WT/TPR/M/311/Add.1  
9 July 2015  
(15-3549)  Page: 1/84  
Trade Policy Review Body 
24 and 26 March 2015 Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW 
PAKISTAN  
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Paparizov (Bulgaria) 
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 
24 et 26 mars 2015 
EXAMEN DES POLITIQUES COMMERCIALES 
PAKISTAN  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Paparizov (Bulgarie) 
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 Comerciales 
24 y 26 de marzo de 2015 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
PAKISTÁN  
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Paparizov (Bulgaria) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por 
Pakistán.1 
                                               
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/311/Add.1 
 
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  TRADE POLICY REVIEW OF PAKISTAN 
24 AND 26 MARCH 2015 
OMAN .......................................................................................................................... ..... 3 
MALAYSIA ...................................................................................................................... .. 4 
CANADA ........................................................................................................................ ... 5 
COLOMBIA ..................................................................................................................... 11 
UNITED STATES ............................................................................................................. 13  
CHINA ......................................................................................................................... ... 18 
SINGAPORE .................................................................................................................... 20  
MEXICO .......................................................................................................................... 22  
AUSTRALIA .................................................................................................................... 29 
ARGENTINA .................................................................................................................... 36  
JAPAN ......................................................................................................................... ... 38 
EUROPEAN UNION ......................................................................................................... 39  
PERU .......................................................................................................................... .... 56 
RUSSIAN FEDERATION ................................................................................................... 59  
THAILAND ......................................................................................................................  62 
REPUBLIC OF KOREA ...................................................................................................... 68  
NIGERIA ....................................................................................................................... . 71 
TURKEY ........................................................................................................................ .. 72 WT/TPR/M/311/Add.1 
 
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  OMAN 
Pakistan's exports are concentrated in relatively few products. Could the Pakistan delegation 
enlighten us on how it plans to widen its export base?  
Answer:  Pakistan is endeavoring to diversify its product base for exports. We have been able to 
achieve diversification to some extent over the past ten years. The main focus of the Strategic Trade Policy Framework (STPF) is to enhance product and market diversification and development 
in global as well as regional perspective. WT/TPR/M/311/Add.1 
 
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  MALAYSIA 
SECRETARIAT REPORT 
 
i.  SUMMARY  
17. Since its last Review, Pakistan has initiated 58 anti-dumping investigations, which led to the 
imposition of 31 definitive measures. It has not taken any safeguard or countervailing measures. Import prohibitions and restrictions are maintained for health, safety, security, moral, and 
environmental reasons. Pakistan's standards are mostly based on international standards. 
A National Food Safety, Animal, and Plant Hea lth Regulatory Authority is currently being 
established . No SPS notifications have been submitted since January 2000. 
 
1. We appreciate if Pakistan could share with us propose timeline for completion of the 
establishment of National Regulatory Authority for Food Safety, Animal and Plant Health.  
Answer:  Legislation for establishment of National Food Safety, Animal and Plant Health 
Regulatory Authority has been drafted and is under process in Parliament. However, various 
legislations for Animal, Plant and Human Health already exist and the new legislation will only 
improve coordination between the existing departments. 
 ii.  2.2.2  Main trade laws and regulations 
Table 2.2 Main trade-related legislation, 2014 
 
2. We appreciate if Pakistan could share with Ma laysia main features of its amendment to Animal 
Quarantine (Import and Export of Animal and Animal Products) Ordinance, 1979 relating to sanitary, phytosanitary and quarantine measures. 
 
Answer: The only amendment in Pakistan Animal Quarantine (Import and Export of animals and 
animal products) ordinance, 1979 was made in 1985.This amendment was made in section 10 
of Pakistan Animal Quarantine Ordinance,1979 wh ich gave the right to be heard by the Federal 
Government in cases of appeal against th e order of Animal Quarantine Department.  
 WT/TPR/M/311/Add.1 
 
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  CANADA 
REPORT BY THE GOVERNMENT (WT/TPR/G/311) 
Part 5. International Trade Liberalization;  5.1 WTO and Multilateral Liberalization; 
5.15 Services; page 10, paragraph 5.9: 
 
The Government report mentions that Pakistan is conducting stakeholder consultations to explore the possibility of acceding to plurilateral ag reements on Information Technology (ITA), 
Government Procurement (GPA) and the Green Goods Agreement. 
 1. Canada congratulates Pakistan on becoming an observer to the GPA. Could Pakistan indicate when it may initiate its GPA Accession negotiations? 
 
Answer: Pakistan has initiated multiple stakeholder consultations after getting the observer status 
in GPA. The government will follow a process for capacity building and technical assistance as 
a first step during its observership. 
 
