra mework.  It has also undertaken institutional
changes to improve policy coordination on WTO matters as well as governance.  Pakistan's
attachment to a multilateral rules-based system was reflected, inter alia , in its increased involvement
in dispute settlement cases (related to certain sensitive items) and its limited regional trade
commitments.
(2) GENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK
2. Since the previous Review of Pakistan, the 1973 Constitution has been amended three times,
most recently in July 1999;  since 12 October 1999, it has been held in abeyance for emergency
reasons.1  As a result, changes in the executive and legislative framework have been made;  the chief
of army staff and chairman of the Joint Chiefs of Staff committee has held the supreme executive and
legislative authority, which was validated by the Supreme Court on 12 May 2000 for a three-yearperiod (i.e. until October 2002).  The President has remained in place as Head of State and has been
bound to act on, and in accordance with, the advice of the Chief Executive.  In November 1999 , the
Chief Executive appointed a seven-member National Security Council to act as Pakistan's supreme
governing body, and a 17-minister Cabinet.
2
3. Under the Constitution, the President must be Muslim;  he is elected by an electoral college,
consisting of the 217-member National Assembly3, the 87-member Senate, and the provincial
assemblies (see below) for five-year terms (the last election was held in December 1997).Presidential elections are due in December 2002.  Although the next round of elections for the
National Assembly has been postponed indefinitely, the Supreme Court has ruled that elections must
be held not later than January 2003.
4. Parliament has exclusive power to enact laws.  A bill may originate either in the National
Assembly or in the Senate;  it must be passed by both houses, and subsequently be approved by thePresident who has the power to veto or send it back for review.  The President may prepare and
promulgate an ordinance depending on the circumstances.  The ordinances have the same force and
effect as an Act of Parliament, but have four months validity and must be laid before the National
Assembly or Senate.
4  Ordinances do not require approval by Parliament.
                                                     
1 The Constitution was amended to, inter alia,  restore some of the powers of the Prime Minister, which
were taken away in 1985, and to provide opportunity for representation of all classes of persons and areas in
public services.
2 Official Website of Islamic Republic of Pakistan (2000a);  CIA (2000);  Official Website of Islamic
Republic of Pakistan (2000b).
3 Seats are allocated to each Province, the Federally Administered Tribal Areas, and the Federal Capital
on the basis of population in accordance with the last offi cially published census.  (Political Resources on the
Net (undated),  (Article 5(3))).
4 Political Resources on the Net (undated),  (Articles 50-89, 141-142).Pakistan WT/TPR/S/95
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5. The four-tier judiciary comprises a 17-member Supreme Court, a High Court (in each
province), a Federal Shariat Court5 and other courts exercising civil and criminal jurisdiction.6  The
President appoints the Chief Justice of Pakistan (head of the Supreme Court) and judges of the
Supreme Court (in consultation with the Chief Jus tice) and Federal Shariat Court, who hold office
until the age of 65.  The Judges of the High Court are appointed (until the age of 62) by the President
after consultation with the respective Chief Justices (of the Supreme and High Courts) and theGovernor of the Province.
6. As of October 1999 provincial governments were dismissed and all assemblies were
suspended
7;  each province now has a military-appointed governor who may, inter alia,  promulgate
and issue ordinances and other legal instruments (as from November 2000) subject to Chief Executive
instructions.8,9  Provinces are allowed to impose a sales tax on services (except activities subject to
federal taxes, e.g. communications);  in 2000/01 provincial sales taxes covered 11 services including
hotels, clubs, television advertisement, etc.  Under a Local Government Plan 2000 on the formation of
local government and a coherent structure of the district administration and police, local elections
were held and a new distinct government system was put in place as from 14 August 2000.10
(3) STRUCTURE OF TRADE POLICY FORMULATION
(i) Executive branches of government
7. The Ministry of Commerce in liaison with Customs and the Central Board of Revenue has
remained responsible for trade policy formulation.  The latest major reshuffle of the Economic
Coordination Committee of the Cabinet of Minister s took place in November 1999, when the number
of participating ministers was cut by half.  To fight corruption, in November 1999 a National
Accountability Bureau (NAB) was established, and a strict accountability ordinance was passed aimed
at rooting out corruption.
