./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/173
11 January 2000
(00-0103)
Council for Trade in Goods
REQUEST BY PAKISTAN FOR AN EXTENSION OF THE TRANSITION PERIOD
UNDER THE PROVISIONS OF ARTICLE 5.3 OF THE AGREEMENT
ON TRADE-RELATED INVESTMENT MEASURES
The following communication, dated 28 December 1999, has been received from the
Permanent Mission of Pakistan.
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With reference to Pakistan's notification No. Econ-1/19/94 dated 30 March 1995 in
connection with Article 5.1 of the Agreement on Trade-Related Investment Measures (TRIMs),
Pakistan would like to request an extension for ma intaining the programme of Indigenization/Deletion
Policy for a minimum of seven years from January 2000.
Pakistan's programme of Indigenization/Dele tion Policy, which may appear to fall under
paragraph 1(a) of the illustrated list annexed to the TRIMs Agreement, has been designed to provide
incentives to promote the establishment and development of domestic industries.  The policy serves
to:
- optimally exploit domestic resources;
- promote transfer of technology;- enhance linkages between large, medium and small-scale industries;
- safeguard the external financial position of the economy;
- increase employment opportunities;  and
- contribute to a steady growth in per capita income in real terms thus raising the living
standards of the people.
The programme applies to industrial enterprises which elect to opt for this programme.  These
enterprises are entitled to import prescribed raw materials, and components and parts for the assembly
and manufacture of specific items at concessionary rates of import tariff.  The programme includes
such sectors as general engineering, electrical goods, agricultural equipment and automobile industry,etc.  The Ministry of Industries and Production, Government of Pakistan, is responsible for
monitoring the implementation of the programme.
The industries which opted for the programme have significantly benefited in economic
terms.  Not only large industrial enterprises, but also vending industries which consist of small and
medium size enterprises have greatly benefited from the programme.  There have also been
accompanying social benefits, including through j ob creation and uplift of under-developed areas.
The industries that have opted for the programme are at various stages of implementation of
the programme.  Abolition of the programme in th e present circumstances would be detrimental not
only to these industries but would also adversely affect the many enterprises having forward and
backward linkages with these industries.  It would further have a negative impact on investments, onG/C/W/173
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the balance-of-payments situation, and would impede the process of technology transfer which is
presently under way.  In addition, there would inevitably be an adverse effect on the social situation
due to displacement of labour and unemployment.  It would undermine the development efforts of the
country.  The programme is, therefore, of great importance to Pakistan.
Pakistan hopes that this request will receive favourable consideration by Members and an
extension will be agreed so as to enable Pakistan to achieve the objectives of the programme.
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