REPORT BY THE SECRETARIAT (WT/TPR/S/311) 
Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.4 Tariffs; 3.2.4.3 Tariff bindings; page 38, paragraph 3.23: 
 The Secretariat report notes that about 2% of Pakistan's tariff lines are not bound, including meat 
and meat products. 
 2. When does Pakistan anticipate the binding of a ll of its agricultural tariff lines to be complete? 
 
Answer: The policy for binding the unbound agricultural tariffs is under active consideration, 
especially in the context of ongoing Doha Round Negotiation. Pakistan is undertaking a tariff 
reforms exercise, these unbound tariff lines shall be considered in it. 
 Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.4 Tariffs; 3.2.4.5 Tariff ex emptions and concessions; pages 38-39, 
paragraphs 3.25-3.28: 
 The Secretariat report details how Statutory Regulatory Orders, issued by the Federal Board of 
Revenue and approved by the Economic Coordinati on Committee of Cabinet, provide regulatory 
exemptions and concessions on products imported by particular industries. Existing independently 
of normal MFN rates in the tariff schedule, the widespread use of alternative duties under 
Statutory Regulatory Order regimes increases the complexity and lessens the transparency of the 
Pakistani tariff.  3. Could Pakistan please describe the process and specific timelines that it has established, as part 
of its agreement with the IMF, to withdraw these concessions?  
 4. Would Pakistan please highlight which products will no longer be subject to concessions? 
 
Answer: As part of its agreement with IMF, the concessions have to be phased out over a period 
of three years i.e. by June, 2017. In the first ph ase of the plan, implemented through Finance Act, 
2014, following concession have been either eliminated / withdrawn or extent of exemptions 
concessions thereon has been reduced, the details are as under:   
- Concession of Customs Duty (CD) to in puts of 89 industries were withdrawn ; 
- Extent of concessions of CD on inputs to 62 industries reduced; 
- The total import of these measures is calculated to the tune of Rs. 9 Billion.; 
- Extent of concessions to 21 commodities reduced; WT/TPR/M/311/Add.1 
 
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  - Concessions of CD to 17 sectors withdrawn. 
By June, 2017, entire concessionary regime will be transformed into a simple, predictable and 
transparent one with endeavor to withdraw concessions on almost all products.  
Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.5 Other duties and charges a ffecting imports; page 40, paragraph 3.29: 
 
Answer: The Secretariat report mentions that in June 2014, Pakistan adopted a Statutory 
Regulatory Order imposing a 5% regulatory im port duty on 284 imported products, including 
numerous agricultural goods such as beans, potatoes, tomatoes, apples, and honey.  
5. Could Pakistan please explain how the 5% import charge is commensurate to the cost of 
services rendered, as provided under Article VIII of GATT 1994?  
Answer: Regulatory duty is levied to regulate trade of non-essential and luxury goods. The share 
of import value of the commodities on which regulatory duty was imposed viz total import value of the country during the period July-December, 2014 was only 0.11%. Regulatory Duty is levied 
under the Customs Act 1969 in a transparent manner and are published before they are collected. 
These duties are time bound and are phased ou t accordingly. Moreover, cumulative incidence 
of regulatory and customs duty is not more than Pakistan's bound rates at WTO, therefore, the regulatory duty is not contrary to Pakistan's obligations to the WTO. 
 
Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.8 Standards and other techni cal requirements; 3.2.8.2 Sanitary and 
phytosanitary requirements; pages 45-46, paragraph 3.51: 
 The Secretariat report states that "[s]ince 2001, Pakistan has imposed an import ban on live 
animals and a range of animal products originating in several European countries based on the risk 
of Bovine Spongiform Encephalopathy (BSE). Th is restriction was reconfirmed in Import Policy 
Orders in 2006, 2009 and 2013. In July 2014, the 2013 Import Policy Order was amended to exempt from that restriction those countries which have been declared as "Negligible Risk" 
by the OIE and if the animals were only from he rds where no incidence of BSE had been reported 
for the last eleven years".  
6. Would Pakistan allow the import of animals originating from farms where no BSE has ever been 
reported, even if the farms are in a "Controlled BSE Risk" country?  
Answer: Import of live animals from BSE Negligible Risk Countries is allowed under 
S.R.O. 646 (1) / 2014 dated 18th July 2014, subject to condition that the veterinary authority of the exporting country certifies that the an imals exported are from such herds where no 
incidence of BSE has been reported for the last eleven years. 
 