(ii) Advisory bodies
8. As of October 2000, a 13-member WTO Council (at ministerial and federal secretary level),
chaired by the Minister of Commerce, has enabled high-level policy discussion and has looked into
the effects of domestic WTO-related policies (e.g. agriculture, science, and technology) on trade and
                                                     
5 The Federal Shariat Court examines and decides whether legislation or judicial decisions are
compatible with Islam;  it hears appeals against decisions of criminal courts on issues covered by Hudood laws(i.e. offences of intoxication, theft, Zina (unlawful sexual intercourse) and Qazf (false imputation of Zina)(Official Website of Islamic Republic of Pakistan (2000c)).
6 Official Website of Islamic Republic of Pakistan (2000c).
7 Until then, provinces enjoyed considerable autonomy having their own directly elected provincial
assembly, a government headed by a Chief Minister, and a Governor appointed by the President uponrecommendation by the Prime Minister.
8 Pakistan is a federation of four provinces (Baluchistan, North-West Frontier, Punjab, and Sindh);  in
addition there are 11 federally admini stered tribal areas (overseen by agents responsible to the federal
authorities), the Islamabad Capital Territory;  and a number of tribal areas (administered by the provincial
governments) ( Encyclopædia Britannica  [Online].  Available at:  http://www.britannica.com/bcom/eb/article/8/
0,5716,115028+4+108520,00.html [7 December 2000]).  The provinces are divided into divisions, districts, andtahsils (sub-districts).
9 The News  "Governor's Power Order 2000", 20 November 2000 [Online], 21 November 2000.
Available at:  http://www.jang.com.pk/thenews/nov2000-daily/21-11-2000/main/main7.htm [21 November
2000].
10 National Reconstruction Bureau (2000).WT/TPR/S/95 Trade Policy Review
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industry with a view to providing advice to better safeguard national interests.11  In addition, since
March 2000, a WTO cell has operated in the Ministry of Commerce.  Regional chambers of
commerce and NGOs form part of the consultative process for trade policy formulation and
implementation.
(4) TRADE POLICY OBJECTIVES
(i) General trade policy objectives
9. Whereas in the past, Pakistan's trade and trade-related policies were aimed largely at
encouraging import substitution through high tariff and non-tariff barriers (NTBs) to trade, inter alia ,
there now appears to be a growing realization that such measures coupled with a misaligned exchange
rate have resulted in an anti-export bias, which hampers Pakistan's economic development.
Accordingly, one of Pakistan's principal trad e policy objectives is now to reduce rapidly the
anti-export bias by opening the economy to international trade and FDI.12  Recent steps taken by the
Government to achieve this objective include a large cut in the average level of applied tariff
protection, rationalization of the tariff structure, improved tariff bindings and the maintenance (if not
expansion) of various duty and tax concessions for export-related items as well as a more appropriate
exchange rate;  however, Pakistan has retained high tariffs or NTBs for a few sensitive items.  Othermajor objectives include raising capacity utilization of indigenous industry and safeguarding the
balance of payments until June 2002 (Chapters I(5) and III(2)(x)(a)).
10. Recent changes in Pakistan's trade policies have been based on the principles of
multilateralism and non-discrimination (that is, MFN and national treatment), thereby preparing the
economy for the challenges and obligations under various WTO agreements.
13  Thus, it accords
MFN treatment to virtually all its trading partners (section (6)(ii) and Chapter III(2)(vi)(a)) and has
improved its financial services commitments.
(ii) Sectoral trade policy objectives
11. Despite signs of increased openness since its previous Review, Pakistan maintains state
involvement together with certain measures designed to implement sectoral trade policy objectives in
a relatively non-neutral manner, thus distorting co mpetition, and thereby hampering efficient resource
allocation.  For example, in addition to various forms of support to domestic production, trade incertain sensitive agricultural or fishery items has remained subject to specific or compound duties,
state-trading activities, export subsidies on freight costs (Chapters III(3)(iv) and IV(2)(ii)(a)).  To
protect certain vital industries, relatively high ad valorem  tariffs have been kept on motor vehicles,
imports of certain items (e.g. certain textiles) have been prohibited, and local-content requirements
have been operated for engineering and automotive (including tractors) goods (Chapter III(2)(ix));certain import restrictions are being removed progressively.  Religious considerations have remained
a barrier to trade for certain food (e.g. pork-related) and alcoholic beverages, as well as a disincentive
to foreign firms entering the banking sector.
                                                     
11 The News [Online], 15 October 2000.  Available at:  http://www.jang.com.pk/thenews/oct2000-
daily/15-10-2000/main/main15.htm [15 October 2000].
