WT/TPR/M/424/Add.1  
7 June 2022 
(22-4277) Page: 1/112 
Trade Policy Review Body  
30 March and 1 April 2022  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
PAKISTAN  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Ángel Villalobos Rodríguez (Mexico)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Pakistan .1 
 
 
Organe d'examen des politiques commerciales  
30 mars et 1 avril 2022  
EXAMEN DES POLITIQUES COMMERCIALES  
PAKISTAN  
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président : S.E.  M. Ángel Villalobos Rodríguez (Mexique)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Pakistan .1 
 
 
Órgano de Examen de las Políticas Comerciale s 
30 de marzo y 1 de abril de 2022  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
PAKISTÁN  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Ángel Villalobos Rodríguez (México)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Pakistán .1 
  
 
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/424/Add.1  
 
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  Contents  
CHINA  ................................ ................................ ................................ .............................  3 
CANADA  ................................ ................................ ................................ ..........................  4 
OMAN  ................................ ................................ ................................ ............................  10 
SAUDI ARABIA , KINGDOM OF  ................................ ................................ .......................  12 
BRAZIL  ................................ ................................ ................................ ..........................  13 
UNITED STATES  ................................ ................................ ................................ ............  15 
UNITED STATES – FOLLOW -UP QUESTIONS  ................................ ................................ .. 27 
AUSTRALIA  ................................ ................................ ................................ ...................  31 
JAPAN  ................................ ................................ ................................ ...........................  35 
SOUTH AFRICA  ................................ ................................ ................................ ..............  39 
ARGENTINA  ................................ ................................ ................................ ...................  40 
SINGAPORE  ................................ ................................ ................................ ...................  44 
KOREA , REPUBLIC OF  ................................ ................................ ................................ .... 45 
COSTA RICA  ................................ ................................ ................................ ..................  48 
TURKEY  ................................ ................................ ................................ .........................  51 
EUROPEAN UNION  ................................ ................................ ................................ ........  52 
THAILAND  ................................ ................................ ................................ .....................  70 
MALAYSIA  ................................ ................................ ................................ .....................  74 
UNITED KINGDOM  ................................ ................................ ................................ .........  88 
ICELAND  ................................ ................................ ................................ .......................  99 
INDONESIA  ................................ ................................ ................................ .................  101  
KAZAKHSTAN  ................................ ................................ ................................ ..............  104  
ANNEX  ................................ ................................ ................................ ........................  106  
 
  WT/TPR/M/424/Add.1  
 
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  CHINA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Page 81, Para. 3.116  
 
Foodstuffs consumed in the country of origin are generally permitted. Codex standards and 
regulations apply to imported food, including additives, preservatives, vitamins, and MRLs of 
contaminants, e.g. pesticides. MRLs apply to both imports and exports (c ontingent on the 
requirements of the importing country). To prevent imports of cheap dyes hazardous to health, only 
specified food colours can be imported, and each consignment must have a government certificate 
of use or registration in the exporting coun try (Import Policy Order 2020).  
 
Question:  
 
1.  Apart from the standards of Codex Alimentarius, will Pakistan refer to other international or 
regional standards regarding the imported and exported food?  
 
Pakistan Standard and Quality Control Authority (PSQCA) is formulating/adopting /adapting on 
foodstuff Pakistan National Standards based on Codex Alimentarius standards. Pakistan Standards 
are implemented across the country for local and at import stage. However, international standards/ 
regional standards are also adopted / adapted through technical committees and National standards 
committee duly approved by the Authority (i.e. PSQCA). For export, International standards are 
being used in addition to the requirement of importing country regul ations.  
 
2.  How will the content level of pathogenic bacteria in imported and exported food be controlled?  
 
The Department examines the shipment of imported/exported food items under the provisions of 
Pakistan Plant Quarantine Rules, 2019 read with Pakistan  Plant Quarantine Act, 1976 and guidelines 
of ISPM -23. A representative sample is sent to the notified laboratory for testing of pathogenic 
bacteria. And accordingly, based on lab test phytosanitary certificate for exporting food item and 
Plant Protection  Release Order (PPRO) for importing foods item is issued under PQR 2019 and 
ISPM-12 of IPPC.  
 
PART II: QUESTIONS REGARDING THE REPORT BY PAKISTAN  
 
Page 11, Para. 3.11 
 
Since Pakistan has joined the Trade Facilitation Agreement in 2015, it has implemented 86.1% of 
its TFA commitments. This includes Temporary admission of goods and inward -outward processing, 
electronic payments, risk management -based clearance and audits and uniform documentation 
procedures. The Trade & Transport Facilitation Uni t will focus next on advance rulings, improvement 
in average release times, enhancing cooperation amongst various border  agencies, Authorized 
Economic Operator (AEO), and implementation of Pakistan Single Window (PSW).  
 
Question:  
 
3. Please provide information on the implementation of Pakistan Single Window  
 
Pakistan Single Window (PSW) will be implemented in three phases. Details of Implementation Plan 
can be provided in a separate document.  
 
First phase includes establishment of an online portal, unified subscription, integration with Trade 
lens etc. This p hase shall be completed by April 2022. Second phase includes roll -out of e -payment 
system, establishment of an Integrated Risk management System etc. This phase shall be completed 
by December 2022.  Third Phase which is also called PSW -Advanced includes tra nsformation of 
Customs Management System and its expansion to all ports and border crossings, e -commerce 
integration, establishment of PSW Data Centre etc. This phase shall be completed by 
December  2023.  
  WT/TPR/M/424/Add.1  
 
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  CANADA  
QUESTIONS FURTHER TO THE SECRETARIAT REPORT  
 
Page 27, section 1.22  
 
In May 2021, Pakistan issued the country's first -ever green bond of USD 500 million by a 
state-owned hydropower generation entity.  
 
Question 1 : Can Pakistan provide details on its green bond framework, including:  
 
(a) Is the green bond issuance aligned with the international Green Bond Principles?  
 
(b) What are the eligible programs and expenditures covered by its green bond?  
 
(c) What are the projected policy and environmental outcomes for the issuance of sovereign 
green bonds?  
 
a) Yes, the green bond issuance is aligned with the international Green Bond Principles.  
 
b) Details are available at the following links  
 https://www.secp.gov.pk/document/green -bonds -guidelines/  
 http://www.wapda.gov.pk/index.php/investor -s-corner/wapda -green -
eurobond?download=5127:wapda -green -bond-framework  
 
c) The Green Bond schemes was launched in 2021 for the corporate sector to raise funds from 
the capital markets to finance or refinance projects that contribute positively to the 
environment  
 
Page 10, paragraph 23  
 
Page 10, paragraph 23 notes that the "Government aims to phase out coal -fired power plants to 
protect the environment."  
 
Question 2 :  
Could Pakistan provide information on its timeline for the phase out of existing coal fired power 
plants?  
 
Could Pakistan explain how the above noted objective can be reconciled with the planned 
construction of a number of new coal fired power plants as p art of the China -Pakistan Economic 
Corridor scheme?  
 
The majority share in Pakistan's total installed capacity is from non -coal sources such as Hydel, 
RLNG, RFO and Gas whereas Coal's share in total installed capacity is only 12.8%. The share of 
renewable  energy has also steadily increased over the years.  The new coal fired power plants are 
required to meet the growing electricity demand of the country. Establishment of coal fired power 
generation units is governed under the Power Policies administered by the PPIB and Power Division. 
The Government aims to reduce coal fired power plants over the course of time. Phasing out the 
coal power plants and replacing with the other sources of the energy on least cost basis shall require 
the international grant finan ce, as already communicated in the country 's NDC targets of 35% 
reduction in the projected emissions by 2030 on the conditional basis.   
 
Page 40, paragraph 2.21  
 
Page 40, paragraph 2.21 notes that "Despite its anti -corruption initiatives, Pakistan continue s to 
rank relatively poorly in the control of corruption indicator and corruption perception."  
 
Question 3 : Could Pakistan outline its plan to improve the effectiveness of its existing anti -corruption 
initiatives and provide information on any additional measures that it plans to introduce in order to 
address the issue of corruption?  
 
 WT/TPR/M/424/Add.1  
 
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  Page 42, paragraph 2.28  
 
Page 42, paragraph 2.28 notes that "…, there continue to be many outstanding notif ications in areas 
including agricultural export subsidies, import licensing procedure requirements, subsidies, SPS, and 
TBT."  
 
Question 4 : Could Pakistan explain what steps it plans to take in order to meet its notification 
obligations?  
 
Notifications relating to agricultural export subsidies and import licensing procedures are being 
finalized and will be uploaded on AGIMS as soon as ready. Notifications relating to TBT and SPS have 
already been submitted.  
 
Page 70, paragraph 3.65  
 
Paragra ph 3.65 notes that "[a]ccording to the authorities, Pakistan does not maintain an export 
licensing regime." However, Table 3.7 ("Restricted exports") seems to note that a licence is required 
for "items falling under Export Control on Goods, Technologies, M aterial and Equipment related to 
Nuclear and Biological Weapons and their Delivery Systems Act 2004 (Act No. V of 2004) and control 
lists issued there under."  
 
Question 5 : Could Pakistan explain the potential discrepancy between a licence requirement, and  
the lack of an "export licensing regime"?  
 
To export goods from Pakistan, in general, there are no licensing requirements. However, as an 
exception, export of sensitive items such as weapons, dual use goods that may be used in the 
production of nuclear o r biological weapons and rocket systems are subject to licensing requirements 
to safeguard against proliferation of these goods. Regulation of these goods under Export Control of 
Goods, Technologies, Materials and Equipment related to Nuclear and Biologica l Weapons and their 
Delivery Systems Act, 2004 is in line with the United Nations Security Council Resolution 1540 of 
2004, which requires all States to adopt and enforce appropriate laws to this effect as well as other 
effective measures to prevent their proliferation.  
 
Question 6 : In the light of the above, what is the process for an exporter to apply for an export 
licence?  
 
As per Export Control (Licensing and Enforcement) Rules, 2021, issued in exercise of the powers 
conferred by section 3 of the Export  Control on Goods, Technologies, Material and Equipment related 
to Nuclear and Biological Weapons and their Delivery Systems Act, 2004, request for license to 
export controlled goods is addressed to Director (Licensing and Regulation), Strategic Export Con trol 
Division (SECDIV), Ministry of Foreign Affairs. The request is considered by an inter -ministerial 
License Review Committee (LRC) constituted under Section 3 of ibid Act. Licenses are issued on case 
to case basis.  
 
Page 80 -81, paragraphs 3.109 -3.116  
 
The report notes the main legislation covering SPS measures, including legislation relating to 
sanitary and phytosanitary measures and the main sanitary and phytosanitary requirements and 
procedures.  
 
Question 7 : Does Pakistan have any planne d upcoming sanitary and phytosanitary regulatory 
initiatives not referenced in the TPR reports that may impact Canada?   
 
In order to harmonize international trade of live animals/animal products with World Organization 
for Animal Health (OIE) recommendatio ns and guidelines, revision is proposed in Pakistan Animal 
Quarantine Rules 1980 and draft is under consideration at Cabinet Secretariat level. The proposed 
revision is general in nature and does not seek to target any specific country.  
 WT/TPR/M/424/Add.1  
 
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  Page 81, paragraph  3.116  
 
Page 81, paragraph 3.116 notes that "the authorities state that drafting of Pakistan's food safety 
regulations and standards was in process at the Ministry of National Food Security and Research and 
the DPP."  
 
Question 8 : Could Pakistan provide a timeline for the completion of the drafting of its food safety 
regulations and standards?  
 
How will these food safety regulations and standards interact with existing food safety regulations 
and standards th at have been promulgated and are being enforced at the sub -national (provincial) 
level?  Will these varying standards and regulations be harmonized and enforced by a single entity?  
 
Pakistan's food safety regulations and standards are undergoing a process of improvement and will 
be notified at the appropriate time. The standards and regulations will be enforced by the relevant 
agency responsible.  
 
Page 86, paragraph 3.134  
 
"Pakistan became an observer to the WTO plurilateral Agreement on Government Procurement in 
February 2015. There are no government procurement provisions in any of its FTAs."  
 
Question 9 : In response to questions from Canada for Pakistan's previous TPR, Pakistan had 
indicated that it had initiated multiple stakeholder consultations  and pursue capacity building and 
technical assistance as a first step, with a view to full accession. With that context in mind, what is 
Pakistan's current timeline for full accession to the GPA?  
 
Pakistan is gradually improving its procurement regulator y framework keeping in view of the 
worldwide best practices, regulatory experience feedback, national constraints, and the principles of 
procurement. Pakistan will consider accession to the GPA after a thorough assessment and analysis 
of its procurement re gime and the obligations under the plurilateral GPA.  
 
Question 10 : Would Pakistan be able to explain the context for its approach of excluding government 
procurement provisions from FTAs to which it is party?  
 
The exclusion or inclusion of any provisions r elated to any subject matter in the FTAs signed by 
Pakistan have been mutually agreed by the signatories of the respective FTAs. If in future, the 
parties feel that any subject matter may be made part of the agreement, then they will be negotiated 
at such later date as institutional mechanisms are in place to review them periodically.  
 
Page 86, paragraph 3.134  
 
The Report indicates the following: "Pakistan became an observer to the WTO plurilateral Agreement 
on Government Procurement in February 2015. […]. The PPRA does not have jurisdiction over 
sub-federal procurement schemes, but provincial governments have created regulatory authorities 
on the same lines as the PPRA and introduced public procurement rules that are similar in scope and 
coverage to fe deral rules  [emphasis added]."  
 
Question 11 : How do provincial governments advertise their procurement opportunities?  
 
Provincial Governments advertise their procurements in a similar manner as those of the Federal 
Public Procurement Regulatory Authority. All those procurements which are to be made by adopting 
the principal method of procurement (i.e. open competitive bidding), are advertised in national print 
media as well as on the website of the Authority both for national and international co mpetitive 
tendering.  
 
Page 87, paragraph 3.135  
 
The Report outlines that an aggrieved party unsatisfied with the decision of a procurement 
committee "can file an appeal in the relevant court of jurisdiction."  
 WT/TPR/M/424/Add.1  
 
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  Question 12 : Could Pakistan please specify to which specific court an aggrieved party can appeal a 
decision in the context of (1) a federal procurement; (2) a provincial procurement; and (3) other 
types of government procurement?  
 
As far as Federal Public Procurement Regulatory Authority (PPRA) is concerned, the respective rule 
has been amended on 29th June 2021. The first tier of Grievance is Grievance Redressal Committee 
(notified by the procuring agency itself), and the second tier is the Grievance Redressal Appellate 
Forum es tablished by the Federal PPRA. The provinces of Sindh and Khyber Pukhtoonkhaw also 
provide the second tier for redressal of grievance. Regional PPRAs normally adopt the same 
practice/provisions as those of the Federal PPRA. In such provinces, where there i s no second tier, 
the aggrieved parties have to invoke the jurisdiction of the High Court in terms of Article -199 of the 
Constitution of Pakistan. Moreover, Federal PPRA has recently issued the instructions for effective 
utilization of the first tier of th e grievance at procuring agency's level.  
 
Page 87, paragraph 3.137  
 
According to the Report: "Tenders between PKR 0.3 million to PKR 3 million must be advertised on 
the PPRA website; higher tenders also need to be advertised in at least two national newspa pers 
(one in Urdu and one in English)."  
 
Question 13 : Could Pakistan please confirm whether the newspapers that publish high -value tenders 
are in an online format?  
 
The advertisements for open competitive tendering are published in national print media (having 
wider circulation in both local and English language) as well as on electronic media (i.e. websites of 
the PPRA and procuring agency itself). All widely published newspapers have the option of e -papers 
as well.  
 
Page 87, paragraph 3.138  
 
The Report indicates the following: "[P]rice preferences of up to 25% are in place on all government 
purchases depending on domestic value -added content; the maximum preference requires at least 
35% domestic value -added."  
 
Question 14 : Could Pakistan please in dicate in what circumstances (if any) are price preferences 
utilized by procuring agencies?  
 
The respective Rule has been recently amended. According to this rule, domestic preference has 
been limited to the extent of procurement of works projects and certain goods (mines, 
manufactured, extracted and grown in Islamic Republic of Pakistan) only in addition to the disposal 
of public assets. In addition to substantial amendment, the word "preference" is used rather than 
the word "price preference". In this  way, though the scope of preference has been widened however, 
preference doesn 't necessarily means price preference. Hence, the same may be either in terms of 
price or otherwise. Normally, price preferences are offered where due to small economy of scale of 
the respective manufacturing units, the Small and Medium Enterprises (SMEs) of developing 
countries may not compete with the international counterparts considering non -optimal values of 
material and labor indices. There are exceptions in the respective articles of GATT which allows such 
preferences as well. Considering the substantial amendment in the respective rule, the respective 
Regulations are being reviewed, and the new draft will be shared with the stakeholders soon.  
 
Page 91, paragraph 4.2  
 
The report notes Pakistan's goal of increasing the share of renewable energy in the country's energy 
mix, further referencing on page 110, paragraph 4.111 the country's target of 20% renewable 
energy capacity by 2025, and 30% by 2030.  
 
Question 15 : Are there sp ecific energy sources being considered (ie solar, hydroelectric, wind) ahead 
of others?  
 
Attainment of renewable targets takes into account all the renewable sources of energy. Accordingly, 
relevant shares of different technologies are determined by taking  into account least cost, gestation 
periods, grid stability, location and infrastructure availability , etc. WT/TPR/M/424/Add.1  
 
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Question 16 : What are the main obstacles (if any) Pakistan faces in deploying renewable energy 
technologies?  
 
Following are the existing obstacles in deploying renewable energy technologies:  
1. Transmission Infrastructure  
2. Deployment of SCADA  
3. Institutional capacity for large scale procurement on annual basis to meet RE targets  
 
Page  98, paragraph  4.39 
 
It is noted that Pakistan announc ed in the FY 2019/2020 Budget a new crop insurance scheme.  
 
Question 17 : Could Pakistan provide more information as to whether the Government will provide 
subsidies to producers to participate in this new crop insurance scheme and if so at what level?  
 
National crop insurance is in process of approval. Objective is to increase agriculture finance and 
safeguard around 9 million farm households in case of natural calamities and disasters. 100 % 
premium to farmers having land holding of less than 5 acres. 50 % premium to farmers with 
landholding of > 5 acres up to 25 acres. Farmers with landholding of more than 25 acres will bear 
the premium on their own.  
 
Question 18 : Could Pakistan provide information on the products that would be covered by this n ew 
crop insurance scheme?   
 
The products covered under the scheme are Wheat, Rice, Sugarcane, Maize, Cotton.  
 
Page 107, paragraph 4.85  
 
The report notes Pakistan's national mineral policy goal of encouraging small -scale mining.  
  
Question 19 : Does Pakistan, whether in the National Mineral Policy or elsewhere, consider or employ 
'chain of custody' initiatives aimed at creating traceable mineral supply chains and enabling 
responsible business practices?  
 
As per provisions of the Constitution of Islami c Republic of Pakistan 1973 [Articles -137, 142 & 274], 
minerals resources other than mineral oil, natural gas and those necessary for the generation of 
nuclear energy are Provincial subject. The Provincial Governments are responsible for the regulation 
of mining operations, including exploration, mineral production/exploitation and safety aspects for 
these natural endowments. The Federal Government is mandated with geological surveys, regulatory 
functions in federally controlled areas, and policy/plan formu lation and coordination at national and 
international levels. Minerals produced in the country are largely used in local industry and exported 
mostly in raw form product. Generally, cement, ceramic, glass, chemical and construction industries 
are based on indigenous mineral production of rock salt, silica sand, limestone, clays, aggregate 
stones, marble/granite etc. Moreover, coal produced in the country is consumed in power generation, 
cement and brick kilns. With the consensus of stakeholders, the Federal  Government has 
promulgated the National Mineral Policy – 2013 to deal with mineral resources other than mineral 
oil, natural gas and those necessary for the generation of nuclear energy. This Policy seeks to 
increase the economic contribution of the minin g sector through optimal utilization of indigenous 
mineral resources, attract foreign investment, ensure effective coordination between Federal and 
Provincial institutions, and that mineral exploitation and production are environmentally sustainable. 
This Policy covers facilitation of investment in all kinds of mineral operations, small - as well as 
large-scale. The mention of small -scale mining by Pakistani nationals is reflective of operations scale 
generally followed in local mining industry due to size o f mineral deposits and resource constraints 
(financial & technical). The foreign investment is focused, being carried out and pursued for 
large-scale undertakings. The target Policy objective is to provide a conducive and enabling 
environment to attract in vestment, particularly from private sector, for exploration and development 
of indigenous mineral resources so as to enhance contribution of this sector to national GDP. The 
Policy provisions have been adopted by the Federal and Provincial organizations co ncerned, through 
establishment of institutional arrangements, regulatory setup and facilitation functions. Separate 
Provincial Departments have been set up to meet the administrative needs of the mineral sector for 
the functions envisaged in the National M ineral Policy. The regulatory laws are also updated in the WT/TPR/M/424/Add.1  
 
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  light of good industry practices with inputs of international experts. As such, the chain of custody is 
fully in place for all aspects of the entire mineral supply chain through requisite instituti onal setup, 
legislation and infrastructure.  
 
Page  107, paragraph  4.87  
 
The Secretariat report notes Pakistan's additional profits tax (APT), applicable to large -scale mining 
companies and based on a three -tier mechanism.  
 
Question 20 : Can Pakistan please explain the policy objective(s) for such an additional profits tax?  
 
The rationale behind imposition of Additional Profit Tax (APT) on Large Scale Mining Companies is 
to tax future excessive profits of companies and to ensure protection of economic interests. These 
excessive profits may accrue to these companies during peak commodity prices in 
domestic/International market which may trigger APT applicability when these companies achieve 
the prescribed threshold Rate of Return (inflation adjusted) whi ch is progressive in nature. In case 
of Rate of Return below threshold no APT is payable.  
 
Question 21 : In addition, can Pakistan provide more information around the determination/threshold 
of a 'large -scale' mining company?  
 
The small - and large -scale min ing operations are categorized on basis of capital investment, size of 
the concession area, resource potential and type of mineral etc. As per yardstick mostly followed by 
the Provinces/Licensing Authorities, mineral undertakings with capital investment of  
PKR 300.00  million or more is categorized as large -scale. In some cases, large -scale mining 
operation can extend under reconnaissance license over an area up to 1,000 square kilometers, 
exploration license over an area up to 500 square kilometers and mini ng lease up to 50 square 
kilometers.  
 
Page 118, paragraph 4.5.2  
 
It is stated that "Pakistan's particular interests in services lie in getting predictable market access, 
particularly in Modes 1 and 4."  
 
Question 22 : Could Pakistan please provide examples of any plurilateral efforts that have been 
undertaken or are currently underway by Pakistan to mutually expand market access for Mode 4?  
 
Pakistan is not currently party to any plurilateral agreements on Trade in S ervices  
 
Page  120, paragraph  4.162  
 
"Foreign branches and wholly foreign -owned, locally incorporated subsidiaries are permitted, 
provided that the foreign bank's home country belongs to a regional grouping in which Pakistan is a 
member or it has global Tie r 1 minimum paid -up capital of USD 5 billion. Otherwise, foreign banks 
must incorporate as a local company with foreign equity capped at 49% to conduct banking business 
in Pakistan. Foreign banks are free to open any number of branches subject to fulfilmen t of minimum 
capital requirements (MCRs) as prescribed by the SBP."  
 
Question 23 : Does Pakistan have intentions to remove foreign equity caps in the areas of banking 
and insurance?  
 
As per the regulatory requirement/Guidelines, foreign banks having a global tier -1 paid up capital of 
USD 5 billion or more or foreign banks from countries belonging to regional groups and associations 
can invest up to 100% of the equity of the established bank either in branch mode or through locally 
incorporated subsidiar y in Pakistan.  
 
Besides above, any other foreign corporate entity/body must incorporate a locally incorporated 
company with a maximum of 49% shareholding. However, the requirement of 49% is a desirable 
limit but not a mandatory one and is dealt with on a case-by-case basis.  
  WT/TPR/M/424/Add.1  
 
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  OMAN  
REPORT BY THE SECRETARIAT (WT/TPR/S/424)  
 
3.2.5 Export finance, insurance, and guarantees  
 
The secretariat report states that in Para 3.79. In regarding to the incentives to the exporters which 
also benefit from preferential financing schemes administered by the State Bank of Pakistan (SBP). 
Currently, four such schemes are operational, compared  with three at the time of the previous 
Review, and Under the EFS, the SBP provides re -financing support to banks on their loans to 
exporters  
 
QUESTION:  
 
What are the criteria and valuation of subsidies provided in the form of soft loans by the State Bank  
of Pakistan?  
 
Financing is provided under refinance schemes to enable exporters to compete in international 
market. Details of the refinance schemes are available at the following link: 
https://www.s bp.org.pk/Incen/index2.asp  
 
Export Facilitation Scheme  
 
The Secretariat report states in Para 3.75 that in January 2017, the Government announced a 
PKR 180 billion incentive package for exporters. The package included the removal of customs duty 
and sales tax on the import of cotton, man -made fibers other than polyester, and textile machinery. 
Additionally, under the package, new duty drawback rates for textile garments (7%); textile 
made -ups (6%); processed fabric (5%); yarn and grey fabric (4%); and  sports goods, leather and 
footwear (7%) were also announced. In June 2018, the package was extended for a further 
three  years. The scheme expired on 30 June 2021.  
 
QUESTIONS:  
 
Does this package for exports comply with the provisions under the WTO Agreeme nt on Subsidies 
and Countervailing Measures (SCM)?  
 
Furthermore, is it providing to other sectors or is it only for textile and garments sector?  And will 
the government be planning to extending the scheme?     
 
The incentive package was in line with Pakistan 's obligations under the Subsidies and Countervailing 
measures Agreement.  The subject incentives package also supported value added Non -Textile 
Sectors under SRO 711 (1)/2018, like Auto parts, Electric fans, Footwear, Fruits & Vegetables, Meat 
and meat preparations, Surgical goods, Cutlery, Sports goods, Furniture, Stationery, Transport 
equipment, Gloves, Leather manufactures and Machinery. No decision has yet been taken to extend 
the subject scheme.  
 
3.1.6.1 Anti -dumping  
 
In Table 3.4 Outstanding definitive anti -dumping duties, End -March 2021 for the cases which 
extended in December 2016.  
 
QUESTION : 
 
Does the Pakistan government terminate those cases which has been extended since are almost 
completed 5 years in December 2021?   
 
Any defi nitive anti -dumping duty imposed under the Anti -Dumping Duties Act 2015 (the "Act") is 
terminated on the date not later than five years from its imposition. However, it shall not expire if 
the National Tariff Commission determines, in a review initiated before the date of expiry the 
anti-dumping duty concerned, that the expiry of such anti -dumping duty would be likely to lead to 
continuation or recurrence of dumping of the product concerned and injury to the domestic industry.  
 WT/TPR/M/424/Add.1  
 
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  2.4 Investment Re gime  
 
The secretariat report states in Para 2.49. that Pakistan maintains a relatively liberal investment 
regime, which applies equally to both nationals and foreigners. However, there are exceptions in 
certain sectors where there are equity limits on fore ign investment or where foreign investment is 
completely prohibited.  
 
QUESTION:  
 
Does the Government of Pakistan have any future plans in order to ease the rules with regard to the 
share of foreigners in certain sectors which are still prohibited?  
 
Currently the list of specified restricted industries include arms and ammunitions; high explosives; 
radioactive substances; securities, currency, and mint; and consumable alcohol.  
 
BOI is in the process of reviewing Pakistan 's Investment Pol icy with the aim to increase the inflow 
of Foreign Direct Investment in efficiency seeking sectors.  
 
Government Report (WT/TPR/G/424)  
 
3.10 Sectoral policies  
 
The country report states in Para 3.65 that Pakistan implemented the e -Commerce Policy Framework 
in 2019  
 
QUESTION:  
 
Could the Government of Pakistan share the valuation of such policy that have been put in place to 
implement the e -commerce policy?  
 
An e-commerce policy implementation plan is developed that states the actions, timelines and 
responsible actors to achieve the goals of the policy. Additionally, periodic economic and 
performance reports by various government departments are analy sed to capture growth in 
e-commerce specific data points such as increase in number of e -commerce merchants, increase in 
e-commerce transactions by value and volume, and increase in internet subscribers. In 2021, the 
market size of domestic e -commerce was estimat ed to be USD 4 billion.  
 
  WT/TPR/M/424/Add.1  
 
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  SAUDI ARABIA , KINGDOM OF   
Government Report (WT/TPR/G/424)  
 
3 ECONOMIC AND TRADE POLICIES  
3.1 Strategic Trade Policy Framework 2020 -25 
 
Paragraph 3.4 page 8  
 
"With an emphasis on export diversification, priority sectors road mapping developed by the Revenue 
Mobilization, Investment and Trade (ReMIT) programme, with the assistance of the International 
Trade Centre (ITC), is in its final stages. Sectoral Councils for stakeholder consultations, among 
other things, under STPF are also being established in this regard. " 
 
Question:  
 
Could you please provide us with the progress made so far on the export diversification?   
 
During the first seven months of the current Fiscal Year 2021 -22 (July -Jan), Pakistan's exports of 
traditional products to traditional markets increased by 25% and that of non -traditional products 
increased by 21% compared to the similar period of the prev ious Fiscal year. Similarly, Pakistan's 
exports of traditional products to non -traditional markets increased by 31% compared to the similar 
period of the previous Fiscal Year.  
 
Some of the Non -Traditional destinations where Pakistan's exports are growing include Kazakhstan, 
Thailand, Chile, Portugal, Madagascar, Oman, Egypt, Mexico, Tanzania, Greece, Qatar, Djibouti, 
Ivory Coast, Tunisia, Colombia etc.  
 
Some of the major non -traditional products which showed an increase in exports are; Copper, 
Aluminum Al loys, Maize, Bedlinen, Plates and sheets of Plastic; Polystyrene, Salts, Men's or boys' 
trousers of synthetic fibers, Woven fabrics of Staple Fiber, Organic Composite Solvents and Thinners, 
Cuttlefish and Squid, Polyvinyl chloride, Badminton and similar ra ckets, Lead, Cement clinkers, Parts 
of Telephone Sets, Telephones for Cellular Networks; Tobacco etc.  
 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Page 133  (Para 4.245)  
 
Airline operators may handle their own aircraft ground services or use service s of other ground 
handling agencies licensed by the CAA.  
 
Question:  
 
How many airports that have 2 or more ground handling companies serving airlines in Pakistan ?  
 
At present there are eight (08) CAA Airports at which licenses have been awarded to two (02) or 
more Ground handling Agencies for providing Ground Handling Services to Airlines. These airports 
are IIAP (Islamabad), JIAP (Karachi), AIIAP (Lahore), MIAP (Multan) BKIAP (Peshawar), FIAP 
(Faisalabad), QIAP (Quetta), SZIAP (R.Y. Khan).  
 
PART III:  OTHER QUESTIONS  
 
Question:  
 
What measures were taken in aviation to boost air traffic in response to the COVID -19 pandemic?  
 
As a State, Pakistan has eliminated all restrictions on inbound flight operations with minimal and 
only necessary COVID -19 related restrictions. This, in -turn, will enable airline operators to gradually 
enhance flight operations to/from Pakistan up  to pre -covid levels in the shortest possible time period. 
In addition, slot facilitation and offering of concessions on non -aerona utical user charges will also 
enable Pakistan CAA to play its part in aiding recovery of the Aviation sector in Pakistan  
  WT/TPR/M/424/Add.1  
 
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  BRAZIL  
1) Paragraph 3.118 of the Secretariat Report mentions that Section 54 of the Competition Act 
allows the Federal Government to exempt any class of undertaking or agreement by notification 
in the Gazette of Pakistan, despite no such exemption having been gra nted to date. However, 
paragraph 3.123 of the same report states that 905 agreements have been exempted in Pakistan.  
 
- Would  you please help us understand this apparent contradiction?  
(Paragraph  3.118)  
 
• The present query relates to the discretion of the Federal Government and of the Competition 
Commission of Pakistan (the 'Commission ') as provided in Section 54 and 5 of the Competition 
Act 2010 (the 'Act') respectively.  
• Please note that Section 54 of the  Act provides for the Power of Federal Government to exempt 
any undertaking or class of undertaking, practice and agreement from the application of this 
Act.  
• Till date, despite of the Power bestowed on the Federal Government under Section 54 of the 
Act, n o such exemption has ever been granted by the Federal Government.  
• However, the Act also prescribes the power of the Commission under Section 5 to exempt any 
particular practices or agreement, to which Section 4 of the Act otherwise apply, if a request 
for an exemption has been made to it by a party to the agreement or practice and the 
agreement is one to which Section 9 applies.  
• The figure appearing in Paragraph 3.123 is with respect to the exemption granted by the 
Commission under Section 5 of the Act, o n the request of undertakings, since the commission 's 
inception.  
 
2) Paragraph 3.125 of the Secretariat Report mentions that price controls were adopted in Pakistan 
to control abusive price increases.  
 
- Has Pakistan considered possible undesirable side -effects of such policies to 
consumers, such as the possibility that these initiatives facilitate cooperation 
among competitors? (Paragraph 3.125)  
 
• Measures in this regard are taken strictly in line with prelevant laws, rules and regulations. 
Such measures tak ing into consideration all aspects of consumer protection and fair 
competition in the domestic and international markets.  
 
3) Paragraph 3.3.3 of the Secretariat Report  mentions sanitary and phytosanitary measures for 
which Brazil presents the following que stions:  
 
- "In the context of better compliance with the SPS Agreement, what actions has 
Pakistan been taking to ensure that third country trade initiatives have their 
expected continuity with the authorities' reaction in order to avoid undue delays 
due to l ack of responses?"  
 
Pakistan Animal Quarantine Department collaborate effectively with the other government 
organization in Pakistan including Trade Development Authority of Pakistan, Ministry of Commerce 
and sometime approached foreign offices located in third countries to make contact with their 
authorities for the implementation of necessary compliances. Moreover, sanitary requirements are 
available at Ministry of Commerce and Animal Quarantine Department websites of ease of doing 
business. De partment of Plant Protection (DPP) has further strengthened its capacity in manpower 
by inducting 100 more entomologists/pathologists and steps are taken to further hire more technical 
staff to facilitate trade. Moreover, state of the art laboratories have  been notified for prompt testing 
of food samples, whereas the staff is working round the clock to facilitate the trade of food items 
and avoid undue delay. Thus within 24 hours the DPP issue Plant Protection Release Order (PPRO) 
for importing food items a fter completing inspection procedures.  
 
- "What legislation and regulations in Pakistan support the analysis of Health 
Certificates for products of animal origin?"  
 
Pakistan Animal Quarantine (import and export of animals and animal products) Ordinance 1979 
and Rule 1980 provides legislative provision to state veterinary authority i.e., Pakistan Animal WT/TPR/M/424/Add.1  
 
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  Quarantine Department to examine the veterinary health certificate  of exporting country and to 
make ensure that products of animal origin comply the zoo -sanitary requirement of the country.  
 
- "How long on average does it take for Pakistan to respond to an International 
Health Certificate or International Animal Health Cer tificate?"  
 
For initial harmonization of veterinary health certificate, standard vetting procedure takes 
approximately 03 weeks depending upon the products or specie under consideration and keeping in 
view the disease status in exporting country or its reg ion. Once veterinary health protocol established 
between Pakistan and exporting country, then clearance of consignment depends upon the nature 
of the risk associated with the shipment. Once goods declaration filed in Web Based One Customs 
System (Weboc), c onsignment is immediately examined within 24 hours. In case of import of live 
animals, after on -board inspection at point of entry, the state veterinary authority provisionally 
released the animals and shift the animals in approved quarantine premises for keeping them in 
isolation for the period of 14 -21 days to observe the suspected disease signs/symptoms and Lab 
tests. In case of food products destined for human consumption, fitness for human consumption is 
adjudged through Lab tests (if required) before release of consignment from custom holding area.  
 
- "How long on average does it take for Pakistan to respond to a demand for Risk 
Analysis of Plant Products from a third country?"  
 
The Department takes maximum 6 to 12 months to conduct Pest Risk Analysis (P RA) for the 
intending commodity to be exported to Pakistan, subject to prompt response of the NPPO of the 
exporting country.  
 
- "What are the steps and deadlines for an approval procedure in a process of 
exporting products of animal and plant origin?"  
 
Following are the steps to get market access for export of plant and plant material from the trading 
partner to Pakistan. The NPPO of the exporting country may submit the following: 1. Formal 
request for grant of market access. 2. Subsequently, DPP will share F orm-7 (PRA Questionnaire) 
for initiation of PRA with the NPPO with the exporting country. 3. The DPP has to initiate Pest Risk 
Analysis (PRA) as per Rule 10 of PQR, 2019 and under the provisions of ISPM -2, ISPM -12 and 
ISPM-21. 4. After finalizing the Pest Risk Analysis, the department may take account of whether 
or not to submit a draft of quarantine protocol requirement for the product to be imported from 
the exporting country to Pakistan or decide whether import permit may be issued or not.  
  WT/TPR/M/424/Add.1  
 
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  UNITED STATE S  
Part I.  Questions based on the Secretariat Report (WT/TPR/S/424)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 9, Paragraph 12:  The Secretariat Report notes a "recently introduced Export Facilitation 
Scheme (EFS)" and indicates that "Incentives under some of these schemes, such as the EFS and 
funding under the EDF, are based on export performance."  Please provide details on the EFS 
program.  
 
The Export Facilitation Scheme 2021 was notified vide SRO 957(1)/2021 dated 30.07.2021, which  
allows exemption of duties and taxes on import of input goods meant for re -export after consuming 
the raw materials. Details of the programmes are available on the website of the federal board of 
revenue: www.fbr.gov. pk  
 
• We note that Pakistan  has not provided a subsidy notification since 1996.  When 
will Pakistan meet its notification obligation?  
 
Incentives given under the said scheme do not fall within the definition of subsidy under Article 1 of 
SCM agreement. Pakistan is in the process of finalizing all its pending notifications under Article 25.2 
and Article 25.6 of the SCM Agreement. These will be notified as soon as ready.  
 
Page 9, Paragraph 13: The Secretariat Report notes that "Sector -specific i ncentives are provided 
to the electric vehicle manufacturing, information technology, manufacturing of mobile devices, 
automobile, pharmaceutical, food processing, housing and construction, logistics, textiles, and 
tourism sectors."  Please describe the nat ure and extent of these incentive programs.   
 
In general, these incentives include concessions on imports duties on various inputs, relaxation for 
certain taxes, facilitation for skill development and R & D etc. Details of specific incentives are 
available  at www.boi.gov.pk  and www.edb.gov.pk . 
 
Page 24, Paragraph 1.15:  The Secretariat Report raises the Active Privatization program covering 
15 state -owned enterprises.   
 
• Can the representative briefly explain the progress made on privatization of 
these 15 enterprises?   
 
For privati zation of 02 RLNG Power Plants, debt refinancing/ recapitalization is under way to be 
completed by end -June 2022.  
 
In case of privati zation of 03 banks, one of the banks was proposed for delisting. In case of House 
Building Finance Corporation, deadline fo r submission of Expression of Interests is end -March 2022. 
For the First Woemn Bank Limited, Audit for the years 2018 to 2021 is under  way. 
 
Regarding sale of assets 02 hospitality/ tourism sites at Lahore and Islamabad, bidding of the Lahore 
based entity has been successfully completed in Aug 2021.  
 
For privati zation of 02 engineering companies, bidding process of heavy electrical complex has been 
completed in Feb 2022.  
 
Regarding revival of Pakistan steel mills, 04 international parties have been pre -qualified for 
participation in the bidding process.  
 
For Capital market transactions of 03 entities, the process could not be completed as petroleum 
company has been delisted from privati zation list.  
 
The Report also notes that "a new SOE bill was submitted t o Parliament and a triage of all SOEs was 
published in March 2021"  
 
• What did the "triage of all SOEs" entail?  
• Please provide a copy of the draft bill as well as the results of the "triage".  WT/TPR/M/424/Add.1  
 
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Published Triage Report may be seen at : 
https://www.finance.gov.pk/publications/SOEs_Triage_03032021.pdf . 
 
Page 35, paragraph 2.9:  The Report explains how stakeholder input on regulations is collected 
and notes that some policy instruments are also placed for public feedback on the MoC web portal.  
 
• What criteria are used to determine which regulations should be posted and why 
are not  all draft regulations  posted?  
 
Stakeholder consultations take place through various modes including online and offline means. 
Feedback is solicited from all concerned quarters including in writing. The concerned  division also 
holds seminars across Pakistan to get available feedback. Each individual ministry/division decides 
the mode of stakeholder consultations, which also includes publishing draft regulations online for 
public feedback, wherever necessary.  
 