However, with change in status of a country from ""Controlled BSE Risk"" category to ""Negligible Risk"" by OIE, the exporting country becomes automatically eligible for export of live animals 
to Pakistan. 
 Part 3. Trade Policies and Practices by Me asure; 3.2 Measures Directly Affecting 
Imports; 3.2.8 Standards and other techni cal requirements; 3.2.8.2 Sanitary and 
phytosanitary requirements; page 46, paragraph 3.51:  Answer: The Secretariat report notes that the SPS requirement for live animals is not compliant 
with the OIE guidelines.  WT/TPR/M/311/Add.1 
 
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  7. Could Pakistan provide the basis for the prohibitions listed in the Import Policy Order, 
Chapter 5(A)(iii), imposed on live animals, meat and meat products, feed ingredients, and pet 
foods originating from Canada, as these prohibitions are not consistent with OIE guidelines?  
Answer: The ban was imposed on various categories of livestock products in order to protect the 
historically BSE free status of Pakistan and further to safe guard our export of livestock by-products i.e. animals casings, gelatin and bone products, horns and hoofs etc. to other 
countries. The prohibitions imposed in the Import Policy Order, Chapter 5(A)(iii) are not 
Canada-specific, they have been imposed on all BSE affected countries. The prohibition on import of live animals has been reviewed and import from BSE negligible risk countries is allowed under certain conditions. 
 
It is indicated that there is no ban on feed ingredients of vegetable, poultry, mineral and sea sources origin from BSE infected countries. The prohibitions on meat and meat products 
is reviewed on case to case basis in the light of reviewed SRO and OIE guidelines. 
 Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Government procurem ent; page 59, paragraph 3.102:  
 The Secretariat report mentions that "legislative amendments in 2006 allowed direct tendering when the Government or any authority "fixes the price of goods, services or works" or when 
buying "motor vehicles from local original manufacturers at manufacturer's prices". In these cases 
competitive bidding is considered unnecessary as prices are either fixed or known. These amendments may place domestic - including resident foreign - suppliers at an advantage 
relative to firms located overseas". 
 8. Can Pakistan elaborate on the advantages that domestic suppliers may receive? 
 
9. Even in situations where prices have been fixed, can Pakistan explain why an open competitive bidding process is still not warranted?  
Answer: Public Procurement Rules envisage competitive bidding as Principle method 
of procurement. Direct contracting and negotiated tendering are alternative methods of procurement under the rules, which are permissible as exceptions under special conditions 
e.g. Procurement of Intellectual Property items, spare parts from Original Equipment 
Manufacturers (OEMs) and emergency procurement etc.  
Part 3. Trade Policies and Practices by Meas ure; 3.4 Measures Affecting Production and 
Trade; 3.4.5 Government procurem ent; page 59, paragraph 3.103: 
 The Secretariat report states that "bidding is open to any nationality, although certain nationalities 
are excluded by government policy. Procuring ag encies can provide supplier price preferences 
where this is government policy. Price preference s of up to 25% are in place on all government 
purchases depending on domestic value added cont ent; the maximum preference requires at least 
35% domestic value added". 
 10. Can Pakistan identify the government policie s that impose a price preference? What are the 
criteria for determining when pr ice preferences will be applied? 
 11. Do foreign bidders qualify for the price pr eference if they meet the domestic content 
requirements? 
 
12. What proportion of overall procurement by Pakistan is subject to price preferences for 
domestic content? 
 
13. How does Pakistan determine domestic "value-added" content?  
Answer: Rule 24 (2) of Public Procurement Rules, 2004  explains that procuring agencies shall 
allow for a preference to domestic or national suppliers or contractors in accordance with the policies of the Federal Government. The magnitude of price preference to be accorded shall be 
clearly mentioned in the bidding documents under the bid evaluation criteria.  
 WT/TPR/M/311/Add.1 
 
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  At present Ministry of Commerce has notified the policy for price preference to local or domestic 
suppliers for procurement of engineering goods vide SRO No. 827(I)/2001 dated 3
rd December, 2001.  
 
The criteria contained in clause - 3 of the above SRO is as under: 
 Price preference to be accorded: Only in cases of procurement by the government and in case 
of procurement by other public sector agencies, bidders tendering for engineering goods produced 
in Pakistan shall be accorded a price preferen ce in rupees up to a specific percentage 
(in proportion to the value addition) of the lowest quoted landed cost of an item of foreign origin with similar specifications as mentioned in the tenders: 
 
a) The saving in foreign exchange is not less than the amount of price preference 
b) It is ensured that in each case of such preference, the total import requirements for 
producing the supplies tendered for locally manufactured items has been duly indicated 
by the bidders. 
Price preference shall be allowed as under:- 
 
a) having minimum of twenty per cent value addition through indigenous manufacturing 
price preference shall be fifteen per cent; 
b) having over twenty per cent and up to thirty  per cent value addition through indigenous 
manufacturing, price preference shall be twenty per cent; and 
c) Having over thirty present value addition through indigenous manufacturing, price 
preference shall be twenty five per cent. 
Foreign Bidders can also avail the benefits of price preference, if they participate in joint venture 
with a domestic firm and meet the aforementioned criteria, however, there is no fixed proportion for procurement under domestic content requirement. 
 