12 Ministry of Finance (2000c).
13 Ministry of Finance (2000c).Pakistan WT/TPR/S/95
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(iii) The WTO Agenda
(a) The Seattle Ministerial Conference and the next Round
12. At the third WTO Ministerial Conference (Seattle) in November/December 1999, Pakistan
recognized that although trade liberalization was beneficial to the global economy, freer trade had
mostly benefited the developed countries;  moreover, the "globalization" process could have negative
dimensions.14  Pakistan expressed the view that the Uruguay Round had not brought fundamental
changes, and the disadvantages faced by developing countries had been further exacerbated;  these
countries had not gained any meaningful increase in market access in the key areas where they have a
clear comparative advantage (textiles and agriculture).  Services had been liberalized in sectors of
primary interest to developed countries (e.g. telecoms, financial services).  The costs to developing
countries of the WTO Agreement on Intellectu al Property (TRIPS) Agreement were becoming
evident, and the Agreement on Trade-Related Investment Measures (TRIMs) was having an equally
harmful effect on the endeavours of developing countries to build their industrial base.  The
asymmetries in the multilateral trading system had contributed to the growing inequalities and
asymmetric benefits between countries;  "unfair" implementation of multilateral trade rules had to be
rectified before addressing new areas of liberalization.  The negotiating mandate for agricultureshould be targeting the elimination of export subsidies and domestic support.  In the authorities' view
negotiations on market access for industrial goods ought to focus on the removal of tariff peaks and
tariff escalation.  Negotiations on services ought to proceed within the basic framework of the General
Agreement on Trade in Services (GATS).  Pakistan found it difficult to envisage negotiations on
investment issues, while labour and environment were considered extraneous to the mandate of the
WTO;  it strongly opposed any discussion of labour standards in the WTO.  Pakistan proposed a
"Development Round" focused on the relationship of trade to technology, debt, and commodity
prices.
(b) Regionalism
13. Pakistan has participated actively in the work of the WTO Committee on Regional Trade
Agreements where it, inter alia,  expressed concern about the growing share of non-MFN trade as a
consequence of the proliferation of regional trade agreements and initiatives.
15  This trend affected the
balance of rights and obligations of WTO Members, and a thorough examination was required of its
impact on the multilateral trading system as well as of its compatibility with the purpose and
principles of multilateralism.
(5) TRADE LAWS AND REGULATIONS
14. All Pakistani laws, regulations and most administrative guidelines are published in English in
the publicly available official gazette, The Gazette of Pakistan ;  at present some are also available on
official Internet websites.  Basic trade rules have continued to take the form of laws and Statutory
Regulatory Orders (SROs).16  To simplify and make the complex regulatory framework instruments
more comprehensive and user-friendly, from July 2000, the Import Trade Order, the Import Policy
Order, the Import-Export Procedure Order, and the Export Policy Order were replaced by an Import
Trade and Procedures Order and an Export Policy and Procedures Order;  the new comprehensive
                                                     
14 WTO document WT/MIN(99)/ST/9, 30 November 1999.
15 WTO document WT/REG/M/2, 14 August 1996.
16 SROs issued by different government agencies may amend or alter existing laws, their importance
goes beyond that of normal administrative decisions and they may affect the predictability of the Pakistani legal
framework (GATT, 1995).WT/TPR/S/95 Trade Policy Review
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orders are to remain unchanged until repealed.17  According to the authorities, the number of SROs
has been reduced from 120 to less than 60;  nevertheless, by 2000, there were plans to issue several
SROs on duty and tax exemptions (Chapter III(2)(ii)(i)).
15. Enforcement of WTO provisions requires their incorporation into domestic legislation.  In this
context, since the previous Review of Pakist an, legislation has been passed on anti-dumping,
countervailing and in certain intellectual property rights areas.18
16. In the period under review, Pakistan has made numerous notifications to the WTO
(Tables AII.1);  so far tariff data (for the year 2000) has been submitted once to the Integrated
Database while import data has been supplied regularly (Chapter III(2)(ii)(a)).19  P a k i s t a n ' s
commitment to transparency has been reflected in  the establishment of Internet websites at an
increasing number of public sector agencies, institutes, and entities, in English;  information availableon these websites greatly facilitated the preparation of this Review.
(6) T
RADE AGREEMENTS AND ARRANGEMENTS
(i) Multilateral agreements
17. Pakistan is an original Member of the WTO and ratified the Final Act of the Uruguay Round
on 30 December 1994.20  Pakistan is not a signatory to Plurilateral Agreements, but the authorities
indicated that this issue has been under constant consideration.
