WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIO
Centre William Rappard    Rue de Lausanne 154    Case postale    CH - 1211 Genève 21
 Téléphone:  (+41 22) 739 51 11    Fax:  (+41 22) 731 42 06
Internet:  http://www.wto.orgDirect line: (+41 22) 739 53 48
Direct fax: (+41 22) 739 57 88           
Email: tessa.jurin@wto.org
Reference:     WLI/100 4 July 2002
MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DONE AT MARRAKESH ON 15 APRIL 1994
FOURTH PROTOCOL TO THE
GENERAL AGREEMENT ON TRADE IN SERVICES
DONE AT GENEVA ON 15 APRIL 1997
CERTIFICATION OF IMPROVEMENTS
CONCERNING BASIC TELECOMMUNICATIONS
TO PAKISTAN'S SCHEDULE OF SPECIFIC COMMITMENTS
TRANSMISSION OF CERTIFIED TRUE COPIES
I have the honour to furnish herewith a certified true copy of the Certification of the
improvements to the section concerning basic telecommunications of Pakistan's Schedule of SpecificCommitments. The completion of procedures effecting these improvements is evidenced in document
S/L/55.  The certified improvements are effective as of 5 February 1998.
1
Mike Moore
Director-General
02-3734 WT/Let/423
                                                     
1 For ease of reference, the text of these improvements has also been circulated as document
GATS/SC/67/Suppl.2/Rev.1.MARRAKESH AGREEMENT ESTABLISHING
THE WORLD TRADE ORGANIZATION
DONE AT MARRAKESH ON 15 APRIL 1994
FOURTH PROTOCOL TO THE
GENERAL AGREEMENT ON TRADE IN SERVICES
DONE AT GENEVA ON 15 APRIL 1997
CERTIFICATION OF IMPROVEMENTS
CONCERNING BASIC TELECOMMUNICATIONS
TO PAKISTAN'S SCHEDULE OF SPECIFIC COMMITMENTS
WHEREAS a draft containing improvements to the section concerning basic
telecommunications of Pakistan's Schedule of Specific Commitments was communicated to Members
of the World Trade Organization in document S/C/W/33 on 18 December 1997;
WHEREAS document S/L/55 evidences the completion of procedures effecting these
improvements;
IT IS HEREBY CERTIFIED that the annexed improvements to the section concerning basic
telecommunications of Pakistan's Schedule of Specific Commitments are duly established and
effective as of 5 February 1998.
This Certification is deposited with the Director-General of the World Trade Organization, who
shall promptly furnish a certified true copy to each Member of the World Trade Organization.  It shall
be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.
DONE at Geneva this twenty-seventh day of June, two thousand and two.
Mike Moore
Director-General
Certified copy:
Director-General1PAKISTAN
General Agreement on Trade in Services
Schedule of Specific Commitments
Supplement 2
Revision
(This is authentic in English only)
_______________
This text supplements the entries relating to th e Telecommunication services section contained on
pages 7 to 8 of document GATS/SC/67.
5 February 19982PAKISTAN - SCHEDULE OF SPECIFIC COMMITMENTS
Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
General conditions of this schedule: This offe r is subject to following general conditions:
- Policy, regulatory and operation functions are separate and compliance is necessary.
- All services to be provided in Pakistan shall require a licence from the Regulatory authority established under the law.- Operators and Service providers may be granted licence in accordance with the local legislation.- The number of operators, service providers and licensees may be limited due to technical constraints.- The confidentiality of Intern ational Total Accounting Rate (TAR) shall be maintained.
- The bilateral agreements on accounting rates shall be in accordance with ITU guidelines.- Up to 100% foreign investment on  licensed services may be permitted
- This schedule on basic telecommunications does not include any broadcasting services
1.
2.C. Telecommunications Service
Local, domestic longdistance and internationalservices, for public:Until 2003, no bypass
2 of PTCL
network and PTCL shall haveexclusivity.
None as of 1.1.2004.About 12 per cent stake of the
Pakistan TelecommunicationCorporation (PTC), the soleoperator for all basicTelecommunication serviceswas sold to the national andinternational buyers in 1994-95through two different offers ofPTC vouchers in national andinternational financial markets.
(a) Voice telephone services (1) All telecommunication services shall
be provided by licensed operators(1) Unbound The offers were many times
over subscribed. The
                                                     
     1Broadcasting service is defined as a radiocommunication service in which the transmissions are intended for direct reception by  the general public. This service may include sound transmission, television transmissions or
other types of transmissions. In Pakistan Telecom Law, like many other countries, broadcasting is not part of basic telecommuni cation services.
     2The GMPCS/Satellite operators shall be reputed to pass traffic via Pakistan PSTN through transit and Gateway exchanges, special ly in case of overseas communication from Pakistan. Any operation contrary to this shall
be termed as "bypass."3Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
subject to the exclusivity period of 7
years for basic telephony servicesunder the law in favour of PTCL.This exclusivity shall expire by theyear 2003.