Page 39, paragraph 2.18:  What is the current status of the implementation of the Pakistan 
Regulatory Modernization Initiative (PRMI)?  
 
So far, 6 meetings of the Steering Committee have been conducted and a Comprehensive PRMI 
Strategy developed and launched in June 2021. 20 capacity building w orkshops for public and private 
sector have been conducted physically and online. In addition, 30+ consultative sessions held with 
sector specific associations. The program is being formally launched by the President of Islamic 
Republic of Pakistan on 18 M arch 2022. PRMI activities are being pursued as per their schedule given 
Strategy Document. More than 100 regulatory reforms stand completed and more reform proposals 
are at various stages of implementation. For further information, please visit www.business.gov.pk . 
 
Page 39, paragraph 2.19:  This section mentions a mandatory application of regulatory impact 
analysis (RIA) for planned regulations as well as modification of existing regulatory requirements.  
 
• Please identify the legal basis for requiring the application of RIA.   
 
Board of Investment has initiated the process of development of Pakistan Regulatory Reform Law. 
The First Draft of the Law is expected in June 2022. This Law (once passed by parliament) will 
provide the legal basis for introduction and application of RIA and Smart Regulations in Pakistan in 
light of prevailing international best practices.  
 
• Is the RIA requirement part of the PRMI?   
 
Yes, RIA requirement has been proposed as pa rt of PRMI and reflected in PRMI Strategy Document. 
However, the requirement would need to approved by the Parliament/Government to become 
mandatory.  
 
• What are the criteria for when an RIA will be required?  
 
The use of RIA is part of the approved strategy of PRMI and the details are in its initial stages.  
 
Page 39, paragraph 2.20:  The Report details where to find information on existing laws.   
 
• Does Pakistan post draft regulations online for public comment?   
• If so, can these be found in a central online portal or are they posted on 
individual agencies' websites?  
 
Pakistan often post draft regulation on official web -site of the concerned Ministry/Division for getting 
relevant feedback. The relevant information is available on individual port al/website of the concerned 
agency as well.  In addition to this, each individual ministry/division decides the mode of stakeholder 
consultations, which also includes publishing draft regulations online for public feedback wherever 
necessary. A central on -line portal is not yet available for this purpose.  
 
Page 42, paragraph 2.28:  The Report notes that Pakistan has a number of outstanding 
notifications. What actions is Pakistan taking to submit timely and complete notifications?  
 WT/TPR/M/424/Add.1  
 
- 17 - 
 
   
Page 42, Paragraph 2.28: The Secretariat's Report notes that Pakistan continues to have many 
outstanding notifications to the WTO, including in the area of agricultural export subsidies, SPS and 
TBT notifications.  
 
• Please provide  an update on Pakistan's ongoing efforts to update its notifications.  
 
Paragraph 4.30 on page 96 of the Secretariat's Report states that notifications are under preparation.  
 
• Can Pakistan please provide a timeline for when it will submit its overdue 
notif ications ?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notific ations as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being established within the 
Ministry of Commerce to oversee such notifications.  
 
Page 57, paragraph 3.12 and Page 87, paragraph 3.139:  Does Pakistan plan to join the 
WIPO Copyright Treaty and/or the WIPO Performances and Phonograms Treaty?  If so, 
what is the anticipated timeline?  
 
Pakistan is preparing to join WCT and WPPT. For this purpose consultations have been initiated. The 
instrument of accession will be prepared and submitted to the Government for formal approval by 
the Federal Cabinet.  
 
Page 65, paragraph 3.39:  The Report notes that the Government has issued 30 trade -related 
SROs since 2015.   
 
• Which of the 3 0 are procedural?  
• Does Pakistan plan to reduce the number of procedural SROs as part of the PRMI?   
 
Import Policy Order (IPO) 2020 and Export Policy Order (EPO) 2020 are the two primary legal 
documents that regulate Pakistan's international trade. These laws/policies are being amended from 
time to time to improve upon the regulatory environment in order to facilitate trade, improve ease 
of doing business, industrialization and protection of human, animal and plant health. Therefore, an 
amending SRO does not have an independent existence, rather it is used as a vehicle to amend 
certain provisions of the Import or Export Policy Orders. Both IPO and EPO contain substantive and 
procedural requirements for import and export, respectively. With a view to s imply, harmonize and 
electronic [e] management of the regulatory procedures across various regulatory agencies, 
Pakistan under its Pakistan Single Window project, an initiative under Trade Facilitation Agreement 
of the WTO, is finalizing its IPO and EPO 20 22. Under the PMRI initiative, Pakistan has undertaken 
an extensive exercise to review all the federal and provincial laws to remove redundancies and to 
eliminate or simplify procedural requirements for trade, investment and industrial growth. In line 
with the PMRI project certain regulatory amendments have already been introduced in IPO/EPO 
while others are being consulted among stakeholder.  
 
Page 65, Paragraph 3.44:  When does Pakistan plan to submit the WTO Questionnaire on 
Import Licensing Procedures?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soo n as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being established within the 
Ministry of Commerce to oversee such notifications.  
 
Page 71, Paragraph 3.6.8:  As we understand it, in Janu ary 2022 a new policy was introduced 
requiring importers to pay a 17 percent sales tax on all goods entering Export Processing Zones 
(EPZs), with the possibility of refunds if those products are incorporated into products subsequently 
re-exported. U.S. exp orters of used clothing that is sorted, graded, and re -exported from EPZs in 
Pakistan tell us that the new policy has negatively affected this trade by increasing the costs of 
processing used clothing in Pakistan.  WT/TPR/M/424/Add.1  
 
- 18 - 
 
   
Please provide information regarding the rationale behind this change in tax policy related 
to imports into EPZs and regarding the Government of Pakistan's plans for implementing 
this policy, including procedures for processing refunds in circumstances where the 
imported goods have been re -exported.  
 
The rationale behind change in policy is that zero -rating and exemptions on plant/machinery and 
materials were introduced earlier for the reason that refund system was cumbersome and the 
exporters faced liquidity issues. Furthermore, the  facility of zero -rating and exemptions was prone 
to misuse as tax and duty free machinery and raw material imported/purchased for EPZs ended up 
in local markets.  
 
As a consequence of commitments of Federal Board of Revenue (FBR) and Govt. of Pakistan with 
International Monetary Fund (IMF), 'The Finance (Supplementary) Act, 2022' did away with 
exemption of Sales Tax on imports made by investors/units in Export Processing Zones (EPZs) 
through omitting entry at Serial No. 102 of Table -1 of Sixth Schedule to the Sales Tax Act, 1990. 
Resultantly, Sales Tax at the rate of 17% ad valorem stands levied on the import of materials, 
machinery and equipment etc. by units lying within Export Processing Zones in general.  
 
Page 71, Paragraph 3.67 : The Report lists several of Pakistan's export support and promotion 
measures in place, and describes these measures in detail in Paragraphs 3.68 through 3.75.  These 
measures include Export Processing Zones, Manufacturing Bond Scheme, Duty and Tax Remission 
for Export  Scheme, Export Oriented Units, and the Export Facilitation Scheme.   
 
Please indicate whether Pakistan intends to submit subsidies notifications pursuant to 
Article 25 of the SCM Agreement with regard to these measures, and if not, please explain 
why Pakis tan believes that these measures, which potentially appear to be export 
subsidies, do not need to be notified.  
 
Incentives given under the said schemes do not fall within the definition of subsidy under Article 1 
of SCM agreement. Pakistan is in the process of finalizing all its pending notifications under Article 
25.2 and Article 25.6 of the SCM Agreement. These will be notified as soon as ready.  
 
Page 73, Paragraph 3.79 : Pakistan states that "exporters also benefit from preferential financing 
scheme s" and lists certain schemes administered by the State Bank of Pakistan.   
 
Please indicate whether Pakistan intends to submit a subsidies notification pursuant to 
Article 25 of the SCM Agreement with regard to these schemes, and if not, please explain 
why Pakistan believes that these schemes, which potentially appear to be export 
subsidies, do not need to be notified.  
 
Incentives given under the said schemes do not fall within the definition of subsidy under Article 1 
of SCM agreement. Pakistan is in the pr ocess of finalizing all its pending notifications under 
Article  25.2 and Article 25.6 of the SCM Agreement. These will be notified as soon as ready.  
 
Page 73, Paragraph 3.76: The Strategic Trade Policy Framework of 2015 -18, published by the 
Ministry of Com merce of Pakistan, mentions several subsidy and support schemes provided to 
exporters, including grants for technology upgrades, product development, and brand development; 
and drawback of local taxes and levies.   
 
Please provide more details on these prog rams.  
 
The subject schemes were introduced in the STPF 2015 -18 however the programmes could not be 
fully implemented due to lack of funds.  
 
Page 74, Paragraph 3.81:  Please provide a more detailed description of how the Islamic Export 
Refinance Scheme (IERS) functions, including terms and conditions, and a list (with HS -8 code) of 
all eligible commodities under the scheme.  
 
Details are available at the www.sbp.gov.pk . 
 WT/TPR/M/424/Add.1  
 
- 19 - 
 
  Page 75, Paragraph 3.84:  The Secretariat Report states that the EXIM Bank Pakistan became 
operational with the passing of the Export -Import Bank of Pakistan Act in 2020.  
 
• Please explain if any of the EXIM Bank's export credit facilities cover the export of 
agricultural and food products.   
 
EXIM Bank of Pakistan is notified as a Development Finance Institution by the Government of 
Pakistan but not operational yet due to pending promulgation of Export -Import Bank of Pakistan Act 
- 2020. Further, the scope of EXIM Bank is to provide credit facilities and export insurance 
guarantees for any type of products such as agriculture, food, manufacturing  
 
• If so, please explain if Pakistan will notify the EXIM Bank and the applicable export 
credit facilities in its 2022 ECQ.  If not, why not and/or when?  
 
Relevant notifications will be made in due course at the appropriate time.  
 
Page 79, paragraph 3.107:  The Report notes that Pakistan has concluded 11 MRAs with other 
countries.   
 
Please share additional details about these MRAs and what they cover.  
 
PNAC has signed Mutual Recognition Arrangement (MRA) / Multilateral Recognition Agreement (MLA) 
with the following international and regional bodies: -  
i. International Labor atory Accreditation Cooperation (ILAC)  
ii. International Accreditation Forum (IAF)  
iii. Asia Pacific Accreditation Cooperation (APAC)  
 
Furthermore, PNAC is also a member of the following relevant bodies: -  
i. International Halal Accreditation Forum (IHAF)  
ii. Standards and Metrology Institute for the Islamic Countries (SMIIC) The information may 
please be corrected in the Secretariat rep ort 
 
Page 80, Paragraph 3.112:  The Secretariat Report states that Pakistan "maintains a framework 
of handling GMOs and LMOs." However, many approvals for new agricultural biotechnologies and 
related imports remain on hold while Pakistan drafts updated poli cies and regulations.   
 
• To this effect, what is the Government of Pakistan's timeline for completing draft 
regulations on importation of genetically engineered (GE) and GE -derived products for 
food, feed, and processing (FFP) use?   
 
National Biosafety Committee (NBC) under Ministry of Climate Change, Government of Pakistan 
regulates import of genetically modified organism/ living modified organism (GMO/LMO) in Pakistan 
through Pakistan Biosafety Rules 2005 read with Pakistan Environmental Prot ection Act 1997. Rule 
11 of Pakistan Biosafety Rules 2005 provides prohibition and license requirements for importing of 
all kinds of living modified organism/genetically modified organisms (LMO/GMO) which specifies 
that: "No person shall import, export, s ell, purchase or trade living modified organisms, substances 
or cells and products thereof for any purposes, without the prior obtaining of license from the Federal 
Agency". DPP regulates GMO/LMO and issue import permit for research/experimental purpose on ly 
under Rules, 16 and 45 (4) of Pakistan Plant Quarantine Rules, 2019 subject to valid license from 
NBC, Ministry of Climate Change.  
 
The United States appreciates Pakistan's desire to engage in technical dialogue regarding the 
regulation of agricultural biotechnologies, and the United States looks forward to supporting Pakistan 
as it drafts its science -based FFP regulations for the purpose of facilitating trade.  
 
Page 84, Paragraph 3.128:  The Secretariat Report notes that the Trading Corporation of Pakist an 
is a "private limited company under the administrative control of the Ministry of Commerce."    
• Please explain why the Corporation should be considered a "private" company 
although it is under the control of the ministry and trades on behalf of the 
government.    
• Does the Corporation buy non -agricultural goods?  
• Does the Corporation buy and sell goods at market prices?  WT/TPR/M/424/Add.1  
 
- 20 - 
 
   
The Trading Corporation of Pakistan was established as a private Limited company in July 1967 
under the erstwhile Companies Act 1913. The TCP is still, by definition, a private limited company 
as under Article 14(b) of the Companies Act 2017 now invogue & has an authorized capital of 
PKR 1,000 million. It is structured, legally speaking, as a private corporation. In that, the 
Management of the Corporation is vested in a Board of Directors comprising a Chairman who is the 
Chief Executive of the Corporation. Six  (06) Directors nominated by the Government of Pakistan are 
other Directors on the board belong to non -public sector. The Chairman being Chief Executive is 
responsible for over -all management and operations of the Corporation and for executive purposes 
the Corporation's the Board has delegated some of its powers to the Executive Committee consisting 
of all full -time Executive Director s.  
 
TCP does engage in procurement of non -agricultural goods only if necessary.  
TCP performs all its functions via open tenders and in compliance of PPRA rules.  
 
Page 84, Paragraph 3.129:  The Secretariat Report notes that there are 14 State -owned 
Enterprises (SOEs) engaged in manufacturing, mining and engineering.   
 
• Please  provide a list of all SOEs engaged in manufacturing and engineering and 
identify the products manufactured or engineered by those SOEs.  
 
List of SOEs engaged in manuf acturing and engineering is attached at Annex -I. 
Page 85, Paragraph 3.130:  The Secretariat Report notes that SOEs remain a significant burden 
on government finances.   
 
• Please provide a description of grants, loans, and capital provided by the 
government to commercial SOEs.   
 
The list of grants, loans and capital provided by Government in the year 2021 -22 is attached at 
Annex -II. 
 
• In particular, please detail how the government has provided financing to support 
the losses detailed in Table 3.12 related to Pakistan Textile City, State engineering 
corporation, and Saindak Metals Limited.  
 
Details at Annex -III. 
 
Page 86, Paragraph 3.133:  Please explain how the proposed competitive neutrality 
framework is consistent with the government's support for continued operating losses 
of Pakistan's SOEs.  
 
The SOE (Governance & Management) Bill 2021 is under consideration in Parliament  
 
Page 87, paragraph 3.139 and Page 88, Table 3.15:  Does Pakistan plan to amend its 
copyright law, and if so, when? [or, We understand that Pakistan is in the process of 
amending its copyright laws. Is this correct, and if so, when do you expect the proposed 
amendments to be available?]  
 
Yes, Pakistan has initiated process for amendment of its copyright law. Consultations with 
stakeholders have been conducted. Currently an in house working on the draft is being conducted. 
It will be forwarded to the Federal Government for approval. Then it will be placed in  the Parliament 
(National Assembly and Senate). After approval from both the houses, it will be forwarded to the 
President for signature and enactment.  
 
Page 88, Paragraph 3.140 : The Report states that "during the current review period, the 
registration of  different IPRs has increased considerably." What accounts for the increase in 
registration for patents, trademarks, and copyrights, respectively?  
 
IPO-Pakistan initiated an extensive IP awareness campaign in academia, industry and trade 
organizations. Fur ther, regular meetings of enforcement coordination committees are being held for 
effective IPR enforcement. The establishment of 47 Technology and Innovation Support Centers WT/TPR/M/424/Add.1  
 
- 21 - 
 
  (TISCs) also played an important role in increasing IPR applications. Provisions o f online services 
also facilitated the stakeholders and resulted in the increasing trend of IP applications.  
 
Page 88, paragraph 3.140 and page 90, paragraph 3.151:  The Secretariat Report states that 
the Intellectual Property Organization Act 2012 "provides for the establishment of dedicated IP 
Tribunals to exercise exclusive jurisdiction over intellectual property cases" and that "three IP 
tribunals were established in Karachi, Lahore, and Islamabad."    
 
• How have the Tribunals operated thus far in terms of staffing and activities, 
including hiring, training, retention, and effectiveness of judges, and their overall 
performance as an enforcement mechanism?  
 
The IP Tribunals are effectively working. Judges are appointed by the Law Division for a term of 3 
years. All the three IP Tribunals at Lahore, Karachi and Islamabad are fully functional. IPO -Pakistan 
is actively coordinating with these tribunals for capacity building of judges and their support staff. 
During the review period a number of training sessions have been held for the Judges of IP Tribunals 
and judiciary in general. In coordination with WIPO and CLDP -USA international trainings for the 
judges of IP Tribunal and their technical staff were also organized during 2015 to 2021. More than 
1000 cases have been disposed off during the review period by IP Tribunals.  
 
• Are there any data/statistics on the types of cases handled by the IP Tribunals?  If 
so, please provide them.  
 
IP Tribunals deal with all types of IP infringement cases. Most of the cas es filed at IP Tribunals are 
related to Trademark. Copyright violation cases are also filed in the IP Tribunals. The number of 
Patent and design related cases is far less as compared to Trademarks. About 80% cases filed in IP 
Tribunals are Trademark relate d, 15% copyright related and about 5% are Patent and design related.  
 
• Can a Tribunal decision be appealed?  If so, to where?  
 
Yes the appellate forum against the decision of an IP Tribunal is the relevant High Court of the 
Province. Appeal against the High Court decision is filed in the Supreme Court of Pakistan. The 
Supreme Court is the final appellate authority.  
 
Page 89, paragraph 3.143:  The Secretariat Report mentions that Pakistan has a Trademark 
Ordinance 2001 and that Pakistan's Trademark Registry gen erates an examination report and allows 
an opposition period of two months before a mark is recommended for registration.  The Report is 
silent on whether, after a mark is registered, a registration may be cancelled.  
 
• Does Pakistan allow the cancellation of  a trademark registration?  If so, please 
provide information about cancellation proceedings, such as where proceedings 
may be filed, who may bring them, grounds for cancellation, and time limits.  
 
Yes cancellation of a registered trademark is available in the form of "Revocation" under Section 73 
of the Trademark Ordinance, 2001 and "Invalidity" under Section 80. Within a period of 1 year after 
registration, cancellation is granted by the Registrar of Trademarks while after that period the 
concerned High Court is the forum for filing suit of revocation or invalidation. The interested person 
or his/her representative may file suite for cancellation of registered trademark. The grounds for 
cancellation may be seen in Section 14(2) of the Trademark  Ordinance, 2001.  
 
Page 89, paragraph 3.144:  The Secretariat Report states that Pakistan's Geographical Indications 
(Registration and Protection) Act 2020 "allows for a geographical indication of a foreign country to 
be registered in Pakistan as long as it  is registered in accordance with the local legislation in its 
country of origin."  
 
• In this scenario, would the mark need to be registered in the country of origin as 
a "geographical indication" (GI)?  Would a mark registered in the country of origin 
as a " certification mark" be eligible for registration in Pakistan as a GI?  
 
Section 10 of GI Act, 2020 states "A geographical indication of a foreign country shall be registered 
in the Islamic Republic of Pakistan as long as it is registered in accordance with the local legislation 
in its country of origin. The title and date of the legislative or administrative provisions or of judicial WT/TPR/M/424/Add.1  
 
- 22 - 
 
  decisions regarding protection to the geographical indication in the country of origin shall be 
considered for accepting forei gn GI application". So the type of legislation in the country of origin is 
not specific which indicates that if the country of origin applies its certification mark to be protected 
as GI in Pakistan, it will get protection in the light of Section 10.  
 
• For multi -component GIs, does Pakistan's Geographical Indications (Registration 
and Protection) Act 2020 require a disclaimer of any components(s) that is generic 
for the product?  
 
There is no any specific provision under the law to require disclaimer of any c omponent for a multi -
component GI application. However, the Registrar of GI may require any additional information or 
grant registration with disclaimer for this type of GI.  
 
Page 89, paragraph 3.148:  The Secretariat Report mentions that Pakistan's Plant B reeders Rights 
(PBR) Act 2016 was "promulgated by the Parliament and notified on 8 December 2015," that Plant 
Breeders Rules 2018 were "notified in May 2018," and that "a Plant Breeders Rights Registry was 
set up under the Ministry of National Food Securit y and Research."  
• Is the Registry operational and has it begun accepting and reviewing applications for 
Breeders' Rights certificates and issuing certificates for applications that meet the 
requirements of the Plant Breeders Rights (PBR) Act 2016 and Plant Breeders Rules 2018?   
• If not, when will the Registry start performing these functions?  
• If it is operational, are there any statistics on the applications reviewed by the Registry 
and any certificates issued?  
 
Plant Breeders registry is operational and receiving applications as per its mandate.  
 
Page 90, Paragraph 3.152 : The Report states th at "Sections 26 and 31 of the Prevention of 
Electronic Crime Act 2016 are also being used in disabling the online infringing content."  How is the 
content being disabled?  
 
FIA has the right to initiate inquiry on basis of authority accorded under Section 26  of PECA.  
Once the inquiry leads to proof of guilty against accused, the person in apprehended and the content 
is simultaneously disabled.  
 
Page 90, paragraph 3.153 : The Secretariat Report  states that the "Pakistan Telecommunications 
Authority (PTA) is also dealing with matters related to online piracy" and "has issued directives to 
telecom and Internet Service Providers (ISPs) to comply with copyright laws of Pakistan."   
• Are those directives binding?  
• What is the penalty/remedy for non-compliance with these directives?  
In accordance with applicable telecom legal framework, per se, issues related to online piracy do 
not fall within telecom regulatory regime. Therefore section 3.153 of the Secretariat Report is 
incorrect/misreported.  
Previously, pursuant the request of IPO, PTA facilitated IPO for arranging comments pertaining to 
copyright related matters from Cellular Mobile Operators (CMOs). In this connection PTA only 
sought comments from CMOs and no directive has been issued  
Pages  94 and 98, Paragraphs 4.17, 4.18, and 4.40:  Pakistan has not provided Table DS:2 
notifications for its domestic support programs.  
 
• When does Pakistan plan to provide the required Table DS:2 notifications for new 
or modified domestic support measures exemp t from reduction?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being considered within the 
Ministry of Commerce to oversee such notifications.  
 WT/TPR/M/424/Add.1  
 
- 23 - 
 
  • When does Pakistan plan  to provide a Table DS:2 notification or notifications 
related to the activities of the Trading Corporation of Pakistan described in 
paragraphs 4.17 and 4.40 of the Secretariat's Report, and the activities of the 
Pakistan Agricultural Storage & Services Co rporation Ltd described in paragraphs 
4.18 and 4.40 of the Secretariat's Report?  
 
Table DS:2 notifications for domestic support measures are under preparation and will be submitted 
as soon as ready. The information pertaining to the core activities of the Trading Corporation of 
Pakistan and Pakistan Agriculture Storage and Services Corporation are available on the official 
websites of the said organizations.  
 
Page 94, Paragraph 4.20:  The Secretariat Report describes the Agriculture Transformation Plan, 
introduced July 1, 2021.   
 
• Which legislation governs Pakistan's Agriculture Transformation Plan?  
• When is support under the Agriculture Transformation Plan scheduled to begin, or 
has it already begun?  
 
The Agriculture Transformation Plan has been announced unde r the Rules of Business, 1973. Further 
the Agriculture Transformation Plan has already begun.  
 
Page 96, Paragraph 4.30 and Paragraph 2.28 : The Secretariat Report states, "the authorities 
state that Pakistan is not providing any export subsidies (ES), and notifications are under 
preparation."  The United States notes Pakistan has not provided Table ES:1 notifications since 
marketing year 2012/13.   
 
• Please explain Pakistan's delay in providing its Table ES:1 and Supporting 
Table  ES:2 notifications, and pr ovide a definitive timeline for submission.  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts  to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being considered within the 
Ministry of Commerce to oversee such notifications.  
 
Page 96,  Paragraph 4.32:  The Secretariat Report explains that Pakistan maintains export 
prohibitions on numerous agricultural commodities, including pulses, gram and gram flour, sugar, 
and livestock.  
• Please provide the rationale for Pakistan's export ban on pulses, gram and gram 
flour, and sugar, and livestock.  
• Does Pakistan plan to notify these export restrictions to the Committee on 
Agriculture through the Table ER:1 notification?  If so, when?  If no t, please explain 
why.   
 
There are export prohibitions on pulses, gram and gram flour as there is less production of these 
commodities than consumption so Pakistan imports these agricultural commodities, and same is the 
case with sugar. Ban on export of li vestock is to ensure food security, conserve the genetic pool of 
livestock in the country, and promote value addition and processing of livestock.  
 
Page 96, Paragraph 4.31 and 4.33 : The Secretariat Report states, "In 2018/19, the Government 
permitted wheat exports as there was a surplus. The Government provided transport rebates to 
enable the export process."  The United States understands that in 2018 the Government of Pakistan 
authorized an ES of up to $159 per metric tonnes to facilitate th e export of up to 2 million metric 
tonnes of wheat, and in 2015 authorized ES of 1.2 million metric tonnes of wheat.   
 
• Please explain why Pakistan has pursued export subsidy and promotion policies 
for wheat since marketing years 2013/14 to the present.  
 
Pakistan has provided freight subsidy for wheat in 2015 -16 and 2016 -17 in order to export surplus 
stock of public sector only. This was to harmonize the price of wheat.  
 WT/TPR/M/424/Add.1  
 
- 24 - 
 
  • Does Pakistan plan to report these export subsidies in its Supporting Table ES:2 
notific ation and policy changes in its 2022 export competition questionnaire?  If so, 
when?   
 
Page 96, Paragraph 4.36:  When does Pakistan plan to submit Table DS:1 notifications describing 
its domestic support programs for marketing years 2016/17 through 2020/21, including its 
Agricultural Transformation Plan?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being considered within the 
Ministry of Commerce to oversee such notifi cations.  
 
Pages 99 and 100, Paragraphs 4.45 and 4.46:  Paragraph 4.45 of the Secretariat's Report 
indicates that Pakistan was a net wheat exporter for most years during the review period.  Paragraph 
4.46 indicates that the Government of Pakistan procures aro und one third of domestic wheat output.   
 
• During the covered period, did Pakistan export any of the wheat that the 
government procured?  
 
In years 2015 -16 and 2016 -17 Pakistan exported surplus stock from procured wheat.  
 
Page 101, Paragraph 4.56:  The Secretariat Report states "According to UN Comtrade data, the 
export value of sugarcane in 2020 was about half of its value in 2015, and Pakistan started to import 
sugarcane in 2020.  However, the authorities state that sugarcane has never been imported nor  
exported."  The United States notes in Table 4.9 'Sugarcane and sugar trade, 2015 -20' on page 102 
the trade data for HS 121293 (Sugar cane; fit for human consumption, fresh, chilled, frozen or dried, 
whether or not ground), with exports occurring between 2 105-2020 and imports existing in 2020.  
 
• Please explain  the discrepancy between Pakistan's claim referenced in the 
Secretariat Report (i.e., zero imports or exports of sugarcane) and the UN 
Comtrade data for HS 121293 in Table 4.9.    
 
Perusal of Five year Export data pertaining to Sugar -Cane received from PRAL shows that since 2015 
less than 2 tons of sugar cane per year has been exported. More specifically, during FY 2019 -20 and 
FY 2020 -21, less than 1 Metric Ton of Sugar cane has been exported. Thus, the quantity of sugar 
cane exported from Pakistan remained highly negligible in terms of trade of other commodities.  
 
Page 129, Paragraph 4.210: The Secretariat Report indicates that "a licensing/registration regime 
and regulations for regulating Web TV and OTT (Over the Top) Content services are in progress. A 
licensee must be a citizen or resident of Pakistan, or a locally incorporated company."   
 
• In the absence of spectrum constraints, what is the policy rationale for imposing 
licensing requirements?  
 
Currently the Web TV & OTT content services are not subject to any regulation, hence no licenses 
are required, the service providers do not pay any regulatory fee & taxes as against the regulatory 
fee and taxes which licensed TV broadcasters and other operato rs are subjected to.  
 
There are other regulatory issues also which necessitate it to regulate the Web TV & OTT services 
e.g. all PEMRA licensed broadcasters are subject to compliance with code of conduct -2015 etc. 
However, the web TV and OTT players are no t subject to any code of conduct & other PEMRA laws. 
Moreover, as a regulator, it is the responsibility of PEMRA to provide a level playing field to all. Since 
OTT & Web TV operators are competing for the same advertisement or subscription revenue as the 
licensed operators, therefore, it is imperative that the services be regulated at par with other 
services.  
 
• Can a foreign supplier of OTT content services supply customers in Pakistan on a 
cross -border basis without obtaining a license?  
 WT/TPR/M/424/Add.1  
 
- 25 - 
 
  For foreign companies the following eligibility criteria requirements are proposed;  
 
The company shall have to register in P akistan with the Securities & Exchange Commission of 
Pakistan (SECP) under the Companies Act 2017 and the Authority may grant exemption from the 
requirements of management control & majority shareholding vesting with local nationals under 
section 32 of the  PEMRA Ordinance 2002 OR  
 
The company may enter into a distribution / partnership agreement with a local company registered 
with SECP under the Companies Act 2017 and the local company may apply for the OTT Service 
license to the Authority.  
 
The company shall have to register with income tax / sales tax etc. authorities of Pakistan and pay 
applicable taxes as per the prevalent laws of Government of Pakistan.  
 
Note: The Draft Regulations for Registration / Licensing & Operations of Web TV & OTT Content 
Services are not yet approved by PEMRA which can only be done after approval of the Federal 
Government, hence they are not being implemented yet. The approval of Federal Government has 
not yet been accorded.  
 
• Do services that supply user -generated content r equire a license?  
 
Only those services which are in competition with traditional broadcast services e.g. TV (live or 
recorded), video on demand etc. are proposed to be covered.  
 
Page 129, Paragraph 4.215: Pakistan Post "exclusively" provides "universal postal services," and 
paragraph 4.215 indicates that universal postal services includes parcels up to 50 kg. Paragraph 
4.217 indicates that 23 private courier companies operate in Pakistan . Please clarify if Pakistan 
Post is the exclusive suppli er of parcel deliver services for parcels up to 50 kg, or if private 
suppliers also may deliver such parcels.   
 
The reference "universal postal service" implies that only Pakistan Post performs mail/ letter delivery 
as a social service while private compet itors do the same on a profit basis. As for parcels, Pakistan 
Post delivers parcels up to 30kilograms (not 50kg: necessary correction may be made) and there is 
no restriction on any private courier service in this regard either.  
 
Page 135, Paragraph 4.258:  The Secretariat Report states that a draft version of the Personal 
Data Protection Bill included a prohibition on the cross -border transfer of "critical" personal data, but 
the scope of "critical" personal data was not defined.  Has Pakistan since defined the scope of 
"critical" personal data?  
 
The scope of critical personal data has been defined in the new draft.  
 
WTO TPR: Pakistan  
 
Part II.  Questions based on the Government Report (WT/TPR/G/424)  
 
3 TRADE POLICY DEVELOPMENTS  
 
Page 3, paragraph 1.2:  The Government Report states that "[t]o improve the Intellectual Property 
environment," Pakistan "revised national IP laws to incorporate international good practices." Which 
national IP laws have been revised to incorporate these "good practices"?  Please  describe 
the revisions.  
 
The Trademark Ordinance 2001, the Copyright Ordinance 1962 and the Patents Ordinance, 2000 
are being revised. The examination procedure for Trademark has been simplified. Currently there 
are 58 different types of forms. In the ame ndment legislation it is reduced to 20. Same is the case 
with Patent and Copyright law.  
 
Page 9, Paragraph 3.13:  Could Pakistan please provide more information about its 
requirements regarding consultation and the use of apostilles in facilitating the entry of 
goods?  
 WT/TPR/M/424/Add.1  
 
- 26 - 
 
  Pakistan Customs, in line with the government's international (bilateral and multilateral) 
commitments, strives to facilitate the entry of goods under different FTAs and PTAs. Goods availing 
preferential rates are allowed clearance essentially on the basis of the Certificate of Origin presented 
by the importers along with their Goods Declarations. The Certificate of Origin is accepted only if it 
is issued by the government (or its authorized agencies) of the country of orig in of the goods and 
enough details are provided in order to enable the Customs authorities to identify/verify the same. 
Details include the description/quantity as well as an eigh t-digit Code under the Harmonized System 
denoting the goods, information abou t the foreign exporter and domestic importer of the goods and 
value of the goods in foreign currency. The Certificate of Origin, being a compact document 
containing most of the essential information relevant to the clearance of the goods through Customs, 
being issued by responsible governmental agencies and mostly verifiable online, aids the Customs 
authorities in quickly ascertaining the origin of the goods for the purposes of the FTAs/PTAs and 
resulting facilitative and prompt clearance of the goods.  
 
Page 12, paragraph 3.40:  The Government Report highlights PRMI which aims to streamline the 
regulatory landscape.  The Report states that "PRMI will deliver a comprehensive inventory and 
mapping of regulations, including a parallel, optional legal framework. T his framework mandates 
eliminating all Registrations, Licenses, Certificates and Other permits (RLCOs) that are not legally 
backed, are unnecessary, unjustified, and non -business friendly."  Please clarify:  if the legal 
framework is "optional," is the elimination of certain RLCOs also optional, or is it 
mandatory?   
 
Pakistan, being a Federal country, gives complete autonomy to its constituent provinces in enacting 
laws in their provincial jurisdictions. In case the Federal Government passes the laws, it  would still 
remain optional for provinces to adopt it. Those who don't can still utilize administrative mechanisms 
to carry out regulatory modernizations.  
 
Page 15, paragraph 3.62: The Government Report states that "IPO Pakistan has started the 
revision o f national IP laws and streamlining of the associated legal processes" and that "the 
amendments are under submission to the Federal Government for approval."  For each national IP 
law under revision, what is the timeline for enactment of the revised law and  
implementation of streamlined associated legal processes?  
 
Amendments in Trademark law have already been submitted to the Federal Government for 
approval. The Consultations with stakeholders on copyright law have been completed. Consultation 
on Patent law  is under process. The draft will be approved in principal by the Federal Cabinet and it 
will be put up in the parliament for enactment. It will be passed by the National Assembly and the 
Senate. Finally the President of Pakistan will sign the approved Bil l and it will become Act of the 
parliament. The whole process may take 18 months.  
 
  WT/TPR/M/424/Add.1  
 
- 27 - 
 
  UNITED STATES – FOLLOW -UP QUESTIONS  
Part I.  Questions based on the Secretariat Report (WT/TPR/S/424)  
•  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 9, Paragraph 13: The Secretariat Report notes that "Sector -specific incentives are provided 
to the electric vehicle manufacturing, information technology, manufacturing of mobile devices, 
automobile, pharmaceutical, food processing, housing and constr uction, logistics, textiles, and 
tourism sectors."  Please describe the nature and extent of these incentive programs.   
 
• In general, these incentives include concessions on imports duties on various inputs, 
relaxation for certain taxes, facilitation for skill development and R & D etc. Details of specific 
incentives are available at www. boi.gov.pk  and www.edb.gov.pk . 
 
Follow -up Question:  Which sectors receive "relaxation for certain taxes " as an incentive?  What is 
the value of those tax concessions?  Will these incentive programs be included in Pakista n's 
forthcoming notifications?  
 
REPLY:  
 
Details of the overall investment regime are available in the Investment Policy 2013 and Investment 
guide at https://invest.gov.pk/investment -regime . 
 
Pakistan has introduced sector specific policies to promote investment in certain sectors. These 
include Automotive Development Policy, Mobile Manufacturing Dev elopment Policy 2020, Electric 
vehicle policy 2020 -2025, Textile and Apparel Policy 2020 -25, Pakistan's first Cloud Policy 2022 etc. 
Further details on these policies are available at https://invest.g ov.pk/investment -regime  and 
corresponding line Ministries websites.  
 
The incentives under these policies vary and include incentives such as non-discriminatory 
concessionary custom duties and tax for import of Plant and Machinery and other key raw material s, 
R& D allowance, concession on withholding tax etc.  
 
A comprehensive database on the incentives are available at : https://invest.gov.pk/incentives -
database?language_id=en . 
 
These incentives are publicly available on the corresponding website as indicated above and they 
will be part of the forthcomi ng notification if found to be notifiable under Pakistan 's obligations at 
the WTO.  
 
Page 24, Paragraph 1.15: The Secretariat Report raises the Active Privatization program covering 
15 state-owned enterprises.   
 
• Can the representative briefly explain the progress made on privatization of these 
15 enterprises?   
 
For privati zation of 02 RLNG Power Plants, debt refinancing/ recapitalization is under way to be 
completed by end -June 2022.  
 
In case of privati zation of 03 banks, one of the banks was proposed for  delisting. In case of House 
Building Finance Corporation, deadline for submission of Expression of Interests is end -March  2022. 
For the First Woemn Bank Limited, Audit for the years 2018 to 2021 is underway.  
 
Regarding sale of assets 02 hospitality/ tourism sites at Lahore and Islamabad, bidding of the Lahore 
based entity has been successfully completed in Aug 2021.  
 
For privati zation of 02 engineering companies, bidding process of heavy electrical complex has been 
completed in Feb 2022.  
 
Regarding revival of Pakistan steel mills, 04 international parties have been pre -qualified for 
participation in the bidding process.  WT/TPR/M/424/Add.1  
 
- 28 - 
 
   
For Capital market transactions of 03 entities, the process could not be completed as petroleum 
company has been delist ed from  privatization  list. 
 
Follow -up Question: Why was the Petroleum company delisted from the privatization list?  
 
REPLY:  
 
After due deliberation and consultation with relevant stakeholders, the Cabinet Committee on 
Privatization (CCoP), decides to deli st the Petroleum Company(s) from the Privatization Programme.  
 
The Petroleum Company is a well -managed asset accruing attractive dividend yield.  
 
 The Government of Pakistan benefits from the company 's efforts in in formulating its annual 
business plan, Exploration and Production  
 
Furthermore, the Government benefits from the Company 's profit shares as it sits at the Company 's 
Board.  
 
The Report also notes that "a new SOE bill was submitted to Parlia ment and a triage of all SOEs was 
published in March 2021"  
 
• What did the "triage of all SOEs" entail?  
• Please provide a copy of the draft bill as well as the results of the "triage".  
 
Published Triage Report may be seen at : 
https://www.finance.gov.pk/publications/SOEs_Triage_03032021.pdf   
 
Page 42, Paragraph 2.28: The Secretariat's Report notes that Pakistan continues to have many 
outstanding notif ications to the WTO, including in the area of agricultural export subsidies, SPS and 
TBT notifications.  
 
• Please provide an update on Pakistan's ongoing efforts to update its notifications.  
• Paragraph 4.30 on page 96 of the Secretariat's Report states that notifications are 
under preparation. Can Pakistan please provide a timeline for when it will submit 
its overdue  notifications?   
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is  being established within the 
Ministry of Commerce to oversee such notifications.  
 
Follow -up question:  When does Pakistan expect this Notification Cell will be established and begin 
submitting outstanding notifications to the WTO? How will this Notificatio n Cell prioritize submission 
of outstanding notifications? Does Pakistan already track each of its outstanding WTO notifications 
across all WTO Agreements?  
 
REPLY:  
 
The process of the establishing such cell is on -going and will operate as soon as it will get the 
necessary assistance for the notifications.  
 
The list of outstanding notifications are provided by the WTO Secretariat and they will all be prepared 
and noti fied in due course of time.  
 
Page 89, paragraph 3.148:  The Secretariat Report mentions that Pakistan's Plant Breeders Rights 
(PBR) Act 2016 was "promulgated by the Parliament and notified on 8 December 2015," that Plant 
Breeders Rules 2018 were "notified i n May 2018," and that "a Plant Breeders Rights Registry was 
set up under the Ministry of National Food Security and Research."  
 WT/TPR/M/424/Add.1  
 
- 29 - 
 
  • Is the Registry operational and has it begun accepting and reviewing applications 
for Breeders' Rights certificates and issuing certificates for applications that meet 
the requirements of the Plant Breeders Rights (PBR) Act 2016 and Plant Breeders 
Rules 2018?   
• If not, when will the Registry start performing these functions?  
• If it is operational, are there any statistics on the applications reviewed by the 
Registry and any certificates issued?  
 
Plant Breeders registry is operational and receiving applications as per its mandate.  
 
Follow -up Question:  Please provide any available statistics on the applications reviewed by the 
Registry and any certificates issued since the establishment of the Registry.  
 