(ii) Preferential, regional, and bilateral arrangements
(a) Preferential arrangements for developing and least developed countries
18. Since 1988, Pakistan has granted unilateral duty exemptions in excess of 25% ad valorem (i.e.
the maximum rate is set at 25%) to imports of 17 product categories arriving by land from
Afghanistan, China, Iran, and Nepal (Chapter III (2)(ii)(j)).21
19. Pakistan has maintained preferential tariff treatment under the Global System of Trade
Preferences (GSTP)22, and the GATT Protocol relating to Trade Negotiations among Developing
Countries (Chapter III(2)(ii)(j)).  In the light of recent tariff reductions, concessions under these
schemes would seem redundant, but, according to th e authorities, they play an important role in
promoting business relations among beneficiaries.
20. Pakistan has continued to benefit from the Generalized System of Preferences (GSP) schemes
of several countries;  those of the EU, Japan, and the United States are of major importance.  Between
1995/96 and 1998/99 the value of exports under GSP increased from US$1.6 billion to US$2.2 billion
with the degree of utilization (share of Pakistan's exports benefiting from GSP in donors' markets)
                                                     
17 Export Promotion Bureau (2000).
18 These are the Anti-dumping Ordinance 2000, Countervailing Duties Ordinance 2001, Copy Right
Amendment Ordinance 2000, Registered Lay-out Design(s) of Integrated Circuits Ordinance 2000, Registered
Design Ordinance 2000, Patent Ordinance 2001, and Trade Mark Ordinance 2001.
19 WTO document G/MA/IDB/2/Rev.11, 7 June 2001.
20 WTO document WT/LET/1, 27 January 1995.
21 SRO 492(I)/88, 26 June 1988, and its amendments.
22 Pakistan participated in the second round of GSTP negotiations.  Commitments undertaken for
preferential tariffs range from 40% to 65%;  they include chemicals, refrigerators, telephone sets, magnetic
tapes, and fluorescent lamps (GSTP/C.P.XII/5, 26 October 1998).Pakistan WT/TPR/S/95
Page 21
ranging from 12% to 72% (1998/99) depending on the donor.  In October 2001, the EU proposed to
Pakistan a package of trade concessions (15% increase in quotas of textiles and clothing, removal of
all tariffs on clothing until 2004) estimated at US$1.35 billion to increase its exports of textiles and
clothing to this market;  in return, Pakistan was to reduce its import duties by 5% on textiles and
clothing originating in EU.23
(b) Regional arrangements
21. Since its previous Review, Pakistan has maintained its participation in the seven-member
South Asian Association for Regional Cooperati on (SAARC) Preferential Trading Arrangements
(SAPTA), which was signed in April 1993 and came into force on 7 December 1995.24  There have
been three SAPTA rounds of negotiations (the last was concluded in November 1998);  as of 1995
Pakistan has granted tariff cuts ranging from 10% to 30% on an increasing number of products, mostof these are reserved exclusively for least developed partners (Chapter III(2)(ii)(j)).
25  A fourth
SAPTA round is expected by the end of 2001.  At the tenth SARRC Summit (July 1998), a decision
was taken to move towards the creation of a South Asian Free Trade Area and to draft a treaty.
22. Pakistan has continued to grant (and receive) the same tariff concessions for the same
products (16 items) covered by the additional Pr otocol on Preferential Tariff of the Economic
Co-operation Organization (ECO) (Chapter III(2)(ii)(j)).26  Two trade facilitation agreements, the
ECO Transit Trade Agreement and the Agreement on Simplification of Visa Procedures for the
Businessmen of ECO countries, were concluded in 1995 and have been in force since December 1997
and March 1998, respectively.27
(c) Bilateral free-trade arrangements
23. Since its previous Review, Pakistan has not participated in any bilateral free-trade
arrangement, but has expanded its "goodwill" type of trade/investment facilitation agreements from36 (1994/95) to 41 countries.
28  Between 1996 and 31 December 2000, Pakistan maintained a bilateral
border-trade agreement with China.29
(7) TRADE DISPUTES AND CONSULTATIONS UNDER THE GATT/WTO
24. Pakistan has become increasingly involved in the WTO Dispute Settlement mechanism;  this
reflects both domestic and global economic developments as well as the wider and easier access of allWTO Members to the multilateral settlement rules.  During the period under review, Pakistan has
been a complainant against the United States' imposition of a transitional safeguard measure on its
                                                     
23 Financial Times , 17 October 2001.
24 The other SAARC members are:  Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka
(SAARC Secretariat, online information.  Availabl e at:  http://www.saarc-sec.org/ [15 December 2000]).