None as of 1.1.2004.Corporation has been, inter
alia, converted into a limitedcompany namely PakistanTelecommunication CompanyLtd (PTCL) with effect from1 January, 1996 through thepromulgation of a law.Bounds with US$ 150 millionhave been floated with anoption to convert them into
PTCL shares.
(a) Voice telephone services
(cont'd)(2) Alternative practices such as call
back are not allowed. Country directcard service can only be permittedby mutual agreement with thelicensed operator.
(3) Unbound(4) Unbound except as indicated in
horizontal section.(2) Unbound
(3) Unbound
(4) Unbound except as indicated in
horizontal section.
(b) Packet-switched data,
E-mail, Internet  and Intranet
services
(c) Circuit-sw itched data
transmission services(1) Until 2003, except for domestic
VSAT, only through networkfacilities of PTCL. The regulatoryauthority to grant licences andauthorizations to private companiesfor operation of data, E-mail,Internet and Intranet services inaddition to the licences alreadygranted.
(2) None(1) Unbound
(2) NonePrivatization of PTCL is on
the anvil. The management ofthe Company shall betransferred to the selectedstrategic operator. Exclusivelicence for operation of basictelephony services for a periodof 7 years granted to thePTCL.
The Pakistan
Telecommunications (Re-4Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
(3) Subject to technical constraints, the
regulatory authority to grant licencesand authorizations to privatecompanies for operation of domesticVSAT, data, E-mail, Internet &Intranet services in addition to the
licences already granted.
(4) Unbound except as indicated in
horizontal section.(3) None except for technical
constraints
(4) Unbound except as indicated in
horizontal section.organisation) Law has been
passed as an Act of Parliamentin October 1996. Anindependent RegulatoryAuthority and a FrequencyAllocation Board have beenestablished. Chairmanmembers and other essentialstaff of these bodies is alreadyin place. The Authority andBoard are already functional.To support effective regulationand spectrum managementGOP is undertaking of PTA &FAB.
(d) VSAT for domestic data
services(1) The regulatory authority to grant
licences and authorizations toprivate companies for operation ofVSAT for domestic data, E-mail,Internet and Intranet services inaddition to the licences alreadygranted
(2) None(3) None(4) Unbound except as indicated in
horizontal section(1) None
(2) None
(3) None(4) Unbound except as indicated in
horizontal sectionThe Pakistan
Telecommunication Authorityestablished under the law as anindependent body is responsibleto:
- Regulate
telecommunicationservices.
- Grant and renew
licences.
- Promote and protect
the interests ofconsumers
- Promote efficient, cost
effective andcompetitive services.
- Carry out inspections
.
- Regulate tariffs.5Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
(e) Telex services (1) None
(2) None(3) None(4) Unbound except as indicated in
horizontal section.(1) None
(2) None(3) None(4) Unbound except as indicated in
horizontal section.
(f) Telegraph services (1) The regu latory authority shall grant
licences and authorizations toprivate companies for operation ofTelegraph services using PTCL
infrastructure until 2003.
(2) None(3) None(4) Unbound except as indicated in
horizontal section.(1) None
(2) None
(3) None(4) Unbound except as indicated in
horizontal section.- Prescribe standards
- Determine terms of
interconnectio n agreements.
- Investigate and adjudicate on
complaints.
- Enforcement on valuation- International traffic and
accounting settlements.
- Issue regulations.- Receive applications for
frequency allocation.
(g) Facsimile se rvices (1) None
(2) None(3) None(4) Unbound except as indicated in
horizontal section.(1) None
(2) None(3) None(4) Unbound except as indicated in
horizontal section.
(h) Private leased circuit services (1) Pakistan Telecommunication
Company Limited except fordomestic VSAT, is the exclusiveservice provider for seven years.(1) Unbound The frequency allocation
Board established under thelaw is responsible to allocateand assign frequency spectrum6Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
This exclusivity shall expire by the
year 2003.
None as of 1.1.2004.
(2) None(3) Pakistan Telecommunication
Company Limited except fordomestic VSAT, is the exclusiveservice provider for seven years.This exclusivity shall expire by theyear 2003.
(4) Unbound except as indicated in
horizontal section.(2) None
(3) Unbound
(4) Unbound except as indicated in
horizontal section.for telecommunication,
broadcasting public and privatewireless services and classifyradio telecommunicationservices.
Appeals against the decisions
of the Authority may be filedin the High Court.
Following services have been
licensed to the privateoperators and further licensingcould be possible:
(i)Video conferenci ng tele-medicine
and tele-education terminal
end services(1) The regulatory au thority shall grant
licences and authorizations toprivate companies for operation ofvideo-conferencing, tele-educationand telemedicine services, usingPTCL network until seven years.
(2) None(3) None(4) Unbound except as indicated in
horizontal section(1) None
(2) None
(3) None(4) Unbound except as indicated in
horizontal section- Cellular Mobile telephone
services.