REPLY:  
 
Overall, 50 applications were received at the Plant Breeders Rights Registry, which are in review 
process. Details are given below:  
 
1. Cotton : Total applications received=17 (National Private Seed Companies= 07, Multinational 
Private Seed Companies= 01, Public Sector= 09),  
2. Maize : Total applications received=13 (National Private Seed Companies= 01, Multinational 
Private Seed Companies= 06, P ublic Sector= 06),  
3. Potato : Total applications received=10 (National Private Seed Companies=06, Multinational 
Private Seed Companies=04),  
4. Wheat : Total applications received=02 (Public Sector=02),  
5. Banana : Total applications received=02 (Public Sector=02),  
6. Canola:  Total applications received=02 (Public Sector= 02),  
7. Sunflower:  Total applications received=04 (Public Sector=04).  
 
Page 96, Paragraph 4.31 and 4.33 : The Secretariat Report states, "In 201 8/19, the Government 
permitted wheat exports as there was a surplus. The Government provided transport rebates to 
enable the export process."  The United States understands that in 2018 the Government of Pakistan 
authorized an ES of up to USD 159 per metric  tonnes to facilitate the export of up to 2 million metric 
tonnes of wheat, and in 2015 authorized ES of 1.2 million metric tonnes of wheat.   
 
• Please explain  why Pakistan has pursued export subsidy and promotion policies 
for wheat since marketing years 2013/14 to the present.  
 
Pakistan has provided freight subsidy for wheat in 2015 -16 and 2016 -17 in order to export surplus 
stock of public sector only. This was  to harmonize the price of wheat.  
 
• Does  Pakistan plan to report these export subsidies in its Supporting Table ES:2 
notification and policy changes in its 2022 export competition questionnaire?  If so, 
when?   
 
Follow -up question : When does Pakistan intend to submit a Supporting Table ES:2 notification for 
its freight subsidy to wheat in years 2015 -16 and 2016 -17? 
 
REPLY:  
 
The supporting table ES:2 is currently under preparation and the freight subsidy to wheat will be 
notified if found to be notifiab le under Pakistan 's obligations  
 
 
Pages 99 and 100, Paragraphs 4.45 and 4.46:  Paragraph 4.45 of the Secretariat's Report 
indicates that Pakistan was a net wheat exporter for most years during the review period.  Paragraph 
4.46 indicates that the Government of Pakistan procures around one third of domestic wheat output.   
 
• During the covered period, did Pakistan export any of the wheat that the 
government procured?  
 
In years 2015 -16 and 2016 -17 Pakistan exported surplus stock from procured wheat.  WT/TPR/M/424/Add.1  
 
- 30 - 
 
   
Follow -up question:  For purposes of transparency, please provide information on the volume of 
wheat exported from government procured wheat stocks in the marketing years 2015 -16 and 
2016-17. 
 
REPLY:  
 
The volume of wheat exported from government procured wheat stocks in 2015 -16 and 2016 -17 is 
4,16,650 tons and 7,93,676 tons respectively  
 
WTO TPR: Pakistan  
 
Part II.  Questions based on the Government Report (WT/TPR/G/424)  
 
3 TRADE POLICY DEVELOPMENTS  
 
Page 9, Paragraph 3.13:  Could Pakistan please provide more information about its 
requirements regarding consultation and the use of apostilles in facilitating the entry of 
goods?  
 
Pakistan Customs, in line with the government's international (bilateral and multilateral) 
commitments, strives to facilitate the entry of goods under different FTAs and PTAs. Goods availing 
preferential rates are allowed clearance essentially on the basis of the Certificate of Origin presented 
by the importers along with their Goods Declarations. The Certificate of Or igin is accepted only if it 
is issued by the government (or its authorized agencies) of the country of origin of the goods and 
enough details are provided in order to enable the Customs authorities to identify/verify the same. 
Details include th89e descrip tion/quantity as well as an eight -digit Code under the Harmonized 
System denoting the goods, information about the foreign exporter and domestic importer of the 
goods and value of the goods in foreign currency. The Certificate of Origin, being a compact 
document containing most of the essential information relevant to the clearance of the goods through 
Customs, being issued by responsible governmental agencies and mostly verifiable online, aids the 
Customs authorities in quickly ascertaining the origin of t he goods for the purposes of the FTAs/PTAs 
and resulting facilitative and prompt clearance of the goods.  
 
Follow -up question:   Thank you very much for this detailed response; we appreciate the trade 
facilitative approach that Pakistan is using to import pr oducts. To understand properly, are all 
necessary fees, signatures, and stamps available at Pakistan Customs offices (upon arrival of goods 
in Pakistan)? Or are there are any fees, signatures, or stamps that must be obtained from a Pakistani 
consulate in t he exporting country prior to entry into Pakistan?  
 
REPLY:  
 
Business processes of import and export are fully automated and all duties and taxes are paid online. 
There are no specific formalities required to be processed/ obtained from Pakistani Consulates in 
advance to export the goods to Pakistan. Moreover, at al l the Sea Ports and Air Ports, Enquiry 
Points/Kiosks have been established to facilitate the clearance of incoming cargo as per WTO 
commitment. Staff at Enquiry Points facilitates the importer while connecting them to the concerned 
sections/ departments.  
 
  WT/TPR/M/424/Add.1  
 
- 31 - 
 
  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/424)  
 
1. ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
1.1.2 Growth, income, and employment  
 
Page 17, Paragraph 1.4  
 
The report states that that the expansion of job opportunities in the service and industry sectors has 
mostly benefited male workers. It also notes barriers to women's socio -economic inclusion have 
contributed to a muting of structural transformation and l abour productivity growth in Pakistan.  
 
Question 1  
Could Pakistan outline how it plans to increase female workforce participation and address women's 
economic empowerment as part of broader efforts to increase labour productivity growth?  
 
The State of Pak istan is conscious of its domestic responsibility e.g. Article 34 of our Constitution, 
alongside international goals like the SDGs & keeps girls and women at the core of upcoming policy 
making. The ideals of 'Smart Economic Development' are at core of Paki stan's outlook of women 
empowerment. In order to increase labor force participation and ensure economic empowerment, 
Pakistan plans to focus more on skill development of women coming from all strata and gradually 
add more women in the formal and rewarding sectors of the economy. E.g. as recently as 08.03.2022 
the State Bank of Pakistan has directed the commercial banks all over the country to employ at least 
20% of women in workforce by 2023. E -commerce policy of Pakistan creates more equitable 
opportunitie s for employment by eradicating the hurdles of mobility largely faced by young women 
of the country. More skill -oriented grass root initiatives complement the Social Security Network of 
the country which doles out both unconditional and conditional cash tr ansfers on a quarterly basis 
ensuring not just current/ short term empowerment but sustainability as well.  
 
2. TRADE AND INVESTMENT REGIMES  
2.3.1 WTO  
2.3.1.1 Features  
 
Page 41, Paragraph 2.24  
 
The report states that Pakistan has not yet signed or ratified the December 2020 recommendations 
and declarations of the WTO Informal Working Group on MSMEs.  
 
Question 2  
Could Pakistan confirm whether it plans to ratify the recommendations of the Informal Working 
Group on MSMEs, and if so the timeframe in which it expects to do so?  
 
Pakistan is closely observing the developments in the informal working group of MSMEs and will 
continue to consider if and when it might be useful to ratify the said recommendations.  
 
2.3.1.2 Trade -related technical assistance  
 
Page 42, Paragraph 2.26  
 
The report states that between 2015 and 2018, Pakistan benefited from WTO trade -related 
assistance via participation in 250 training activities, inter alia, relati ng to non -agricultural market 
access, RTAs, TBT, SPS, transparency in government procurement, agriculture, dispute settlement, 
trade negotiation skills, TRIPS, rules (trade remedies, fisheries subsidies), tariff negotiations, 
accession, trade and environme nt, services, trade and development, trade finance, transparency 
and WTO notification obligations, trade and competition, trade in value -added statistics and global 
value chains, and trade in services statistics with emphasis on Africa.  
 WT/TPR/M/424/Add.1  
 
- 32 - 
 
  Question 3  
Austra lia would welcome Pakistan's views on the trade related technical assistance it received 
between 2015 and 2018 which, among other areas, included activities designed to assist Pakistan 
to implement its transparency and WTO notification obligations.  
 
The technical assistance received so far has contributed to the understanding of the rights and 
obligations under WTO agreements including various transparency requirements. An example is the 
timely and complete notifications of Pakistan on all trade remedy me asures, TBT , SPS and TRIPS 
among others. However, Pakistan has been faced with several structural issues for the 
implementation of some transparency obligations including limited, skilled human resources over a 
sustained period of time. These challenges a re being addressed by improving the specific mechanism 
dedicated for the implementation of transparency obligations across Ministries and divisions.  
 
2.3.1.3 Notifications  
 
Page 42, Paragraph 2.28  
 
The report notes that Pakistan has made regular notificati ons to the WTO on aspects of its trade and 
legislative regimes, including on domestic support to agriculture and state trading. However, 
Pakistan has many outstanding notifications including on agricultural export subsidies, import 
licensing procedures, su bsidies, SPS and TBT.  
 
Question 4  
Acknowledging Pakistan has a number of outstanding notifications on agricultural subsidies, Australia 
would be interested to know what processes Pakistan is developing to ensure more timely 
notifications and when it expects the outstanding notifications will be issued to the WTO.  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being considered within the 
Ministry of Commerce to oversee such  notifications.  
 
4 TRADE POLICIES BY SECTOR  
4.1.2.2.1 WTO notification  
 
Page 97, Paragraph 4.37  
 
The report states that in FY2015/16, Green Box support amounted to USD 75.17 million: 53.4% of 
which was spent on infrastructure services, 34.6% on research, a nd 11.9% on extension and 
advisory services. Product -specific support to wheat and non -product -specific AMS amounted to USD 
958.81 million (USD 662.17 for wheat and USD 296.64 for non -product -specific AMS); all support 
was de minimis.  
 
Question 5  
Can Pakistan advise when it will be making its next notification under the Agreement on Agriculture 
to the WTO and for what years?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being c onsidered within the 
Ministry of Commerce to oversee such notifications.  
 
4.1.2.2.2 Other support  
 
Page 97, Paragraph 4.39  
 
Australia notes the FY2019/20 Budget allocation of PKR 280 billion over 5 years for building water 
conservation infrastructure, impl ementing livestock initiatives, and increasing crop yields.  
 WT/TPR/M/424/Add.1  
 
- 33 - 
 
  Question 6  
Could Pakistan please explain how these payments will be allocated and if any will be in the form of 
direct payments to producers?  
 
Agriculture emergency program consists of different programmes for purchase of machinery and 
seeds for major crops on 50/50 sharing basis with the farmers. The payments are made to the 
agricultural manufacturing companies which are shortlisted through comp etitive  bidding.  
 
Question 7  
Australia would appreciate clarification on how Pakistan is intending on notifying these expenditures.  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification  Cell is being considered within the 
Ministry of Commerce to oversee such notifications.  
 
Page 98, Paragraph 4.41  
 
The report states that in the wake of COVID -19 pandemic, the Government announced a fiscal 
package of over PKR 1,200 billion, of which PKR 50  billion was earmarked for the agriculture sector. 
In the form of a number of subsidies.   
 
Question 8  
Could Pakistan please explain the intended duration of the subsidy measures provided under the 
fiscal package?  
 
Government of Pakistan announced the Economic Stimulus Package amounting to PKR 1,240 billion 
to support the economy and mitigate suffering of the common man from the negative impact of 
COVID -19 Pandemic. Since, pandemic continued to remain unabated with s igns of fourth wave 
spreading across the country, therefore, prudent relief measures were required in FY  2021-22. 
Moreover, the Federal Government aimed to vaccinate at least 85 million people by December 2021.  
In the above -mentioned scenario, there was a  need to prioritize the utilization of funds under COVID  
relief measures. Therefore, the remaining balance package of PKR 352 billion  has been prioritized 
for COVID  vaccine and related expenditure.  
 
Question 9  
How does Pakistan intend on notifying this support?  
 
Support measures may  be notified under the relevant provisions of the AoA if necessary.  
 
Report by Pakistan (WT/TPR/G/424)  
 
2. ECONOMIC AND TRADE ENVIRONMENT  
2.2 Trade and External Balances  
 
Page 6, Paragraph 2.3   
 
The report notes initial signs of growth in higher -value exports.   
 
Question 10  
What are those signs and what areas are being targeted by the government for higher -value export 
growth?   
 
Pakistan has shown an increasing trend in the exports of precision instruments, high end texti le 
made -ups and apparel, engineering goods including locally assembled vehicles and mobile phones. 
The Government continues to target an increase in value added exports in the manufacturing sector 
in general and with special emphasis on mobile phones, engi neering goods, high end textile 
made -ups and apparel and pharmaceutical products.  
 WT/TPR/M/424/Add.1  
 
- 34 - 
 
  Page 6, Paragraph 2.4  
 
The report notes that the largest import categories are fuel (representing 29% of the import bill).  
 
Question 11  
Will the recent significant price rises for fuel, given Pakistan's vulnerability to current account deficits, 
require changes to Pakistan's trade policies?  
 
There has been a sharp increase in fuel prices internationally, and this phenomenon has also effected 
Pakistan economy and created problems of account deficit. Relevant changes to trade policies maybe 
made when necessary to mitigate any such factors.  
  WT/TPR/M/424/Add.1  
 
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  JAPAN  
Report by the Secretariat (WT/TPR/S/424 ) 
 
3 Trade policies and practices by measures  
3.2 Measure Di rectly Affecting Export  
3.2.3 Export prohibitions, restrictions and licensing  
 
(Question 1: Paragraph 3.64 page 69)  
Japan would like to request Pakistan to provide the following information regarding export 
prohibitions on "wood and timber " described in Para 3.64.  
 
Pakistan is among the countries most vulnerable to climate change, of which deforestation is one of 
the main reasons. In order to prevent deforestation and its adverse effects on climate, export of 
wood and timber has been banned.  
 
3.3 Measures Affecting Production and Trade  
3.3.8 Intellectual property rights  
 
(Question 2: Paragraph 3.152 Page 90 ) 
The se cretariat report said that the digitization of data at the trademark and copyright registries and 
their use by the FBR seemingly led to increased seizures of pirated and counterfeit goods at the 
borders.  
 
Is there any statistical data that shows the change s in the number of seized cases and the number 
of goods?  
 
Digitization of IPO records and the searchable Recordation Data Base of the Intellectual Property 
Organization 's use by Pakistan Customs has greatly facilitated the enforcement of IPR laws. The 
database link with Customs was operationalized in 2017 at the time of the formation of the 
Directorate General of IPR Enforcement and since, the database has helped to verify and check the 
registration of various classes of goods imported and exported into  the country effectively through 
the online system. The use of the searchable database has enabled increased cases being made by 
Pakistan Customs on IPR laws infringement. An increase of 33% was registered in cases made in 
FY 20-21 compared to FY 19 -20; a similar trend is being registered in the current FY, where the 
month on month cases have seen an increase of 30% compared to the previous FY. The Directorate 
General has built a sustainable data ecosystem which comprises of the access to IPO database, 
WeBO C module for IPR and a risk -based approach that is based on a local database of customs 
recordals of rights holders and their trademarks as well cheat sheets for identifying infringement. 
The Directorate General also maintains a database of known importers  / exporters and Customs 
Agents involved in counterfeit trade. The database is used in conjunction with the WeBOC module 
to monitor consignments for possible infringement of IPR laws. The module enables officers to carry 
out risk assessment of consignments  based on information on suppliers, origins and documents 
attached by the traders in the Goods Declarations. Nearly 60% of the cases are made based on the 
WeBOC module and the remaining are a result of direct enforcement application and dedicated 
informati on by right holders as well as information passed on by the Collectorates. Globally customs 
administrations have also digitized customs related IPR recordation systems and made them 
available to the staff of customs performing duties at various sea / air t erminals and border stations. 
Directorate General of IPR is also exploring ways to operationalize and digitize its manual customs 
recordation database with easy access and availability through an online portal for various 
stakeholders involved  
 
Question 3:  Paragraph 3.153 page 90  
According to the secretariat report, the PTA and the FIA are dealing with the issue of online piracy. 
Japan would like to know it is possible whether copyright holder can request mediator such as 
internet service provider, to disc lose information regarding infringer who provides illegal content 
based on Pakistan's laws and regulations. If possible, we Japan would like Pakistan to provide the 
details of its laws and regulation.  
 
PTA is not dealing with issues related to online pirac y.  
 WT/TPR/M/424/Add.1  
 
- 36 - 
 
  (Question 4: Paragraph 3.154 Page 90 ) 
The secretariat report said that enforcement officials do not exercise ex officio  authority without a 
formal complaint by a rights' holder. However, right holders in oversea cannot always monitor 
infringement situation in Pakistan. Therefore, it is important for enforcement officials to take its own 
initiative without formal right holde r's complaint. Japan would like to know Pakistan's plan to 
introduce ex officio  authority not based on a formal complaint by a rights' holder. If Pakistan has 
obstacles to introduce such authority, Japan would like to know them in detail.  
 
Ex-Officio autho rity is granted to Customs Officers for food and medicines under Customs (IPR) 
Enforcement Rules, 2017. However, ex officio authority for other type of infringements is not 
available in Pakistan as IP rights are private civil rights and enforcement action is taken on the bases 
of complaint.  
 
Report by the Government WT/TPR/G/424  
 
3 Economic and Trade Policies  
3.12 Sustainable Development and Social Protection  
 
(Question 5: Paragraph 3.12 Page18 ) 
Pakistan is one of those countries enjoying our Generalized System of Preferences (GSPs). Japan 
would like to request Pakistan to provide with us the details regarding how our GSPs contributing to 
your economy, and how our GSPs are utilized by your companies  
 
Japan grants preferential tariff treatment u nder its GSP scheme to 127 developing countries and 
5 territories.  
 
Although Pakistan has GSP status and faces on average 1.4% lower duties than developed countries, 
yet the tariff imposed on Pakistan's goods is 5.36% (on average) higher than India (FTA w ith 
Japan)/Bangladesh (LDC Status). Therefore, at all forums of bilateral engagement, Pakistan has 
been requesting/raising matter for either GSP reduction on the model of EU -GSP scheme or 
Preferential Trade Agreement leading to a full -fledged Economic Part nership Agreement (EPA).  
 
Question 6: Page37 -38 2.2.3 Trade laws and regulations  
The government of Pakistan imposes "regulatory duty" on the import of 570 items in order to slow 
down the import growth.  
 
This measure would be contrary to the policy objectives of the Pakistani government because it 
would increase manufacturing and product costs and reduce the competitiveness of exports. We 
would like to know the government of Pakistan's view on this issue.  
 
What is Pakistan's position on the WTO consi stency of this measure, which may violate Article 3 of 
the GATT?  
 
Regulatory duties are levied for a specific period of time and are non -discriminatory in nature i.e. 
applied across the board on all trading partners. Regulatory Duties are applied at import  stage and 
therefore, are not covered in the Article 3 of the GATT.  
 
Question 7: Paragraph 2.57, Page52  
Although table 2.4 in the report prepared by the Secretariat says there are no limitation of overseas 
remittance, there are delays and suspensions in r emittance has occurred in order to handle 
increasing imports.  
 
What is Pakistan's position on the concerns that this measure is inconsistent with Article  8 of the 
Japan -Pakistan Investment Agreement?  
 
In terms of the existing foreign exchange regulations,  remittance of profits, dividends, 
disinvestment, royalties etc. is allowed. The applicant needs to designate a bank (Authorized Dealer) 
and the bank can execute the remittance transactions after its due diligence without prior approval 
from SBP.  
 WT/TPR/M/424/Add.1  
 
- 37 - 
 
  Question  8: Paragraph 2.57, 2.58, Page52 -53 
Although Article37(b) of Special Economic Zone Act stipulates "exemption from taxes on income for 
enterprises commencing commercial production by the thirtieth June 2020, in the SEZs for the next 
ten years", Japanese com panies have been subjected to pay advance income tax, and they are not 
refunded.  
 
The government of Pakistan is trying to expand its export through attracting foreign investors, 
however, there were concerns about the issue of raising production costs and t he price of finished 
goods manufactured in Pakistan and reducing investment appetite, which may impair international 
competitiveness.  
 
Is the measure against the policy goals to achieve increase of export?  
 
What is Pakistan's position on the Agreement between Japan and the Islamic Republic of Pakistan 
concerning the Promotion and Protection of Investment consistency of this measure, which may 
violate (d) (6) of Article 1?  
 
We request the government of Pakistan to adequate implementation of the  incentive and refund the 
tax already paid as soon as possible.  
 
It is true that tax exemption on income is available to companies established in Special Economic 
Zones for next ten years with the condition that these companies must achieve commercial 
production by 30 June 2020. This also means there is no exemption available prior to 
commencement of commercial production. However, if there is any specific case where tax had been 
collected inadvertently and now required to be refunded; the same may be commu nicated for getting 
it processed/ issued.  
 
The concerns that levying sales tax inputs (imported and local supply of Plant & Machinery) will raise 
production costs and the price of finished goods manufactured in Pakistan and reduce investment 
appetite, whic h might impair international competitiveness, are not based on fair appreciation of 
facts.  
 
Sales Tax charged and recovered from investors in EPZs is refundable because exports made by the 
are chargeable at zero -rate. Under the VAT model when output tax is  zero all input tax paid is 
refundable. Thus, in the case of investors/ exporters in EPZs there is no additional tax burden on 
them; hence, cost of production and competitiveness will not be affected in any case.  
The measure has been taken for the purposes  of documentation of the economy, as many of the 
EPZ investors are not registered under the Sales Tax Act 1990 or Income Tax Ordinance 2001.  
 
Question 9: Paragraph 3.42, Page65  
In 2018, Supreme Court sentenced a ban on manufacturing, import and distributio n of Ajinomoto 
Salt in Pakistan, while there is no food additive named Ajinomoto Salt, and then Ministry of 
commerce added Monosodium Glutamate  (herein after "MSG") into Negative List of Import Policy 
Order while the world's leading food safety regulators have endorsed its health benefit and safety.  
What is Pakistan's position on the WTO consistency of this measure, which may violate Article 1 an d 
3 of the GATT and Article 2, 3 and 7 of SPS agreement?  
 
The ban on manufacturing, sale and import of Ajinimoto salt also called Monosodium Glutamate was 
imposed on the instructions of the Supreme Court of Pakistan. The Supreme Court was informed by 
the F ood Regulatory Authority of Punjab that the product has serious health related hazards; 
therefore, the Punjab Government had prohibited sale of the product in its province. The Supreme 
Court extended the Punjab government's proposed ban to whole of Pakista n. However, Ministry of 
Commerce, in coordination with Ministry of Science and Technology, and Pakistan Standards Quality 
Control Authority held consultations with the relevant federal and provincial authorities to guage the 
scientific evidence, if any, ab out its health hazards. Technical committee of the PSQCA subsequently 
developed a draft Pakistan Standard for the product. Ministry of Commerce, in liaison with Board of 
Investment and the manufacturers/importers of Ajinomoto salt are exploring the options  to denotify 
the said ban.  
 
Question 10: Paragraph 3.68, Page71  
Although Article 14 of Export Processing Zone Authority rules stipulates "Rebate of Excise and 
customs duties for supplies to Zones", supplemental finance bill 2022, endorsed in December 2021,  WT/TPR/M/424/Add.1  
 
- 38 - 
 
  subjected to 17% sales tax onto materials, machinery and equipment utilized in Export Processing 
Zone.  
 
The government of Pakistan is trying to expand its export through attracting foreign investors, 
however, there were concerns about the issue of raising  production costs and the price of finished 
goods manufactured in Pakistan and reducing investment appetite, which may impair international 
competitiveness.  
 
Is the measure against the policy goals to achieve increase of export?  
 
The rationale behind chan ge in policy is that zero -rating and exemptions on plant/machinery and 
materials were introduced earlier for the reason that refund system was cumbersome and the 
exporters faced liquidity issues. Furthermore, the facility of zero -rating and exemptions was prone 
to misuse as tax and duty free machinery and raw material imported/purchased for EPZs ended up 
in local markets. As per VAT standard practice, tax paid on industrial inputs and raw materials are 
refunded without any unnecessary delay. FBR is moving t owards the standard VAT regime.  
 
Question 10: Paragraph 3.68, Page71  
Although Article 14 of Export Processing Zone Authority rules stipulates "Rebate of Excise and 
customs duties for supplies to Zones", supplemental finance bill 2022, endorsed in December 2021, 
subjected to 17% sales tax onto materials, machinery and equipment utilized in Export Processing 
Zone.  
 
The government of Pakistan is trying to expand its export through attracting foreign investors, 
however, there were concerns about the is sue of raising production costs and the price of finished 
goods manufactured in Pakistan and reducing investment appetite, which may impair international 
competitiveness.  
 
What is Pakistan's position on the WTO consistency of this measure, which may viola te Article 3of 
the GATT?  
 
What is Pakistan's position on the Agreement between Japan and the Islamic Republic of Pakistan 
concerning the Promotion and Protection of Investment consistency of this measure, which may 
violate (d) (6) Article 1?  
 
The question  is not clear. The export processing zone authority rules are consistent with Pakistan's 
international obligations.  
 
  WT/TPR/M/424/Add.1  
 
- 39 - 
 
  SOUTH AFRICA  
QUESTIONS REGARDING GOVERNMENT REPORT  
 
3 Economic and Trade Policies  
3.3 Trade Facilitation and Promotion Measures  
  
Page 9 (Para 3.10)  
Pakistan has made substantial efforts to improve border management and facilitate trade during the 
review period,  
 
Read with Page 9 (Para 3.12)  
The PSW will become a single -digital -window interaction between private sector and government  
agencies. It will be implemented in a phased manner starting with PSW Lite, slated for deployment 
in March 2022, and will eventually become part of a larger National Single Window.  
  
Question:  Can Pakistan please provide details on:  
 
(i) the experience in improving border management and trade facilitation over the reporting period. 
As well as the phased implementation of the PSW, and  
(ii) the anticipated implementation time frame for each phase until full implementation of the PSW.  
 
PSW will gradually connect/align 77 OGAs (as listed in the Schedule to the PSW Act, 2021) which 
are directly or indirectly regulating cross border trade.  
 
The first phase of PSW is expected to be completed by April, 2022 which will cover more than 70% 
of LPCOs. It will integrate/align Department of Plant Protection, Animal Quarantine Department, 
Federal Seed Certification Department and Pakistan Standards and Quality Control Authority. 
1st phase will also integrate all banks for cross border trade relat ed remittances regime of State Bank 
of Pakistan. This phase also covers part alignment of Customs and improved integration of Inland 
Revenue Service with PSW. The 1st phase also includes on -line system of single registration 
connecting key national databas es of as well as e -payment system for all type of B2G and B2B 
payments. By June 2024 the PSW will align and integrate more than 21 key OGAs which cover 90% 
of LPCOs. In remaining two phases Integrated Risk Management System and Port Community 
System at all  major sea ports and airports will be made operational.  (detail table is provided and 
will be added in final response (Annex -IV is available), As for the efforts to improve border 
management and facilitate trade, The Government of Pakistan is currently imp lementing the 
Integrated Transit Trade Management System (ITTMS) at three Border Crossing Points (BCPs) of 
Torkham, Chaman and Wahga under the CAREC - RIBS Program funded by Asian Development Bank 
with FBR as the Lead Executing Agency. The Project aims at r ealizing the Government of Pakistan 's 
vision of becoming a transit hub through effective regional connectivity and enhanced Trade 
Facilitation to trigger economic growth, achieve poverty reduction and reinforce geo -economics. The 
Project therefore focuses on modernizing the said BCPs ' infrastructures and value -added services to 
reduce cross -border processing time for cargo and passengers and to improve skill -base of BCP 
operating agencies. The facilities include multi -agency administration and accommodation  buildings 
for 24/7 Operationalization, well equipped Import and Export Customs Control Zones (CCZs) and 
passenger terminals, installation of Gantry, Pass -Through, and Dual View Inspection scanning 
equipment, cargo surveillance systems and e -Gates for pass enger facilitation etc. The Project also 
aims at establishment of Pakistan Land Port Authority (PLPA) to achieve port efficiency 
standardization of logistics costs & reduction in Cost of Doing Business and improved knowledge and 
skills of BCP operating age ncies.  
  WT/TPR/M/424/Add.1  
 
- 40 - 
 
  ARGENTINA  
PREGUNTAS:  
 
Informe de la Secretaría de la OMC (WT/TPR/S/424)  
 
• Punto 3.110  
 
Contexto : En el año 2017 Pakistán modificó su procedimiento para otorgar permisos de importación 
de productos provenientes de 49 especies vegetales. Desde entonces, se exige que la autoridad 
sanitaria local (el Departamento de Protección Vegetal, DPV) apruebe un procedimiento llamado 
Análisis de Riesgos de Plagas (ARP).  
 
Actualmente, los pocos productos vegetales que obtienen permisos de importación en este mercado 
lo hacen en base a autorizaciones puntuales (waivers), ya que no se tiene conocimiento de que el 
ARP haya sido aprobado para ninguna de las 49 especies.  
 
Pregunta 1 : ¿Podría Pakistán informar si ya ha aprobado algún Análisis de Riesgos de Plagas pa ra 
los productos maní, sorgo, girasol, soja y maíz? Y, de ser así, ¿podría Pakistán precisar para qué 
país se ha aprobado el ARP y cuál es el procedimiento específico a seguir para obtener dicha 
autorización?  
 
Most of the low biosafety risk agricultural goods being imported from trading partners are based on 
historical trade. However, Pakistan has conducted Pest Risk Analysis (PRA) with USA, and Brazil for 
import of the following agro -commodity; Soybean.  
 
• Puntos 3.116 y 3.117 y cuadro A3.3  
 
Contexto : En febrero de 2019, Pakistán introdujo nuevas regulaciones sobre envases que exigen 
que el contenido nutricional del bien esté impreso en inglés y urdu; que esta impresión esté sobre 
el envase, es decir, no se permite aplicar etiquetas adhesivas;  que al momento del desembarco le 
quede al menos 66% del tiempo de validez del producto; y que se reporte cuál es la autoridad Halal 
que lo certifica.  
 
En relación a la validez remanente exigida, la norma modifica otra regulación de apenas tres años 
antes,  de 2016, en la que el requisito era de 50%. Para países lejanos, esta norma significa un 
obstáculo muy serio para la exportación de productos perecederos.  
 
Pregunta 2 : ¿Podría Pakistán informar qué tipo de razones de salud pública motivaron la 
modificación del criterio establecido en 2016?  
 
There were frequent complaints to the public authorities and reports in the media of import of 
substandard, expired or near to expired food stuff and its contamination with haram elements. 
(https://www.dawn.c om/news/1472165), (https://www.dawn.com/news/1165567). In view of the 
rising concerns to the public health emanating from the consumption of substanda rd food stuff, the 
government introduced regulations concerning import of food items including minimum she lf life, 
proper labelling and logo/certificate of halal.  
 
• Puntos 3.107, 3.117 y 3.24  
 
Contexto : Para que un producto pueda ser importado por Pakistán, tiene que cumplir dos 
regulaciones internas adicionales: la Orden de Política Importadora - S.R.O. 902 (I )/2020, y el Acta 
Constitutiva de la Pakistan Halal Authority (PHA). De acuerdo a la primera, la importación de 
productos alimenticios requiere que el embarque sea acompañado por un certificado emitido por una 
entidad certificadora acreditada por un órgano  nacional de acreditación que sea miembro del Foro 
Internacional de Acreditación Halal (IHAF, por sus siglas en inglés).  Sin embargo, en adición a esto, 
el Acta Constitutiva de la PHA exige que ésta autorice el uso del logo Halal.  
 
Pregunta 3 : ¿Podría Pakistán brindar más detalles respecto del procedimiento establecido para 
registrar a las entidades certificadoras extranjeras?  
 WT/TPR/M/424/Add.1  
 
- 41 - 
 
  Pakistan Halal Authority (PHA) is responsible for Halal certification in Pakistan. PHA is mandated to 
ascertain the Ha lal status of the products, process and services. The status of the raw materials and 
ingredients being consumed has to be determined, maintained and monitored at all times for Halal 
assurance.  
 
In view of above status of imported products and raw materia ls requires the assurance of the product 
being certified for halal status by the recognized / registered Foreign Halal Certification Bodies 
recognized and registered by Pakistan Halal Authority.  
 
Pakistan Halal Authority recognizes the Foreign Halal Certi fication Bodies complying with PHA 
requirements for registration of Foreign HCB 's recognized by Pakistan Halal Authority and their 
certified Halal products will be allowed to be marketed in Pakistan.  
 
Pregunta 4 : ¿Podría Pakistán precisar los requisitos para que productos Halal extranjeros puedan 
ser comercializados en Pakistán?  
 
Pakistan Halal Authority (PHA) is responsible for Halal certification in Pakistan. PHA is mandated to 
ascertain the Halal status of the products, process and services. PHA registers Local Halal 
Certification Bodies and Foreign Halal Certification Bodies for implementation of Halal regime in 
Pakistan.  
 
The Halal Foreign Certification Bodies shall be recognized and registered with Pakistan Halal 
Authority having permanent membership of shariah experts and engagement of technical expertise 
/food scientists and the certified products, process and services shall comply with Halal certification 
requirements recommended and approved by Pakistan H alal Authority.  
 
The Halal Certification Body of importing country must submit an application to PHA for registration 
and recognition as Foreign Halal Certification Body and products certified by PHA 
recognized/registered Foreign Halal Certification Bodies will qualify to be marketed in Pakistan.  
 
Informe de la Secretaría de la OMC (WT/TPR/S/424)  
 
• Punto 3.1  
 
Contexto : En el punto 3.1 se indica que Pakistán está trabajando para implantar una plataforma de 
ventanilla única nacional. Estas iniciativas han permitido aplicar más del 86% de las disposiciones 
del Acuerdo sobre Facilitación del Comercio y reducir los plazos de despacho de aduana. Además, el 
informe indica que, desde su anterior examen Pakistán ha introducido mejor as significativas en sus 
procedimientos de despacho aduanero, entre ellas cabe citar la introducción de nuevos módulos en 
la Aduana Única Basada en la Web (WeBOC), como los relativos a la evaluación del riesgo, los pagos 
electrónicos, las resoluciones anti cipadas, el despacho anticipado y el programa de operadores 
económicos autorizados.  
 
Pregunta 1 : ¿Podrían ampliar la información referida a las acciones llevadas a cabo con respecto a 
la implementación de la ventanilla única así como también respecto del r esto de las mejores en 
materia aduanera?  
 
PSW will gradually connect/align 77 OGAs (as listed in the Schedule to the PSW Act, 2021) which 
are directly or indirectly regulating cross border trade.  
 
The first phase of PSW is expected to be completed by Apri l 2022 which will cover more than 70% 
of LPCOs. It will integrate/align Department of Plant Protection, Animal Quarantine Department, 
Federal Seed Certification Department and Pakistan Standards and Quality Control A uthority. 
1st phase will also integrate all banks for cross border trade related remittances regime of State Bank 
of Pakistan. This phase also covers part alignment of Customs and improved integration of Inland 
Revenue Service with PSW. The 1st phase also includes on -line system of sin gle registration 
connecting key national databases of as well as e -payment system for all type of B2G and B2B 
payments. By June 2024 the PSW will align and integrate more than 21 key OGAs which cover 90% 
of LPCOs. In remaining two phases Integrated  Risk Ma nagement System and Port Community 
System at all major sea ports and airports will be made operational. To holistically comply with the 
national commitments in regard to the TFA implementation, focused measures through engagement 
with stakeholders and CBRA 's are being pursued in the realm of building capacities as well as WT/TPR/M/424/Add.1  
 
- 42 - 
 
  conducting reviews and develop actionable roadmaps to bridge the gaps in the areas of risk 
management, post clearance audits, advance rulings, TRS, etc.  
 
• Punto 3.2  
 
Contexto : En el inciso 3.2 se explica que durante el período objeto de examen, el promedio global 
de los aranceles NMF aplicados por el Pakistán y el número de tipos arancelarios disminuyeron debido 
a la supresión de los tipos "de puro estorbo" y a la introducción de tipos nulos , que se aplican a casi 
el 30% de las líneas arancelarias. A pesar de ello, el régimen arancelario del Pakistán sigue siendo 
complejo.  
 
Pregunta 2 : ¿Tiene Pakistán pensado seguir realizando acciones para simplificar su régimen 
arancelario? En caso afirmativo ¿Qué tipo de acciones?  
 
The Government aims to further simplify Pakistan 's tariff regime within the implementation period 
of the National Tariff Policy, i.e., 2019 to 2024. Feedback from the private sector, mainly Chambers 
of Commerce and Industry and sector -specific Associations are taken to make tariff structure 
amenable with the objectives of NTP, 2019 -24. The recommendations of the Tariff Polic y Center will 
be presented before the Tariff Policy Board for review and decision, accordingly.  
 
• Punto 3.3  
 
Contexto : En el párrafo 3.3 se indica que, durante el período examinado, con la promulgación de 
la Ley de Derechos Antidumping de 2015, también se introdujeron cambios en el régimen de medidas 
comerciales especiales del Pakistán.  
 
Pregunta 3 : ¿Podría Pakistán informar cuáles son los cambios que fueron introducidos en el régimen 
de medidas comerciales especiales?  
 
Changes in Pakistan's contingency measures regime bring it in harmony with the WTO Anti -Dumping 
and Countervailing Measures Agreement. The main changes incorporated in the new Anti -dumping 
Act include, provisions for the imposition of lesser provisional and final dut ies that are in public 
interest as well as in the interest of domestic industry, exemption from anti -dumping and 
countervailing duties on import of raw materials used solely as inputs of exports, enabling the 
domestic industry to file back -to-back applicat ions in case of termination or conclusion of an 
investigation without imposition of duty. The new Act also strengthens the anti -circumvention 
provision and circumstances under which anti -dumping duty may be extended on products from 
third countries, and on  slightly modified products. Furthermore, the Act explains the mechanism and 
the anti -circumvention duty. The appeals mechanism has also been modified. Appeals against 
initiation, preliminary determination, final determination, and termination under Sectio n 41 are 
provided.  
 
• Punto 3.7  
 
Contexto : En el párrafo 3.7 se menciona que la administración fiscal del Pakistán sigue sin 
desarrollarse adecuadamente debido a los numerosos impuestos, concesiones y exenciones 
vigentes, los engorrosos procedimientos y la presencia de un amplio sector informal. Para abordar 
estos problemas, las autoridades introdujeron en el presupuesto correspondiente al ejercicio 
económico 2021 -2022 un amplio conjunto de medidas de reforma fiscal.  
 
Pregunta 4 : ¿Podrían detallar cuáles son esas medidas?  
 
As part of comprehensive fiscal/ tax reforms, various exemptions under income tax were removed, 
vide Finance Act 2021 -22. Later through Finance Supplement ary Act 2022 similar reforms were 
introduced in Sales Tax  Act 1990 also. Several exemptions avai lable to corporate sector and others 
have been withdrawn as part of tax reforms to eliminate discretionary practices and to provide level 
playing field.  
 
• Punto 3.35  
 
Contexto : En el párrafo 3.35 se explica que Pakistán ha consolidado el 97% de sus aranceles al 
nivel de 8 dígitos del SA (7.129 líneas están totalmente consolidadas y 18 líneas están parcialmente WT/TPR/M/424/Add.1  
 
- 43 - 
 
  consolidadas). Las líneas no consolidadas comprenden la carne y los pr oductos cárnicos (6 líneas 
arancelarias), las bebidas alcohólicas (18 líneas), determinados aceites lubricantes (3 líneas), 
determinados productos químicos (2 líneas arancelarias - hidróxido de sodio en disolución acuosa y 
determinado tipo de sorbitol) y l os vehículos (194 líneas que incluyen los tractores, los vehículos 
automóviles para transporte de menos de 10 personas, los vehículos automóviles para transporte 
de mercancías, los vehículos para usos especiales tales como camiones grúa, los chasis y carro cerías, 
las motocicletas, las bicicletas y los remolques).  
 
Pregunta 5 : ¿Tiene pensado Pakistán consolidar las líneas arancelarias que aún no están 
consolidadas?  
 
This issue may be discussed with relevant stakeholders and necessary policy decision will be taken 
accordingly.  
 
• Punto 3.39  
 
Contexto : En el párrafo 3.39 se menciona que, desde 2015, el Gobierno ha publicado unas 30 SRO 
(Ordenes Reglamentarias Especiales), relacionadas con el comercio, relativas a cuestiones de 
procedimiento o a exenciones  y concesiones. Según las autoridades, las SRO son instrumentos de 
legislación delegada que permiten al Gobierno federal conceder exenciones de derechos e impuestos 
en circunstancias muy limitadas y específicas (por ejemplo, en un escenario de emergencia 
alimentaria).  
 