Part 4. Trade Policies by Sector; 4.2 Agri culture; 4.2.1 Main features and policy 
objectives; page 64, paragraph 4.8 and  
 
Part 4. Trade Policies by Sector; 4.2 Agricult ure; 4.2.2 Policy meas ures; 4.2.2.2 Domestic 
support, page 65, paragraph 4.16:  
The Secretariat report states that "[a]s a result of the 18
th Amendment to the Constitution, 
the Ministry of Food, Agriculture and Livestock was dissolved, and many of its responsibilities were delegated to the provincial level in 2011." The report also indicates that this shift of responsibilities 
to the provinces has made it increasingly difficult to collect the data required to submit a domestic 
support notification (DS:1) to the WTO. Pakistan's last DS:1 notification was submitted in 2008 covering the 2000-01 to 2006-07 marketing years.  
14. Could Pakistan elaborate on which responsibilities have been delegated to the provinces and 
which ones remain at the federal level?  
15. Given the described difficulty in collecting data on agricultural support programs, how does 
Pakistan ensure that it remains within its WTO commitments? Could Pakistan please describe the mechanisms to coordinate/consult with provincial authorities on the development of agricultural 
policies? 
 16. When does Pakistan expect to be in a position  to submit its next domestic support notification? 
 
Answer: Policy making for food security and all international/multilateral trade issues regarding 
food and agriculture are federal subjects and im plementation of food and agriculture related 
policies and development of agriculture supporting infrastructure is a provincial subject.  
 
International Affairs including matters related to WTO is a federal subject. The Agriculture Policy Institute (API) is mandated to deal with all WTO notifications. Government of Punjab has its own WT/TPR/M/311/Add.1 
 
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  WTO Cell under food department. KPK, Sindh and Baluchistan Governments have a WTO section in 
their Agriculture Planning Departments to cooperate with the API. The API has a regular consultation with Provincial WTO cell/sections. A regular data collection system is in place and API is preparing regular notifications. The API has also a consultation process to involve provincial 
governments in developing agriculture sector policies.  
 There is no difficulty in collecting data from pr ovinces. Notifications for the years from 2007-08 to 
2011-12 have already been notified to WTO. 
 Part 4. Trade Policies by Sector; 4.2 Agri culture; 4.2.2 Policy measures; page 64, 
paragraph 4.13: 
 
The Secretariat report indicates that numerous agricultural and food products have been 
subject to ad hoc  measures under Special Regulatory Orders. 
 
17. Could Pakistan provide examples of these ad hoc measures?  
18. How much support is provided through these ad hoc measures? 
 19. How long are they typically in place for?  
20. The report suggests that the use of Special Regulatory Orders as policy instruments strongly 
reduces the transparency and predictability of the trading regime. Does Pakistan have any intention of reforming its agricultural policy to move away from support provided through Special 
Regulatory Orders? 
 Answer: A Statutory Regulatory Order (SRO) is a mechanism and an instrument whereby the 
Govt. of Pakistan notifies new policies as well as amendments to existing policies.  
 An example of this SRO is Import/Export Policy Orders which are periodically updated in order to reflect new policies/measures to regulate trade. 
 
Traditionally SROs have been used an instrument of  transparency i.e. to ensure that any rule that 
Government of Pakistan promulgates on trade related matters is published  
SRO is not a subsidy program, therefore, no support is provided 
 We disagree here, if the Govt. of Pakistan wish to  decrease transparency, they would never publish 
these SRO for information of general public 
 
Government of Pakistan constituted in December 2013, a High Powered Committee headed by 
Finance Minister and comprising of representatives of different ministries/divisions and trade 
bodies across the country to review the conce ssionary regime in Income Tax, Sales Tax and 
Customs. Based on recommendations of the Committee, a huge number of concessions and 
exemptions amounting to Rs. 104 billion were el iminated in the FY 2014-15. The Government is 
committed to phase out the remaining concessions ov er a period of three years i.e. by June, 2017. 
Part 4. Trade Policies by Sector; 4.2 Agricult ure; 4.2.3 Key sub-sect ors; 4.2.3.1 Crops; 
4.2.3.1.1 Wheat; page  67, paragraph 4.24: 
 
The Secretariat report indicates that the Government procures around one-third of domestic wheat 
production.   21. Could Pakistan provide information on the acquisition price at which the domestic wheat 
production is procured? How is this price determined? 
 22. Could Pakistan elaborate on the disposal of the wheat from its strategic reserves, i.e. how are 
these stocks released and how often? 
 Answer: As per available data during 2011-12 the acquisition price was US$294.16 per ton. 
To determine this price the Agriculture Policy Institute (API) conducts field surveys to obtain cost 
of production, production and yield of wheat, analysis of nominal and real market prices, WT/TPR/M/311/Add.1 
 