25 Product coverage and cuts depend on individual SAPTA Schedules.  Pakistan's Schedule includes
items such as fish, milk powder, vegetables, fruit, prepar ations of vegetables, chemicals, rubber, leather, printed
materials, silk and silk fabrics, cotton and cotton fabric s, jute and jute products, ceramic ware, steel products,
watches etc. (Individual SAPTA schedules are available online at:  http://www.saarc-sec.org/sapta_schedules.htm [15 December 2000]).
26 Despite the 1993 enlargement of ECO to ten members, tariff preferences are granted only between
Pakistan, Iran, and Turkey, the founding members (SRO 510(I)/94), 9 June 1 994;  and GATT (1995)).
27 Ministry of Foreign Affairs (2000).
28 GATT (1995).
29 WTO document WT/ACC/CHN/17, 21 March 2000.WT/TPR/S/95 Trade Policy Review
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exports of combed cotton yarn.30  Pakistan's export prohibition of hides and skins (now replaced by a
20% export duty), and patent protection for pharmaceuticals and agricultural chemicals have been the
subject of complaints by the EU and the United States, respectively;  both cases were resolved
through mutually agreed solutions.31  Pakistan has also requested to join consultations or has reserved
its third party rights in cases against measures taken by the United States (import prohibition on
certain shrimp and shrimp products, measures affecting textiles and apparel products, restrictions onimports of woven wool shirts and blouses from Indi a, changes to rules of origin for textiles and
apparel products) and the EU (anti-dumping duties on imports of cotton-type bed-linen from India).
32
(8) FOREIGN INVESTMENT REGIME
25. The legal framework governing foreign direct investment (i.e. the 1976 Foreign Private
Investment (Promotion and Protection) Act, and the 1992 Economic Reforms Act) has remainedunchanged.  Repatriation of capital, profits, dividends, and principal payments at prevailing exchange
rates is guaranteed.
33  Licensing fees may be repatriated only if the licensing arrangement is reported
to the State Bank of Pakistan (SBP).  Permission for the acquisition of existing companies by foreign
(or domestic) firms may be denied on the grounds of national interest (i.e. national security, social
order, and cultural integrity).34  Protection of foreign investment against expropriation has seemingly
been satisfactory.35
26. Under its 1997 investment policy, Pakistan has fully opened most sectors of the economy to
foreign direct investment (FDI)36, thus allowing 100% foreign ownership, except for certain activities
that are subject to specific conditions (Table II.1).37  As from November 1997, Pakistan has provided
national treatment to foreign investors with respect to incentives such as duty and tax exemptions or
other concessions on imports of plant and machinery, and tax relief in the form of a first year
allowance for, inter alia,  value added, export, hi-tech industry, priority (e.g. engineering/capital
goods, chemicals) and agri-based industries  (Chapter III(2)(ii)(i), and III(4)(ii)).38  Furthermore,
investment in agriculture, services, infrastructure, and the social sector is subject to registration with
the Securities and Exchange Commission of Pakistan (Chapter IV(5)(iii)(a)) and the Board of
Investment.39  Investors bringing in equity from abroad (i.e. share of capital invested by foreign
investors in a specific project) must register with the State Bank of Pakistan and deliver a certificateof encashment of foreign currency, proving the source of investment.
40
                                                     
30 WTO documents WT/DS192/2, 4 September 2000, WT/DS192/R, 31 May 2001, and
WT/DS192/AB/R/, 8 October 2001.
31 WTO documents WT/DS107/1, 20 November 1997, and WT/DS36/4, 7 March 1997.
32 WTO documents WT/DS33/R, 6 January 1997, WT/DS85/5, 18 June 1997, WT/DS 140/2,
25 August 1998, WT/DS151/4, 9 December 1998, WT/DS 141/R, 30 October 2000, WT/DS58/18,
8 November 2000, and WT/DS58/RW, 15 June 2001.
33 However, banks, insurance companies, foreign ai rlines, and foreign shipping companies must obtain
SBP clearances for remittances.
34 World Markets Online (undated).
35 U.S. Commercial Service (2000).
36 Previously only the manufacturing sector was open to foreign investment.
37 Board of Investment (2000a).
38 Board of Investment (2000b).
39 Foreign investment projects in the agricultural s ector are processed by the Board of Investment in
consultation with the respective provincial governments (Board of Investment (2000a)).