Pregunta 6 : ¿Podrían dar mayor detalle respecto de las exenciones y concesiones mencionadas?  
 
• Punto 3.46  
 
Contexto : En el párrafo 3.46 se indica que la autoridad investigadora en materia de medidas 
antidumping, compensatorias y de salvaguardia es la Comisión Nacional de Aranceles. La Comisión 
se rige por las disposiciones de la Ley de Derechos Antidumping de 2015, que sustituyó a la Orden 
sobre Derechos Antidumping de 2000. La Ley de Derechos Antidumping de 2015 se ha notificado a 
la OMC. Asimismo, en el párrafo 3.48 se menciona que, entre los principales cambios incorporados 
a la nueva Ley cabe mencionar la posibilidad de que la rama de producción nacional presente 
solicitudes consecutivas en caso de que la Comisión termine o conclu ya una investigación, 
disposiciones que prevén la imposición de derechos provisionales y definitivos menores en interés 
público y de la rama de producción nacional, y la exención del derecho antidumping sobre la 
importación de materias primas utilizadas ún icamente como insumos de las exportaciones, el 
programa de deducción de derechos e impuestos a la exportación y los depósitos de aduanas.  
 
Pregunta 7 : ¿Podría Pakistán explicar las mejoras observadas en la aplicación de la nueva Ley de 
Derechos Antidumping?  
 
Changes in Anti -dumping duties Act has enabled the National Tariff Commission (the "NTC") to 
impose lesser duty in public interest, which in suffic ient to remove injury to the domestic industry 
and exempt anti -dumping duties the on import of raw materials used solely as inputs of exports. 
Further, the new Act also strengthens the anti -circumvention provision. Furthermore, the appeals 
mechanism has al so been modified. Appeals against initiation, preliminary determination, final 
determination, and termination under Section 41 are provided in changed Act. All these changes 
have enabled the NTC to conduct investigations in a transparent and efficient mann er as well as to 
safeguard the public and domestic industry 's interest.  
  WT/TPR/M/424/Add.1  
 
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  SINGAPORE  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
QUESTION:  
 
3. Trade Policies and Practices by Measure  
 
Page 56 (Para 3.11)  
 
1. The WTO Secretariat Report notes that Pakistan's state -owned enterprises (SOEs) 
underwent comprehensive review and that the "privatization of some of them is under way." What 
is the timeline for the privatization of the identified SOEs?  
 
For privati zation of 02 RLNG Power Plants, debt refinancing/ recapitalization is under way to be 
completed by end -June 2022.  
 
In case of privati zation of 03 banks, one of the banks was proposed for delisting. In case of House 
Building Finance Corporation, deadline for subm ission of Expression of Interests is end -March 2022. 
For the First Woemn Bank Limited, Audit for the years 2018 to 2021 is underway.  
 
Regarding sale of assets 02 hospitality/ tourism sites at Lahore and Islamabad, bidding of the Lahore 
based entity has bee n successfully completed in Aug 2021.  
 
For privati zation of 02 engineering companies, bidding process of heavy electrical complex has been 
completed in Feb 2022.  
 
Regarding revival of Pakistan steel mills, 04 international parties have been pre -qualified f or 
participation in the bidding process.  
 
For Capital market transactions of 03 entities, the process could not be completed as petroleum 
company has been delisted from privati zation list.  
 
4.5.5.3 Maritime and inland water transport  
 
Page 132 (Para 4.236)  
 
2. The WTO Secretariat Report also notes that once the southern part of the free zone of Pakistan 
is completed, "the Government is to provide tax incentives to enterprises operating in the zone". 
What are the tax incentives that will be provided by  the Pakistan Government?  
 
Government of Pakistan is providing following tax incentives of Gwadar Port Free Zone: i. Complete 
tax holiday for corporate income taxes for a period of twenty years. ii. Exemptions of the Lenders 
from income tax on interest inc ome and stamp duties in respect of the Financing Agreements. iii. 
Exemptions from Sales Tax. iv. Exemption of all the provincial and local taxes, duties, charges and 
levies etc for twenty (20) years. v. Exemption of duties on ship bunker oils for Gwadar an d the grant 
of bunkering licenses. vi. Exemptions on import duties and sales tax on materials and equipment for 
constructions/expansion and operations of the Project for the term of the Agreement.  
  WT/TPR/M/424/Add.1  
 
- 45 - 
 
  KOREA , REPUBLIC OF  
PART I: Questions Regarding the Secretariat Report   
 
Page 87  (para 3.137 & 3.138)  
 
The main procurement method continues to be open competitive bidding and is used for all tenders 
above PKR 500,000. Tenders between PKR 0.3 million to PKR 3 million must be advertised on the 
PPRA website; higher tenders also need to be advertised in at least two national newspapers (one 
in Urdu and one in English). Pre-qualification of bidders must be based on ability to perform 
satisfactorily.  Direct and negotiated contracting42 are permitted subject to pr escribed conditions; 
direct tendering is allowed when no advantage is envisaged from competitive bidding or where 
proprietary rights are involved.  
 
Bidding is open to any nationality , and procuring agencies can provide supplier price preferences 
where thi s is government policy. Price preferences of up to 25% are in place on all government 
purchases depending on domestic value -added content; the maximum preference requires at least 
35% domestic value -added. During the review period, the PPRA issued a total of 1,674 tenders 
valued at PKR 50 million or above, of these 324 were issued to foreigners  
 
Question 1  
 
Medical equipment in Pakistan are mainly demanded by national hospitals through the government 
bidding system, which accounts for 75% of the total demand of the country's medical equipment. 
As the secretariat's report states on page 87, the conditions notified by the government departments 
in charge of the biddings such as the DRAP do not clearly state any nationality requirement. However, 
specific n otifications for the actual biddings, in fact, require the origins of certain nationalities such 
as US, EU, Japan, etc. In this context, could Pakistan explain the reason actual bidding notifications 
require such nationalities for the origin of the product ? 
 
As per the existing procurement regulatory framework of Pakistan, the procuring agencies are bound 
to ensure the widest possible competition by defining the generic specification as well as the allied 
quality characteristics without referring to any bra nd name or origin or the country. In case where 
defining such specifications or quality characteristics is not possible without reference to any brand 
name (or any origin), the word "equivalent" may be used after recording the justifications in writing 
and defining the parameters of equivalence. With specific reference to the health industry, as a first 
step the draft standard bidding documents for pharmaceuticals have been shared by the Federal 
PPRA with the stakeholders for their views comments. As far as  the reasons for referring the origin 
for purchasing the medical equipment is concerned, one of the reasons seems to ensure the quality 
of the medical equipment keeping in view the sensitivity of the profession, however the same 
couldn't be used as an excu se. For this purpose, Federal PPRA has split its training/awareness and 
capacity building sessions. The basic level of training sessions are general in nature, whereas the 
advanced levels are being customized by focusing on the practices of the respective trade. These 
advanced level courses will be helpful to ensure the capacity building of the procuring agencies in 
the manner in which they will be able to ensure the quality of the offered products without any 
reference to the brand names or the origin.  
 
Page 90(Para 3.154)  
 
In terms of enforcement, the IPO coordinates closely with the police, the FIA, and Customs; in this 
regard, specific guidelines have been issued. Pakistan has continued its efforts to advance IPR 
enforcement through raids, seizures, and arrests by various enforcement authorities. However, 
enforcement officials do not exercise ex officio authority without a formal complaint by a 
rights' holder.  During the review period, 1,867 IPR -related cases were registered, of which 
1,641  were resolved, and 226 remain pen ding. 
 
Question 2  
 
Regarding trademarks, in order for the police to start its investigation, the company suffering from 
damage is the one that is responsible for proving the violation of intellectual property. Considering 
the fact that foreign companies do not have public au thorities to investigate the details such as the 
amount of loss, it makes it difficult for the companies to carry the burden of proof in actual WT/TPR/M/424/Add.1  
 
- 46 - 
 
  controversies over trademarks. In this context, if there is any plan to ease the burden of companies 
in dealing with controversies and, if yes, could Pakistan please notify the plan?  
 
The IP rights are private civil rights so the right holder will have to file a suite for his/her trademark 
infringement in the IP Court of relevant jurisdiction. All the proof of infri ngement and damages will 
be provided by the applicant to the IP Tribunal. The rule applies both on national and overseas right 
holders. The foreign TM holder may engage an IP Attorney for such type of litigation. He/she is given 
national treatment in the p roceedings.  
 
Page 7(Para 2)  
 
During the review period, trade and trade related structural reforms focused on bolstering 
governance, efficiency, and the business climate; reforms, supported by the EFF, were undertaken 
in several areas including monetary, taxation, privatization, energy , competition policy, and 
corporate governance. In response to the COVID -19 pandemic, the State Bank of Pakistan has 
proactively loosened its prudent monetary policy under which the policy rate was changed 17 times 
between 15 May 2015 and 26 June 2020 from  6% to 13.25% (13 July 2019), a peak from which it 
was progressively cut to 7% on 26 June 2020 and then it was raised to 7.25% on 21 September 
2021. To support the balance of payments, exchange restrictions  and multiple currency practices 
were introduced in 2017 and 2018. Following a series of exchange rate adjustments since late 2017, 
on 16 May 2019 the system was changed from a de facto exchange rate arrangement (i.e. managed 
floating with no predetermined  path for the exchange rate) to a market -determined exchange rate 
system that has supported external adjustment and reserve accumulation.  
 
Question 3  
 
As stated regarding the foreign exchange restriction in the secretariat's report on page 7, exchanging 
Pakistani Rupee (PKR) into US Dollar (USD) and remitting to the head office of foreign companies 
have been restricted. The regulations make the foreign companies suffer from a lack of money 
circulation. Could Pakistan please inform its position on this matte r and share any plans for 
deregulation?  
 
During last couple of years, SBP has taken significant measures for liberalizing the foreign exchange 
regime in order to promote foreign investment in the country. Accordingly, branches of foreign firms 
and companie s (other than banking companies) just need to approach SBP for designation of a bank 
for the purpose of remittance of profit/ head office expenses. After acknowledgement of designation 
by SBP, the companies may remit their profits/ head office expenses/ wi nding up proceeds of 
branch/liaison office through the concerned designated bank without SBP approval.  
 
Following link can be used to see further details: https://www.sbp.org.pk/fe_manual/pdf/2020/Chp -
14.pdf  
 
Page 117(Para 4.142)  
 
Used vehicles may be imported under a special regime  where taxes are levied on the basis of 
engine capacity (Tabl e 4.17). Buses, vans, and trucks are excluded from this regime.  
 
Question 4  
 
Pakistan regulates the import of secondhand cars made over three years ago. Due to the regulation 
on the import of secondhand cars, competitively priced and high quality secondhand cars that are 
made more than three years ago are being blocked. Could Pakistan explain the reason for the 
regulation of commercial secondhand car import? If there is any plan for deregulation, could Pakistan 
please notify it?  
 
It is clarified th at import of up to three years old cars is allowed under different schemes of import 
policy including transfer of residence, gift scheme and personal baggage. The subject relates to 
Ministry of Commerce. However, it may kindly be noted that import of new c ars is permitted in 
Pakistan. Due to significant investment by renowned companies like Toyota, Suzuki, Honda, Kia, 
Hyundai, Proton, Changan, BAIC etc which are manufacturing cars in Pakistan, import of second 
hand cars is discouraged. The auto part manufac turing companies have also made significant WT/TPR/M/424/Add.1  
 
- 47 - 
 
  investments in local market and localization which will be affected negatively in case used car import 
is liberalized.  
 
PART III: Other Questions  
 
Question 5  
 
As the IGCEP (Indicative Generation Capacity Expansion Plan) is mainly performed by PPP (public -
private partnership), IPPs (independent power producers) are having difficulty.  
 
First, it is pointed out that IPPs only have a small portion in the IGCEP. Does Pakistan have any plan 
to ensure a greater participation of IPPs?  
 
Second, IPPs are dealing with a contradiction. In order to get the LOS (Letter of Support), the IPP 
concerned should be in the IGCEP. At the same time, in order to be in the IGC EP, the IPP is required 
to have a LOS. Does Pakistan have any plan to resolve this contradiction?  
 
Third, most PPPs, which comprise the current IGCEP, are expected to experience delay in the 
projects. If this case, IPPs that wish to be in the IGCEP may fai l to get the license in time, which will 
result in the failure to be in the list of those exempted from corporate tax. This will possibly lower 
the profitability of the companies. In order to solve this problem, could Pakistan consider a 
conditional LOS fo r the period before the next IGCEP?  
 
The generation planning framework for Pakistan is primarily derived on the principle of least cost 
and it does not constraint inclusion of any specific structure of project. Also, most of the future power 
plants shall b e in IPP mode with exception of certain strategic projects.  
 
Question 6  
 
The company conducting the Lowari Tunnel Project is unbearably losing money due to the delay of 
the approval of the 3rd Revised PC -1 and payment avoidance by the National Highway Authority 
(NHA), which is responsible as the construction owner. Could Pakistan please inform any plan to 
speed up the approval?  
 
Pakistan respects all its investors and understands that the matte r may deserve high -level 
intervention and promises fullest cooperation in this regard. Pakistan requests for this issue to be 
highlighted bilaterally in the JWG level.  
 
  WT/TPR/M/424/Add.1  
 
- 48 - 
 
  COSTA RICA  
A. Informe de la Secretaría  
 
Página 103, párrafo 3.142  
 
3.142. Las patentes se conceden por un período de 20 años a contar de la fecha de presentación de 
la solicitud. Se paga una tasa de PKR 6.750 por solicitud de patente; por cada página de las 
especificaciones que exceda de 40 páginas se cobran PKR 90, y por cada reivi ndicación que exceda 
de 20 se cobran PKR 225. Después de cuatro años, el titular debe pagar un derecho de renovación 
de PKR 12.000 al año hasta el octavo año, PKR 18.000 anuales entre los años noveno y duodécimo, 
PKR 24.000 anuales entre los años decimoter cero y decimosexto, y PKR 32.000 al año en lo sucesivo. 
Los extranjeros deben solicitar las patentes a través de un agente de patentes. Las autoridades 
sostienen que el plazo medio para el registro de patentes es de 24 a 30 meses. Además, desde 2015 
no se ha expedido ninguna licencia obligatoria para productos farmacéuticos ni otra invención.  
 
Pregunta:  
 
• ¿Cuál es el fundamento legal por el que los extranjeros deben solicitar una patente a través 
de un agente de patentes local? ¿Existe algún dato respecto al porcentaje de patentes anual 
registrado por extranjeros?  
 
The Patents Ordinance, 2000 and The Patents Rules 2003 do not have any mandatory provisions to 
appoint a local patent agent. The Rule 7 of Patent Rules, 2003 mentions that address for se rvice in 
Pakistan must be provided by the applicant. In this situation if the applicant has no any local address 
he/she has to engage local patent agents for this facility. Average annual foreign applications 
received by our Patent office are around 75%. D ata is also available on IPO's website 
www.ipo.gov.pk.  
 
Página 104, párrafo 3.152  
 
3.152. La digitalización de los datos en los registros de marcas de fábrica o de comercio y de 
derechos de autor y su utilización por parte de la Junta Federal de Ingresos Públicos ha dado lugar, 
al parecer, a un aumento de las confiscaciones en las fronteras de mercancías pirateadas y 
falsificadas. Durante el período objeto de examen, se realizaron importantes avances en la lucha 
contra los productos falsificados y  la piratería en línea: la Administración de Aduanas del Pakistán 
puso en aplicación las nuevas Normas de Observancia de los Derechos de Propiedad Intelectual 
(Importación y Exportación) de 2017, que permiten a los funcionarios de aduanas del Pakistán 
adoptar medidas por propia iniciativa contra las mercancías falsificadas o infractoras. Además, 
también se está recurriendo a los artículos 26 y 31 de la Ley de Prevención de Delitos Electrónicos 
de 2016 para inutilizar el contenido infractor en línea. Por otr a parte, el Organismo de 
Reglamentación de los Medios de Comunicación Electrónicos del Pakistán (PEMRA) también está 
abordando la cuestión de la piratería de señales. Ha distribuido varias circulares y notificaciones a 
las empresas de radiodifusión para ad vertirles que deben utilizar contenido autorizado y cumplir las 
leyes de derecho de autor del Pakistán.  
 
Pregunta:  
 
• En relación con la digitalización de datos en los registros de marca, ¿podría Pakistán por 
favor indicar si se trata de una base de datos y qué información posee de manera que haya 
ayudado al aumento en las confiscaciones de bienes falsificados?  
 
Pakistan is using Industrial Property Administration System (IPAS) provided by WIPO for registration 
process of Trademarks. FBR is given VPN access t o the registered data of IPAS. The Custom's officers 
during their duty hours may access this database and take information about registration of any 
trademark of the product which is being exported from Pakistan. It reduces action time for the 
Custom's off icers to handle the IP infringement  cases.  
 WT/TPR/M/424/Add.1  
 
- 49 - 
 
  Página 105, párrafo 3.153  
 
3.153. También se ocupa de las cuestiones relacionadas con la piratería en línea el Organismo de 
Telecomunicaciones del Pakistán (PTA). Este ha emitido directivas destinada a los provee dores de 
servicios de telecomunicaciones y de Internet para que cumplan las leyes de derecho de autor del 
Pakistán. Además, la Agencia Federal de Investigación (FIA) ha establecido una Dirección Especial 
de Delitos contra la Propiedad Intelectual. También es responsable de la aplicación de la Ley de 
Prevención de Delitos Electrónicos de 2016, que permite a la Agencia proteger el contenido en línea 
amparado por el derecho de autor. Por consiguiente, la FIA también estableció un Centro Nacional 
de Respuesta a  los Delitos Cibernéticos.  
 
Pregunta:  
 
• ¿Podría Pakistán por favor explicar un poco más cuáles son las medidas concretas que ha 
tomado el PTA para asegurar el cumplimiento de la normativa de derechos de autor?  
 
In accordance with applicable telecom legal framework, per se, issues related to online piracy do not 
fall within telecom regulatory regime. Therefore section 3.153 of the Secretariat Report is 
incorrect/misreported.  
 
Previously, pursuant the request of I PO, PTA only facilitated IPO for arranging comments pertaining 
to copyright related matters from CMOs.  
 
Páginas 104 y 105, párrafos 3.152 y 3.154  
 
3.152. La digitalización de los datos en los registros de marcas de fábrica o de comercio y de 
derechos de a utor y su utilización por parte de la Junta Federal de Ingresos Públicos ha dado lugar, 
al parecer, a un aumento de las confiscaciones en las fronteras de mercancías pirateadas y 
falsificadas. Durante el período objeto de examen, se realizaron importantes avances en la lucha 
contra los productos falsificados y la piratería en línea: la Administración de Aduanas del Pakistán 
puso en aplicación las nuevas Normas de Observancia de los Derechos de Propiedad Intelectual 
(Importación y Exportación) de 2017, que p ermiten a los funcionarios de aduanas del Pakistán 
adoptar medidas por propia iniciativa contra las mercancías falsificadas o infractoras. Además, 
también se está recurriendo a los artículos 26 y 31 de la Ley de Prevención de Delitos Electrónicos 
de 2016 p ara inutilizar el contenido infractor en línea. Por otra parte, el Organismo de 
Reglamentación de los Medios de Comunicación Electrónicos del Pakistán (PEMRA) también está 
abordando la cuestión de la piratería de señales. Ha distribuido varias circulares y  notificaciones a 
las empresas de radiodifusión para advertirles que deben utilizar contenido autorizado y cumplir las 
leyes de derecho de autor del Pakistán.  
 
3.154. En cuanto a la observancia, la Oficina de Propiedad Intelectual se coordina estrechamente 
con la policía, la FIA y la Administración de Aduanas; a este respecto, se han publicado directrices 
específicas. El Pakistán ha seguido esforzándose por promover la observancia de los derechos de 
propiedad intelectual mediante las redadas, i ncautaciones y detenciones que llevan a cabo las 
distintas autoridades encargadas de hacerlos respetar. No obstante, los funcionarios encargados de 
la aplicación de la ley no ejercen su autoridad de oficio sin una reclamación oficial del titular del 
derech o. Durante el período objeto de examen, se registraron 1.867 casos relacionados con los 
derechos de propiedad intelectual, de los cuales se resolvieron 1.641 y siguen pendientes 226.  
 
Pregunta:  
 
• ¿Podría Pakistán por favor explicar un poco más cuáles actuac iones pueden realizar las 
autoridades de oficio y cuáles no?  
 
Pakistan Customs, in line with the government 's international (bilateral and multilateral) 
commitments, strives to facilitate the entry of goods under different FTAs and PTAs. Goods availing 
preferential rates are allowed clearance essentially on the basis of the Certificate of Origin presented 
by the importers along with their Goods Declarations. The Certificate of Origin is accepted only if it 
is issued by the government (or its authorized agen cies) of the country of origin of the goods and 
enough details are provided in order to enable the Customs authorities to identify/verify the same. 
Details include the description/quantity as well as an eight -digit Code under the Harmonized System 
denoting the goods, information about the foreign exporter and domestic importer of the goods and WT/TPR/M/424/Add.1  
 
- 50 - 
 
  value of the goods in foreign currency. The Certificate of Origin, being a compact document 
containing most of the esse ntial information relevant to the clearance of the goods through Customs, 
being issued by responsible governmental agencies and mostly verifiable online, aids the Customs 
authorities in quickly ascertaining the origin of the goods for the purposes of the F TAs/PTAs and 
resulting facilitative and prompt clearance of the goods.  
  WT/TPR/M/424/Add.1  
 
- 51 - 
 
  TURKEY  
THE GOVERNMENT REPORT  
 
3.10 Sectoral policies, pg.16, 3.65.  
 
It is stated in Government Report that "Pakistan's federal cabinet approved the e -Commerce Policy 
Framework in 201 9. The policy has led to fast -tracking of reforms to increase digital payments and 
cross border e -commerce. Pakistan is now included in the Amazon's seller list, allowing Pakistani 
SMEs and Women Entrepreneurs to sell their goods in the global market ." 
 
Question : Could Pakistan provide further detailed information about the "e-Commerce 
Policy Framework "? 
 
National e -Commerce Policy is available at: https://www.commerce.gov.pk/wp -
content/uploads/2019/11/e -Commerce_Policy_of_Pakistan_Web.pdf   
 
3.4 Bilateral and Regional Trade Arrangements, pg.11, 3.29.  
 
It is stated in the Government Report that "Pakistan signed a bilateral Transit Trade Agreement with 
Uzbekistan in 2021. This was an important milestone since it will connect Uzbekistan and Central 
Asian Republics (CARs) with the Arabian Sea and als o provide Pakistan and other countries with 
shorter access to CAR markets. Under the agreement, Pakistan is expected to have transshipment 
access to all of Uzbekistan's neighbors. The agreement facilitates regional integration by allowing 
transshipment, bo rder warehousing, mutual recognition of identification documents and visa -
facilitation. " 
 
Could Pakistan provide further detailed information about the Transit Trade Agreement 
with Uzbekistan?  
 
The Transit Trade Agreement with Uzbekistan was signed on 15th July,2021 and was operationali zed 
on 3rd March,2022. the detailed agreement is present on: https://www.commerce.gov.pk/wp -
content/uploads/2022/03/AUPTT.pdf   
  WT/TPR/M/424/Add.1  
 
- 52 - 
 
  EUROPEAN UN ION 
WT/TPR/G/424 – Government report  
 
1 INTRODUCTION AND OVERVIEW  
 
No questions  
 
2 ECONOMIC AND TRADE ENVIRONMENT  
 
2.1 Pakistan's economy  
 
Paragraph 2.2, page 5  
 
EU question nr. 1:  
To prevent further contraction of the industrial sector as a sign of early de -industrialization, the 
Pakistani authorities have taken various strategic initiatives to enhance productivity and 
competitiveness of key sectors. Could Pakistan provide some deta ils regarding the impact of these 
measures/initiatives on rebooting industrialization and promoting an environment conducive for job 
creation for the younger generation?  
 
As a result of prudent policies, the manufacturing sector has witnessed a revival in recent times.  
Production in areas such as textiles, cement, light engineering, automobiles, mobile phones, 
pharm aceuticals et c. has shown considerable improvements. In addition, exports have also shown 
a steady increase in recent years. This has led to the  creation of new jobs for the large youth 
population of Pakistan.  
 
2.2 Trade and external balances  
 
Paragraph 2.3, page 6  
 
EU question nr. 2:  How does Pakistan plan to take advantage of EU GSP preferences to diversify 
its exports? Has the Pakistani govern ment put in place an inter -ministerial team to meet all the 
necessary criteria for Pakistan to be maintained in GSP+ countries? Could Pakistan clarify the impact 
of GSP+ on female employment?  
 
a) Pakistan 's exports over the years have remained concentrated  in few sector with cotton based 
fabrics, garments and home textiles constituting a high percentage of total exports. This 
concentration in exports is also reflected in Pakistan 's exports to EU.  
 
Increasing the product and geographic diversification of exp orts is one of the top agendas items of 
the Government of Pakistan. In this regard, the Government has in its Strategic Trade Policy 
Framework 2020 -2025 identified eleven new developmental sectors including processed food items, 
engineering goods, chemical s, footwear, gems & jewelry, marble & minerals, fisheries etc. GSP+ 
provides liberal concession in many of the targeted sectors identified by the Government for export 
enhancement and diversification. Moreover, EU is the top import market for many of these  sectors. 
The Government plans to introduce targeted interventions to provide a conducive environment for 
the private sector to increase the production base in these sectors and thereby increase their exports 
to the EU.  
 
The Government has approved Mobile  Manufacturing Policy 2020, Textile Policy 2020 -25 and 
National Tariff policy to promote production and export of manufacturing goods from Pakistan. 
Through concentrated government efforts, Pakistan has seen decent increase in exports of a number 
of value -added products such as lead batteries, tractor parts, articles of base metal, fans, white 
engineering goods etc. However the export base at the moment is relatively small, but growing, and 
more directed towards developing countries. EU offers generous conc ession in many of these 
products and it is the aim of the Government that Pakistan 's manufacturers increase their product 
quality and take advantage of the concessions offered by EU to increase their exports. To achieve 
this end the government is facilitat ing import of plant and machinery. Similarly, SBP has also 
introduced schemes providing medium to long term financing for modernization of SMEs existing 
units or for setting up of new SME units. The Government has also directed its commercial section WT/TPR/M/424/Add.1  
 
- 53 - 
 
  in EU  to increase their efforts in B2B matchmaking especially for non -traditional value added 
products.  
 
The Government has also recently formed National Export Development Board with the PM as its 
chairman and all heads of economic ministries, business leader s and technical advisors as its 
members to ensure that exports are treated as national priority.  
 
b) Government of Pakistan set up a Treaty Implementation Cell (TIC) to oversee & monitor the 
progress on implementation of the requisite UN Conventions. Unde r TIC's mandate, an inclusive 
board has been constituted under the aegis of the Attorney General of Pakistan. TIC is an interactive 
forum that brings together representatives of federal / provincial ministries and international UN 
organizations and workers  representatives. The dedicated secretariat of TIC is housed in the Ministry 
of Commerce, Pakistan.  
 
TIC has conducted 25 meeting to date and has responded to List of Issues forwarded by the EU over 
the years. The continuous engagement of the Federal Trea ty Implementation Cell with respective 
Ministries, Provincial Government, Provincial Treaty Implementation Cells and other stakeholders 
has proved instrumental in fulfilling Pakistan 's commitments under GSP Plus scheme.  
 
c) GSP+ has had major positive imp act on the female employment in Pakistan. The apparel sector 
in Pakistan is the most prominent industrial sector for female employment. The apparel sector 
employs more than 33% female workers with many female workers also in managerial positions. 
Under the  GSP+, the apparel sector has been the prime beneficiary with Pakistan exports to EU in 
apparel increasing by 150% since GSP+. This increase in exports have resulted in companies 
expanding their operations and significantly increasing the employees includi ng female workforce.  
 
3 ECONOMIC AND TRADE POLICIES  
 
3.3 Trade Facilitation and Promotion measures  
 
Paragraph 3.11, page 9  
 
EU question nr. 3:  The paragraph states that Pakistan's commitments under the trade facilitation 
agreement (TFA) are constituted for 40% of Category B measures and for 20% of Category C 
measures. What is Pakistan's expected implementation timeframe for Category B measures? 
Similarly, has Pakistan fully notified Category C measures and specified the technical assistance 
required for their implementation?  
 
Information sought here against Pakistan's Cat - B & C commitments is acce ssible at 
https://tfadatabase.org/members/pakistan  
Pakistan has specified the Technical Assistance required for implementation of Category C at: 
https://tfadatabase.org/members/pakistan#tab -3 under G/TFA/N/PAK/1/Add.3 2020 -06-30 
Category C notification - Addendum 3  
 
Paragraph 3.21, page 10  
EU question nr. 4:  The paragraph states that "Pakistan has seen progress in acceding to the 
Revised Kyoto Co nvention, ATA Carnet Convention, COTIF (Convention on International Carriage by 
Rail) and TIR". When does Pakistan plan to accede to these various conventions and what are the 
steps it has taken in this regard?  
 
Pakistan has already acceded to all these co nventions. The paragraph referred intends to say that 
Pakistan has seen progress consequent to signing the said Conventions.  
 
3.4 Bilateral and Regional Trade Arrangements  
 
Paragraph 3.30, page 11  
 
EU question nr. 5:  The paragraph states that Pakistan is negotiating preferential trade agreements 
with Afghanistan. What is the status of the discussions? Have negotiations resumed with the Afghan 
transitional government?  
 
Negotiations on the PTA have not been resumed yet.  WT/TPR/M/424/Add.1  
 
- 54 - 
 
   
Paragraph 3.31, page 11  
 
EU question nr. 6:  The paragraph states that Pakistan and Afghanistan are in the process of 
renegotiating the Afghanistan Pakistan Transit Trade Agreement (APPTA) and reducing costs and 
delays for traders. What is the status of the discussions? Have negotiations resum ed with any 
technical teams from the Afghan transitional government?  
  
The new APTTA is being finalized by Ministry of Commerce in consultation with all stake holders 
including Pakistan Customs. The major changes viz a viz APTTA 2010 include provision of c ross 
stuffing of forward cargo at on dock, as well as, off dock terminals and that of reverse cargo at 
Terminals at the border stations. Moreover, under Temporary Admission Document (TAD) to be 
issued by respective Embassies/Counsel Generals the vehicles o f Afghanistan can move upto seaport 
in Pakistan whereas Pakistani vehicles can move upto the borders of Afghanistan with other Central 
Asian countries. As Pakistan has also operationalized Transit Trade with Uzbekistan, so the TAD will 
also help in smooth movement of Pakistan vehicles laden with Uzbek transit cargo through 
Afghanistan into Uzbekistan.  
 
Paragraph 3.34, page 12  
 
EU question nr. 7:  Reference is made to the "TAPI" project (Turkmenistan, Afghanistan, Pakistan, 
India gas pipeline). According to t he Pakistani government, is India still a stakeholder in this project? 
Are officials from the Afghan interim government also part of the discussions?  
 
a) Yes, India is still a stake holder in the project as informed by Tapi Pipline Company Limited (TPCL).  
 
b) Afghanistan is an integral part of the project. TPCL being the project company is coordinating 
with the Afghan counterpart for the implementation of the project.  
Paragraph 3.35, page 12  
 
EU question nr. 8:  The paragraph indicates that the Iran -Pakistan gas pipeline project is part of 
the overall cooperation between the two countries. Is this project still relevant?  
 
Yes, the project is relevant and both countries are committed to implement the project, subject to 
easement of international sanctions on Iran.  
 
3.7 Infrastructure  
 
Paragraph 3.55, page 14  
 
EU question nr. 9:  The paragraph recalls that Pakistan signed with Uzbekistan and Afghanistan a 
roadmap for a Mazar -i-sharif -Kabul -Peshawar railway line in February 2021. Has a working group 
been set up after this agreement, and is it currently active?  
 
Yes, it is currently  active.  
 
3.9 Intellectual Property  
 
Paragraph 3.60, page 15  
 
EU question nr. 10:  When will the Pakistani authorities set up a register of geographical indications?  
 
GI Registry is fully functional in Pakistan you may visit details at the following link 
(https://ipo.gov.pk/gi_registrar ) 
 
EU question nr. 11:  Could Pakistan explain the control mechanism it has set up in addition to the 
2020 GI law?  
 
Control mechanism for different GIs will be set up differentl y. Till date only one GI is registered in 
Pakistan i.e. Basmati rice. Trading Corporation of Pakistan (TCP) is declared as certification body for 
basmati rice.  
 WT/TPR/M/424/Add.1  
 
- 55 - 
 
  Paragraph 3.62, page 15  
 
EU question nr. 12:  IPO Pakistan has started the revision of national IP laws and streamlining of 
the associated legal processes. Currently, the amendments are under submission to the Federal 
Government for approval. Could Pakistan elaborate on the above mentioned revisions and 
amendments?   
 
Amendments in Trademark law have already been submitted to the Federal Government for 
approval. The Consultations with stakeholders on copyright law have been completed. Consultation 
on Patent law is under process. The draft will be appro ved in principal by the Federal Cabinet and it 
will be put up in the parliament for enactment. It will be passed by the National Assembly and the 
Senate. Finally the President of Pakistan will sign the approved Bill and it will become Act of the 
parliament . The whole process may take 18 months.  
 
3.12 Sustainable Development and Social Protection  
 
Paragraph 3.89, page 18  
 
EU question nr. 13:  What policies does Pakistan implement to facilitate women's access to 
international trade? Are women specifically taken into account within the "skills for all" program 
developed in section 3.8?  
 
Skill development in the country which could link the skillful directly with the international trade is 
youth specific. The 'Kamyab Jawan' program offers a wide range of globally in -demand skills which 
are being offered by Universities and skill development institutions to youth all over Pakistan. 
Complementarily, the e -commerce policy takes a women centric approach: under one (out of 9) 
pillar of the said policy coordination is being developed among One Woman One Account initiative, 
Ehsaas and Kamyab Jawan program by launching various initiatives for encouraging digital 
marketing, capacity building/training (with focus on women entrepreneurs) and e -Commerce 
enterp rises. Additionally, the Ministry of Commerce in Pakistan envisions development of an online 
platform for economic empowerment of women entrepreneurs and exporters (WEXNET) which will 
support women in seeking economic benefits and engaging more effectively  in international trade.  
 
4 MULTILATERALISM  
 
No questions  
 
5 WAY FORWARD  
 
No questions  
 
WT/TPR/S/424 – WTO Secretariat report  
SUMMARY  
 
Paragraph 10, page 9  
 
Following a year -long investigation, the National Tariff Commission (NTC) imposed anti-dumping 
measures in February 2022 on imports of flat steel products from the European Union, 
Chinese  Taipei, Republic of Korea and Viet Nam. The NTC imposed these anti -dumping measures on 
imported flat steel products for a period of 5 years ranging fr om 6.18% to 17.25%, depending on 
the products. The press release refers to the "economic damage" suffered by the Pakistani steel 
industry in the face of "the significant increase in the volume of imports, underutilized industry 
capacity in Pakistan, the co llapse of profits and profitability of this sector, the low return on 
investment and the negative effects on the production, sales, productivity, wages and salaries of 
these products which benefit from dumping measures".  
  
EU question nr. 14:  Has the WTO Secretariat identified the methodology of the anti -dumping 
investigations? Since the finding of dumping practices does not seem to be justified, do you think 
that this anti -dumping action can be ended?  
 WT/TPR/M/424/Add.1  
 
- 56 - 
 
  The anti -dumping investigation conducted by the N TC on imports of flat -rolled products of iron or 
non-alloy steel of a thickness ranging from 0.15 mm to 3.00 mm and a width up to 1250 mm, cold - 
rolled (cold - reduced), not clad, plated or coated, ( "CR Coils/Sheets ") from the European Union, 
Chinese Taipei , South Korea and Vietnam (the "Exporting Countries ") is strictly in line with provisions 
of Pakistan 's Anti -Dumping Duties Act 2015 as well as WTO 's Agreement on Implementation of 
Article VI of GATT 1994 (the "Agreement "). During investigation the NTC fol lowed all procedural and 
technical steps. After investigation, the NTC found that the CR Coils/Sheets were dumped into 
Pakistan from the Exporting Countries and the domestic industry suffered material injury during the 
period of investigation due to such i mports in accordance with provisions of the Act as well as the 
Agreement. Therefore, the NTC has imposed anti -dumping duties in this case. Detailed report can 
be accessed at https://www.ntc.gov.pk/wp -content/uploads/2022/02/ADC -60-Report -
CRC_FD_Report_4_Cs -Non_Confidential.pdf  
 
Paragraph 11, page 9  
 
EU question nr. 15:  The paragraph states that "The Government also levies an export develo pment 
surcharge of 0.25% of the f.o.b. value on all exports to finance the Export Development Fund (EDF) ". 
Can Pakistan elaborate on the distribution policy of its EDF? To which export sectors does it 
contribute to and for which particular activities? How much has the distribution benefitted export 
sectors and contributed to diversification in the country's export base?   
 
The scope of EDF includes any activity which is relevant for promotion for exports including but not 
limited to financing  of projects/activities relating to establishing of training institutes, participation 
in exhibitions abroad, research, market & product development, engagement of consultants, 
subsidizing of delegations & sales missions etc.  
 
Export Development Fund sinc e its inception has funded hundreds of projects to various sectors. 
These projects include mega infrastructure such as Expo Centre, effluent treatment plants, garment 
cities, multiple training institutes, laboratory, as well as mega international trade eve nts such as 
Expo/Texpo, single country exhibitions etc. The funds have also been approved for soft training 
interventions, conducting research studies, hiring of technical experts, services for increasing 
compliance, branding/marketing etc. There is no spe cific distribution policy yet, however, it has been 
decided that in near future the funds will be utilized under the guiding principles of Strategic Trade 
Policy Framework 2020 -25 and Textile Policy 2020 -25. The scope of expenditure which has 
previously re mained limited to few beneficiaries and sectors will be enhanced to non -traditional 
sectors. Special focus will be given to the meat and seafood industry, technical textiles, processed 
food, engineering, chemicals and pharmaceutical sectors which have unfo rtunately remained 
neglected despite having good export potential.  
 
Paragraph 17, page 10  
 
EU question nr. 16:  Could the Pakistani authorities provide an update on the planned program and 
timetable for the privatization of state -owned commercial enterpris es? Furthermore, is it envisaged 
that public enterprises should apply the OECD guidelines on the governance of public enterprises?  
 
For privatisation of 02 RLNG Power Plants, debt refinancing/ recapitalization is under way to be 
completed by end -June 2022.   
 
In case of privatisation of 03 banks, one of the banks was proposed for delisting. In case of House 
Building Finance Corporation, deadline for submission of Expression of Interests is end -March, 2022. 
For the First Woemn Bank Limited, Audit for the year s 2018 to 2021 is underway.  
 
Regarding sale of assets 02 hospitality/ tourism sites at Lahore and Islamabad, bidding of the Lahore 
based entity has been successfully completed in Aug 2021.  
 
For privatisation of 02 engineering companies, bidding process of heavy electrical complex has been 
completed in Feb 2022.  
 
Regarding revival of Pakistan steel mills, 04 international parties have been pre -qualified for 
participation in the bidding process.  
 WT/TPR/M/424/Add.1  
 
- 57 - 
 
  For Capital market transactions of 03 entities, the  process could not be completed as petroleum 
company has been delisted from privatisation list.  
 
Paragraph 29, page 11  
 
Pakistan's first ever e -commerce policy was approved by the ECC in October 2019. It is aimed to 
facilitate holistic growth of e -commerc e by creating an enabling environment, reducing costs of doing 
business, and lowering the threshold for enterprises to become part of e -commerce. The policy 
outlines targeted interventions in key areas of regulation, payment infrastructure, taxation, 
consu mer protection, logistics, data protection, and SME growth, among others.  
 
EU question nr. 17:  We congratulate Pakistan on its comprehensive e -commerce policy in 2021. 
The e -commerce practice however, has raised many new issues. These relate to, for instance, the 
payments gateway, the avoidance of multiple taxation on Information, Communication and  
Technology (ICT) products, the lack of regulation on e -payments, limited access to ICT 
infrastructure, and online payment frauds. Could Pakistan streamline its ICT services to address 
these limitations, in addition to creating a robust banking service to address these challenges? Also, 
could Pakistan explain the reasons why it decided against joining the ongoing WTO Joint Statement 
Initiative on e -commerce?  
 
Pakistan is a population of 220 million, and 110 million has broadband access, Ministry of Commerce  
is working very closely with Ministry of Information and Telecommunication which is committed to 
provide quality services to masses in coming future. Pakistan now has its own domestic and 
international payment gateways, SBP has also introduced many facili tative interventions to boost 
digital payment adoption in the country by and is playing conducive role for the development of e -
Commerce ecosystem in Pakistan.  
 