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  monitoring of domestic and international prices, competitiveness of wheat production viz a viz  
other crops.  Strategic reserves are used for emergencies such as  floods, earthquakes, domestic food aid and/or 
other natural calamities etc. During last five years government has released grains for aid in 
almost all years due to repeated incidents of natural calamities.  WT/TPR/M/311/Add.1 
 
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  COLOMBIA 
5. International Trade Liberalization  
5.1.2  Standards and conformity assessment  
Paragraph 5.4  from Government report "Under three di fferent European Union-funded technical 
assistance trade projects (EU-TRTA), a large numbe r of milestones have been, and continue to be, 
achieved as regards conformity assessments and technical standards. Development of voluntary 
standardization and technical regulations, development of internationally traceable measurement 
and calibration capabilities, development and accreditation of national proficiency testing (PT) schemes, internationally- recognized national accreditation services, and development of business plans to commercialize testing services of the labora tories to ensure sustainability are some of the 
initiatives that shall greatly help Pakistan in its industrial base and exports." 
 1. Does your country have Mutual Recognition Ag reements (MRAs) for acceptance of the results 
of conformity assessment procedures, according to the provisions of section 6.1 of the Agreement 
on technical barriers to trade?  
2. If so, please indicate, what have been the benefits of utilization of referred to above agreements 
in international trade liberalization?  Answer: Pakistan National Accreditation Council (PNAC) has bilateral as well as international 
mutual recognition agreements with other accreditation bodies. Pakistan has MRAs with China, 
Malaysia and International Halal Certification Bodies, APLAC and ILAC etc.  
MRAs reduce time in enforcement of standards at  the time of entry of goods through the customs 
territories.  
Document WT/TPR/S/311 
Trade policies and practices by measure 
3.1. Introduction  
Paragraph 3.1  from Secretariat report notes that "Since its last Review in 2008, Pakistan has 
undertaken a number of steps to cautiously liberalize its trade regime. This includes the reduction of MFN tariff rates and efforts to accelerate  and modernize customs procedures. However, 
although Pakistan's trade policy is directed at promoting private sector investment and export-led 
growth, the high degree of overall protection stil l favors import substitution and reduces resource-
use efficiency, export competitiveness and diversif ication. In addition, the use of ad hoc trade 
policy instruments remains common and strongly undermines the predictability of the trade 
regime."  And, Paragraph 3.16  from Secretariat report notes that "Tariff rates are amended annually 
at budget time and approved by Parliament in th e Finance Act. The FBR determines annual tariff 
rates in collaboration with key ministries, including Finance; Commerce; and Industries & Production. It also receives tariff recommendatio ns from the National Ta riff Commission (NTC), 
in particular with respect to protection of indigenous industry, improving competitiveness and 
promoting exports from Pakistan.2 The Government has general authority to apply tariff exemptions/concessions3, and to add or modify im port rules, the latter being issued by the FBR 
as Statutory Regulatory Orders (SROs), which are approved by the Economic Coordination 
Committee of Cabinet, Transparency, and therefore analysis, of the level and structure of Pakistan's tariffs is greatly complicated by  the large numbers of exemptions and partial 
exemptions which are announced separately through SROs and do not affect the customs duty 
rate shown in the customs duty column of the ta riff schedule. Other SROs further specify whether 
                                               
2 The NTC's focus has more recently turned to the ad ministration of trade defence laws with regard to 
Pakistan’s international treaty obligations and as a think tank on matters relating to competitiveness of 
Pakistan's indigenous industry. The NTC conducts studie s following requests by a range of entities, including 
government agencies, business asso ciations and priv ate companies. 
3 Section 19, The Customs Act. WT/TPR/M/311/Add.1 
 
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  specific products are exempted from sales and other domestic taxes, as well as rules and 
ordinances affecting imports. Although available on the FBR website, the separate SROs make it difficult to discern the applicable taxes and othe r measures imposed on individual tariff items 
which may be covered under multiple SROs…… By confining regulations to selected sectors these 
exemptions operate as a de facto licensing scheme…." 
 Colombian government would like to express their concern for affirmations contained in above 
paragraphs, because reflect the complexity on Pakistan tariffs. On the one hand thanks to their annual amendment and on other because of multiple Statutory Regulatory Orders (SROs) 
concerning divers issues of Pakistan trade policy, which mean that it is practically impossible to 
access to their market, especially in which ones that internal production exist.  
3. Could Pakistan Government indicates if the Statutory Regulatory Orders (SROs) are available in 
English and where is it possible to consult them? 
 