40 World Markets Online (undated).Pakistan WT/TPR/S/95
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Table II.1
Foreign direct investment (FDI) limitations, as of 1997
Activities Ownership limitations Other conditions
a) Agriculture
Land development/reclamation of barren
land, desert, and hilly areas for agriculture
purpose and crops farming;  reclamation of
water front areas/creeks, crops, fruit,vegetables, flowers, farming/integrated
agriculture (cultivation and processing of
crops), modernization & development ofirrigation facilities and water management,
plantation/forestry, horticulture, dairy,
small ruminants (sheep, goat) and all other
livestock farming and breeding.100% equity is allowed. US$0.3 million as minimum foreign
investment.
Land for agricultural use may be obtained
on a lease basis for up to 50 years,
extendable for a further period of 49 years.
b) Services
Wholesale distribution and retail trade,transportation, storage and
communications;  infrastructure projects
including development of industrial zones;telecommunications i.e. e-mail/Internet/
electronic information services (CIS), data
communication network services, trunkradio services, cellular mobile telephone
services, audiotex services, voice mail
services, card pay-phone services, close-user group for banking operations,
international satellite operators for
domestic data communications, pagingservices and other telecommunication
service, which is deregulated in future, will
become part of this list;  real estatedevelopment (development of commercial
buildings, apartment, housing projects,
super markets/shopping malls, urban
development, and development of new
communities);  hotel and tourism ortourism related services;  technical testing
facilities;  audiovisual services;  sporting
and other recreation services;  rentalservices relating to transport equipment
and machinery, equipment and tools for
land development and agricultural
purposes;  and, environmental services.Foreign investors may hold initially 100%
of the equity subject to condition that the
repatriation of profits will be restricted to amaximum of 60% of total equity or profits,
and within five years time a minimum of
40% of the equity has to be passed toPakistani investors (including by sale of
shares on the stock exchange).Minimum amount of foreign equity
investment in the company/project
US$300,000.
c) Infrastructure
Projects including development ofindustrial zones, telecommunications(deregulated services), hotels, and tourism
or tourism related services.100% of foreign equity is allowed. Minimum amount of foreign equity
investment in the company/project
US$300,000.
d) Social services
Education, technical/vocational training,
human resource development;  hospitals,
medical, and diagnostic services.100% of foreign equity is allowed. Minimum amount of foreign equity
investment in the company/project
US$300,000.
Source: Board of Investment (2000a).
27. Since 1994/95 Pakistan has signed 38 new bilateral investment treaties.41  It has also signed
agreements to avoid double taxation with 37 countries. Pakistan is a member of the World Bank's
                                                     
41 At present bilateral treaties are maintained with  the People's Republic of China, France, Germany,
Kazakhstan, Republic of Korea, Kyrghistan, Kuwait, Ma laysia, the Netherlands, Portugal, Romania, Singapore,
Spain, Sweden, Tajikistan, Turkey, Turkmenistan, and the United Kingdom (Board of Investment (2000b)).WT/TPR/S/95 Trade Policy Review
Page 24
International Center for the Settlement of Investment Disputes (ICSID) and the Multilateral
Investment Guarantee Agency (MIGA).  MIGA ha s 16 contracts of guarantee with US$143.7 million
outstanding in the financial, infrastructure, and manufacturing sectors in Pakistan.  Foreign direct
investment facilitated to date is US$785.8 million.  MIGA is considering a computer technology
project with an investment potential of US$1.5 million and, with its partners in the rest of the
World Bank Group, continues to monitor the power sector.
28. Since 1997, in the context of the WTO Working Group on the Relationship between Trade
and Investment, Pakistan underlined issues relating to:  the developmental implications of FDI and the
need for a balanced approach taking into acc ount the possible negative effects of FDI;  the
relationship between investment and trade liberaliza tion and stages of development;  the role of FDI
in transferring intangible assets, notably in the fields of technology and human resource development,and the implications of this for development;  and the relationship between different types of FDI and
the development process.
42  Pakistan has been of the view that benefits from multilateral rules on
investment seemed to be outweighed by costs, i. e. the loss of autonomy of developing countries to
pursue their own development policies and the loss caused by unduly favouring multinational
enterprises, especially in their relationship with host countries.
                                                     
42 WTO documents WT/WGTI/M/2, 10 November 1997, WT/WGTI/M/5, 29 July 1998,
WT/WGTI/M/6, 3 November 1998, WT/WGTI/M/7, 27 January 1999, and WT/WGTI/M/8, 11 May 1999.