As of January 2022, Pakistan has 110 million 3G/4G subscribers and 113 million broadband 
subsc ribers. The Universal Service Fund (USF), a Government initiative focused on providing 
high-speed internet to under -served communities, has started extending better data services to 
rural areas. Pakistan 's State Bank has fast tracked reforms to unlock the potential in digital payments 
as a part of the National Payment Strategy (2019) and the E -Commerce Policy Framework (2019). 
With the introduction of regulation for branchless banking, electronic money institutions, digital 
banks and other reforms such as q uick response (QR) code harmonization for contactless payments, 
the State Bank has introduced regulations to enable fintech. In addition to regulatory reform, the 
State Bank has implemented Pakistan 's first micropayment gateway, RAAST, for real time settle ment 
in small value payments. The State Bank introduced digital customer and merchant on boarding 
guidelines and mandated banks to provide digital onboarding. Pakistan will evaluate the cost and 
benefit of any new initiative in a detailed stakeholders cons ultations before making any decisions. 
Pakistan continues to believe in the value of multilateralism as a response to current and future 
challenges on all areas.  
 
ECONOMIC ENVIRONMENT  
 
Recent Economic Developments  
 
Paragraph 1.1, page 14 and paragraph 1. 5, page 19  
 
The paragraphs state that " Despite the lack of official figures, a relatively large portion of the 
economy is seemingly informal (Section 1.2.1), implying that GDP and GDP per capita may be 
significantly underestimated, thereby possibly underm ining the effectiveness of government policy 
and governance." and "According to the Pakistan Bureau of Statistics´ Labour Force Survey 2018 -
19, the informal sector continues to account for more than 7 of 10 (72.4 %) of non -agricultural 
employment".  
 
EU question nr. 18:  A relatively high portion of the economy seems to be informal. This fact not 
only complicates effectiveness of the governmental trade policy, but also brings inequality of the 
competitive environment and reduces the state budget revenue. Which measures has the 
Government of Pakistan taken to lower the share of informal economy and are there already any 
results of these measures?  
 WT/TPR/M/424/Add.1  
 
- 58 - 
 
  To lower the share of informal economy, through the newly enacted Finance (Supplementary) Act 
2022 hundreds of amendments have been made to the Sixth Schedule to Sales Tax Act 1990 while 
omitting the clauses granting exemptions. The omission of such clauses encompasses wide range of 
supply of goods or classes of persons which are now brought under the standard tax rate of sales 
tax. Besides, a number of fiscal measures are also introduced for documentation, for instance, 3% 
further tax is charged on supply to unregistered persons, input tax is disallowed if purchase from 
unregistered persons exceed certain threshold , cash purchases of Rs.100,000/ - and above require 
disclosure of Computerized National Identity Card Number of the buyer. Further, unregistered 
persons are taxed under withholding tax regime at higher rates; which induces them to get 
registered with the ta x authorities or pay higher taxes. Accordingly, Govt. of Pakistan is pursuing a 
gradual but consistent policy to formalize the informal economy.  
 
Paragraph 1.15, page 23   
 
According to the World Bank, direct state intervention in key sectors of the economy  through State 
Owned Enterprises (SOEs) and market regulation has continued to distort the allocation of resources 
(Section 3.3.5). The COVID -19 pandemic has stalled the privatization process – a condition of the 
paused Extended Finance Facility (EFF progr amme - Section 1.1), which the 2018 Government 
(Section 2.1) restarted after it was halted in 2015. In 2018, the Cabinet Committee on Privatization 
approved a new programme aimed at privatising 49 enterprises in 2 phases (8 entities to be 
privatised by Jun e 2020 and 41 entities to be privatised by June 2024).  
 
EU question nr. 19:  Can Pakistan share a concrete privatisation plan of its State Owned Enterprises 
(SOEs)?  
 
For privatisation of 02 RLNG Power Plants, debt refinancing/ recapitalization is under way to be 
completed by end -June 2022.  
 
In case of privatisation of 03 banks, one of the banks was proposed for delisting. In case of House 
Building Finance Corporation, deadline for submission of Expression of Interests is end -March 2022. 
For the First Woemn Bank Limited, Audit for the years 2018 to 2021 is underway.  
 
Regarding sale of assets 02 hospitality/ tourism sites at Lahore and Islamabad, bidding of the Lahore 
based entity has been successfully completed in Aug 2021.  
 
For privatisation of 02 engi neering companies, bidding process of heavy electrical complex has been 
completed in Feb 2022.  
 
Regarding revival of Pakistan steel mills, 04 international parties have been pre -qualified for 
participation in the bidding process.  
 
For Capital market trans actions of 03 entities, the process could not be completed as petroleum 
company has been delisted from privatisation list.  
 
TRADE AND INVESTMENT REGIMES  
 
Trade Policy Formulation and Objectives  
 
Paragraph 2.15, page 37  
 
A National SME Policy Action Plan 2020 to provide much -needed support to small and medium sized 
enterprises (SMEs) was approved by the Prime Minister on 8 October 2020. The Plan focuses on key 
areas including SME definition, access to finance, business development services, ski lls and human 
resources, technology, market access, infrastructure, and entrepreneurship.  
 
EU question nr. 20:  Pakistan announced its National Policy for SMEs. It is indeed a positive step 
which should lead to development of SMEs as women –owned and operate d micro enterprises 
(WMEs). Could Pakistan elaborate on women's entrepreneurship in the context of SMEs?   
 
The Ministry of Industries and Production has formulated the National Small and Medium Enterprises 
(SMEs) Policy, 2021. The dedicated Policy Principl e No. 3.6 titled "Women Entrepreneurship 
Development " has been added in the policy. The policy will support the development of Women WT/TPR/M/424/Add.1  
 
- 59 - 
 
  Owned Business. In this regard, a detailed work plan has been developed, in order to facilitate 
scaling up women entreprene urship in the national context of Pakistan. Furthermore, women labo ur 
force participation rate is 20.1% and the SME Policy specifically focuses on various initiatives to 
support women owned businesses in Pakistan. These initiatives mainly include simplified taxation 
procedures, 25% tax reduction in tax liability for Income from business, implementing Banking on 
Equality Policy of the State Bank of Pakistan, Training, Help Desks, Incubation, Display Centres and 
constituting Consultative Group on Wom en Entrepreneurship.  
 
EU question nr. 21 : One part of Pakistan 's economy is its informal sector. Does the SME Policy 
cover the informal sector as well? Is any cheap credit scheme foreseen for SMEs?   
 
Prima facie, SME Poli cy seeks to boost up registration o f more firms, enterprises and businesses with 
a view to expand SMEs network for addition into formal economy. In this regard, the Governme nt 
of Pakistan has introduced various tax, fiscal and regulatory reforms. SME Policy aims to facilitate 
small and medi um enterprises at large. However, to get benefits from the initiatives of the policy, 
SMEs need to get registered with business registering authorities. The National SME Policy 2021 
envisions targeting collateral free financing for SMEs based on size, sect or, geography & gender, 
financing incentives for SMEs with tax history, and specialized lending micro and small enterprise 
loans.  
 
EU question nr. 22 : There is not a strong linkage between SMEs and Large Scale Manufacturing 
(LSM) Enterprises in the Pakista ni economy. The LSM mainly rely on imported raw materials (in most 
cases). Is there a programme to connect SMEs to the LSM?   
 
The National SME Policy envisions to rationalize tariff and custom duties on import of raw material 
and capital goods for SMEs. Ho wever, policy envisions to develop on -line formal forum of 
consultation with SMEs that may be used to allow firms to identify SMEs to partner with large firms 
and / or to coordinate joint fixed investments and other collaborative projects, and to find supp liers 
and /or large firms that are looking for SME suppliers.* Pakistan's manufacturing sector is composed 
of approximately 90 percent of SMEs. The Large Scale Manufacturing (LSM) sector is to be 
administered through a separate policy instrument. In this r egard, the Ministry of Industries and 
Production is currently developing Pakistan's premier National Industrial Policy (NIP). The Ministry 
of Industries and Production is aiming to dovetail SME's policy with the forthcoming NIP.  
 
Paragraph 2.21, page 40  
 
EU question nr. 23:  The paragraph states that, despite its anti -corruption initiatives, Pakistan 
continues to rank relatively poorly in the control of corruption indicator and corruption perception.  
 
Could Pakistan please provide information on what it do es to combat corruption?  
 
As reported by the National Accountability Bureau, in the light of zero tolerance policy towards 
corruption of the present Government, NAB is already striving hard to eradicate corruption through 
a planned holistic three pronged strategy of awareness, prevention and enforcement for 
improvements of the effectiveness of its existing anti -corruption initiatives to address the issue of 
corruption. Following are the steps already taken by NAB for achievement of the effectivenes s of its 
zero tolerance policy towards corruption:  
 
Awareness Regime:  
 
4. Under awareness regime, NAB has taken concrete steps to create awareness against corruption 
amongst the society, through following activities:  
 a) Television Talk Shows, Social Media, Radio Programmes, Public Walks for awareness, 
Lectures/ Seminars, Workshops, Advertisements in leading English / Urdu newspapers, 
Newsletters, Essay Writing Competitions, Declamation Contests, Poster / Painting 
Competit ions, Character Building of future generation through establishment of character 
Building Societies (CBS) at schools, colleges and universities level, across the entire country;  
 b) The publication of procedure for lodging a complaint in NAB on the Bill B oards, 
Installation of permanent bill boards carrying anti -corruption slogans at prominent areas;  
 c) Printing of NAB 's message on Utility Bills, Dissemination of anti -corruption messages 
through mobile phone messaging in addition to electronic media and social media;  WT/TPR/M/424/Add.1  
 
- 60 - 
 
   d) Holding of seminars for different segments of societies, with active participation of NGOs 
and UN offices to ensure greater visibility and effectiveness; and  
 e) In commemoration of anti -Corruption day (9th December), holding of differe nt activities 
like TV Talk Shows, seminars, walks, declamation contests, display of posters / banners and 
publication of Special Supplements in the newspapers.  
 
In this context following steps have also been taken:  
 
 a) Signing Memorandum of Understandin g ("MoU") with Higher Education Commission 
("HEC") for creating awareness amongst students of various universities;  
 b) Collaboration with Pakistan Cricket Board ( "PCB") - Pakistan Cricket Team 
advertisement for "Say No to Corruption ";  
 c) Collaboration with Pakistan Hockey Federation - Hockey Team to raise slogan "Say No 
to Corruption ";  
 d) Collaboration with Pakistan Television ( "PTV") for airing the song "Say No to 
Corruption ";  
 e) Collaboration with Pakistan Telecommunication Authority ( "PTA"), Pakistan 
International Airlines ( "PIA"), Sui Northern Gas Pipeline Limited ( "SNGPL "), Islamabad Electric 
Supply Company ( "IESCO ") and Banks to display and print NAB slogan "Say No to Corruption " 
from their platform;  
 f) Signing of MoU with UNODC (in the p ipe line) for joint effort against corruption; and  
g) Generic and sector specific awareness campaigns in print media, focusing on warning 
public against:  
1) Possible financial scams;  
2) Fake housing societies; and  
3) Unrecognised education institutions  etc.;  
h) Interaction with civil society organizations (Aimed at changing societal attitude towards 
corruption from acceptance to adherence);  
i) Anti-Corruption Themes in the National Education Curriculum for classes 1 -12;  
j) Efforts are being made to join hands with Motorways Police to take following initiatives:  
1) Display of advertisement board at various points with "Say No to Corruption " at 
Motorway (M1, M2, M3);  
2) Distribution of pamphlets, hand bills and stickers etc.  having anti -corruption 
messages to vehicles plying on Motorway;  
3) Joint seminar on "Say No to Corruption " with Motorway Police;  
4) Joint newspaper advertisements for awareness of general public regarding ill effects 
of corruption; and  
5) Any new creat ive ideas which would strengthen the anti -corruption campaign as 
proposed by your good office.  
 
Trade Agreements and Arrangements  
 
Paragraph 2.23, page 41  
 
Pakistan accepted the WTO trade facilitation agreement (TFA), which could cut its trading costs by  
around 13%, on 27 October 2015 and submitted its Category A, B, and C notifications. As of August 
2021, its implementation rate of commitments stood at 79%, with a time -frame spanning from 
February 2017 to December 2024.  
 
EU question nr. 24:  Could Pakistan elaborate on the work plan of the Pakistan Single Window 
(PSW) initiative? In particular, could Pakistan mention how many departments have been aligned 
with the PSW? Which departments remain to be aligned and by when will these be aligned? T he EU 
continues to seek updates on Category C commitments and reiterates the need for a strong donor 
coordination in this regard.  
 
PSW will gradually connect/align 77 OGAs (as listed in the Schedule to the PSW Act, 2021) which 
are directly or indirectly r egulating cross border trade.  
 
The first phase of PSW is expected to be completed by April 2022 which will cover more than 70% 
of LPCOs. It will integrate/align Department of Plant Protection, Animal Quarantine Department, 
Federal Seed Certification Depar tment and Pakistan Standards and Quality Control Authority. 
1st phase will also integrate all banks for cross border trade related remittances regime of State Bank WT/TPR/M/424/Add.1  
 
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  of Pakistan. This phase also covers part alignment of Customs and improved integration of In land 
Revenue Service with PSW. The 1st phase also includes on -line system of single registration 
connecting key national databases as well as e -payment system for all type of B2G and B2B 
payments. By June 2024 the PSW will align and integrate more than 21 key OGAs which cover 90% 
of LPCOs. In remaining two phases Integrated Risk Management System and Port Community 
System at all major sea ports and airports will be made operational. Regarding the Category C 
commitments, FBR Customs is presently engaged with  donors on the commitments including areas 
of Time Release Studies & development of an online automated tool, Risk Management, Authorized 
Economic Operators program, Advance Rulings, Post Clearance Audits, Integrated Risk Management, 
National Trade Facilit ation Committee, Trade Facilitation Portal and Cross Border Regulatory 
Agencies Coordination. A special focus is drawn upon Women Businesses, SME's and post -COVID 
challenges.  
 
Capacities of Public and Private Sectors are also being developed through initi atives in the afore 
mentioned areas through development of curricula for training (inclusive of Training Manuals, 
Simulation exercises & gaining participant feedback). Regular Seminars & Workshops are being 
organized & conducted as well.  
 
Paragraph 2.30, p age 43 and 2.13, page 36  
 
EU question nr. 25:  The Secretariat report notes that  "Pakistan is a strong supporter of bilateral 
trade and investment agreements (...) ". Has the Pakistani government assessed the cost of the lack 
of economic and commercial engagement with India? If so, how much does this amount to?  
 
During the times of normal relations between Pakistan and India, the bilateral trade has been ranging 
around 2 billion USD from 2013 onwards (India 's exports: 1.8 billion USD, Pakistan 's Exports: 
342 million USD).  
 
However, since February 2019, with India imposing 200% duty on Pakistan 's exports, the normalcy 
in trade ties is disrupted.  
 
Later in August 2019, Pakistan also suspended all trade with India (except pharmaceutical products) 
responding to revocation of Article 370 and violation of human rights by India through withdrawal 
of special status of J&K).  
 
Currently, both countries are trading only in pharmaceutical products and the trade volume has 
shrunk to 297.8 million USD. 
 
Paragraph 2.36, page 46  
 
China was to immediately eliminate tariffs on 313 of the highest -priority tariff lines of Pakistan's 
export interest. Overall, China has granted concessions to products that include textiles and 
garments, seafood, meat and o ther animal products, prepared foods, leather, chemicals, plastics, 
oil seeds, and footwear, as well as engineering goods including tractors, auto parts, home appliances, 
and machinery.  
 
EU question nr. 26 : Pakistan continues to practice a policy of import  compression since 2019. In 
order to discourage imports, Pakistan imposed duties on so -called 'luxury ' items. These items are 
being mainly imported from the EU. When does Pakistan plan to review its policy of import 
compression?  
 
Under the National Tariff  Policy (2019 -24), the government is pursuing a policy of rationalization of 
Pakistan's tariff regime, keeping in view the cascading principle. Therefore, import duties on raw 
materials, intermediate, and capital goods have been reduced substantially. Impo rts are more than 
double than exports in current financial year. As a result, Pakistan 's trade deficit has also increased. 
During the last financial year, ACD on luxury items was also reduced from 7% to 6% in 20% slab, 
consisting of approximately 2423 Tari ff Lines.  
 
EU question nr. 27 : Could the same luxury items (dried milk; yogurt, cheese, chocolates, 
cosmetics) be imported from China under the bilateral FTA? [NOT SURE AN FTA CAN BE 'ONGOING '] 
 WT/TPR/M/424/Add.1  
 
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  The import of dairy products, cheese, chocolates and cosmetic s are being imported from China. 
However, no immediate tariff concessions have been given to China on these products under the 
FTA. Majority of these items are included in the A -15 category is due to be liberalised in the 15th year 
of implementation of Phase II of CPFTA. The details are available at the following link: 
https://download1.fbr.gov.pk/SROs/2020111213219376SRO1640(I)20 19dated31.12.2019.pdf  
 
Paragraph 2.38, page 47  
 
The China -Pakistan Economic Corridor (CPEC) aims to rapidly upgrade Pakistan's required 
infrastructure and strengthen its economy through the construction of modern transportation 
networks, numerous energy p rojects, and special economic zones (SEZs)  
 
EU question nr. 28:  It would be useful to ensure more transparency on the CPEC. How can other 
donors, for example the EU, be part of it? Does Pakistan plan to set up its own EXIM Bank to finance 
trade activities and promote investments in the Special Economic Zones (SEZs) mentioned by 
Pakistan in its TPR Report? Will the EU industry have the same opportunities as the Chinese industry 
to invest in SEZs?  
 
Currently there are no plans for setting up of an EXIM Bank exclusively to cater for the Special 
Economic Zones, under CPEC.  
CPEC SEZs are open to third party participation. There are no extra benefits for Chinese enterprises 
for investment in CPEC SEZs.  
All SEZ enterprises, of whichever origin get the same benefits as are available under the SEZ Act 
2012.  
SEZs are open for investment from all countries.  
 
Paragraph 2.48, page 49  
 
Since 1 January 2014, Pakistan has benefited from generous tariff preferen ces (mostly zero duties 
on two thirds of all product categories) under the GSP+ arrangement of the European Union, aiming 
to support sustainable development and good governance. This status has been extended till 2023.  
 
EU question nr. 29 : Pakistan is a be neficiary of GSP+ since 2014, which concerns 92% of tariff 
lines (66% are duty -free and 26% have a preferential duty). EU data shows however, that the 
utilisation of preferential tariffs remains highly concentrated on apparel and clothing. Given that 
GSP+ arrangement plays an important role in supporting the diversification of Pakistan 's export base 
(ex. gems, jewellery, marble, plastics, fruit, food and beverages), the EU would like to invite Pakistan 
to further elaborate on the product diversification mea sures it is taking. The EU would like also to 
know what tangible results have been achieved so far under the current schemes and incentives 
offered by Pakistan to improve export competitiveness in other sectors with higher value -added 
products?  
 
GSP+ has been a beneficial arrangement for Pakistan that has led to increase in trade between 
Pakistan and EU. Total trade between Pakistan and EU increased from Euro 6.9 billion in 2013 to 
Euro 12.2 billion in 2021. Pakistan 's exports to EU increased by 86% from E uro 3.56 billion in 2013 
to Euro 6.64 billion in 2021 whereas EU 's exports to Pakistan also witnessed significant increase of 
69% from Euro 3.31 billion in 2013 to Euro 5.59 billion in 2021.  
 
Pakistan 's exports over the years have remained concentrated in  few sectors with textile sector 
constituting 60% of Pakistan global exports. This concentration in exports is also reflected in 
Pakistan 's exports to EU.  
 
Although Pakistan 's exports to EU are concentrated in value added textiles sector, however, under 
the GSP+ Pakistan has seen significant diversification within the apparel and clothing sector. 
Historically, Pakistan 's exports in the value -added textiles have been primarily in cotton -based 
garments. In the last six to seven years, in addition to c otton -based garments, Pakistan has seen 
significant increase in exports to EU in apparel made from synthetic fiber and other textile material. 
Pakistan 's exports to EU in garments made from other textile material have increased by 100%. 
Similarly, garments  made from synthetic fibers have increased by 194%.  
 
Similarly, there are some other sectors that have seen decent increase in exports due to GSP+. For 
example, Pakistan 's exports to EU, under GSP+, in footwear has witnessed increase of more 30% WT/TPR/M/424/Add.1  
 
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  since 2013 . Similarly, Pakistan 's exports of ethyl alcohol, under GSP+, have increased by 45% since 
2013.  
 
Despite diversification in exports, to EU, within textiles sector and some other sectors, Pakistan 
believes that this is significant room to take full advanta ge of the generous concessions under GSP+ 
and further diversify its export base.  
 
Increasing diversification of Pakistan 's exports has been one of the top agenda items for the 
Government of Pakistan for the last two to three years. In this regard, the Gove rnment of Pakistan 
in its Strategic Trade Policy Framework 2020 -2025 has identified eleven new developmental sectors 
including processed food items, engineering goods, gems & jewellery , chemicals, footwear, etc. 
Through targeted interventions the governmen t will try to make a conducive environment to increase 
the export base of these sectors. Similarly, the Government has approved Mobile Manufacturing 
Policy 2020 to promote production and export of mobile phone from Pakistan.  
 
Within the textile sector the  Government is also focused on increasing product diversification. The 
Government approved Textile Policy 2020 -25 which aims to, among other things, increase the share 
of technical textiles and fourth generational textiles in Pakistan 's exports. Similarly,  the policy aims 
to diversify the fiber mix and increase share of artificial and synthetic fiber garments in Pakistan 's 
exports.  
 
The Government has also approved National Tariff Policy (NTP) in in November 2019 with the 
objective to improve competitivene ss of manufacturing, including the export sector, through duty 
free access to imported raw materials, intermediate and capital goods by rationalizing the tariff 
structure. Under the policy, tariff structure of a significant number of tariff lines has been reformed 
and under the reformed tariff, there has been a substantial 32% YOY increase in the import of raw 
materials, intermediates, and capital goods, in FY 2021. This increase in imports has helped 
Pakistan 's industry, large scale manufacturing (LSM) and  exports to recover.  
 
Through concentrated government efforts, Pakistan has seen decent increase in exports of a number 
of value -added products such as lead batteries, tractor parts, articles of base metal, fans, processed 
food items, white engineering goo ds etc. However the export base at the moment is relatively 
modest, but growing, and more directed towards developing countries. EU offers generous 
concession in many of these products and it is the aim of the Government that Pakistan 's 
manufacturers incre ase their product quality and take advantage of the concessions offered by EU 
to increase their exports. To achieve this end the government is also facilitating import of plant and 
machinery. Similarly, SBP has also introduced schemes providing medium to l ong term financing for 
modernization of SMEs existing units or for setting up of new SME units. The Government has also 
directed its commercial sections in EU to increase their efforts in B2B matchmaking especially for 
non-traditional value added products and agriculture goods and prepare market entry guides for 
Pakistan 's exporters.  
 
TRADE POLICIES AND PRACTICES BY MEASURE  
 
Measures Affecting Production and Trade  
 
Paragraph 3.61, page 69  
 
According to the authorities, regulatory duty on exports is to ensure domestic supply of these goods, 
and not a means to raise revenue or protect domestic industry. However, export taxes and duties 
have a distortive impact on the domestic market.  
 
EU question nr. 30 : The Pakistani authorities adopted in June 2021 a reduction in the regulatory 
duties on hides & skins and molasses. This is a positive step forward, however can Pakistan indicate 
when these export duties will be removed as they have been in place for sever al years?  
 
After implementation of NTP -2019-24, decisions as to imposition or removal of duties are taken by 
the Tariff Policy Board. On the recommendations of the TPB, export duties on molasses and skin and 
hides were reduced. During the implementation pe riod of NTP -2019-24, such issues will be 
addressed in line with the objectives of NTP, 2019 -24. 
 WT/TPR/M/424/Add.1  
 
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  Paragraph 3.98, page 78  
 
The Automotive Development Policy (2016 -2021) distinguishes between greenfield and brownfield 
investors. Greenfield Investment is def ined as the installation of new and independent automotive 
assembly and manufacturing facilities by an investor for the production of vehicles of a make not 
already being assembled/manufactured in Pakistan  
 
EU question nr. 31 : Pakistan has unveiled its new  policy for automotives 2021 -26. Automotives 
account for 2.8% of the country 's GDP. Which EU auto manufacturers have entered the Pakistani 
market as a result of this policy? The tariffs on Completely Built Units (CBUs) are still high. Does 
Pakistan plan to  revise its tariff structure for the CBUs? The manufacturing of auto parts requires 
sophisticated technology which has been a challenge for the industry in Pakistan. What measures 
has Pakistan taken to increase exports of automobiles and auto parts?     
 
M/s Lucky Motor Corporation has already started local manufacturing of Peugeot in Pakistan. In 
addition M/s Premier Automobile under an agreement with Volkswagen was granted greenfield status 
under Automotive Development Policy (ADP -2016-21). However, their manufacturing facilities are 
under construction. The tariff structure for CBUs has been kept same during the first year of Auto 
Industry Development and Export Policy (AIDE)P 2021 -26. However, the tariff structure on CBUs 
has not been defined in advance fo r entire Policy period. AIDEP includes target to reach 10% export 
of the total value of imports by each company by the end of policy period i.e. 2026 and various 
incentives including duty free import of CKD kits against exports willl be considered.  
 
Paragr aphs 3.101 to 3.108 and 3.117, pages 78, 79 and 81  
 
EU question nr. 32:  As a general principle, it is important for the EU to ensure that halal measures 
do not create barriers to trade. In this respect, the EU would like to underline the need for 
transpare ncy and predictability, notably under the WTO TBT and SPS agreements. Is Pakistan 
planning to notify the future technical regulations in this area and provide a reasonable comment 
period to other WTO Members?  
 
The regulation provides that any of the halal certification bodies shall be qualified for the purposes 
of export of food products to Pakistan if the certification body is accredited with any Accreditation 
Body (AB) which is a member of either International Halal Accreditation Forum (IHAF) or Standard 
Metrological Institute of Islamic Countries (SMIIC) - the two renowned halal standard 
setting/cooperation bodies. Pakistan has and will continue to notify any trade related measures as 
per requirement of specific WTO Agreements.  
 
EU question nr. 33:  Is Pakistan recognising Halal certificates from third countries? If so, which 
ones and under which conditions?  
 
Yes, Pakistan Halal Authority (PHA) is recognizing Halal certificates from third countries where 
companies which are accredited by internationally recognized accredited body and registered/ 
recognized by Pakistan Halal Authority.  
 
EU question nr. 34:  Pakistan's Halal Authority does not seem to have been fully constituted despite 
the fact that the legislation to establish it is in plac e since 2015. What is the state of play of the 
Pakistan Halal Authority, notably in relation to the multiple Halal Authorities at the level of provinces? 
In particular, which of the authorities is competent to certify imported products and how is the 
recog nition of these certificates guaranteed for the whole Pakistani territory?  
 
Pakistan Halal Authority (PHA) is National Halal Regulatory body of Pakistan established by an Act 
VIII of 2016. Pakistan Halal Authority (PHA) is mandated to ascertain the Halal s tatus of the 
products, process and services. PHA registers Local Halal Certification Bodies and Foreign Halal 
Certification Bodies.  
 
The Halal Foreign Certification Bodies shall be recognized and registered with Pakistan Halal 
Authority having permanent m embership of shariah experts and engagement of technical expertise 
/food scientists and the certified products, process and services shall comply with Halal certification 
requirements recommended and approved by Pakistan Halal Authority.  
Pakistan Halal Au thority is only competent authority to certify/recognize imported certified products 
and certificates recognized by PHA are guaranteed for the whole of Pakistan.  WT/TPR/M/424/Add.1  
 
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EU question nr. 35:  The EU would be interested to better understand the Halal Act 's position on 
stunning. Is there a total opposition to stunning, and if not, which are the conditions?  
 
Pakistan Halal Authority (PHA) recognizes slaughtering as per guidelines of Standards and Metrology 
Institute of Islamic Countries (SMIIC).  
 
EU question nr. 36:  The conditions laid out in  Statutory Regulatory Order 237 with regard to 
labelling are particularly burdensome. Ingredients and other product information (including 
nutritional facts, usage instructions, etc.) have to be printed in Urdu and English on the pa ckaging. 
Furthermore, the usage of stickers, overprinting, stamps or scratched labelling is prohibited. Are 
there any measures foreseen to make these conditions less burdensome, e.g. allowing the usage of 
stickers?  
 
These measures are in force for about th ree years now. Most of the importers and their foreign 
sulliers/manufacturers have complied with the requirements of the SRO including labelling  into Urdu. 
Secondly, the object of disallowing stickering was to ward off any misuse of the concessions because  
the tool of stickering is prone to mis declare t he actual content of  a packaged product. Therefore, 
currently there is no proposal under consideration to review the labelling requirement of allowing 
stickering.  
 
Paragraph 3.117, page 81  
 
EU question nr. 3 7: Statutory Regulatory Order 237(I) 2019 was incorporated in Import Policy 
Order 2020, and the import of foodstuffs now requires labelling in English and Urdu as well as the 
halal certification logo. The Halal standards implemented via the Statutory Regul atory Order since 
2019 were enforced without any transition period, despite repeated requests by the EU. Could 
Pakistan ensure that ample transition period will be allowed in the future?    
 
As submitted above, the said regulation is in force since July 201 9 and a good number of importers 
have complied with these regulation. It may be noted that the regulation/SRO 237 was originally 
implemented in Feb. 2019, however, its enforcement was then suspended till 30 June 2019, giving 
more than 4 months time to expo rters/ suppliers to adjust with the new regulations. Therefore, 
further suspension of these regulations will be contrary to the principle of predictability and 
transparency.  
 
Paragraph 3.139, page 87:  
 
Pakistan has been a member of the World Intellectual Property Organization (WIPO) since 1977, and 
is a party to the Berne Convention for the Protection of Literary and Artistic Works, the Paris 
Convention for the Protection of Industrial Property, and most  recently (May 2021) the Protocol 
Relating to the Madrid Agreement Concerning the International Registration of Marks. Pakistan has 
also signed the Universal Copyright Convention, and accepted the amendment to the Agreement on 
Trade -Related Aspects of Inte llectual Property Rights (TRIPS Agreement) on Public Health. Pakistan 
promulgated the Plant Breeders Rights Act in 2016.  
 
EU question nr. 38:  Does Pakistan plan to join other WIPO Treaties?  
 
Yes, IPO Pakistan is working to join Lisbon Agreement, PCT, Marrakesh  and Internet Treaties on 
copyrights.  
 
EU question nr. 39:  According to the 2015 Trade Policy Review, Pakistan informed that in addition 
to the Madrid Protocol it was also planned to accede to the Patent Cooperation Treaty. Could Pakistan 
confirm if this has been implemented?  
 
Pakistan is in process to join PCT. Consultations with the stakeholders are going on.  
 
Paragraph 3.141, page 88:  
 
EU question nr. 40:  During the current review period, the registration of different IPRs has 
increased considerab ly. Between 2014 and 2021, the authorities collected nearly PKR 2.8 billion in 
IPR-related revenue. Could Pakistan explain the main reasons for such increases?  WT/TPR/M/424/Add.1  
 
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It is because number of applications received by IPO -Pakistan has increased considerably. Robu st 
IPR awareness campaign, effective coordination with IPR Enforcement agencies and establishment 
of Technology and Innovation Support Centers (TISCS) at 47 universities and research institutes is 
the main reason for increase in number of applications duri ng the review period.  
 
Paragraph 3.142, page 88  
 
EU question nr. 41:  Does Pakistan plan to improve the granting of pharmaceutical patents? Is 
Pakistan considering a legal framework for regulatory data protection of pharmaceutical products?  
 
Pakistan is gra nting patent protection for pharmaceutical inventions effectively as per the law.  
 
Paragraph 3.154, page 90  
 
EU question nr. 42:  Pakistan has continued its efforts to advance IPR enforcement through raids, 
seizures, and arrests by various enforcement autho rities. However, enforcement officials do not 
exercise ex officio authority without a formal complaint by a rights' holder. During the review period, 
1,867 IPR -related cases were registered, of which 1,641 were resolved, and 226 remain pending.  Is 
Pakistan  considering the empowerment of customs authorities to take action ex officio ? 
 
Pakistan Customs authorities have powers for ex -officio actions against counterfeit goods in the food 
and medicine sectors. Section 686 of the Customs Rules, 2001 (Amended in 2017) makes reference 
to the ex -officio authority of Collector Customs. However, enforcement actions of Pakistan Customs 
in other sectors are complaint based.  
 
Paragraphs 3.149 to 3.154, page 90  
 
EU question nr. 43:  The report mentions that "registration is not a condition for copyright 
protection ". Has progress been observed in the fight against copyright piracy?  
 
IPO Pakistan is actively coordinating with Law Enforcement Agencies (LEAs) for enforcement of 
copyright  in the country. Quarterly data is taken from Pakistan Customs, Police and Federal 
Investigation Agency (FIA) for enforcement actions. Regular meetings of IPR Enforcement 
Coordination Committees are also conducted for monitoring and evaluation of complaint s. 
Resultantly, improvement in fight against book and software piracy has been observed.  
 
TRADE POLICIES BY SECTOR  
 
Paragraph 4.4, page 91  
 
During the review period, the contribution of services to GDP rose slightly (from 54.9% in FY2014/15 
to 56.2% in 20 20/21). Compared with other sectors, the services sector was affected the most by 
the COVID -19 pandemic. In 2020/21, the financial services sector remained resilient.  
 
EU question nr. 44:  Services contribute to 56% of Pakistan 's GDP. What is its percentage  in the 
export industry (manpower exports, skill transfers, IT sector contribution etc.)?  
 
The share of Services ' exports during FY21 was 19.0% as compared to 19.9% during FY15. Detail 
of export of services is given at Annex -V. 
 
Agriculture and LIVESTOCK  
 
Paragraph 4.14, page 93  
 
Pakistan is among the world's top 10 producers of wheat, cotton, sugar cane, mango, dates, and 
kinnow oranges, and is ranked 9th in rice production. The structural shift within the agriculture sector 
continued during the review period, with the crop subsector gradually declining (40.2% in FY2013/14 
to 35.8% in FY2020/21).  
 WT/TPR/M/424/Add.1  
 
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  EU question nr. 45 : Being an agricultural country, what percentage of agricultural products have 
been exported in the past 5 years, and what percentage of tota l Pakistani exports do agricultural 
exports represent?  
 
The percentage of production which is exported for rice is 51.4, 54.99, 57.1, 55.96, 43.8, for cotton 
is 0.60, 0.72, 0.52, 0.61, 0.45, for mango is 3.45, 2.30, 4.11, 6.89, 9.10, and for dates is 42.86 , 
29.29, 27.12, 16.54, 22.82 in 2016 -17, 2017 -18, 2018 -19, 2019 -20, and 2020 -21 respectively. 
Further, the agriculture sector represents 19.27 percent in total exports for year 2020 -21. 
   
 
Services  
 
Paragraph 4.227, page 131  
 
EU question nr. 46:  The paragraph states that "Rail has a 2% market share of the freight market, 
and 5 % of the passenger market. " Considering the status and position of the country, Pakistan 
needs a large road network to transport goods and passengers from ports to the inla nd. Undoubtedly, 
railway transport is cheaper and greener than road transport. Is the Government of Pakistan 
considering strengthening and expanding the rail network?  
 
Both strengthening and expansion of rail network is among state's priorities. The existi ng 
infrastructure is being upgraded with a view to improve market connectivity and several projects 
are underway for the same. Expansion of the infrastructure is being done under Mainline -1 project 
(One of CPEC driven initiatives in railways) which include s Nawabshah -Rohri section (183 km), 
Multan -Lahore section (339 km), Lahore -Lalamusa section (132 km), Kaluwal -Pindora section 
(52 km) and upgradation of Walton railway academy at Lahore.  
  
Paragraph 4.237, page 132  
 
For the operation or construction of ter minals, private firms are offered concessions on a BOT 
(build -own-transfer) or public/private joint venture basis. Certain port services, including pilot and 
tug services, are reserved for the public sector. For example, at Karachi and Qasim, piloting and 
tugging services are provided by KPT and PQA, respectively, whereas at Gwadar, these services are 
provided by COPHCL.  
 
EU question nr. 47:  We note that about 90% of Pakistan's international trade is transported by 
sea and that foreign ships play a key role  in this regard. We also note that ports are managed by 
both Pakistani and foreign operators, and that certain ports services are reserved for the public 
sector. Against this backdrop, could Pakistan explain whether different treatments are applied among 
non-Pakistani flagged vessels regarding access to ports and ports services?  
 
Merchant Shipping Ordinance 2001, under framework/rule / provision stated at Para No. 64, 
mandates equal (same) treatment for both; Pakistani and non -Pakistani flagged vessels in r espect 
of benefits, privileges, protection, dues and liabilities etc whatsoever.  
 
With regards to key role being played by foreign ships in catering Pakistan 's international sea trade, 
that resultantly go in favour of foreign ships dominating maritime tra nsport in Pakistan, it is further 
apprised that no restrictions apply to foreign carriers operating from or into Pakistani ports.  
 
Paragraph 4.239, page 132  
 
The Civil Aviation Authority (CAA) under the Cabinet of the Prime Minister is responsible for lic ensing 
air service suppliers and maintaining safety. It issued the National Aviation Policy 2019, aiming to 
improve the competitiveness of the industry and enhance regional air connectivity. During the period 
2015-19, aircraft movements grew on an average by 7.1% and passenger traffic by 6.3% annually. 
Pakistan's air transport grew until 2018. Thus, the National Aviation Policy aims to achieve 
sustainable growth and align the aviation sector with the International Civil Aviation Organization's 
(ICAO) strate gic objectives related to, inter alia, safety, air navigation capacity and efficiency, 
security, passenger facilitation, economic development, licensing, maintenance and repair, and 
environmental protection.  
 WT/TPR/M/424/Add.1  
 
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  EU question nr. 48:  The EU welcomes Pakistan 's 2019 National Aviation Policy objective to align 
the aviation sector with the International Civil Association Organization 's strategic objectives, 
including its environmental objectives. In this regard, could Pakistan explain what its National 
Aviation Pol icy includes with respect to environmental protection? Which improvements did Pakistan 
already observe in this regard since the beginning of its National Aviation Policy in 2019?  
 
Chapter 7 of the National Aviation Policy – 2019 explains about the importance of Green Aviation 
Environment. A basket of measures has been proposed which includes improvement in aircraft 
technologies, operational improvements, sustainable alternative fuels and Global Market -Based 
Measures (GMBM). Pakistan CAA Airworthines s Directorate is in the process of developing Carbon 
Offsetting and Reduction Scheme for International Aviation (CORSIA) regulations for implementation 
within Pakistan. Through this scheme, CO2 emissions for air operators will be monitored as per ICAO 
Annex – 16; with operators being required to make efforts to ensure that emissions are either within 
limits or in case they are not to take effective offsetting countermeasures for a green planet. 
Additionally, Pakistan CAA Airworthiness Directorate has revise d the aircraft induction criteria in line 
with NAP 2019; with the aim of ensuring that operators acquire newer, more reliable and fuel 
efficient aircraft. These newer aircraft are complaint with the latest and more stringent ICAO 
requirements for noise and  emissions. Furthermore, PCAA Engineering Services Directorate has 
taken measures related to energy conservation including improvement of lighting system through 
LED techno logy, improvement of air -conditioning system through induction of energy efficient 
technologies for office & buildings, induction of emission controlled machines for airport operations 
(vehicle & power generating plants), induction of renewable energy technologies for meeting the 
requirements of airport operations and landscaping, plantat ion & greenbelt cultivation.  
 
Paragraph 4.254, page 134  
 
The authorities state that there are no restrictions on foreign investment to enter into the distribution 
sector, nor are there any restrictions on super stores.  
 
EU question nr. 49:  Could Pakistan elaborate further on this and explain if there is any 
consideration to liberalise trade in the distribution sector, also reflecting it in its GATS commitments?  
 
The present policy on foreign investment in the distribution sector is governed  Pakistan's investment 
policy available at: www.boi.gov.pk. Pakistan will consider changes to its GATS commitments as and 
when necessary.  
 
Paragraph 4.255, page 134  
 
EU question nr. 50:  It is obvious that the Government of Pakistan attaches great importan ce to 
digitalisation and to digital trade in both domestic and international trade. Has the country already 
any Digital Partnership Agreement with other country or is Pakistan considering to conclude such 
agreement in near future? If yes, with which countr y? 
 