4. Could Pakistan Government indicate if the Statutory Regulatory Orders (SROs) have been notified to WTO? If they do not, How Pakistan ensures the transparency of their measures over 
others WTO members?  
 Answer: All Statutory Regulatory Orders (SROs) have been issued in English and are available 
at FBR website http://www.fbr.gov.pk  
 
S R O s  w h i c h  r e q u i r e  n o t i f i c a t i o n  t o  W T O  e . g .  S P S ,  T B T  o r  A C D  o r  S D  e t c .  a r e  r e g u l a r l y  b e i n g  
notified to the relevant committees of the WTO. SROs are a public document published in 
Gazette of Pakistan to ensure transparency and predictability" 
 Paragraph 3.2  from Secretariat report notes that "Since July 2014, Pakistan no longer has duty 
free tariff lines. Around 98% of all tariff lines are bound. In addition to tariffs, imports are subject to sales tax. "Regulatory import charges" of 5% apply on some 284 products." 
 
5. Could Pakistan government explain what Regulatory import charges are?  
6. Could Pakistan government explain over which value applies 5% of the Regulatory import 
charges?  7. Which other products are included in the 284 products mentioned in this paragraph, in addition 
to milk products, honey, fruits (apples, cherries , pineapples, apricots, plums, oranges, lemons), 
and vegetables (potatoes, tomatoes, beans, sweet corn)?  
8. Where we can found the list of these 284 products? 
 Answer: Regulatory duty is levied to regulate trade of non-essential and luxury goods. The share 
of import value of the commodities on which regulatory duty was imposed viz total import value 
of the country during the period July-December, 2014 is only 0.11%.  Regulatory duty is levied on CIF value.  
 
The other items include, mobile phones, steel products, furnace oil and cosmetics etc.   
The list can be accessed at FBR's website www.fbr.gov.pk  .The relevant SROs is 568(I)/2014. 
 WT/TPR/M/311/Add.1 
 
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  UNITED STATES 
WT/TPR/S/311/Para 1.43; Page 21:   
 The Secretariat says that "Outward FDI, requires approval from the State Bank of Pakistan." What 
are the reasons that Pakistan restricts outward investment and when does Pakistan plan to 
liberalize outward FDI? In practice, does the SBP ev er reject requests? What are the justifications 
for rejections? 
 
Answer: As per current foreign exchange regime, Pakistan's Capital Account is partially 
convertible due to which resident Pakistanis need pr ior approval of State Bank of Pakistan to make 
outward investment.  
 
It would be pertinent to mention that Pakistan has committed to the IMF program to support its Balance of Payment position. Pakistan will consider full capital account liberalization in a gradual 
and phased manner keeping in view the overall economic conditions in general and specifically the 
Balance of Payment position.   
Pakistan has well defined outward investment po licy approved by the Economic Coordination 
Committee of the Federal Cabinet. Any Pakistani investor desirous to make outward investment and fulfills the policy criteria is allowed to make outward investment. Only those outward investment proposals which are not in conformity with the defined policy criteria are rejected. 
 
WT/TPR/S/311; Paragraph 3.35; Page 41 :  
 
According the WTO Secretariat report, an import ba n is in place on live cattle and beef products 
from BSE-infected countries as well as a ban on poultry and poultry products on account of the H5N1 Avian influenza. While it is our understanding that Pakistan's import ban was lifted for live 
cattle, it continues to apply to other products. Can Pakistan please clarify which agricultural 
products are subject to import bans? Can Pakistan explain how its import bans on beef products and poultry and poultry products are in line with the World Organization for Animal Health (International Office of Epizootics)? 
 
Answer: Poultry and poultry products are banned from bird flu (H5N1) infected countries in order 
to avoid introduction of disease into Pakistan through imports. This was on account of presence 
of High Pathogenic Avian Influenza (H5N1) in those countries. Currently Pakistan is free from High 
Pathogenic Avian Influenza (HPAI- H5N1)   
The ban from bird flu countries has been lifted over a period of time from China (for import of egg 
p owd e r), from South Afr i c a and  M alays ia (for imp ort of c ooked  p oultry p rod uc ts ), from F ranc e , Germany, Iran and United Kingdom (for import of day-old grandparent stock chicks, day-old parent stock or breeders chicks of layers and broilers and hatching eggs. This ban was lifted on 
provision of scientific evidence 
 Import decisions are taken based on import risk analysis. Meat and bone meal, tallow containing 
protein and feed ingredients of animal origin are banned from BSE infected countries. This is in 
place in order to avoid introduction of BSE throug h import of said high risk commodities from BSE 
infected countries. Pakistan is historically free from BSE due to agro based feeding practices. 
 