- Card pay phones services-P a g i n g- Data network operation- Voice Mail Service- Audio Tex Service- Trunk Radio service- Electronic Mail and internet
services
- Use of domestic satellites for
provision of telecomservices
- Manufacture of telex, fax,
all PABXs/Digitalexchanges and modems
- manufacture of
Fibre/Optic/copper cables7Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
- manufacture of telephone
sets, terminal equipmentanswering  machine etc.
- manufacture of jointing
material for copper/opticcables
(j)Trunked radio service (1) The regulatory authority to grant
licences and authorizations toprivate companies for operation ofTrunked Radio service in additionto(1) None Regulatory Authority shall
grant licences on competitivebasis as per telecom law andregulations.
 the licences already granted using PTCL
network until 2003.
(2) None(3) None(4) Unbound except as indicated in
horizontal section(2) None
(3) None(4) Unbound except as indicated in
horizontal sectionRegulatory Authority may
grant licences for satellitebased services on followingconditions:
(a) Frequency clearance by
Board
(b) Security and sovereignty
regulations
(c) Availability of ITUT/R
standards
(k) Satellite based telephony
services, including value addedservices operating over satellite(1) Maintaining PTCL exclusivity for seven
years on basic and international telephonyservices and safeguarding PSTN bypasslicences shall be granted
(2) None(3) None(1) None
(2) None
(3) None except for technical, sovereignty,
security constraints and safeguardingPSTN bypass(d) resolution of cross-border
communication issues; and
(e) resolution of Customs
procedures8Modes of delivery: (1)  Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons
Sector or subsector Limitations on market access Limit ations on national treatment Additional commitments
(4) Unbound except as indicated in horizontal
section(4) Unbound except as indicated in
horizontal section9ATTACHMENT TO PAKISTAN'S SCHEDULE
(Reference Paper)
1. Transparency of Regulations
1.1 Laws and regulations pertaining to provisions of basic telecom services shall be published.
1.2 Advanced public notice and a fair opportunity will be provided for interested parties to
comment on proposed measures affecting the provision of basic telecom services.
1.3 The Regulatory Authority consists of three members, one is a professional telecom engineer
and other two are technical and financial experts, appointed by the Government for a termof four years and eligible for appointment for a similar term.
1.4 Any member of the Authority shall not have any direct or indirect financial interest in, or
have business connection with any person, any establishment or firm which renders telecomservices in Pakistan or abroad. For above purpose even any involvement of the spouse orblood relation of any member of the Authority with any telecom firm shall be considered asa direct financial interest or connection with such firm.
1.5 The Authority shall ensure that:
(a) rights of licensees are duly protected;(b) decisions and determinations are made promptly in open, equitable, non-
discriminatory, consistent and transparent manner;
(c) the persons affected by its decisions or determinations are given a due notice and
provided opportunity of being heard.
1.6 A person aggrieved by any decision or order of the Authority can within thirty days of the
receipt of order, appeal to the High Court and the Court shall decide such appeal withinninety days.
1.7 A person aggrieved by any decision or order of any officer of the Authority may, within
thirty days of the order, appeal to the Authority and the Authority shall decide such appeals
within thirty days.
2. Interconnection and Numbering
2.1 In the event that a service supplier is unable to reach agreement with any or dominant
service supplier or interconnection, following a reasonable amount of time, either party mayrefer the dispute to the Regulator in Pakistan.
2.2 Service suppliers shall be required to disclose information concerning technical
measures/parameters that will affect use of such facilities for other service suppliers.
2.3 The Regulatory Authority shall exercise all powers to enable it to effectively provide
guidelines for, and determine, the terms of interconnection arrangements between licenseeswhere the parties are unable to agree.
2.4 Authority shall develop/assign non-discriminatory national telecommunication numbering
plans.103. Competition Safeguards and standards
3.1 When facilitie s-based service supplier with dominant market position is found engaged in
unfair or anti-competitive practices, remedial measures will be available.
3.2 When dominant service supplier provides a competitive service he shall establish separate
accounting procedure for the competitive service. Cross subsidy is not permitted.
3.3 The Authority shall notify and publish regulations for establishing national standards for
telecom equipment and services. The Authority can specify different standards for differentclasses of telecom equipment/services and establish procedure for testing.
3.4 The Authority shall not restrict the type of telecom equipment that may be used for the
establishment, maintenance or operation of telecom systems or services.
4. Tariff Regime
The level of tariffs for telecom services including basic telephone service shall be regulated
by the Authority in accordance with the regulations including following principles:
4.1 The regulations shall apply equally to comparable provider/users of any regulated telecom
service;
4.2 The criteria used for the establishment of tariff shall regularly be published three months
before the criteria is adopted;
4.3 Tariffs shall be at a level which provides a reasonable rate of return on investments taking
into account the cost of operation; and
4.4 There shall be no cross-subsidization of other telecom services by basic telephone service.
__________