Pakistan does not have any Digital Partnership Agreement with any country at present. Pakistan will 
continue to consider any opportunities for digitalisation and expansion of the digital industry in 
partnership with interested members.  
 
Paragraph 4.258 , page 135  
 
Main legislation on e -commerce includes the Electronic Transactions Ordinance 2002, which gives 
legal recognition to electronic documents, records, information, e -signatures, communications, and 
transactions. The Payment Systems and Electronic  Fund Transfers Act 2007 provides for the 
establishment and operations of "Payment System Operators" and "Payment System Providers" in 
Pakistan. The Pakistan Electronic Crimes Act 2016 defines offences and prescribes punishments. In 
addition, as at January  2021, Pakistan was finalizing the Personal Data Protection Bill. A draft version 
of the Bill included a requirement to store all personal data on servers within the territory and a 
prohibition on the cross -border transfer of "critical" personal data. Appa rently, the scope of "critical" 
personal data was not defined.  
 
EU question nr. 51:  The EU takes note of the draft Personal Data Protection Bill, which currently 
includes an obligation to store all personal data on servers within the country 's territory an d a 
prohibition on the cross -border transfer of 'critical ' personal data. Could Pakistan provide details of WT/TPR/M/424/Add.1  
 
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  this envisaged measure, including the definition of 'critical data '? Will the Bill allow cross -border 
transfers of personal data under certain condi tions and, if so, which? Does the draft Bill introduce 
any further localisation requirements or cross -border data transfer restrictions?  
 
The scope of critical personal data has been defined in the new draft  
 
Paragraph 4.259, page 135  
 
EU question nr. 52:  The Ministry of Information Technology and Telecommunication recently 
initiated the process of formulating Pakistan's first Cloud Policy. Could Pakistan provide more details 
on its upcoming Cloud Policy? What does the Policy aim to achieve and through whic h means?  
 
Purpose of the policy is adoption of Cloud in Pakistan. The newly approved policy is available on 
following link:  
 
https://moitt.gov.pk/SiteImage/Misc/files/Pakistan%20Cloud%20First%20Policy -Final-25-02-
2022.pdf  
 
Paragraph 4.261, page 135  
 
The E -Commerce Polic y proposes measures in various areas: protecting intellectual property rights 
(IPRs) to enhance consumers' trust; enabling online payment and discouraging cash on delivery; 
extending access to finance for SMEs to promote digitization and skill development,  for example, by 
setting up an e -commerce information hub; amending relevant legislation to address consumers' 
concerns in the digital environment; encouraging provincial governments to harmonize taxation 
structure to avoid double taxation; enhancing the o utreach of telecommunications infrastructure and 
promoting ICT development; and integrating logistics in the e -commerce value chain, such as 
addressing concerns in expeditious processing for export of low -priced consumer goods.  
 
EU question nr. 53:  How doe s the e -Commerce Policy of Pakistan address strengthening of the 
protection of intellectual property rights?  
E-Commerce Policy Pillar on Data Protection and Investment focuses on intellectual property rights 
protection for e -commerce players and tech star t-ups. Furthermore, the policy action plan entails 
considering software intellectual property an asset for collateral by banks. The Intellectual Property 
Organization (IPO) of Pakistan was established as an autonomous body in 2005 for integrated and 
efficie nt intellectual property management in the country.  
  WT/TPR/M/424/Add.1  
 
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  THAILAND  
WT/TPR/G/424  
Page 8, Para 3.1  
 
3.1 Strategic Trade Policy Framework 2020 -25 
 
Question 1:  With regard to the Strategic Trade Policy Framework 2020 -25, could Pakistan elaborate 
in details on the following issues (1) the supportive measures and/or related activities under the 
Strategic Trade Policy Framework (STPF) and (2) collaborative approach  between the Pakistani 
government and its private sector to achieve the STPF objectives.   
 
Under the recently approved STPF 2020 -25 four critical enablers i.e. Competitiveness Enhancement, 
Trade Related Investment, Integration into Global Value Chains and Export Ecosystem have been 
identified under which trade supportive measures will be envisaged covering initiatives of Reduction 
in Cost of Doing Business, Tariff Rationalization, Productivity Enhancement, Enhancement of Quality 
of Products, Trade Related I nvestment, Export Diversification, Branding, Gender Mainstreaming, 
Trade Facilitation, Export -Oriented Entrepreneurship Development and Institutional Strengthening, 
improvement of Pakistan 's National Quality Infrastructure etc.  
 
A collaborative approach has been adopted by the Ministry of Commerce to formulate STPF 2020 -25 
by ensuring representation of key public and private sector stakeholders in the formulation process. 
Under STPF, a three tiered monitoring and implementation mech anism has been introduced which 
will ensure regular and impactful participation of the private sector in implementing the objectives 
of the policy. Moreover, Sector -Specific Councils are being established under the STPF. These Sector 
Specific Councils (SSC s), comprising of private sector representatives and public sector 
departments, will be formulated for all the identified priority sectors which will give specific 
recommendations for policy interventions. MoC is also formulating export strategies for the identified 
priority sectors in STPF 2020 -25. This mechanism will ensure active and meaningful participation of 
Pakistan's private sector in the implementation of STPF 2020 -25. These initiatives have been taken 
to align policy interventions with the nationa l industrial and export sector requirements.  
 
WT/TPR/G/424  
Page 13, Para 3.42  
 
3.6 Investment Policy and Investment Climate reforms  
 
Question 2:  Could Pakistan identify sectors under the Investment Policy, which allows 100 percent 
foreign ownership and 100 percent repatriation of investment, profits and dividend.  
 
Detail already available at Para 2.53 and Para 2.54 of Government Report.  
 
WT/TPR/G/424  
Page 16, Para 3.66  
 
3.10 Sectoral Policies  
 
Questions 3:  
• Could Pakistan indicate if the e-Commerce Policy Framework of Pakistan provides any 
guideline for taxation of goods and services traded via electronic commerce, especially a 
guideline for taxation of non -physical goods and services which are exchanged across the 
border without having to  go through the customs. If there is any, Thailand would like 
Pakistan to indicate laws which are related to such a guideline?  
 
Recently the Prime Minister has announced tax holiday for 5 years for registered freelancers, IT/ITeS 
enabled companies. As far taxation of goods exports through e -Commerce channels is concerned 
there are no taxes on items exported.  De minims value of PKR 5000 is effective, Pakistan customs 
being the concerned department ensures the enforcement.  
 
• Does Pakistan have any internationa l agreement on electronic commerce  which aims to 
address issues arising from trade via e -Commerce? If so, could Pakistan further explain 
whether such an agreement covers and complies with e -Commerce issues under the Working WT/TPR/M/424/Add.1  
 
- 71 - 
 
  Group of the Organization for Ec onomic Co -operation Development (OECD).  Furthermore, 
could Pakistan indicate whether  Pakistan's current tax policy covers and complies with 
e-Commerce issues under the OECD Working Group.  
 
New international rules in the form of multilateral conventions un der the auspices of OECD 
(commonly known as pillar 1 and pillar 2) are still under consultations and negotiations which will 
be offered for signature and further ratification by members of the inclusive framework  
 
WT/TPR/S/424  
Page 37, Para 2.14  
 
2.2.2 Trade and related policy objectives  
 
Question 4:  Following the implementation of the National Tariff Policy in 2019, how has Pakistan's 
overall applied tariff rate has changed? Could Pakistan provide information about the current applied 
tariff rates of the main products that have substantially changed since 2019.  
 
A cascaded tariff structure has been provided through Tariff Policy 2019. Pakistan 's current Customs 
tariff is ranging between zero (0%) to 20%. Customs duties have been removed on more than 2100 
tariff lines which are raw materials/ inputs fo r industrial production and include Intermediate 
Textiles, Chemicals, Plastics, Paper and Paperboard, Vaccines, Iron & Steel, Aluminum, Zinc and 
Copper, Glass, Medical Equipment, Refrigerated Vessels, Power Equipment and Industrial Machinery 
etc. Resultant ly, Pakistan 's Average applied MFN rate (unweighted) have decreased to 12.07%.  
 
WT/TPR/S/424  
Page 46, Para 3.5  
 
2.3 Pakistan -China  
 
Question 5:  With regard to Phase -II of the CPFTA, could Pakistan indicate the main protected tariff 
lines of China (25% of all tariff lines), especially those that are not subject to tariff concessions or 
reductions and how much in terms of exports from Pakistan to China is covered by this protected 
tariff lines? In addition, as Pakistan has provided information about the list  of protected products of 
Pakistan, could Pakistan indicate how much in terms of imports from China to Pakistan is covered 
by this list of protected products.  
 
The tariff lines in C1 and C2 categories of Chinese offer list for Phase -II of the CPFTA constit utes the 
Sensitive List of China. The exports in these TLs during FY (20 -21) has remained US D 334 million 
which is 14% of Pakistan 's total exports to China in the same period.  
 
Regarding, Pakistan 's import from China in the Sensitive list of Pakistan, it is provided that Pakistan 
imported items of worth US$ 3.17 billion in FY (20 -21) under CI and C2 categories which constitutes 
21% of Pakistan 's total import from China under CPFTA The details of the items included in protected 
lists of Pakista n and China can be seen at the following link;  
 
https://www.commerce.gov.pk/protocol -on-phase -ii-china -pakistan -fta/  
 
WT/TPR/S/424  
Page 56, Para 2.36  
 
3. Trade Policies and Practices by Measure  
 
Question 6:  Is the export development surcharge of 0.25 percent of the F.O.B. value to be levied 
on products produced in special economic zones such as the Export Processing Zones (EPZs)? Could 
Pakistan indicate whether Pakistan has any plan to lower the rate of expor t development surcharge in the next 
3-5 years.  
 
The banking sector is not collecting export development surcharge on export proceeds of entities 
operating from Export Processing Zones. There is no plan at this point of time regarding amendment 
in the rate of the surcharge.  
 WT/TPR/M/424/Add.1  
 
- 72 - 
 
  WT/TPR/S/424  
Page 90, Para 3.152  
 
Enforcement  
 
Question 7:   
• Do circulars/notifications issued by the Pakistan Electronic Media Regulatory Authority (PEMRA) 
set any legal penalty against broadcasters who use unlicensed contents?  
 
• Is there any case of signal piracy following the implementation of circular/notifications by PEMRA 
to address the issue? If so, could Pakistan provide the number of such signal piracy cases?  
 
For any violations of PEMRA laws, terms & conditions of license etc, the Authority (PEMRA) is 
empowered to take action under section 29 & 30 of the PEMRA Ordinance 2002 (Amendment Act 
2007) including imposition of financial penalties.  
 
As per the PEMRA la ws, all licensees are required to comply with the copyright & intellectual property 
obligations.  
 
WT/TPR/S/424  
Page 118, Para 4.149  
 
Services  
 
Question 8:  
With respect of tourism services, has Pakistan prepared any scheme/policy to boost up the sector 
following the COVID -19 pandemic. If so, could Pakistan provide more information on such 
scheme/policy?  
 
A Committee titled Tourism Recovery Action Committee (TRAC) was established and it, along with 
NTCB, has devised a three -pronged recovery strategy which can be accessed at 
https://tourism.gov.pk/publications/strat_covid.pdf . This strategy is pillared on: 1 ) Survival of 
tourism industry and mitigating impact of CoVID -19 (2) Revival and accelerated recovery phase (3) 
positioning for the future to revamp tourism. Besides this strategy, the state has develo ped 
three  priority strategic areas: - 1) National Coord ination of Tourism (2) Public, private partnerships 
& (3) destination management  
 
Page 65, Para 3.40 3.1.4 Other charges affecting imports  
 
Questions 9a:  
• Could Pakistan explain whether Regulatory Duties (RDs) and Additional Custom Duties (ACDs) 
are part of "import duties" and how RDs and ACDs are related to the Bound Rate under the 
WTO. Is it possible that the sum of RDs, ACDs, and customs duty which are charged on a 
product, be higher than the bound rate under the WTO?  
 
The regulatory duties and addition al custom duties are levied at import stage under Section 18 of 
the Customs Act, 1969. The cumulative incidence of customs duties leviable under this Section 
cannot exceed the rates agreed to by the Government of Pakistan under multilateral trade 
agreement s. 
 
Page 65, Para 3.40 3.1.4 Other charges affecting imports  
 
Questions 9b:  
•  Could Pakistan indicate the criteria used to determine products which are subjected to RDs 
and/or ACDs. Could Pakistan explain why RDs and/or ACDs are not included in MFN rates?  
 
Currently, there are 0%, 3%, 11%, 16% and 20% tariffs slabs and ACD is applied at the rate of 2% 
in 3% and 11% slab and 4% in 16% slab and 6% in 20% slab. However, rate of RD varies across 
these slabs and is being applied on certain items for tempo rary basis. The decision regarding the 
imposition or reduction of regulatory duties is taken by Tariff Policy Board as per the principles of 
the National Tariff Policy. These duties are levied at import stage and are non -discriminately in 
nature.  WT/TPR/M/424/Add.1  
 
- 73 - 
 
   
Page 69 , Para 3.60  
3.1.4 Other charges affecting imports  
 
Question 10:  
•  Are regulatory duties on exports applied to general exports, or could they also be applied to 
exports that enjoy special tariff treatment under FTA?  
 
Regulatory duties, either on imports or exports, are non -discriminatory in nature and are applied on 
MFN basis.  
 
  WT/TPR/M/424/Add.1  
 
- 74 - 
 
  MALAYSIA  
GOVERNMENT REPORT  
 
Page 9  
 
3.2 National Tariff Policy (2019 -24)  
 
3.8 In the first two years of the implementation of NTP, tariffs have been rationalized on more 
than 85% of the tariff lines. Nine -tenths of all tariff lines are now covered in five tariff slabs. Average 
applied tariff has decreased from over 14% to about 12% in the last seven years. Despite the recent 
surge in imports, the tarif f rationalization drive will continue during the implementation period of the 
NTP, till 2024.  
 
Question :  
1. Please explain  how the tariff rationali zation drive will be implemented.  
 
Under NTP -2019-24, entire tariff structure will be rationalized during the i mplementation period of 
the NTP. By virtue of said policy, tariff is being used as an instrument of trade policy. Before 
rationalizing tariffs, necessary feedback from the concerned sectors/industries have been taken. On 
the basis of said feedback, sectora l studies will be conducted by the Tariff Policy Centre, a technical 
arm of Tariff Policy Wing. The studies will be presented before the Tariff Policy Board. The 
recommendations of TPB will be placed before the Federal Cabinet or the Parliament, as the cas e 
may be, for decision. Tariff Policy Board invariably review the progress made so far in 
implementation of the NTP -2019-24. It is relevant to mention that at the beginning of the new 
financial year, the TPC prepares annual plan of tariff rationalization a nd said plan is then 
implemented during the financial year.  
 
3.3 Trade Facilitation and Promotion measures  
 
3.11 Since Pakistan has joined the Trade Facilitation Agreement in 2015, it has implemented 
86.1% of its TFA commitments. This includes Temporary ad mission of goods and inward -outward 
processing, electronic payments, risk management -based clearance and audits and uniform 
documentation procedures. The Trade & Transport Facilitation Unit will focus next on advance 
rulings, improvement in average release  times, enhancing cooperation amongst various border 
agencies, Authorized Economic Operator (AEO), and implementation of Pakistan Single Window 
(PSW).  
 
Question :  
2. Does Pakistan  plan to integrate the AEO into the Pakistan Single Window 
Aspiration including recognising operators accredited under similar AEO programs 
operating in other ASEAN countries?  
 
Pakistan 's AEO program, though implemented, is still at a nascent stage. The PS W platform will be 
leveraged to improvise and integrate Pakistan 's AEO scheme to ensure wider coverage including 
mutual recognition arrangements. Pakistan also aspires to integrate PSW with other National and 
Regional Single Windows including ASEAN Single Window. Such integrations can be used to facilitate 
trade including AEO related arrangements. The AEO Program has been incorporated  under the 
WeBOC clearance system by FBR Customs which is interfaced with the Pakistan Single Window, for 
expeditious clearan ces in cross -border transactions. An awareness and training program in this 
regard has been initiated through donor coordination, a manual and presentations are part of the 
workshops which are organized for the private sector and OGA's inclusively.  
 
Page 1 2 
 
3.4 Bilateral and Regional Trade Arrangements  
 
3.33 Pakistan is committed to increasing its engagement with the ASEAN countries. Pakistan 
signed comprehensive Free Trade Agreement (FTA) with Malaysia in 2007 and Preferential Trade 
Agreement (PTA) with I ndonesia that became operational in 2013. Pakistan engaged Indonesia to 
review the PTA and enhance its scope to better achieve the overall aim of increasing bilateral trade. 
The engagement resulted in additional concessions on certain tariff lines of Pakis tan's export WT/TPR/M/424/Add.1  
 
- 75 - 
 
  interest. Both countries decided to further deepen the agreement and have started negotiations on 
Pakistan -Indonesia FTA since 2019. Pakistan is also well underway with negotiating an FTA with 
Thailand.  
 
Question :  
3. Does Pakistan have any intention of participating in the Regional Comprehensive 
Economic Partnership agreement?  
 
Pakistan is critically evaluating different aspects of the bloc, gauging the opportunities and costs 
that may be involved when joining the RCEP before reaching any fi nal decision about it.  
 
 
4. The Malaysia -Pakistan Closer Economic Partnership Agreement (MPCEPA) which 
came into force on 1 January 2008 encompasses liberalisation in trade in goods 
and services, investment, as well as bilateral technical cooperation and capa city 
building. Are there any other areas that Pakistan wishes to explore in the future?  
 
The Malaysia -Pakistan Closer Economic Partnership Agreement (MPCEPA) is already a 
comprehensive agreement covering goods, services and investment. The agreement is periodically  
reviewed between both sides through the institutional mechanism of Joint Review  Committee (JRC). 
During the 3rd meeting of the JRC, it has been agreed to review the agreement for expansion. To 
this end, lists of 10 priority items have already been exchanged and the process is underway. 
Moreover, any other proposals for mutual cooperation, emerging from time to time , are generally 
deliberated at the forum of JRC.  
 
3.5 Fiscal reforms  
 
3.36 Pakistan is currently in its 22nd IMF programme, under which it is taking stabilization 
measures following standard IMF prescriptions including reforming tax through improved 
docume ntation efforts, automation, business registration, anti -smuggling efforts, risk management 
based financial scrutiny and electronic data exchange between trading partners.  
 
Question :  
5. What steps have the government taken to ensure that the laws and regulat ions 
dealing with investments and investors, including small and medium sized 
enterprises, and their implementation and enforcement are clear, transparent, 
readily accessible and do not impose unnecessary burdens?  
 
Pakistan seeks structural reforms in the economy like fiscal & tax reforms, power & financial sectors 
and repayment of their loans and interest.  
Pakistan has improved its business and investment climate in the country.  
Moreover, information is being increasingly made available online, e.g. on th e websites of BOI, SBP 
and FBR. Similarly, a number of regulatory permissions & approvals are being granted through online 
systems. This is a continuing process to facilitate investors.  
 
6. Does the government maintain a policy of timely, adequate, and effective 
compensation for expropriation consistent with its obligations under international 
law?  
 
Pakistan seeks structural reforms in the economy like fiscal & tax reforms, power & financial  sectors 
and repayment of their loans and interest. Pakistan has improved its business and investment 
climate in the country.  
Pakistan has developed a new template of Bilateral Investment Treaty, which is being negotiated 
with the partner countries to repl ace the old BIT with the purpose to build the confidence of foreign 
investors on their reservations, disputes etc.  
 
7. What explicit and well -defined limits on the ability to expropriate has the 
government established?  
 
Board of Investment has prepared a model Bilateral Investment Treaty wherein the Article 6 is 
covering the matter of Expropriation and Compensation. The new BIT template is being used to 
negotiate new treaties with the partner countries for replacing the old BIT.  WT/TPR/M/424/Add.1  
 
- 76 - 
 
   
8. What steps has the government taken to promote investment linkages between 
businesses, especially between foreign investors and local enterprises?  
 
Board of Investment facilitate both foreign and local investors and endeavo uring for enabling 
investment and business envir onment policy interventions, regulatory improvement and establishing 
SEZs in the country. Provincial Investment Departments / agencies are also in placed to facilitate 
the investors. Dedicated units for Industrial Cooperation under CPEC and Regulatory Refo rms have 
been established in BOI. Several web portals have also been created for projects, sectoral incentives, 
B2B ventures, Branch / Liaison Office permission, SEZ Management Information System. In addition, 
BOI are organized Investment Conferences, semi nars, workshops, forums in the country and abroad 
wherein the investors get the opportunities to interact with each other. BoI also support and facilitate 
the local and foreign Joint Business Chambers and facilitate the visits and meetings of foreign 
investors with the public and private sectors.  
 
Page 15  
 
3.9 Intellectual Property  
 
3.63.  IPO-Pakistan has expanded the number of regional offices and launching an interactive web 
portal for providing information and e -services. In addition, Technology Innovati on Support Centers 
(TISCs) have been created across the country at leading universities, R&D institutions and chambers 
of commerce to promote indigenous applied research protected by IP laws in the country.  
 
Question :  
9. Please elaborate on the interactive web portal and the e -services being offered, as 
well as how this relates to the TISCs . 
 
E-services offered through Website of IPO -Pakistan include online filing and e -payments. All basic 
information related to IP rights registration is available on the IPO Website. Patent e -journals are 
weekly published on the IPO website . TISC focal person h ave been trained to get information from 
IPO website and disseminate to the re searchers. Focal persons also support the researchers to find 
earlier published technologies including local granted patents.  
 
Page 16  
 
3.10 Sectoral policies  
 
3.65 Pakistan 's federal cabinet approved the e -Commerce Policy Framework in 2019. The policy 
has led to fast -tracking of reforms to increase digital payments and cross border e -commerce. 
Pakistan  is now included in the Amazon 's seller list, allowing Pakistani S MEs and Women 
Entrepreneurs to sell their goods in the global market.  
 
Question :  
10. Does Pakistan have digital tax policy/regulation in place for Low Value Goods?  
 
The policies on digital taxation  are constantly evolving as this is a new area for Pakistan. W ithholding 
tax was imposed u/s 152(1C) of the Income Tax Ordinance 2001  
 
11. If yes, what were the challenges faced when introducing the digital tax in 
Pakistan?  
 
The policies on digital taxation  are constantly evolving as this is a new area for Pakistan. With holding 
tax was imposed u/s 152(1C) of the Income Tax Ordinance 2001  
 
Page 16  
 
3.70. Pakistan Customs has developed a separate module in WeBOC for Business -to-Consumer 
(B2C) e -commerce exports from Pakistan. The new system will facilitate documentation and allow 
commercial banks to register e -commerce traders in WeBOC. The State Bank of Pakistan has also 
issued new regulatory framework that reduces regulatory burden for cross -border movement of 
money.  WT/TPR/M/424/Add.1  
 
- 77 - 
 
   
Question :  
12. Malaysia would like to obtain more information about (a) WeBOC and how it 
facilitates B2C e -commerce exports; and (b) the regulatory framework by State of 
Pakistan to reduce regulatory burden for cross -border movement of money.  
 
Response from FBR to 12 (a): In order to regulate B2C exports across border, FBR has implemented 
SRO 14(I)/2021 as an e -commerce trade facilitation measure at operational level. Through this SRO, 
Courier Services are allowed to file Goods Declaration on behalf of exporters under WeBOC. 
Exporters are requi red to get themselves registered as e -commerce traders in any scheduled Bank. 
WeBOC is an online 24/7 Customs clearance system. For any user, it is required that he first get a 
user ID of WeBOC. However, under e -commerce, trader is not required to file Goo ds Declaration. As 
stated above, Courier Service shall file GD on his behalf. Details of the SRO are avai lable at 
https://download1.fbr.gov.pk/SROs/20211111211228460SRO14 -2021.pdf E -Commerce:  
1. Banker / Authorized Dealer (Commercial Bank) has been provided with an option to register and 
maintain registration information of E -Commerce traders in WeBOC to register E -Commerce Traders.  
2. Commercial Banks users are able to access this provision through their WeBOC User IDs through 
a separate privilege m enu. 
3. Commercial Bank user can see "List of Registered E -Commerce Traders" on their screen and an 
option to "Add New E -Commerce Trader".  
4. Commercial Bank user is able to feed all information in the system which will record the complete 
information in WeBOC. Commercial Bank user is able to edit Trader information and registration 
section of already registered E -Commerce traders through "Edit" link in "Registration of E -Commerce 
Traders List" screen. They also have the option to "Active" or "Suspend" any  user at any point in 
time. 
5. A new value "E -Commerce" has been added in "Parcel Category" drop down list in GD filing.  
6. Courier user is able to select Parcel Category "e -commerce" at the time of attaching export items 
of E-Commerce traders while couri er GD filing. System has provided selection option of "Repair" or 
"Replacement", so that Commercial Bank is able to realize export shipment with zero amount 
settlement upon remittance.  
7. System has provided the option to Bank/Branch to view NTN wise E -Commerce export details to 
settle the export value of E -Commerce shipments by filing the relevant details of realization for 
proper reconciliations.  
8. Commercial Banks users are able to access this provision through their WeBOC user ids.  
9. Commercial Bank  user are able to select "Single" or "Multiple" GDs/HAWB No. and able to perform 
settlement of export value against E -Commerce shipment(s) by filing the relevant details of 
realization.  
10. Commercial Bank user have been given the option to select "Single"  or "Multiple" GDs/HAWB 
no's by selection option and click on "Settlement" button to perform the settlement activity.  
11. Commercial Bank users have the provision to view MIS reports related to E -Commerce shipments 
through "E -commerce Trade >> MIS" link a fter login.  
12. System has also provided provision to State Bank users to view MIS reports related to 
E-Commerce shipments through "MIS >> E -Commerce" link after login.  
Response to 12(b) will be provided by the State Bank of Pakistan  
SBP Response on 12 (b) : 
"SBP has issued regulatory framework to facilitate Business -to-Consumer (B2C) e -Commerce 
exports by SME exporters from Pakistan on December 2, 2020 
(https://www.sbp.org.pk/epd/2020/FEC7.htm). Under the new regulatory framework, the 
mandatory requirement of 'Export ' (E) form has been done away with and now an exporter can 
export goods up to USD 5,000/ - per consignment without the requirement of 'E' Form. For the 
purpose, Pakistan Customs has developed an e -commerce automated clearance facility in 
collabora tion with SBP under which shipments by E -commerce exporters shall be made through 
courier companies registered with Pakistan Customs who shall file the Goods Declaration in WeBOC 
system on behalf of exporters. " WT/TPR/M/424/Add.1  
 
- 78 - 
 
   
SECRETARIAT REPORT  
 
Page 23  
 
1.2.4.1 Tax reform  
 
1.14 The authorities ' key fiscal objectives remain to broaden the tax base, reduce informality, and 
simplify and modernize the tax system.40 In this regard, they introduced a high -quality tax reform 
package in the FY22 (2021/22) budget, estimated a t 0.7% of GDP, inter alia, envisaging: (i) 
broadening of the general sales tax (GST) tax base and harmonization of the system between federal 
and provincial governments; (ii) simplifying the personal income tax (PIT) system, and increasing 
progressivity an d support of labour formalization; (iii) strengthening tax administration; (iv) 
reducing the capital gain tax from 15% to 12.5%; (iv) reducing the federal excise duty (FED) on 
telecommunications from 17% to 16%; (v) withdrawing the FED and reducing sales t ax on locally 
manufactured cars up to 850 cc; (vi) reducing the sales tax rate on locally manufactured electric 
vehicles from 17% to 1%; (vii) exempting locally produced silos from tax; (viii) instituting a special 
tax regime for SMEs; (ix) providing tax r elief for women entrepreneurs; (x) bringing e -commerce 
transactions into the sales tax net; (xi) removing a series of withholding taxes (16 out of 
38 provisions); and (xii) restoring the purity of the self -assessment scheme and implementation of 
the track -and-trace system (initially to 4 industries). Furthermore, as the pandemic has delayed the 
implementation of some policies and affected the pace of structural reforms, given the signs of 
economic recovery, as of April 2021 the authorities were keen to acce lerate the pace of reforms and 
have adopted a comprehensive programme to substantially modernize the corporate income tax 
regime, as a first step of a multi -year tax reform agenda, by drastically removing corporate tax 
exemptions.  
 
Question :  
 
13. Currently  the tax regime is based on a tiered structure i.e. tax on revenue, or 
taxable income or accounting income. Are there plans to streamline the corporate 
tax regime from a tiered structure to a single -tier (which would be beneficial to 
support start -ups or b usinesses at the capital -intensive phase to establish in the 
market)?  
 
The current tax regime; corporates are taxed on their taxable income, revenue (turnover) and 
accounting income basis. The rationale behind the current regime is to raise revenue for the  state.  
Under various schemes new business are being supported through numerous incentives, i.e., tax 
exemptions for certain periods, full or partial tax credits, etc.  
 
Page 37  
 
2.2.2  Trade and related policy objectives  
 
2.15 A National SME Policy Action P lan 2020 to provide much -needed support to small and 
enterprises (SMEs) was approved by the Prime Minister on 8 October 2020.20 The Plan focuses on 
key areas including SME definition, access to finance, business development services, skills and 
human resou rces, technology, market access, infrastructure, and entrepreneurship. Pakistan 's first 
ever E -commerce Policy was approved by the ECC in October 2019.21 It is aimed to facilitate holistic 
growth of e -commerce by creating an enabling environment, reducing cost of doing business, and 
lowering the threshold for enterprises to become part of e -commerce. The policy outlines targeted 
interventions in key areas of regulation, payment infrastructure, taxation, consumer protection, 
logistics, data protection, and S ME growth, among other  
 
Question :  
 
14. Please elaborate and share more information about the National Small and Medium 
Enterprise (SME) Policy.  
 WT/TPR/M/424/Add.1  
 
- 79 - 
 
  The National SME Policy 2021 has been approved by the Federal Cabinet on 14 December 2021 and 
subsequently launched by the honorable Prime Minister on 19 January 2022. The National SME 
Policy  2021 envisions to introduce following initiatives under key thematic areas:  
1.  Adoption and application of unified SME definition across Pakistan.  
2.  Impro ving macro policy and regulatory environment for SMEs through regulatory reforms 
including No NOC regime for SMEs & Start -ups, expansion and BMR, Risk Based Assessment 
Model, Self Declaration, Time Bound Approvals regime, E -inspection Portal, Sample Based 
Audits and simplified taxation regime for SMEs  
3.  Provision of easy and affordable credit to SMEs  
4.  Development of Skills, Human Resource & Technology.  
5.  Infrastructure development, allocation of land in existing industrial estates on a land lease -
based model, Plug and Play infrastructure, building farm to market roads, improved 
connectivity and availability of affordable energy to SMEs  
6.  Promotion of sustainable entrepreneurship, innovation & incubation.  
7.  Provision of Business Development Servi ces  
8.  Supporting Women Entrepreneurship Development  
9.  Increasing SMEs access to markets  
 a. Trade Fairs, Exhibitions & Delegations, SME Export Readiness & E -Commerce Support 
Program and establishing permanent emporiums in major cities to showcase pr oducts 
of SMEs.  
 b. Enhancing SMEs share in Public Procurement through reservation in public procurement 
from SMEs, review of requirement of performance guarantees, bid bonds, securities and 
turnover restrictions, as well as Supplier/Contactors being bound to purchase a fixed  
percentage of business orders from SMEs.  
10.  Development of Institutional Framework for SMEs at federal and provincial level.  
11.  Institutional strengthening of SMEDA through building capacity and greater resource 
provision for undertaking key SME development activities.  
 
15. What  is the SME definition that has been carved out under this new policy?  
 
SME Definition - National SME Policy 2021  
Enterprise Category* Criteria  
(Annual Sales Turnover)  
 
Small Enterprise (SE) Up to PKR 150 million 
Medium Enterpr ise (ME) Above PKR 150 million to PKR 800 million 
Start-up A small enterprise or medium enterprise up to 5 years old will be considered as Start -up 
SE or Start -up ME  
 
16. What  is the current SME population size in Pakistan and its breakdown in terms  of 
sectors  according to the newly applied definition?  
 
Currently, there are 5.2 million SMEs operating in the country.  
Sectoral classification of SMEs suggests that around 53% SMEs operate in Wholesale & Retail Sector, 
followed by Community, Social & Personal Servic es (22%), Manufacturing (20%), Transport, storage 
& communication (2%), Financing, Insurance, Real Estate & Business Service (2%), Agri, Forestry, 
Hunting & Fishing (1%), Construction (0.05%), and Mining & Quarrying (0.02%).  
 
17. Is there  any industry sector t hat is being prioriti zed in terms of SME development 
in Pakistan?  
 
Surgical and Medical Instruments, Light Engineering, Electric Appliances, Leather and Leather 
products, Textile made -ups, Sports Goods, Horticulture, ICT Services, Dairy & Livestock, Fisheries, 
Tourism are key potential SME sectors.  
 
Page 52  
 
2.4.5  Investment promotion  
 
2.57 Pakistan continued to promote investment, through the same tax and non -tax incentives 
available to both domestic and foreign investors (Table 2.4, Section 3.3.1.2). They continue to 
consist of reduced customs duties on imports of plant machinery and equipm ent; tax relief in the WT/TPR/M/424/Add.1  
 
- 80 - 
 
  form of an initial depreciation allowance on plant, machinery, and equipment; and SEZs and 
export -oriented unit (EOU) facilities as well as sector -specific measures including Export 
Enhancement Packages (EEPs).  
 
Question :  
 
18. What further steps does Pakistan intend to take in order to improve the existing  
investment framework, particularly for strengthening the stability of the business 
environment and improving the government procedures and processes to be more 
efficient?  
 
The Government is working on creating a business -friendly environment by simplifying regulations 
and reducing compliance burden.  
A comprehensive Pakistan Regulatory Modernization Initiative (PRMI) Strategy has been formulated 
to implement reforms initiative s in the country.  
E-Registry is being developed for cataloging the regulatory landscape.  
A Single portal for all G2B services including RLCO is envisaged to be launched after mapping and 
modernization of regulatory landscape.  
 
19. Please provide detailed inf ormation on the process for applying for incentives as 
well as the awarding of incentives?  
 
Details of process / forms / procedures are available on the relevant departments / organization 
websites. Furthermore, details of incentives for priority Sectors are available at 
https://invest.gov .pk/incentives -database . 
 
Page 56  
 
3 Trade Policies and Practices by Measure  
 
3.2.  During the review period, Pakistan 's overall average applied MFN tariff and the number of 
tariff rates decreased due to the abolition of nuisance rates and the introduction of duty -free rates 
that apply to nearly 30% of the tariff lines. However, despite the above, Pakistan 's tariff regime 
remains complex. The large amount of water between applied and bound rates provides the 
authorities with considerable scope t o alter tariffs. The complexity of the tariff and tax regime is 
further compounded by the prevalence of Statutory Regulatory Orders (SROs), which are statutory 
instruments/directives of delegated legislation in the form of Notifications issued by ministrie s and 
departments to alter on an ad hoc  basis the existing regulatory and fiscal framework (Section 2.2.3).  
 
Question :  
 
20. Please indicate the products with unbound tariff lines.  
 
The information regarding unbound tariff lines is given in Pakistan's goods  schedule.  
 
21. Does  Pakistan have any plans for these products with unbound tariff in the near 
future?  
 
The Tariff Policy Board is currently reviewing the existing tariff structure of Pakistan and any issues 
will be addressed wherever necessary.  
 
3 Trade Policies and Practices by Measure  
 
3.6.  Pakistan continues to operate several schemes to support its export sector, including the 
Export Processing Zones (EPZ) Scheme, the Manufacturing Bond Scheme (MB), the Duty and Tax 
Remission for Export Scheme (DTRE), the Export Oriented Units and Small and  Medium Enterprise 
Scheme (EOU), and the recently introduced Export Facilitation Scheme (EFS). Incentives offered 
under each scheme vary from tax and duty rebates to duty -free imports of inputs and plant and 
machinery to subsidized utility rates. Additiona lly, preferential export finance schemes are also 
operational.  
 WT/TPR/M/424/Add.1  
 
- 81 - 
 
  Question :  
 
22. Please provide more information on total allocation  for the abovementioned 
incentives and scheme as well as details of the companies benefiting from the 
incentives and schemes.  
 
The Export Facilitation Scheme (EFS) has been notified by the Federal Board of Revenue vide SRO 
957(1)72021 dated 30 -07-2021. This Scheme is running parallel to the existing schemes like 
Manufacturing Bond, DTRE and Export Oriented Schemes. The existing old  schemes shall be phased 
out and will be fully replaced by Export Facilitation Scheme -2021 on 14thAugust 2023. The users of 
this Scheme include Exporters (Manufacturers cum Exporters, Commercial Exporters, Indirect 
Exporters), Common Export Houses, Vendors  and International Toll Manufacturers. The EFS 
authorization holder can import duty/taxes free input goods including raw materials and capital 
goods (plant and machinery) and can also procure the input goods locally. A Common Export House 
under EFS authori zation can import, warehouse and supply duty/taxes free input goods to the 
authorized users of SMEs, direct or indirect exporters and commercial exporters. This Scheme has 
also allowed International Toll manufacturing. Categorization of exporter on basis o f percentage of 
export has been provided and securities based on category and profile of the applicant is required. 
Under this Scheme, authorization and utilization period ranges from two years to five years on basis 
of categorization of exporters.  
Export Facilitation Scheme can be availed by the Manufacturers, Commercial Exporters, Toll 
Manufacturer companies.  
 
Page 57  
 
3.1.1 Customs procedures, valuation, and requirements  
 
3.17 Pakistan launched an AEO programme in October 2020, and currently there are three AEOs 
operating, while the registration of six additional AEOs is in process. Additionally, an advance ruling 
system was also implemented in November 2020, as was the pre -clearance of imports through air 
cargo in February 2021. It is envisaged that pr e-clearance would also be available for sea cargo.  
 
Question :  
 
23. Does Pakistan exempt income tax on employees of companies  that operate in Free 
Zones?  
 
Pakistan does not exempt income tax on employees of companies that operates in Free Zones.  
 
24. Does Pakistan  offer any special incentives or privileges to attract talents?  
 
1. Position of Pre Arrival Clearance:  
•  Article 7.1 of the WTO Trade Facilitation Agreement (TFA) and Standard 3.25 of the Revised 
Kyoto Convention (RKC) require for Pre -arrival proc essing of import and export shipments to 
achieve a higher level of predictability and transparency to Customs procedures, improving 
trade facilitation, and leading to increased economic competitiveness and investment.  
•  The Pre arrival module in the Custo ms Clearance System i.e. Web Based One Customs System 
(WeBOC) has been developed and implemented where manifest of cargo is filed in advance 
by the shipping lines and their authorized agents. All types of traders (importers) are allowed 
to file their Goods  Declaration in advance before arrival of cargo at the ports. Customs through 
newly developed module processes the traders declarations through established Risk 
Management System (RMS) and consignments which do not require physical examination are 
cleared in advance before its arrival at the ports.  
2. Update on the AEO Program  
•  The TFA and the WCO SAFE Framework recommend an Authorized Economic Operator 
Program for trade facilitation and security of supply chain.  
•  The AEO program has been launched in 2 020 and necessary legal changes have been made 
in the Customs Act, 1969 and the rules made thereunder.  
•  Currently three (3) AEO companies have been allowed AEO status and these are conducting 
import and export.  WT/TPR/M/424/Add.1  
 
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  •  Benefits such as priority lanes, early e xamination of goods if required and special parking 
facilities, preferential treatment in clearance of cargo and facility of deferred payments have 
been provided to AEOs in the law.  
3. Advance Ruling  
•  For enhancing predictability and transparency in clearance procedures, the facility of issuance 
of Advance Ruling has been incorporated in the section 212 B of the Customs Act, 1969 and 
the scope of advance rulings have been expanded to HS Classification a nd Origin of goods.  
•  Necessary rules for the Advance Ruling mechanism have been issued vide SRO 1213(I)/ 2020 
and Advance Ruling Committee has been established.  
•  Advance Ruling once issued shall be binding on Customs and to the applicant will remain valid 
for three years un less rescinded or amended. The ruling shall also be appealable at the FBR.  
•  The Advance Rulings are issued as per legal process. Three rulings have been issued.  
 