WT/TPR/S/311; Paragraph 3.59; Page 48 :  
 According the WTO Secretariat report, rice exports are subject to minimum export prices. 
However, it is our understanding that there are no Minimum Export Prices (MEP) for rice in 
Pakistan. Can Pakistan please verify the situation?  
Answer: There is no MEP for rice export. 
 WT/TPR/M/311/Add.1 
 
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  WT/TPR/S/311; Paragraph 3.67; Page 50 :  
 According the WTO Secretariat report, since its last review, Pakistan has not notified the WTO of any subsidy within the meaning of the Agreement on Subsidies and Countervailing Measures, 
nor any subsidy that operated directly or indirectly  to increase exports from or reduce imports into 
its territory within the meaning of Article XVI:1 of GATT 1994. However, in late 2014, it is our 
understanding that Pakistan announced export subsidies for wheat and sugar. Can Pakistan please 
clarify its program for and use of export subsidies? 
 Answer: All the subsidies provided so far under Articl e 9.4 of the Agreement on Agriculture have 
been notified. Currently there are no other subsid ies to be notified under the subject agreements 
 
WT/TPR/S/311; Paragraph 3.71; Page 52:  
 
According to the WTO Secretariat report, In recognition of the need for exporters to have access to 
trade financing support it has been decided to es tablish an EXIM Bank. This Bank would enlist the 
help of provincial governments and would provide ex port credit, supplier's credit and export credit 
guarantees. Does Pakistan have a timeframe for when its new EXIM Bank will be established? Will 
agricultural exports be eligible for export fi nancing support through the EXIM Bank programs? 
 Answer: The EXIM Bank is likely be operational by the end of year 2015. Import and exports of all 
sectors including agriculture sector will be eligible for financing under EXIM Bank." 
 WT/TPR/S/311; Paragraph 3.72; Page 52:   
 
According to the WTO Secretariat report, the SBP al so provides re-financing support to banks on 
their financing to exporters under the Export Finance Scheme (EFS) – either through 
a transaction-based facility or through a performance-based facility. What agricultural commodities 
received support under Pakistan's Export Finance Scheme over the past two year? What was the tenor (including the granting of any tenor longer than 180 days due to the granting of any "roll over") and destination of those exports? 
 
Answer: Rice, fruits/vegetables, molasses and fisherie s received refinancing under EFS over last 
two years.  
 
Tenor of financing under EFS for all products including agricultural commodities is 180 days. Rollover of financing under EFS Part-I (the transaction based facility) and Part-II (performance-
based facility) for further 90 days and 180 days respectively is allowed subject to fulfillment 
of requisite conditions.   Exports of above mentioned agricultural commodities are also financed through sources other than 
EFS; like, exporter's own equity, inter enterprise credit & banks' credit. Therefore, data on 
destination(s) of exports of any commodity specifically financed through EFS is not available.  
WT/TPR/S/311, Page 58, paragraph 3.101:   
 The Secretariat notes that Pakistan is neither a signatory nor an Observer to the Plurilateral WTO 
Agreement on Government Procurement (GPA). Since this TPR was first drafted, Pakistan was 
accepted as an Observer to the WTO GPA duri ng the GPA Committee meeting in February, 2015. 
We would urge Pakistan to review the GPA with an aim to commence accession negotiations as soon as possible. The addition of Pakistan to th e GPA would constitute a meaningful and important 
expansion of the GPA. Does Pakistan have any plans to move forward with the accession process 
now that is an Observer? Is there a timeframe that Pakistan is looking at for future accession to the GPA? 
 
Answer: Pakistan has initiated multiple stakeholder consultations after getting the observer status 
in GPA. The government will follow a process for capacity building and technical assistance 
as a first step during its observership. 
 WT/TPR/M/311/Add.1 
 
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  WT/TPR/S/311, Page 59, paragraph 3.102:  
 The Secretariat notes that Pakistan's procurement laws and regulations allow for direct tendering when the Government or "any authority fixes the pr ice of goods, services or works or when buying 
motor vehicles from local original manufacturers at manufacturer's prices." Can Pakistan provide 
examples of what is meant by "any authority" if  it is NOT part of the Government? Can Pakistan 
explain, when the Government fixes the price of goods, services, or works, how the Government 
determines that fixing the price is necessary or beneficial?  
 Answer: Rule 42 c (vi) of Public Procurement Rules,  2004 provides that a procuring agency shall 
only engage in direct contracting "when the pric e of goods, services or works is fixed by the 
government or any other authority, agency or bo dy duly authorized by the Government, on its 
behalf.  
WT/TPR/S/311, Page 59, paragraph 3.103 : 
 The Secretariat notes that government procurement in Pakistan "is open to any nationality, 
although certain nationalities are excluded by government policy." Could Pakistan elaborate on this 
list? What nationalities are excluded, and why? Does the Government have the ability to add nationalities to this list without going through the legislative process?   
Answer: Rule 24(1) of Public Procurement Rules, 2004 provides that procuring agencies shall 
allow all prospective bidders to participate in procuring procedure without regard to nationality, except in cases in which any procuring agency decides to limit such participation to national 
bidders only or prohibit participation of bidders of some nationalities, in accordance with the policy 
of Federal Government.  
These exclusions include certain countries to which Pakistan has not extended diplomatic relations 
or have national security concerns.  No legislative process is required 
 