Page 79  
 
3.3.2 Standards and other technical requirements  
 
3.105.  After Pakistan signed the WTO Agreement in 1995, the Pakistan National Accreditation 
Council (PNAC) was established in 1998 under the administrative control of the Ministry of Science 
and Technology. The PNAC Act was published in 2017. As the national apex body, PNAC's main 
objecti ve is to accredit conformity assessment bodies (CABs) according to national and international 
standards, including testing and calibration laboratories according to ISO/IEC 17025; medical 
laboratories according to ISO 15189; inspection bodies according to ISO/IEC 17020; certification 
bodies according to ISO/IEC 17021 -1; management system certificate including QMS (ISO 9001), 
EMS (ISO 14001); and new schemes like occupational health and safety (ISO 45001) and medical 
devices (ISO 13485). Since 2015, PNAC is also responsible for halal certification bodies according to 
PS:4992 and SMIIC -2, product certification bodies according to ISO/IEC 17065 (scheme launched 
in 2015), and an accreditation scheme for GLOBALG.A.P launched in 2021.31 Additionally, 
accreditation  for proficiency testing providers according to ISO/IEC 17043 was launched in 2015, 
and one for personnel certification according to ISO/IEC 17024 was launched in 2016.  
 
Question :  
 
25. We would like to seek clarification from Pakistan on whether the PNAC also 
perform certification activities, as para 3.105 states 'management system 
certificate including QMS (ISO 9001), EMS (ISO 14001); and new schemes like 
occupational health and safety (ISO 45001) and medical devices (ISO 13485) '. 
 
PNAC does not provide Certification activities as it is not allowed according to ISO 17011. PNAC 
awards accreditation to Laboratories, Certification Bodies and Inspection Bodies  
 
Page 79  
 
3.3.2 Standards and o ther technical requirements  
 
3.107. PNAC is a full member of the International Laboratory Accreditation Cooperation (ILAC) and 
the International Accreditation Forum (IAF), and a signatory member of the Asia Pacific Accreditation 
Cooperation (APAC). PNAC has achieved Mutual Recognition Arrangement (MRA) signatory status 
for testing and calibration laboratories from ILAC and Multilateral Recognition Arrangement (MLA) 
signatory status for quality management systems, environment management systems, and p roduct 
certifications from the IAF. Furthermore, PNAC is the founding board member of the International 
Halal Accreditation Forum (IHAF) and a member of SMIIC. By virtue of these recognitions, 
certificates/reports issued by accredited conformity bodies are  accepted around the world. 
Additionally, Pakistan has concluded 11 MRAs with other countries.  
 
Question :  
 
26. Could  Pakistan share the list of MRAs and the respective product/sector?  
 
MRA with International laboratory accreditation cooperation for:  
 i. Testing laboratories,  
 ii. Calibration laboratories,  WT/TPR/M/424/Add.1  
 
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  iii. Inspection bodies  
PNAC has signed Mutual Recognition Arrangement (MRA) / Multilateral Recognition Agreement (MLA) 
with the following international and regional bodies: - 
i. International Laboratory Accreditation Cooperation (ILAC)  
ii. International Accreditation Forum (IAF)  
iii. Asia Pacific Accreditation Cooperation (APAC)  
MLA with International Accreditation Forum for:  
i. System Certification (QMS, EMS)  
ii. Product Certification  
 
MRA with Asia Paci fic Accreditation Cooperation for the above scopes  
27. Please  explain the process involved for establishing MRA with Pakistan.  
 
The process of MRA and MLA of ILAC, IAF and APAC is available on their respective websites.  
However , in brief, the trained and approved peer evaluation teams of the above said bodies evaluate 
the performance of PNAC every four years, for a week long evalu ation and after satisfactory report 
it is submitted to the General Assembly of these apex bodies where it is recommended and approved.  
 
Page 86  
 
3.3.7  Government procurement  
 
3.134.  Pakistan became an observer to the WTO plurilateral Agreement on Government 
Procurement in February 2015. There are no government procurement provisions in any of its FTAs. 
Government procurement continues to be governed by the Public Procurement Regulatory Authority 
Ordinance 2002 and the associated Public Procurement Rules 2004 (PPRA rules). The Ordinance and 
the Rules are administered by the Public Procurement Regulatory Authority (PPRA), an autonomous 
body responsible for recommending laws and regulations governing public procurement and 
monitoring the application of  procurement laws and performance of federal procuring agencies. The 
PPRA does not have jurisdiction over sub -federal procurement schemes, but provincial governments 
have created regulatory authorities on the same lines as the PPRA and introduced public pr ocurement 
rules that are similar in scope and coverage to federal rules.  
 
Question :  
 
28. Please elaborate how the PPRA coordinates and standardises regulations with 
provincial government bodies?  
 
PPRA Coordinates with Provincial Procur ement Regulato ry Authority through "Technical Assistance 
Committee for Procurement Reforms" wherein all the provincial/regional procurement regulato ry 
bodies have their effective representation.  
 
Page 88  
 
3.3.8  Intellectual property rights  
 
3.140.  Intellectual property laws in Pakistan are administered by the Intellectual Property 
Organization of Pakistan (IPO), an autonomous organization under the administrative control of the 
MoC since 2016. The IPO was created under the Intellectual Property Organization Act 2012, which 
provides a funding structure and vests the IPO with enforcement authority. The Act also provides 
for the establishment of dedicated IP Tribunals to exercise exclusive jurisdiction over intellectual 
property cases.  
 
Question :  
 
29. Please share the challenges of intellectual property protection that Pakistan face  
most commonly.   
 
The challenges face by Pakistan includes:  
 - Lack of human resources  
 - Complete Digitization of IP record and IP business processes  
 - Capacity issues of Law Enforcement Agencies related to IPRs  WT/TPR/M/424/Add.1  
 
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   - Lack of IPRs Awareness  
 - Limited number of IP Tribunals  
 
Page 116  
 
4.4.3.2 Automotive sector  
 
4.140. According to the Pakistan Economic Survey, production of automobiles has been depressed 
since the introduction of new taxes such as federal excise duties and ACDs in FY2019, the impact of 
the COVID -19 pandemic, and exchange rate fluctuations (Table 4.16).57 Output levels have been 
recovering since the second half of 2020. 4.141. Imports of automotive products and other transport 
equipment (HS Section 17) amounted to USD 1.7 billion in 2020 (down from USD 2.6 billion in 
2013), whereas exports stood at  only USD 0.08 billion (up slightly from USD 0.06 billion in 2013). 
This sector attracts the highest tariff levels of all goods, as high as 100% (same as in 2015). The 
simple average MFN tariff rate for vehicles (HS 87) was 45.2% as at 2021/22, with tariff s ranging 
from 3% to 100%. Tariffs for most components are 35% (same as in 2014/15), while tariffs on 
motorcycles are 50% (down from 65% in 2014/15). The highest rate of 100% applied for certain 
motor vehicles of a capacity exceeding 1,800 cc.  
 
Question :  
 
30. Does Pakistan plan to introduce any amendments to the tax structure to spur the 
production of automobiles in Pakistan?  
 
Currently the buyers of vehicles are charged 'adjustable income tax '. Same is refundable if person 's 
income is already levied the tax.   
Similarly, Sales Tax and Federal Excise Duty are levied under multiple tiers; which aim to give relief 
to the persons with low incomes, tax higher incomes and discourage imports of expensive vehicles. 
Further, to boost local manufacture of specified Electric vehicles the import of CKD kits by local 
manufacturers has also been exempted from sales tax and on supply of locally manufactured electric 
vehicles sales tax is charged at reduced rate of 1%. In addition to above, locally manufactured 
hybrid vehicles are subject to sales tax at reduced rate. More importantly, in order to support local 
automotive sector, the sales tax is charged at reduced rate on the vehicles with engine capacity of 
850cc. Accordingly, Pakistan is implementing mix of tax  structures to achieve the desired goals 
including growth of local automotive sector.  
 
Page 117  
 
4.4.3.2 Automotive sector  
 
4.144. In March 2016, the MOIP adopted Pakistan 's Automotive Development Policy (ADP) 2016 -21, 
with a view to promoting competition  in the market by, inter alia, offering various incentives 
including tax holidays to new entrants. The automobile market used to be highly concentrated and 
was dominated by three multinational firms. Hence, following the issuance of the ADP 2016 -21, the 
Government approved 21 new investors to manufacture automobiles in Pakistan, and 9 of them 
started local manufacturing already. Although the ADP 2016 -21 expired on 30 June 2021, the 
benefits for local manufacturing end on 30 June 2026.  
 
4.145.  According to the authorities, the ADP 2016 -21 is to be replaced by the Automotive Industry 
Development  Export Policy 2021 -26, under which the excise duties and sales tax are to be revised 
with a view to accelerating overall growth of the industry.  
 
Questi on:  
 
31. Apart from the revision of excise duty and sales tax, what are the major revisions 
introduced in the Automotive Development Policy 2021 -2026?  
 
The major revisions/interventions included in AIDEP 2021 -26 are promotion of new technologies 
including ele ctric vehicles, increasing variety  in production under New Product Policy for small cars, 
motorcycles, three wheelers and tractors and adoption of WP -29 Regulations, which is expected to 
ensure harmonization of local manufacturing of locally manufactured vehicles and parts with the 
global market.  WT/TPR/M/424/Add.1  
 
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Page 135  
 
4.5.7.2 E -commerce  
 
4.257  With a view to increasing the competitiveness of local e -commerce players, and thus 
enhancing their share in local and global trade, the E -Commerce Policy was issued to lower the 
access threshold for enterprises  to access the e -commerce market by ensuring consumer protection, 
availability of e -payments, and global connectivity of goods and services providers for cross -border 
trade. The Policy covers and provides guidelines on key components to promote e -commerce,  
including regulatory environment, financial inclusion and digitization through payment 
infrastructure, empowering youth and SMEs, consumer protection, taxation, ICT infrastructure, 
logistics, and engagement in multilateral negotiations. The SBP forecasted  that Pakistan can increase 
its GDP by USD 36 billion and create four million jobs by 2025 via an increase in the use of digital 
financial services alone.  
 
Question : 
 
32. Please  describe the e -Commerce Programme especially pertaining to the 
formulation of e -commerce strategies?  
 
During formulation of the policy Ministry of Commerce in collaboration with public and private sector 
identified nine vital pillars which are the very core of the e -Commerce landscape in the country, 
various working groups were formed under these pillars and several consultative sessions were held 
to coalesce challenges/issues pertaining to e -Commerce ecosystem, these challenges are segregated 
and placed in policy framework with desired outcomes, timelines, priority level and responsibi lities 
are assigned to respective players.  
To oversee the affective implementation of policy framework National e -Commerce Council is 
formed. NeCC has members from both public and private sector.  
 
33. Please  describe how cross -border trade is implemented?  
 
To boost and facilitate b2c e -Commerce exporters, MoC in collaboration with SBP and FBR has 
introduced b2c goods exports facilitative framework, any person/entity who wishes to export a 
consignment up  to value USD 5,000 can simply register with any commercial bank as e -Commerce 
exporter just on the basis of National Tax Number and can ship consignment through any registered 
courier service provider, b2c exporter does not need to obtain WeBoc ID, Courier  company will fill 
Goods declaration on behalf of the exporter. there is no cap on number of consignments per month  
 
34. Is there any pre -determined threshold/ de Minimis  value for the cross -border trade  
and what are the types of enforcements involved?  
 
De mini mis value of PKR 5 ,000 is effective, Pakistan customs being the concerned department 
ensures the enforcement.  
 
35. What are the actions related to administrative procedures and achievements 
related to cross -border trade measures?  
 
To facilitate cross -border e -Commerce trade. The MoC in collaboration with SBP and Customs 
introduced the B2C e -commerce export framework that is designed to support export of small packet 
shipments. Under the framework, exporters can register with a bank and for consignments up to th e 
value of $5000, courier company files the goods declaration to customs on behalf of the exporter.  
 
36. What  is Pakistan 's position in the discussion on Electronic Commerce that is taking 
place at the WTO?  
 
Pakistan is a firm believer in multilateralism and t hat in order to address all issues re lated to digital 
trade including the digital divide, the multilaterally mandated Work -Program on Electronic 
Commerce from 1998 should be reinvigorated. The work programme provides a useful multilateral 
platform to discu ss all these issues while highlighting the specific needs and concerns of developing 
countries particularly those aiming to develop their digital sectors. Issues related to scope & WT/TPR/M/424/Add.1  
 
- 86 - 
 
  definition of electronic transmission and related developmental impacts sho uld also be adequately 
addressed before making commitments/obligations on the subject.  
 
37. Please elaborate on the programmes that are currently conducted for the benefit 
of youth and SMEs under the e -Commerce Policy?  
 
 1. Various training programs are being carried across the country in collaboration with 
public -private organizations to enhance youth and SME capacity to trade online  
 2. Easy registration for b2c e -Commerce exporters are in place to boost e -Commerce 
exports  
 3. MoC in collaboration with SBP has announced various digital payment integration 
solutions for businesses to operate smoothly.  
4. Ministry of commerce has also launched first ever e -Commerce portal which has brought 
all the information pertaining to e -Commerce ecosystem. The aim of the portal is to 
disseminate the information to masses and guide/educate the youth  
 
38. How does the implementation of Pakistan 's e-Commerce policy benefit the youth 
and are there any challenges that have been identified to -date? 
 
The third Pillar of the National e -Commerce Policy is about the "Empowerment of Youth and SMEs ".  
The common and recurring theme of the barriers identified by both youth and women entrepreneurs 
are access to information, access to finance and access to digital skills training programs.  
 
Cognizant of these barriers, the government developed an e -commerce portal 
(www.eTijarat.gov.pk ) that serves as a one window information and facilitation for all e -commerce 
related inquiries. Additionally, the portal explains in layman terms and in Urdu language key 
procedures and regulations pertaining to company registration, taxation and other key commerce 
related matters. The government has introduced several capacity buildin g initiatives focusing on 
digital skills and selling on international online marketplaces such as Amazon.  The Government 
organizes workshops and conferences for women entrepreneurs, youth and SMEs to create 
awareness on emerging e -commerce skills.  
 
Throug h the Kamyab Jawan Program of the federal government is providing youth with collateral 
free loan. The government also introduced regulatory reforms to facilitate freelancers and 
e-commerce exporters.  
 
4.260.  The SECP updated its online system for the registration of e -commerce businesses in 
Pakistan . The SECP recently launched a portal for start -ups and established a separate window in 
the company registration offices throughout the country. Under Section 21 o f the Companies Act 
2017, a company has to register its office address where correspondence can be sent. A physical 
address is also required to deal with disputes that may arise between consumers and sellers. For 
operational matters that are cross -cutting in nature, a National e -Commerce Council (NeCC) was 
constituted. By the end of November 2021, five meetings of the NeCC have been held: three in 2020 
and two in 2021. It is to work as a single window for policy oversight to facilitate e -commerce 
players. A ccording to the authorities, an e -Commerce Cell (Secretariat for the NeCC) was created 
by the MoC.  
 
Question : 
 
39. Malaysia would like to obtain more information about Pakistan 's online system for 
registration of e -commerce businesses, including whether the registration of 
e-commerce businesses in Pakistan are made on mandatory or voluntary basis?  
 
There are two types of e -Commerce registration, one is with SECP, the entire process of registration 
is online and is managed and administered by SECP. Another re gistration is for b2c exporters of 
goods who wish to make an export up to a value of USD 5,000 per transaction. These exporters are 
registered with commercial banks only. However, for freelancers earning through gig economy and 
IT enabled companies they have to register with Pakistan Software Exports Board. There is no 
restriction for a company or an individual on choosing the nature of registration described above, 
however registration with any one is mandatory to avail the facilitations b y the country  
 WT/TPR/M/424/Add.1  
 
- 87 - 
 
  40. If such registration is made mandatory, what are the objectives that Pakistan aim 
to achieve from such measures? Are there any threshold / criteria to register? How 
will those who are not registered be dealt with by the authorities? What is the 
response of the micro businesses in Pakistan to the measure and what is their 
registration rate (in percentage)?  
 
The primary purpose of registration is to have documented economy, various registration types have 
some requirements and are not stringent  specially for e -Commerce category. The ones who are not 
registered cannot avail facilitations such as tax holiday for freelancers or avail the facility provided 
under SRO(14). Micro businesses are fast adopting registration process to gain facilities bein g offered 
by the Government, however the percentage rate is still low primarily because of less awareness.  
 
  WT/TPR/M/424/Add.1  
 
- 88 - 
 
  UNITED KINGDOM  
SECRETARIAT REPORT (S42)  
 
Secretariat Report (S424)   
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.3  Main macroeconomic policy developments  
1.2.3.1  Monetary and exchange rate policy  
 
Paragraph  1.9.  
 
UK Question 1:  The United Kingdom is pleased to note that Pakistan has made huge improvements 
in the area of Macroeconomic Policy development, specifically by strengthening the State Bank of 
Pakistan's autonomy and governance. However, it seems issues remain around the regulatory duty 
structure in a number of sectors as well as difficulty in remitting monies back to the United Kingdom 
either where imports are  seen as "non-essential " (e.g., franchisee fees for branded toys) or where 
the amounts are small or recurrent.  Is Pakistan looking to address these issues and incorporate a 
workable improved system?   
 
As per existing foreign exchange regulations (Chapter 13 of Foreign Exchange Manual), payments 
against all legitimate imports are allowed irrespective of their amount or recurrence. However, the 
import of goods/services should be in line with import policy  order of Ministry of Commerce. Banks 
have general permission to remit funds for settlement of imports.  
 
Remittance of franchise fee is also allowed in terms of Chapter 14 of foreign exchange manual. 
Authorized Dealers are allowed to execute remittance of  franchise fee that fulfills requirements 
mentioned under para 12 of chapter 14 of foreign Exchange Manual.  
 
Secretariat Report (S424)   
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4  Structural policies  
 
Paragraph  1.13.  
 
UK Question 2 : What  new policy frameworks and measures is Pakistan putting in place to boost 
value -add and attract investment to Pakistan, via incentives and through more open and competitive 
sectors?  
 
BOI has initiated the revision of Investment Policy 2013 supported by IFC -WBG consultants, to 
address the economic priorities in the face of changing global and regional economic scenarios and 
to achieve the targets for sustainable economic growth.  
 
BOI is leading a Working Group on "Enhancing Efficiency Seeking Investment ". The said strategy is 
being prepared with the aim to increase the inflow of Foreign Direct Investment in the "Efficiency 
Seeking Sectors ". 
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
 
Paragraph  2.1. General Framework  
 
UK Questio n 3: The Pakistan Regulatory Modernisation Initiative is a praiseworthy initiative.  
However, we believe more could be done on ensuring the Public Sector tendering process is 
transparent and follows protocols on approved process when a complaint arises. When will Public 
Procurement regulation policy be further developed to ensure swift and transparent decisions when 
issues arise?  
 
Federal PPRA has made amendments in Rule and issued the respective Regulations for redressal of 
grievances raised duri ng procurement processes before the award of contract as the second tier of 
grievance. Moreover, PPRA has recently issued general instructions for effective utilization of first  tier WT/TPR/M/424/Add.1  
 
- 89 - 
 
  of grievance.  Moreover, standard bidding documents have been issued for p rocurement of goods, 
consultancy services and framework agreements. In addition to this, Regulations have been drafted 
for transparent mechanism to be adopted by the procuring agencies while addressing the grievances 
during procurement process (before the award of contract) as well as for debarrment of the bidders.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.1  Trade Policy Formulation  
2.2.1.2  Advisory Bodies  
 
Paragraph  2.9 
 
UK Question 4 : The report mentions that the private sector informs trade policy formulation. To 
what extent are views gathered from a diverse range of private sector stakeholders including women 
and ethnic minority businesses, young entrepreneurs and micro, small and med ium sized enterprises 
(MSMEs)?  
 
STPF 2020 -25 has been formulated through a broad -based consultative and review process, 
involving all stakeholders, from both private and public sectors. Initially, proposals were invited from 
Federation of Pakistan Chambers  of Commerce and Industry (FPCCI), Chambers of Commerce & 
Industry, trade associations, private businesses, academia, think tanks, Trade Missions, 
Ministries/Divisions, Provincial Governments and other Government Agencies. Outreach meetings 
were held with the leading export -oriented sectors in different areas of the country including Karachi, 
Peshawar, Hyderabad, Sialkot, Faisalabad, Sukkur, Lahore, Multan, Quetta and Islamabad. Besides, 
an International Conference on Gender and Trade and a Symposium with B uying Houses and 
Sourcing Agents were organized. The proposals received from the stakeholders in writing or during 
the consultative events, were examined in a series of consultations with the public -sector 
stakeholders i.e. relevant Ministries, Departments , Provincial Governments, Regulatory Bodies and 
the STPF Implementation Organizations, to seek their views and comments on the proposals. The 
process was open and conducted in a collaborative manner, aiming to accommodate the proposals 
from all corners of the table, with the objective to formulate an effective and comprehensive trade 
policy for the next five years.  
 
In its second phase a special task force under the "Make in Pakistan " initiative conducted stakeholder 
engagements with various sectors and came up with comprehensive proposals that have also 
become part of this policy document.  
 
Ministry of Commerce invited comments from other ministries and departments on the policy 
docum ent and same were incorporated in order to align the policy with the recommendations of 
respective entities.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and related policy objectives  
 
Paragraph  2.10. Trade and trade -related policy formulation and objectives  
 
UK Question 5 : Could Pakistan elaborate on feasibility studies and data analysis supporting newly 
chosen sectors that support a more diversified export strategy? Additionally, has a  study been 
conducted to align chosen sectors/products to export market demands?  
 
STPF 2020 -25 has been formulated through a broad -based consultative and review process, 
involving all stakeholders, from both private and public sectors. The priority sectors have been 
identified after studying the international demand trends on one hand and on the other the capacity 
and capabilities of different export sectors of Pakistan. The guiding principle was to divert the most 
of efforts and interventions in tho se sectors that promise greater export opportunities and larger 
returns. At the same time a due consideration was also made to align the process with government 's 
wider policy priorities in textiles, agriculture, engineering, auto, food processing, pharmac euticals 
and services.  
 WT/TPR/M/424/Add.1  
 
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  Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and related policy objectives  
 
Paragraph  2.12 
 
UK Question 6 : Can Pakistan please highlight some of the key achievements of the Strategic Trade 
Policy Framework (STPF)?  
 
Strategic Trade Policy Framework (STPF) replaced the Annual Trade Policies (ATPs) which brought 
consistency and predictability to the policy environment. STPF is formulated after holding a broad  
based consultations with the private and public sector stakeholders which has reduced policy 
fragmentation. Furthermore, STPF has been instrumental in incremental strengthening of the 
institutions responsible for trade facilitation in Pakistan which will go a long way in achieving 
sustainable economic growth. There were some factors that hampered the complete implementation 
of previous STPF but those issues have duly been addressed in the current STPF.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REG IMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and related policy objectives  
 
Paragraph  2.13 
 
UK Question 7 : What will be different about the current STPF given it has been reported that 'none 
of the previous STPFs have been fully successful in meeting targets '? 
 
The following key features make the current STPF different from the previous policies:  
 
1) Current STPF is valid for five years while the previous policies were for three years, this will 
bring more predictability and continuity.  
2)  For the first time time, 18 priority sectors have been identified in the STPF and MoC is already 
working on formulating s ectors specific policies for these sectors.  
3)  Under STPF 2020 -25, Sector Specific Councils (SSCs) comprising of private sector 
stakeholders will be established which will give their input on the formulation and 
implementation of sector specific initiativ es / policies.  
4)  A National Export Development Board (NEDB) has been notified with the Prime Minister as its 
Chairman, this board will monitor the implementation of STPF 2020 -25 and thus will ensure 
ownership at the highest level.  
5)  A clear roadmap al ong with Action Matrices have been incorporated in the current STPF 
indicating the stakeholders and actionable initiatives.  
6)  The export performance of first 8 months of 2021 -22 also validates that the targets set in 
STPF are being achieved as per expect ations.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and related policy objectives  
 
Paragraph  2.13 
 
UK Question 8 : How will the National Export Development Board work in practice and what are its 
targets?  
 
Ministry of Commerce (MoC) is serving as the Secretariat of NEDB with the Prime Minister as its 
chairman. At least bimonthly meeting of the said board will be held. Agendas of the meetings are 
determined on sectoral basi s and the Board reviews the implementation status of its decisions made 
in the previous meetings. The target of NEDB is to oversee the alignment, progress and 
implementation of STPF and various sector specific policy initiatives. Furthermore, as an apex fo rum 
and inclusion of all relevant stakeholders from public and private sectors ensures a broader 
discussion of issues at national level.  WT/TPR/M/424/Add.1  
 
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Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and  related policy objectives  
 
Paragraph  2.14 
 
UK Question 9 : How temporary are the 'temporary import substitution principles ' of the National 
Tariff Policy? How long will they be in place? Will they be in place until 2024?   
 
Pakistan 's tariff policy aims to improve competitiveness of the domestic industries. Generally, a 
cascaded tariff structure is provided to the industrial value chain. However, in certain cases 
time-bound tariff protection is provided in the domestic market, which is phased out in due course 
of time.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2  Trade and related policy objectives  
 
Paragraph  2.16 
 
UK Question 10 : South Asia is one of the least integrated regions in the  world: what steps is b 
Pakistan taking to improve the effectiveness and make the South Asian Association for Regional 
Cooperation (SAARC) a success?  
 
The South Asian Association for Regional Cooperation (SAARC) was established on 8 December 1985 
and like other member states, Pakistan adopted SAARC Charter with an aim to accelerate the process 
of economic and social development in Member States. To this end, the Agreement on South Asian 
Free Trade Area (SAFTA) was signed in 2004 which is effective since 2006. Moreover, the SAARC 
Agreement on Trade in Services (SATIS) was also signed in 2010. Pakistan has already shared its 
initial Offer with the SAARC Sec retariat in 2019 and internal procedures are underway for finalization 
of its Final Offer List under SATIS.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.3  Trade laws and regulations  
 
Paragraph  2.17 
 
UK Question 11 : What steps have been taken to eliminate rent seeking from the process of issuing 
Statutory Regulatory Orders (SROs)?  
 
During the review period, the range of Pakistan's legal instruments in numero us trade and trade -
related areas, including Import Policy Order (IPO) and Export Policy Orders (EPO), are issued as 
Statutory Regulatory Orders (SROs). Statutory Regulatory Orders are instruments of delegated 
legislation. They are in the form of Notificati ons issued under specific legal provisions, different rules 
and regulations are implemented and amendments are made in the existing regulatory or fiscal 
framework. These SROs are statutory instruments/directives issued by ministries and departments 
to amen d laws and regulations. They are either procedural or concessionary. Concessionary SROs 
grant tax concessions or exemptions or impose extra taxes in the form of additional duties. 
Procedural SROs provide some kind of rules or procedures to carry out laws/a mendments in the 
existing SROs. Earlier, the FBR had the discretion to give exemption from duties and taxes or fines 
and penalties in special circumstances after recording the reasons, while the Federal Government 
had the authority to grant general exempti on. However, the FBR special exemption powers were 
withdrawn through Finance Act, 2015. Now only the Federal Government can provide exemption 
from duties and taxes in very limited and specific circumstances like food emergency. SROs are 
issued after approv al of the competent authority and after due process. The process involves 
consultations with all stakeholders after which, a case with all details are submitted to the Economic 
Coordination Committee (ECC) of the Cabinet. The ECC takes a decision after det ailed deliberations. WT/TPR/M/424/Add.1  
 
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  The composition of ECC is given in para 2.2. The decision of the ECC is then submitted in the Federal 
Cabinet for ratification. Similarly, the powers of FBR have been curtailed in case of Customs Tariffs 
since the approval of the Natio nal Tariff Policy 2019 -24 (NTP). The mechanism of revision in the 
Customs tariffs has been changed and instead of FBR, the responsibility has been assigned to the 
Ministry of Commerce. For an institutionali zed mechanism a Tariff Policy Board (TPB) has been  
constituted headed by the commerce minister/Advisor to the Prime Minister on Commerce, with 
Minister for Industries & Production, Secretary Finance, Secretary Revenue, Chairman FBR, 
Secretary Commerce, Secretary Board of Investment, and Chairman National Tariffs Commission as 
its members. The TPB is responsible for formulation, amendment and implementation of the National 
Tariff Policy. A Tariff Policy Centre (TPC) has also been established to analyse the proposals received 
for changes in the tariff struct ure as well as to conduct studies of different sectors. The 
recommendations of TPC are examined by the TPB as well as a technical Sub Committee with 
representatives from all concerned ministries and departments and then its recommendations are 
placed befor e TPB for final decisions. The decisions of TPB are then submitted either to the ECC of 
the Cabinet or the Federal Cabinet directly for approval. After this inclusive and elaborate process, 
Notifications in the form of SROs are issued to implement the deci sions.  
 
Secretariat Report (S424)  
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.1  WTO  
2.3.1.3  Notifications  
 
Paragraph  2.28 
 
UK Question 12 : The Secretariat Report states that 'during the review period, Pakistan made regular 
notifications to the WTO on a few aspects of its trade and legislative regimes including domestic 
support in agriculture and state trading (Table A2.1). However, there continue to be many 
outstanding notifica tions in areas including agricultural export subsidies, import licensing procedure 
requirements, subsidies, Sanitary and Phytosanitary Standards ( SPS), and Technical Barriers to 
Trade  (TBT). Could Pakistan please provide an update on when it next plans to submit a new and 
full subsidy notification as per its obligations under the SCM ( Subsidies and Countervailing Measures ) 
Agreement, when it will make its outstanding notifications s to the WTO particularly in areas such 
as agricultural export subsidies, and  import licensing procedure requirements?  
 
Pakistan has notified a number of outstanding notifications in the recent past. Due to several capacity 
related issues, certain notifications have been delayed. Ministry of commerce is making consistent 
efforts to  notify all outstanding notifications as soon as possible after consultations with all relevant 
stakeholders. In this context, a dedicated WTO Notification Cell is being considered within the 
Ministry of Commerce to oversee such notifications.  
 
Secretariat  Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.3  Preferential trade arrangements  
 
Paragraph  2.48 
 
UK Question 13:  What steps is Pakistan taking to maintain access to its preferential trade 
arrangements, particularly with regard to its commitments to international conventions. E.g.: human 
and labour rights and environmental standards?  
 
GSP Plus is linked with the impl ementation of 27 UN Conventions on human rights, labour rights, 
climate change, governance and narcotics control. After every two years a review is carried out by 
the European Union to ensure the commitment of the beneficiary countries to effectively imple ment 
these 27 UN Conventions. So far three successful biennial reviews have been concluded in 2016, 
2018 and 2020 respectively. The Fourth Biennial Review has commenced. The Government of 
Pakistan, in its earnest desire to implement 27 UN Conventions, has set up a Treaty Implementation 
Cell (TIC) to coordinate with all stakeholders at Federal and Provincial levels. Treaty Implementation 
Cell is convened by the Attorney General of Pakistan, and Additional Secretary (Trade Diplomacy), 
Ministry of Commerce, as  Secretary TIC. TIC Secretariat is housed in the Ministry of Commerce. So 
far, 25 Treaty Implementation Cell meetings have taken place, along with numerous inter -ministerial WT/TPR/M/424/Add.1  
 
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  meetings. The 25th meeting of TIC was chaired by the Attorney General of Pakistan and attended 
by representatives of Ministries namely Interior, Law & Justice, Human Rights, Overseas Pakistani 
&amp; Human Resource Development, Industries & Production, Foreign Affairs, Climate Change, 
National Commission on Human Rights, National Commiss ion on Status of Women and 
representatives of Provincial Treaty Implementation Cells (Punjab, Sindh, Balochistan, KP, GB &amp; 
AJK). Besides these the Prime Minister of Pakistan chaired meetings on EU GSP - Plus on 6 May 2020, 
3 May 2021, 17 August 2021 and  26 August 2021 to review the outstanding issues and progress on 
implementation of 27 UN Conventions.  
 
Secretariat Report (S424)   
2 TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
2.4.6  Dispute settlement  
 
Paragraph  2.61.  
 
UK question 14 : Contract enforcement is an area that Pakistan states it would like to improve. We 
welcome the introduction of dedicated Commercial Courts in Pakistan. How does Pakistan plan to 
strengthen and roll these out across the country to give confidence to both dom estic and 
international businesses that the judicial system will process and protect commercial contracts and 
dispute settlement?  
 
Commercial Courts have been established in Pakistan under the Imports and Exports (Control) Act 
1950. The Commercial Courts h ave been operationali zed in two major cities of Pak istan, namely, 
Lahore and Karachi. In addition, the Punjab government has also promulgated the Punjab 
Co­mmercial Courts Ordin­ance of 2021 under the ease -of-doing business reform frame­work to 
establish c ommercial courts. Under the ordinance, a commercial court has already been established 
in Lahore.  
 
Secretariat Report (S424)   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Paragraph  3.6 and 3.2.4 Export support and promotion  
 
UK Question 15:  Has Pakistan evaluated the impact of its export promotion schemes to assess value 
for money and ensure they are having the desired impact on exports without negative consequences 
for competition?  
 
The Ministry of Commerce has already initiated the process  of undertaking an impact analysis of 
various export promotion schemes offered by different departments / ministries of the Government 
of Pakistan. The initial analysis indicates that a positive impact has been witnessed on enhancement 
of exports.  
 
Secreta riat Report (S424)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3  Tariffs  
3.1.3.5  Tariff preferences  
 
Paragraph  3.37.  
 
UK Question 16 : Where financial supply routes for shipments of goods under FTAs includes entities 
from non -FTA partner countries (such as UK trading partners), the proof of preferential origin 
declarations from said Trading Partners are not currently acceptable for impo rt where goods are sold 
to/imported by a Pakistan entity from the Trading Partner.  
 
Can Pakistan explain if they plan to address this to widen the scope of imports that could benefit 
from these preferential rates going forward, and, if so, how?  
 
Imports from non -FTA partner countries are mostly ineligible for preferential treatment as per terms 
of FTA / preferential arrangements. Pakistan is open to discussing preferential agreements with its 
trading partners as and when appropriate.  WT/TPR/M/424/Add.1  
 
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Secretariat Report ( S424)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3  Tariffs  
3.1.3.6  Tariff exemptions and concessions  
 
Paragraph  3.38.  
 
UK Question 17 : Pakistan is not a signatory Member to the WTO 1994 Agreement on Trade in 
Pharmaceutical Products, and hence it is not aligned with a number of other WTO Members (such as 
the United Kingdom, the European Union, the United States, Canada and Japan). Therefore, some 
key commodities within pharmaceutical supply chains (such as medi caments and Active 
Pharmaceutical Ingredients (API)) incur significant duty liabilities (between 10 & 20%). These are 
inevitably passed on to the end -user, often patients. Can Pakistan indicate if and when they intend 
to sign -up to the WTO Pharma Agreement , to address this disparity and level the playing field, and 
ensure that it is playing its role in facilitating free and open trade in pharmaceutical products? If not, 
can Pakistan please explain what other measures they might be taking?  
 
The Tariff Policy  Board, has rationalized tariffs for the pharmaceutical sector, which covers 309 tariff 
lines of Active Pharmaceutical Ingredients (APIs) and 44 tariff lines of related machinery. Moreover, 
the Government has recently approved and notified the Promotion an d Growth of Active 
Pharmaceutical Ingredient (API) industry in Pakistan Policy to develop a competitive API and 
Pharmaceutical industry in Pakistan.  
 
Secretariat Report (S424)   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and  Trade  
3.3.3  Sanitary and phytosanitary requirements  
 
Paragraph  3.115 Animal quarantine and protection  
 
UK Question 18:  This paragraph states that "Live animals require a maximum 22 -day quarantine 
(minimum 7 days if the quarantine officer is satisfied with their health status) " Is the requirement 
for a 7 -22 day quarantine based on OIE requirements or other requirements?  
 
Import Risk Analysis, before the arrival of consignment, helps to form a conclusive opinion regarding 
the duration of quaran tine based upon sanitary status of the exporting country and suspected risk 
associated with the consignment. Animal diseases mentioned in the schedule -II of Pakistan Animal 
Quarantine Rules 1980 have variable incubation periods. Therefore, upon the arrival  of consignment, 
animals are kept in approved quarantine premises for the purpose of any clinical findings. Normally, 
live animals are kept for 7 -22 days to examine sign and symptoms of diseases mentioned in 
schedule -II of Pakistan Animal Quarantine Rule 1 980 and conduction of laboratory tests (if required). 
Quarantine Officer may increase or reduce the quarantine period by observing the health condition 
of consignment. In the case of pet animals, exemption from quarantine may be granted upon 
provision of v alid vaccination evidence and rabies anti -body titer test report (only in case of 
cats/dogs).  
 
Secretariat Report (S424)   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.5  Competition policy and price controls  
Competition policy, Price controls  
 
Paragraph  3.125.   
 
UK Question 19 : Could Pakistan indicate (precise) timelines to a finali ze previous policy decision to 
install an automatic price increase mechanism for drugs to allow companies to offset any negative 
impact due to inflation and/or currency devaluation?  
 
As per paragraph 7 of the Drug Pricing Policy, 2018 (amended on 15 July 2020), annual increase in 
maximum retail prices (MRPs) of drugs has been linked with consum er price index (CPI) of the WT/TPR/M/424/Add.1  
 
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  immediately preceding financial year. Manufacturers and importers may increase their existing MRPs 
of essential drugs / biological (excluding lower priced) equal to 70% increase in CPI (with a cap of 
7%) and MRPs of all other dr ugs / biological and lower priced drugs up to increase in CPI (with a 
cap of 10%).  
 
Secretariat Report (S424)   
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.8  Intellectual property rights  
Paragraph  3.139.  
 
UK Que stion 20:  Can Pakistan confirm a timeline and share updated procedures to enforce current 
legislation concerning the Intellectual Property Organisation of Pakistan and its supporting 
government agencies?  
 
The current legislation is already implemented. How ever, the Trademark Ordinance 2001, the 
Copyright Ordinance 1962 and the Patents Ordinance, 2000 are being revised. Approval of the 
Cabinet, National Assembly (lower house) and Senate (upper house) respectively will be required of 
the aforesaid amendments.  The President of Pakistan will finally sign the approved Bill.  
 
Secretariat Report (S424)   
4 TRADE POLICIES BY SECTOR  
4.5 Services  
4.5.3  Financial Services  
4.5.3.4  Capital markets  
 
UK question 21 : Capital markets can be considered very shallow in Pakistan. A lot of good work is 
currently on -going to deepen them by the International Financial Institutions and State Bank. What 
actions are the government prioriti zing? What is the government doing to attract the required 
expertise and capital market pl ayers?  
 
Primarily this pertains to SECP. Nevertheless, SBP 's input is as under for consideration:  
• The Government debt market in Pakistan is fairly deep and liquid, with an average daily trade 
volume of PKR 304 billion (equivalent to USD 1.7 billion), ou t of which trade volume in long -
term papers (PIBs) is PKR 63 billion (equivalent to USD 372 million).  
•  The SBP and Federal Government have recently implemented major steps and are currently 
in process of introducing further measures aimed at developing the country 's financial 
markets. Further, the Asian Development Bank (ADB), in collaboration with the Government 
and SBP, is also undertaking a Capital Market Development Program (2020 -2027) aimed at 
creating depth in the country's financial markets and de veloping institutional capacity.  
•  The list of major actions that have been implemented by SBP / Federal Government are as 
follows:  
i. SBP has issued a revised Primary Dealer Framework effective 1 July 2021, under which 
major steps have been taken to at tract non -bank institutions to act as primary dealers 
and to diversify investor base of government securities. Non -bank institutions such as 
brokerage houses, investment banks, DFIs and securities depositories/clearing 
institutions have been allowed to bec ome PDs with less stringent selection criteria and 
responsibilities compared to banks.  
ii.  SBP has recently introduced amendments in its regulations on Investor Portfolio of 
Securities (IPS) Accounts to facilitate retail investors to invest in government  securities 
through digital means, including by using branchless banking accounts.  
iii.  Since 2020, regular issuances of Shariah Compliant marketable government securities 
(GoP Ijara Sukuk) have been made to meet the market 's growing appetite for Shariah 
Compliant investments. Further, re -openings of GoP Ijara Sukuk have also been 
introduced to ensure liquid issues in the market.  
•  The following measures are currently in implementation stage:  
i.  A draft law on Netting of Financial Arrangements has been prepared in consultation with 
stakeholders, which is in legislation stage. The law aims to provide a legal cover for the 
enforceability of netting rights in case of a termination event, bankruptcy, or insolvency 
proceedings.   
ii. S BP is in process of developing a web -portal to facilitate investors to participate in 
primary auctions of government securities in a digital manner without the need for WT/TPR/M/424/Add.1  
 
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  visiting a bank. The portal would also serve as a source of information and kno wledge 
for potential investors to make investment decisions and promote financial literacy.  
iii. In order to facilitate access of foreign investors in GOP domestic debt market, SBP is in 
talks with Euroclear and Clearstream for the safe -keeping and settle ment of government 
securities through International Centralized Securities Depositories (ICSDs). Further, 
SBP has held a series of meetings with the J.P Morgan Index to discuss the prospects 
of inclusion of GOP debt securities in the J.P Morgan Emerging Ma rket Government Bond 
Index.  
 
GOVERNMENT REPORT (G424)  
 
Government Report G424  
1 INTRODUCTION AND OVERVIEW  
 
Paragraph  1.2 
 
UK Question 22:  The United Kingdom is pleased that legislation on the Central Bank was 
strengthened to increase independence. Can Pakistan outline what the practical steps now are to 
put that into practice?  
 
The State Bank of Pakistan Act 1956 after promulgation by the parliament has become effective 
from 28 January 2022. The amendments made are in line with international best practices and also 
take into account the ground realities in Pakistan. The amended law provides necessary provision 
for operational and financial autonomy to the State Bank with new mechanisms for enhancing 
transparency and strengthening accountability.  
 
Regarding implementation, the amended law include certain provision which have become effective 
without requiring any action like bar on Governmen t borrowing from central bank, while other require 
action as and when need like filling the vacant position on decision making bodies of the SBP that 
will require decision by the Federal Government on occurrence of such a vacancy. The key area of 
implement ation relates to aligning the SBP 's existing policy and procedures with the amended 
provisions of the law. For the purpose, SBP has carried out a detailed review of each of the newly 
incorporated or amended provisions to identify the changes/updates requir ed in its polices and 
internal procedures, and devise necessary action plan for their implementation. Some of identified 
areas have already been implemented while others are in the process of implementation.  
 
Government Report G424  
1 INTRODUCTION AND OVERV IEW 
 
Paragraph  1.3 
 
UK Question 23 : The United Kingdom welcomes Pakistan 's efforts to rationali ze tariffs and bring 
them down. How does Pakistan ensure that there is consistency across government efforts (including 
industrial policy) towards promoting trade? Is import substitution a stated objective of Pakistan 's 
industrial policy?  
 
The Government aims to promote a competitive manufacturing sector. The Government is pursuing 
to develop a robust ecosystem, through sector -specific policies, tari ff rationalization, automation and 
simplification of regulations and processes for industrialization, in consultation with relevant 
stakeholders in broader national perspective.  
 
Government Report G424  
2 ECONOMIC AND TRADE ENVIRONMENT   
2.3 Investment  
Parag raph  2.8. and 
2.5 Regional context  
 
Paragraph  2.12.  
 
UK Question 24:  The United Kingdom is keen to support Pakistan in getting more investment in its 
economy.  How does Pakistan plan to best use its strong diaspora in the United Kingdom to encourage 
more investment (including Foreign Direct Investment) into the country?  WT/TPR/M/424/Add.1  
 
- 97 - 
 
   
• Pakistan appreciates the United Kingdom 's keenness to support Pakistan in getting foreign 
direct investment in its economy.  
• To promote investment, Pakistan has created an e nabling environment through an open and 
transparent investment policy, a lucrative incentives framework and protection to investors. 
After Brexit, the United Kingdom has taken charge of its own economic policies and working 
to expand it trade and investmen t linkages across the world. Pakistan wishes that both 
countries should work together to promote direct, and diaspora induced investment in 
Pakistan.  
• It is therefore reiterated that both sides should take some concrete steps to promote 
investment in Pakis tan and encourage Pakistani diaspora to exploit investment opportunities 
in Pakistan.    
• Pakistan proposes the following:   
• Comprehensive Economic Partnership Agreement covering Trade and Investment  
• Utilisation of £1.5 billion UK Export Fund (UKEF) through effective promotion and 
making it easily accessible/available for private companies both in Pakistan and the UK  
• Visa regime may be streamlined to facilitate easy movement of the businesses of both 
countries  
• Creation of a Venture Capital Fund for Pakistani start -ups and incubators to promote 
export of IT and Tech services to the UK and rest of the world  
• UK Tech companies may be invited to investment in Pakistani Special Technology Zones.  
• Incentives  available in the newly established Special Economic Zones may be 
disseminated among the business through UK 's Chambers and think tanks .  
 
Government Report (G424)  
3 ECONOMIC AND TRADE POLICIES  
3.2  National Tariff Policy (2019 -24) 
 
Paragraphs 3.6 and 3.7 
 
UK Question 25:  Pakistan has long used tariffs as a fiscal tool to support state revenue collection, 
including as recently as last year, when import control measures, including tariff increases, were 
used to curb imports and address balance of payment s issues. The United Kingdom encourages tariff 
free trade that enhances business confidence and certainty to traders. Does Pakistan plan to move 
away from using tariffs as a short -term fiscal tool now that the National Tariff Policy and Tariff Policy 
Centr e have been introduced?  
 
Since the approval of the National Tariff Policy, the Government has rationalized 85% of the total 
tariff lines of the Pakistan Customs Tariff, keeping in view the demand and dynamics of the local 
industry. One of the key objectives of the National Tariff Policy 2019 -24 (NTP) is to use tariffs as a 
trade policy tool. The decisions in the Tariff Policy Board are taken after conducting a value chain 
analysis of a product and considering its forward and backward linkages with other industries.  
 
Government Report (G424)   
3 ECONOMIC AND TRADE POLICIES  
3.2 National Tariff Policy (2019 -24) 
 
Paragraph  3.8 
 
UK Question 26:  The United Kingdom welcomes Pakistan 's progress on tariff rationali zation but notes 
that high tariffs remain on finished and manufactured goods creating an anti -export bias, whereby 
manufacturers have no incentive to export and instead focus on the domestic market where their 
goods can be sold at artificially high prices compared to the world market. This can have adverse 
implications for consumers.  What steps are being taken to address this anti -export bias?  
 
Under the ambit of NTP -2019-2024, tariff is being rationalized on all tariff lines. Dispersion is being 
reduced and average applied tariff is also be ing reduced. During the implementation period of 
NTP-2019-2024, whole tariff structure will be simplified in line with the objectives of the said policy. 
As top priority is being accorded to the exports, therefore, anti -export bias, if any, will be gradual ly 
reduced for sustainable economic growth  
 WT/TPR/M/424/Add.1  
 
- 98 - 
 
  Government Report G424  
3 ECONOMIC AND TRADE POLICIES  
3.6 Investment Policy and Investment Climate reforms  
Paragraph  3.39 
 
UK Question 27:  Pakistan has made good progress in reducing costs of doing business and th ere 
has been immense improvement in the time required to register companies. However, there have 
been instances where additional documentation is required that is not defined in standard practices 
and legal requirements (e.g., Attestation of the Manufactur er Authorisation Certificate by the 
companies Embassy/ Consulate in country and a number of embassies do not have the legal charter 
to facilitate this requirement). What steps does Pakistan plan to take to standardi ze the process to 
ensure equal treatment to all companies and avoid discrimination, and what timeframe do these 
actions have?  
 
The question in not very clear regarding the issue. No discrimination is allowed under the constitution 
of Pakistan and the laws. As regards the issue of attestation by e mbassies, Pakistan has initiated 
the process of adopting the Hague (Apostille) Convention, which is expected to be completed in a 
year. This would allow document notarized in the relevant countries abroad to be legally accepted 
in Pakistan.  
 
Government Rep ort G424  
3 ECONOMIC AND TRADE POLICIES  
3.9 Intellectual Property  
Paragraph  3.60  
 
UK Question 28 : Protecting indigenous products from international markets and establishing a 
Geographical Indications (GI) Registry could be a unique selling point to introduce Pakistani products 
in international markets as national brands. Has a list of products been c ompiled and what data 
analysis and research underpins this?  
 
Pakistan has notified a list of 65 potential GIs to be registered. One GI i.e. Basmati rice has been 
registered. Work on other 64 GIs is in process. The Books of Specifications are being prepared in 
consultation with stakeholders. The registrant bodies for  these GIs are also notified. Please visit 
following database (non -exhaustive list) of notified Pakistani GIs https://ipo.gov.pk/gi_notifiedGIs . 
  WT/TPR/M/424/Add.1  
 
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  ICELAND  
- What is the participation of women in the economy of Pakistan?  
 
Total female labor force participation in Pakistan is 22%. Female labor force participation is higher 
in the informal sector in the rural areas (25.6%). 73% of women are employed in the fishing, 
agriculture and forestry. Within paid employment, 50.3% women are involved in services sector with 
majority engaged in elementary level jobs, followed by 26.4% in agriculture and 23.3% in 
manufacturing.  
 
While agriculture is the largest employer of Pakistani women workers, the ret urns to labour are low: 
60% women work as unpaid workers on family farms and enterprises. Also, women work in 
agriculture is mostly out of need and often without choice. Their unpaid work is valued (using 
comparative median wages) at PKR 683 billion. This constitutes 57 % of all work done by women, 
equaling 2.6 % of the national GDP.  
 
The female to male ratio of youth labor force participation is 0.32, while for physical activity it is 
0.24. Au contraire, for secondary enrolment and political participation, t he female to male ratio of 
youth is 0.8 and 0.65 respectively. The complete potential of 48.7 % of the country 's population 
remains barred through inequality of opportunities across multiple dimensions.  
 
However, Pakistan is optimistic about the future as m ore women are joining the labor force. The 
proportion of women in managerial positions has shown improvement between 2015 and 2019. The 
share of women in managerial positions increased from 2.7% to 4.53% at the national level. In the 
province of KPK, women  judges make up 20% of the district judiciary. In Jan uary 2022, Pakistan 's 
Supreme Court appointed first ever female judge.  
 
- Have specific barriers that limit women 's participation in trade been identified?  
 
Gender Mainstreaming is an important component of the Strategic Trade Policy Framework (STPF) 
2020-25 under which various measures have been identified to facilitate women's participation in 
trade. Furthermore, an International Conference on Gender and Trade and a Symposium with Buying 
Houses  and Sourcing Agents were organized and the proposals rece ived were duly considered while 
formulating STPF 2020 -25. 
 
A study to identify the specific barriers that limit women participation in trade will be initiated.  
 
Gender parity in literacy and educat ion indicates an important barrier that limits women 's 
participation in trade. The literacy level of women at 46.5% compared to that of men, at 71.1% 
highlights disparities in access to education leading to disparities in opportunities for meaningful 
contribution for women. With labour force participation (of ages 10 years and above) of 35.6 for 
women in 2018 -19, only 22.6 % participate were in 'paid' labour. Although labour force participation 
of women has improved over the years, from 32.6% in 2014 -15. How ever, women 's labour market 
retention is challenged by family priorities, inflexible workplace policies and the structural gendered 
workplace barriers. With an increased proportion of women participating in paid labour, in higher 
education and professional  categories, there is need to refine policies to facilitate these advances. 
Gender norms are a potential reasons that restrict women 's labour force participation to certain 
occupations.  
 
- Has Pakistan implemented any specific measures to encourage women 's participation 
in trade and promote women 's entrepreneurship, or are such measures being 
developed?  
 
Under the Strategic Trade Policy Framework (STPF) 2020 -25 Women Entrepreneur Facilitation Desks 
will be established at TDAP offices to focus on following areas:  
 
a) Facilitating women participation in international trade fairs  
b) Arranging and sponsoring more women specific delegations abroad, and accelerating the 
regional trade by taking women business delegations to regional counties  
c) Organizing awareness campaign in form of seminars and workshops, and arranging skill  
28 development programs for women entrepreneur  WT/TPR/M/424/Add.1  
 
- 100 - 
 
  d) Providing interested women entrepreneurs with complete information about registration 
process for setting up a business, business development plans, business feasibility studies, 
Intellectual Property Rights, and registering patents  
e) Organizing capacity building activities through skill development  
f)  Facilitating access to finance for women entrepreneurs  
g)  Facilitating  the development of special incentives for companies with a higher number of 
registered women workforce as well as skill development initiatives with National Vocational 
and Technical Education Commission (NAVTEC)  
 
In 2019, the Pakistan Bureau of Statistic s produced Pakistan Gender Compendium that presents sex 
disaggregated data on population, education, health, family planning, employment, time use pattern 
and, public representation. The gender segregated data is being utilized in policy making.  
 
Mainstrea ming Gender in COVID -19 Response:  
 
In March 2020, as COVID -19 entered Pakistan, a comprehensive assessment was undertaken to 
map out the anticipated socioeconomic fall out of the pandemic on vulnerable groups including 
women and children based on the under standing that the pandemic has the potential to erode the 
gender equality gains achieved by the government in last few years. This underscored gender 
impacts of outbreaks while designing corrective policies. This assessment was critical in informing 
relief and recovery packages through the platform of Ehsaas.  
 
The report predicted that with COVID -19 as the informal job sector would be hit the most, women 
will be disproportionately affected with loss of incomes. Furthermore, with schools locked down and 
limited public transport opportunities, women would also be shouldering most of the house care 
work, reducing economic opportunities and pre -disposing them to violence. They would also be 
suffering due to disrupted essential health (including reproductive heal th) services. As a result, when 
the Prime Minister 's Emergency Relief Package allocated PKR 200 billion for labour class and 
PKR 100 billion for small and medium enterprises and agri -sector, it maintained quotas for women -
owned businesses. Relief package o f PKR 10 billion was distributed to support 2.5 million families of 
daily wagers. Over 54 % of the Ehsaas emergency cash program benefitted women. Ehsaas kifalat 
(sponsoring) continued to support 7 million women. Over 45 % of the Ehsaas interest free loan 
programs beneficiaries are women. Similarly, 60 % of Ehsaas amadan (income) program assets were 
dedicated for women.  
The Government 's PKR 70 billion program for COVID19 response include a number of mother and 
child hospitals to ensure continuity of essential health services for women. The Universal Health 
Coverage (health insurance) program includes package with focus on women. Steps are being taken 
to ensure essential reproductive health and family planning services, leadership diversity in 
pandemic  response and post -pandemic recovery planning, with inclusion of women in technical 
working groups and program design.  
 
- Are the effects of trade policy on women and men measured and monitored, and if so, 
how?  
 
The upcoming version of Pakistan Gender Compen dium will provide and update of gender 
desegregated data to analyze the effects of trade policy on women. However, various independent 
studies also help in understanding the impact of policies on women. PIDE and other independent 
research organizations inf orm policy using the PGC data like the SDPI 's study of 2009 on "The trade 
and gender interface: A perspective from Pakistan " and PIDE 's study of 2004 on "Modelling gender 
dimensions of the impact of economic reforms " informed the policy formulation. Howeve r, there is 
a need to commission a specific study to monitor the effects of trade policy on men over a longer 
time span.  
 
Gender -disaggregated data and reporting is becoming a norm. The 2019 Pakistan Gender 
Compendium  produced by the Pakistan Bureau of Statistics presents sex disaggregated data on 
population , education, health, family planning, employment, time use pattern and, public 
representation. The Government is committed to improving data quality on gender and using it to 
guide policy and program initiatives  
 
  WT/TPR/M/424/Add.1  
 
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  INDONESIA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 56 Para 3.5  
 
Certain exports incur a regulatory duty; export of certain products deemed essential is prohibited 
so as to ensure adequate domestic supply. Additionally, the e xport of some products is restricted, 
and these products can be exported only  if certain conditions are met. An export development 
surcharge of 0.25% of the f.o.b. value has been levied on all exports to finance the Export 
Development Fund (EDF).  
 
Questions:  
1. Could you please mention the prohibited and restricted products for export?  
 
Export Policy Order 2020, issued vide SRO 901(I)/2020 dated 25 September 2020, is the primary 
document contain ing policy measures for regulation of export of goods from  Pakistan. As a general 
principle of policy, all goods are allowed export, except prohibited/ banned items. However, there 
are certain goods which are allowed export subject to certain conditions. These goods are listed as 
restricted goods. As per paragrap h-4(1) of the Export Policy Order 2020, export of all goods shall 
be allowed except those specified in Schedule -I (List of Banned/ Prohibited items). Similarly, as per 
paragraph -4(3), the goods specified in Schedule -II (List of Restri cted Items) shall be a llowed export 
on meeting the conditions/requirements of export mentioned in the said Schedule.  
 
2. How the Government of Pakistan determines which products are considered as essential, and 
how the sufficiency of local supply is calculated?  
 
The government det ermines essential products and sufficiency of local supply according to the 
feedback received from the private sector and relevant federal and provincial government 
departments.  
 
Page 56 Para 3.6  
 
Pakistan continues to operate several schemes to support its export sector, including the Export 
Processing Zones (EPZ) Scheme, the Manufacturing Bond Scheme (MB), the Duty and Tax Remission 
for Export Scheme (DTRE), the Export Oriented Units and Small and  Medium Enterprise Scheme 
(EOU), and the recently introduced Export Facilitation Scheme (EFS). Incentives offered under each 
scheme vary from tax and duty rebates to duty -free imports of inputs and plant and machinery to 
subsidized utility rates. Additiona lly, preferential export finance schemes are also operational.  
 
Question:  
3. Please explain the incentives provided by the Government under preferential export finance 
scheme, as well as which sectors are involved?  
 
Financing is provided under refinance schemes to enable exporters to compete in international 
market. Under Export Finance Scheme (EFS) and Islamic Export Refinance Scheme (IERS) short 
term export financing is provided to exporters against value added products except those products, 
which are mentioned in prescribed negative list of the scheme.  
 
Under Long Term Financing Facility (LTFF) /Islamic Long Term Financing Facility (ILTFF), financing 
in provided to export -oriented projects having export of US$ 5 Million or 50% of the export s ales. 
This facility is also available for export -oriented projects on projected exports basis to gradually 
achieve the required export performance in four years. The facility is available for all sectors that 
come under Export Policy Order issued by Minist ry of Commerce from time -to-time for purchase of 
new imported /locally manufactured plant & machinery.  
 
SBP does not provide any direct subsidy to exporters under its refinance schemes. Details of the 
refinance schemes are available at the following link:  https://www.sbp.org.pk/Incen/index2.asp  
 
 WT/TPR/M/424/Add.1  
 
- 102 - 
 
  Page 56 Para 3.8  
 
Pakistan continues to operate several incentive schemes that are both general in nature as well as 
sector -specific. Sector -specific incentives are provided to the following sectors: electric vehicle 
manufacturing, information technology, manufacturing of mobile devices, automobile, 
pharmaceutical, food processing, housing and construction, logistics, textiles, and touri sm. 
 
Question:  
4. Since the Government of Pakistan provide several incentive schemes to certain sectors, please 
identify and briefly define the incentives, as well as how the Government ensures the incentives 
are consistent with WTO commitment?  
 
Under the pre vious STPF, incentive schemes for Research & Development, Technology Up -gradation, 
Product Development and Brand & Certification Development Support for various sectors were 
introduced but could not be implemented due to lack of funds and other administrat ive issues. While 
formulating such initiatives, the Government of Pakistan ensures that they are consistent with WTO 
commitments.  
 
3.1.3.4 Tariff bindings  
 
Page 63 Para 3.34  
 
Pakistan's latest certified bound schedule is in HS12. However, for the purposes of this Review, a 
comparison with the 2021/22 tariff, which is based on HS17 nomenclature is done to the best 
possible extent. The authorities state that HS17 transposition of bound rates is in process.  
 
Questions:  
5. Could you please explain on how the new HS nomenclature would affect Pakistan 's preferential 
tariff to its trading partners, including Indonesia under Indonesia -Pakistan PTA? It would be 
appreciated if Pakistan could describe with the case study in wood and wood products from 
Indonesia.  
 
The transposition for FTAs from HS 12 to HS 17 and for future transpositions is done by FBR 
professionals. Any transposition should not materially impact any preferential tariffs. However, 
Pakistan would be open to reviewing any changes that are of concer n. 
 
6. How will the Government of Pakistan ensure that the transposition is implemented without 
affecting trade, while also ensuring the product coverage remains unchanged and trade 
commitments are not impaired?  
 
Tariff Wing: FBR will notify the revised nomenclature in Pakistan Customs Tariff and update the same 
in WEBOC and NSW to ensure smooth transposition from HS 2012 to HS 2017.  
 
Page 65 Para 3.44  
 
Question:  
7. Part II of Appendix B of the Import Policy Order 2020 offers a summary of the procedu ral 
requirements for the importation of restricted commodities, including paper products with 
HS Codes 4802.56.00 and 4802.57.00, which require particular certification. Could you perhaps 
clarify how trading partners, such as Indonesia, obtain the certific ation?  
 
Given the sensitive nature of these products, i.e. "security papers", import of these products have 
been restricted by requiring the importer/s to submit an import recommendation/NOC from the 
Security Printing Corporation of Pakistan. Moreover, the  importer has to submit a certificate from 
the Security Papers Limited that it is not able to meet the requirement of security papers from its 
stock and would have no objection for security papers' import. To obtain a certificate/ NOC from the 
Security Pap ers Limited or from the Security Printing Corporation of Pakistan, as the situation may 
require, the importer/supplier has to approach the relevant organization for issuance of certificate/ 
NOC stating in its application some specific order/s to supply sec urity papers.  
 
8. Is there a list of documents that must be submitted in order to export wood products to Pakistan?  
 WT/TPR/M/424/Add.1  
 
- 103 - 
 
  All the required import documents such as Bill of Lading, Invoice Declaration of payment mode etc . 
are also required for import of wood to Pakistan. Additional documents for importing wood into 
Pakistan include:  
1) Import Permit issued by the Department of Plant Protection  
2) Phytosanitary certificate from the National Plant Protection organization o f the country 
of origin  
3)  Plant Protection department's release order (post importation)  
 
3.1.6.3 Safeguards  
 
Page 68 Para 3.53  
 
Indonesia is aware that Pakistan has never undertaken any safeguard measures. Indonesia is 
interested in learning more about the safeguard provisions implemented by the National Tariff 
Commission (NTC):  
 
Questions:  
9. Does the Government of Pakistan make a Request for Consideration in the framework of the 
National Interest when deciding to impose safeguards, taking into account all interests, including 
those indirectly connected to safeguard measures?  
 
Pakistan (NTC) has not yet undertaken or conducted a safeguard investigation. However, Pakistan 's 
Safeguard Measures Ordinance 2002 provides for prior consultations with Me mbers having a 
substantial interest as exporters of the investigated product subject to the definitive safeguard 
measure.  
 
10. Does the Government of Pakistan perform direct verification from interested parties such as 
applicants, importers, exporters, and oth er involved parties in order to ensure correct data and 
information in safeguard investigations?  
 
Yes. NTC conducts on -the-spot verifications at premises of the interested parties such as applicants, 
exporters etc. in trade remedy investigations.  
 
11. Could yo u please provide import volume surge data sources used for safeguard investigation?  
 
NTC has never undertaken or conducted a safeguard investigation. However, for other trade remedy 
investigations such as Anti -dumping investigations, the NTC usually use im port data obtained from 
Pakistan Customs and provided by the exporters.  
 
12. Does the Government of Pakistan allow interested parties to provide views and comments when 
reviewing the implementation of safeguards?  
 
Pakistan 's Safeguard Measures Ordinance 2002 p rovides full opportunity to interested parties to 
defend their interests including submission of information, views/comments and prior consultations 
with exporting member countries having a substantial interest as exporters of the investigated 
product.  
 
13. In reference to Table A3.3 Restricted imports (2020), the Secretariat specified that "commercial 
importers importing bulk crude palm oil for storages shall also be allowed to import subject to 
safeguard mechanism to be notified by the Federal Board of Revenu e". Could you please 
elaborate on the aforesaid condition?  
 
As far as the issue relating to safeguards for bulk import of crude oil for storage is concerned, FBR 
will ensure implementation of Import Policy measures as and when recommended by National Tarif f 
Commission  (NTC). As this issue relates to Policy Measures that is the domain of Ministry of 
Commerce, it is recommended that input may be sought from the Ministry of Commerce as well.  
 
 
  WT/TPR/M/424/Add.1  
 
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  KAZAKHSTAN  
1) Paragraph 3.84 of the Secretariat Report  
 
Please explain how long financing, insurance, and guarantee of export lending are 
provided and at what interest rate export lending is subsidized (linked to which 
currency)?  
 
Financing is provided under refinance schemes to enable exporters to compete in i nternational 
market. Details of the refinance schemes are available at the following link:  
https://www.sbp.org.pk/Incen/index2.asp  
 
2) Paragraph 3.136 of the Secretariat Report  
 
Please explain what legal acts regulate the procurement of state -owned enterprises controlled by 
the State?  
 
The definition of Procuring Agency in the PPRA Ordinance includes body corporates owned and 
controlled by the Federal Government. These body corporates include st ate owned enterprises, 
hence the same legal/regulatory provisions are applicable on all these state owned enterprises.  
 
3) Paragraph 3.138 of the Secretariat Report  
 
Please explain what principles and criteria applied the Government of Pakistan when checki ng the 
reliability of foreign suppliers in procurement?  
 
There is no distinction for determining the reliability and past performance of the national and foreign 
suppliers. However, it is pertinent to mention over here that procuring agency determines the  
reliability of national and foreign suppliers by seeking information regarding his relevant experience 
and past performance, in addition to verification of their managerial/HR resources, material 
resources, financial worth and technical capacity etc. eith er through some shortlisting mechanism 
(including seeking of Expression of Interest or Prequalification Process) or as a part of technical 
proposal of the respective suppliers.  
 
Moreover, as per the Rule -17 of Public Procurement Rules 2004, the procuring agency, at any stage 
of the procurement proceedings, having credible reasons for or prima facie evidence of any defect 
in supplier 's or contractor 's capacities, may require the suppliers or contractors to provide 
information concerning their professional, technical, financial, legal or managerial competence 
whether already pre -qualified or not.  
 
4) Paragraph 3.3.8.1.1 of the Secretariat Report  
 
Please explain if Pakistan experiences any legislative or other difficulties in the application of 
compulsory lice nse mechanism for pharmaceuticals or any other inventions?  
 
There are two defined basis/grounds for the grant of non -voluntary license / Compulsory license 
under Section 58 and Section 59 of the Patents Ordinance, 2000. The Federal Government (under 
Section 58) has been empowered for the grant of non -voluntary license in case where matter related 
in the public interest, in particular, national security, nutrition, health or the development of other 
vital sectors of the national economy so requires; or lice nsee terms is anti -competitive, or the patent 
holder refuses to grant a license to a third party on reasonable commercial terms and conditions; or 
for the promotion of technological innovation and to the transfer and dissemination of technology.  
 
The second provision of the law (under Section 59) is grant of non -voluntary license / Compulsory 
license by the Controller of Patents subject to non -exploitation of patented technology by the owner 
after the expiration of a period of four years from the date of filing of the patent application or 
three  years from the date of the grant of the patent, whichever period expires last.  
 
The granting authority and manner to apply for the license including the prescribed fee and form 
have been defined under Section 5 9 and Rule 44 of the Patents Rules, 2003. In the situations under 
section 58, Federal Government, the granting authority, means Federal Cabinet of Pakistan. The WT/TPR/M/424/Add.1  
 
- 105 - 
 
  approval on the subject from the Federal Cabinet is a time taking process. Other main challenge  is 
lack of public awareness about the enabling provision of Compulsory License in the national law.  
 
5) Paragraph 4.5.5.3 of the Secretariat Report  
 
Please explain the criteria applied for the private sector to operate or build terminals under a BOT 
(build-operate -transfer) or public/private joint venture basis?  
 
Possibility of development of LNG terminal(s) by private sector under a BOT or public/ private joint 
venture basis can be evaluated by interested developer(s) in consultation with state entities involved 
in LNG sector (PSO, PLL, SSGCL, SNGPL, Port Authorities e.g. PQA). Ministry of Energy (Petroleum 
Division) can provide needed facilitation whereas Oil and Gas Regulatory Authority (OGRA) may 
provide necessary license(s) to conduct regulated activi ty.  
 
Prevailing LNG Policy provides that an LNG import project may be structured under one of the 
following alternatives:  
 
(a) Integrated project structure, under which a private or public sector party, joint venture or 
consortium (hereinafter referred t o as "LNG Developer ") is responsible for purchasing LNG supplies, 
transporting them to its LNG import terminal (comprising of receiving, storage and re -gasification 
facilities) and supplying RLNG to the domestic market and/or for its own use. The LNG Devel oper 
would enter into a Gas Sales and Purchase Agreement (GSPA) directly with a 
Government -designated buyer, gas utility or any customers (hereinafter referred to as "RLNG 
Buyer(s) "); or  
 
(b) Unbundled project structure, under which:  
i. A Government designated buyer, gas utility, any consumer or any LNG supplier 
(hereinafter referred to as "LNG Buyer(s) would directly import the LNG under a LNG 
Sale and Purchase Agreement ( "SPA") either on a d elivered ex ship (DES) basis, or a 
free-on-board (FOB) basis, or C&F basis.  
ii. For FOB purchase, the LNG Buyer would in addition, enter into an agreement with a 
shipping company to transport LNG to the receiving terminal.  
iii. The LNG Buyer(s) would ent er into an agreement with the LNG Terminal Owner and/or 
Operator (hereinafter referred to as the "LNG TO/O ") for the provision of LNG receiving, 
storage and re -gasification services at its terminal under a tolling agreement.  
 
  WT/TPR/M/424/Add.1  
 
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  ANNEX  
 
Sr# 66 , Annex -I 
List of Entities - Manufacturing, Mining, and Engineering  
MANUFACTURING. MINING & ENGINEERING  
Metals and Mining           31 
State Engineering Corporation (Private) Limited  
• Heavy Electrical Complex (Private) Limited  
• ENAR Petrotech Services (Private) Limited  
• Pakistan Machine Tool Factory (Private) Limited  
• Pakistan Engineering Company Limited  
Heavy Mechanical Complex (Private) Limited      32 
Karachi Shipyard and Engineering Works Limited      33 
Telephone Industries of Pakistan        34 
Pakista n Steel Mills Corporation (Private) Limited      35 
• Pakistan Steel Fabricating Company (Private) Limited  
Peoples Steel Mills Limited         36 
Saindak Metals Limited          37 
Pakistan Mineral Development Corporation (Private) Limited    38 
Pakistan Industr ial Development Corporation (Private) Limited    39 
• Pakistan Automobile Corporation  
o Sind Engineering (Private) Limited  
• Republic Motors (Private) Limited  
• Morafco Industries Limited  
 
Engineering Consultancy  
Pakistan Environmental Planning& Architectural Consultants  
(Private) Limited           40 
National Engineering Services Pakistan (Private) Limited    41 
• NESPAK and Partners LLC, Muscat, Oman  
• Mohammad Hisham Aitah -NESPAK, Riyadh, Saudi Arabia  
• NESPAK Limited  - Doha, Qatar  
STEDEC Technology Commercialization Corporation of Pakistan  
(Private) Limited           42 
 
Printing  
National Security Printing Company (Formerly Pakistan Security  
Printing Corporation          43 
(Private) Limited  
Printing Corporation of Paki stan (Private) Limited      44 
  WT/TPR/M/424/Add.1  
 
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  Sr# 67,  Annex -II 
GOP Support to KEY PSEs for 2021 -22 
(PKR in million)  
S. No.  Name of Entity  GoP Support  FY2021 -22 
upto 15 -03-22 
1.  Pakistan Steel Mills  
Loan  6,643  
2.  PIA 13,677  
3.  NHA 56,166  
4.  PBC 51 
5.  SEC 15 
6.  HEC 97 
7.  GIDC  Investment  1,238  
8.  PMTF Grant  500 
                            Total  78,387  
 
 
SR# 68,  Annex -III 
SUMMARY OF GOP SUPPORT ED PSE'S  
(PKR in million)  
S.No.  FY State 
Engineering 
Corporation  Saindak Metals Limited  Pakistan Textile City 
Ltd 
Loan  Grant  Loan  Investment  Grant  
1.  2004-05    250.000   
2.  2005-06    250.000   
3.  2013-14  2,085.267  29,236.620    
4.  2014-15 9.700      
5.  2015-16 83.983      
6.  2016-17 46.150    12.000   
7.  2018-19 20.000     14.000  
8.  2019-20 20.000      
9.  2020-21 25.000      
10.  2021-22 
Upto 15-03-
2022 15.000      
 Total  219.833  2,085.267  29,236.620  512.000  14.000  
Grand Total   31,321.887  526.000  
 
Note:  GoP Grant of  PKR 2,085.267 million and GoP investment of PKR 29.236 billion was provided 
by SML during the period of FY 1983 -84 to FY 2007 -08. Later on, GoP investment was 
converted into GoP Loan.  
 
 
  WT/TPR/M/424/Add.1  
 
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  SR# 117,  Annex -IV 
PSW Implementation Plan  
1st Phase: PSW Lite – April 2022:  
S. 
No. Feature  Existing Process  Post PSW Process  
1.  Online portal  WeBOC  PSW 
2.  Unified 
Subscription & 
Registration 
System  Individual and independent 
registration with different OGAs  
 
 
22 paper documents, 10 days 
processing time, Rs. 7000/ -, 
physical appearance required etc.  Single unified registration for 
Customs and OGAs using KYC 
based on integration with SECP, 
NADRA, FBR, PMD etc.  
Paperless, contactless, processing 
time reduced to minutes, 
Rs. 500/-. 
3.  Coverage for 
60% of Licenses, 
Permits, 
Certificates & 
Other documents 
(LPCOs) 
currentl y issued 
for cross border 
trade regulation  Approximately 2.1 million LPCOs 
are issued annually for trading 
2.4 million TEUs.  
 
 
 
Annually 1.5 million Electronic 
Export Forms/Electronic Import 
Form issued  
 
2.2 days average processing time  
No real time verification or risk 
mitigation of over/under -invoicing  60 % of all existing LPCOs will 
either be eliminated or replaced 
with electronic submission or 
verification with no need for 
processing and submission of 
physical documents upon 
completion of Phase -I. 
1.5 million Electronic Export 
Form/Electronic Import Form 
eliminated through on -line real 
time data exchange between 
banks, PSW and SBP.  
4.  back-end 
automation of 
participating 
OGAs  Information duplication, multiple 
submissions and physical visits  
 
Manual processes  Zero redundancy, no physical 
visits 
 
Automated processes  
5.  Trade 
Information 
Portal  Currently there is no Trade 
Information Portal in Pakistan  Complete catalogue of all laws, 
regulations, instructions, 
measures, forms and links related 
to cross border trade  
Updated information about, 
Regulatory Authorities, Govt. and 
Non-Govt. Bodies/Trade 
Associations/Chambers  
Commodity Information, Tariffs, 
duty and taxes calculator  
Updated Trade Directories and 
Trade Statistics  
6.  Integration with 
TradeLe ns Currently, Pakistan is not 
integrated with any global supply 
chain platforms which are 
evolving fast  TradeLens is a block chain based 
global supply -chain ecosystem 
with shippers, freight forwarders, 
ports/terminals, ocean carriers, 
intermodal operators,  financial 
service providers, govt. 
authorities/Customs, 
brokers/agents etc. integrated. It 
will provide information related to 
seaborne cargoes from 
warehouse to destination. This 
will facilitate trade while greatly 
enhance the capability of 
Customs to cu rb under -invoicing, 
mis-declaration and trade -based 
money laundering.  
 WT/TPR/M/424/Add.1  
 
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  2nd Phase: PSW Core – December 2022:  
S. 
No.  Feature  Existing Process  Post PSW Process  
1.  Expanding PSW 
coverage to 
cover 
integration of 
80% of LPCOs  Manual and physical processing of 
documents  
 
 Electronic verification or 
submission  
2.  e-Payment 
System  Individual payments for FBR duties 
and taxes and other OGA charges  
 
No mechanism for on -line payment 
of subsidies or currency exports  Provides for all cross -border trade -
related payments to be collected 
and disbursed.   
On-line payment of subsidies and 
currency export covered. Electronic 
transmission on a single platform 
by introducing Single Experience 
Payment facility.  
Caters for B2B payment option to 
enable 3rd party value added 
services on PSW.  
Real time integration with SBP and 
commercial banks.  
Automated process of settlements 
& reconciliation.  
Single payments for FBR duties and 
taxes and other OGA charges like 
cess, registration fee etc.  
3.  Integrated Risk 
Management 
System  Unstructured & manual  
Transaction based  
Siloed (single view)  
Regulatory Based  
Subjective rules  
Independent of OGA risks  Automated  
Holistic approach  
Multi -dimensional & simultaneous 
risk analysis  
Consolidated and shared view  
Feedback  
Continuous improvement  
4.  SD Exports  SD non -existent  SD Exports for Commercial Exports  
5.  SD Imports 
Phase 1  SD non -existent  SD Imports for Home consumption  
6.  Joint 
Inspections  The current system lacks the ability 
to combine interventions of 
multiple Government Agencies for 
any consignment to occur at the 
same time with coordinated 
approach to identify, assess and 
direct treatment for risk across all 
impacted GAs  Co-located  
Co-ordinated interventions  
Sharing of information and  
resources  
Standardised and consolidated 
reporting  
Joint feedback  
7.  Port 
community 
System 
coverage at 
Karachi 
seaports (PCS)  The lack of PCS is the main cause 
for port congestions, delays and 
weak controls  
 PCS would link all stakeholders on 
logistics sid e for efficient cargo 
management and regulatory 
compliance. It would integrate port 
related B2G, G2G & B2B 
transactions.  WT/TPR/M/424/Add.1  
 
- 110 - 
 
  S. 
No.  Feature  Existing Process  Post PSW Process  
8.  Pre - Shipment 
Inspections  PSI certificates required to allow 
import of wheat, pesticides, plastic 
scrap, used items like plant & 
mac hinery, ambulances, waste 
disposal trucks, firefighting trucks, 
dumpers & prime movers etc.  
 IPO's Appendix H & O lists names 
of authorized PSI companies  
DPP requires 10 days for 
endorsement by country offices & 
own staff  Pre-registration of authorized PSI 
companies  
Direct electronic submission of PSI 
certificates to PSW through EDI  
Use of IRMS for sample collection  
Selective testing by DPP replacing 
endorsement & verification in each 
case  
9.  Integrated Lab 
Management 
System  Currently there is no Integrated 
Lab Management System  It will allow lab reports to be 
uploaded & disseminated in real 
time  
On-line payment of Lab Test Fee to 
departments and external labs  
Will enhance transparency and 
reduce dwell time  
10.  Back -end 
automation of 
key Other 
Government 
Agencies 
(OGAs)  Manual processes  Automated Processes  
11.  Review of 
Transit & 
Transshipment 
Regime  Not aligned with PSW environment  Situational Analysis Report, Study 
and analysis of current transit & 
transshipment regime.  
 
3rd Phase: PSW Advanced – December 2023 and onwards:  
S. 
No.  Feature  Existing Process  Post PSW Process  
1.  Transformation 
of Customs 
Management 
System 
(WeBOC)  Registration and GD filing done in 
WeBOC  
 
WeBOC is not aligned with 
international best practices and 
PSW  PSW to be the front end for 
registration, GD filing and payments.  
WeBOC would be upgraded and 
aligned with PSW environment  
2.  Expansion of 
PCS to all po rts 
and border 
crossings    
3.  Value -added 
services, B2B 
transactions for 
trade & logistics  Non -existent  PSW will offer value added services to 
the trade and logistics operators  
4.  e-Commerce 
integration  Limited  B2B and B2B2C  WT/TPR/M/424/Add.1  
 
- 111 - 
 
  S. 
No.  Feature  Existing Process  Post PSW Process  
5.  Air Community 
System (ACS)  NIL ACS will integrate all stakeholders and 
logistics operators related to air 
freight  
6.  Information 
Security  NIL Develop Information Security 
Governance and Implementation of 
Information Security Management 
System and  
Design and Implement Security 
Polici es to protect company assets, 
data security and other related 
information.  
7.  Establish 
primary PSW 
Data Center  
& DR site   Setting up PSW 's primary data center 
& DR site using co -location approach 
to timely address the need of growing 
data.  
8.  Moving towards 
integration into 
regional and 
global single 
windows/value 
chains  NIL Integration with regional and global 
single windows e.g. ASEAN Single 
Window  
 
Note:  The above implementation status can be referred in those queries where question about P SW 
is asked . 
  WT/TPR/M/424/Add.1  
 
- 112 - 
 
   Sr# 181 , Annex -V 
 
Value: US D million  
FY 21  FY 15  
Pakistan's Total Exports (Goods and Services)  31,227  29,547  
Export of Goods a 25,304  23,667  
Export of Services b 5,923  5,880  
i. Maintenance and Repair Services N.i.e.  3  7  
ii. Transport  566  1,317  
iii. Travel  500  301  
iv. Construction  116  45  
v. Insurance and Pension Services  47  68  
vi. Financial Services  99  106  
vii. Charges for The Use of Intellectual Property N.i.e.  13  5  
viii. Telecommunications, Computer, And Information 
Services  2,119  821  
ix. Other Business Services  1,419  821  
x. Personal, Cultural, and Recreational Services  11  8 
xi. Government Goods and Services N.i.e.  1,030  2,381  
a: source is Pakistan Bureau of Statistic  
b: source is State Bank of Pakistan  
 
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