WT/TPR/S/311 Secretariat's Report, page 59, para. 3.104 : 
 
The Secretariat's report notes that in addition to  TRIPS, Pakistan has joined the Berne convention, 
as required by TRIPS, and the Universal Copyrigh t Convention, and has participated as a member 
of the World Intellectual Property Organization (WIP O) since 1977. Does Pakistan plan to join the 
WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT)? 
If so, could Pakistan please provide a timetable regarding when it plans to ratify and fully implement these treaties?  
Answer: Pakistan is an active member of the international community and among the founding 
members of the World Trade Organization (WTO). A ll the IP Laws of Pakistan including Copyright 
Law are TRIPS compliant and enforced in its letter and spirit in the country. Beside WTO and 
TRIPS, Pakistan is member to Paris Convention fo r the Protection of Industrial Property and Berne 
Convention for the Protection of Literary and Ar tistic Works. Pakistan is member of Universal 
Copyright Convention as well.  
 
Pakistan also wants to accede to other WIPO Tr eaties including WIPO Copyright Treaty (WCT) and 
WIPO Performances and Phonograms Treaty (WPPT).   
The government is in consultations with the domestic stake-holders and the decision of accession 
to WIPO Copyright Treaty and WIPO Performanc es and Phonograms Treaty will be made once 
these consultations are complete. 
 
WT/TPR/S/311 Secretariat's Report, page 62, para. 3.121:  
At page 60, para 3.106 the Secretariat's report notes that the IPO Act of 2012 "provides for the 
establishment of specialized IP Tribunals to exerci se exclusive jurisdiction on intellectual property 
cases," but at page 62, para. 3.121, the Secretariat goes on to indicate that Pakistan "has yet to put into operation the specialized IP tribunals and the IPO Policy Board provided for under the WT/TPR/M/311/Add.1 
 
- 16 - 
 
  IPO Act." Could Pakistan please provide a timetable for when it expects the specialized IP tribunals 
and IPO Policy Board will be fully staffed and ready to conduct business?  Answer: Specialized IP Tribunals, for speedy disposal of IP litigations have been notified and will 
be established soon. 
 Further, IPO Policy Board has been notified and is fully functional. 
 
WT/TPR/S/311; Paragraph 4.15; Page 65:   
 According the WTO Secretariat report, since June 2014 Pakistan has imposed "regulatory duties" 
of 5% on imports of numerous agricultural good s including milk products, honey, several types 
of fruit (apples, cherries, pineapples, apricots, plums, oranges, lemons), and vegetables (potatoes, tomatoes, beans, sweet corn). However, it is our understanding that "regulatory duties" for these 
products is not 5% but it is 10% according to SRO 568 issued on June 26, 2014. Can Pakistan 
please clarify this figure, and explain the reason for "regulatory duties" Are these taxes also imposed on domestically-produced products?  
 
Answer: Regulatory duty @ 5% was imposed in June, 2014 on import of non-essential 
commodities. The share of import value of these co mmodities in total import value of the country 
during the period July-December, 2014 is only 0.11% However, the said regulatory duty was 
enhanced to 10% on 12.02.2015. 
 Regulatory duty is imposed to regulate the inflow/out flow of agriculture produce with the purpose 
to maintain food security and price stability in the local agriculture markets. 
 Regulatory Duty is levied under the Customs Act,  1969. Thus, no question arises to impose such 
duty on domestically produced products. These du ties are levied in a transparent manner and are 
published before they are collected. These duties  are time bound and phased out accordingly.  
 WT/TPR/S/311; Paragraph 4.18; Page 65:   
 
According the WTO Secretariat report, price support is provided by the Government of Pakistan for wheat while price support for cotton, rice and sugar has been abolished. However, it is our 
understanding that Pakistan re-established a cotton support price for the 2014 crop. Can Pakistan 
please confirm its re-establishment of price support for cotton and clarify the direction of its use for other products in the coming year? How does Pakistan determine prices for price support in its 
programs? 
 Answer: Pakistan did not provide price support to cotton for the 2014 crop. 
 
Questions related to the Government's report WT/TPR/G/311 
WT/TPR/G/311, Page 8. Para 4.3 .  
 
We note the establishment of an Export-Import Bank in Pakistan. Please provide details on 
(1) when the bank will be operational, (2) the an ticipated lending practices of the Export-Import 
Bank, (3) the anticipated financial instruments available through the Export-Import Bank, and 
(4) any anticipated sectoral focus of the bank. 
 Answer: The EXIM Bank will likely be operational by the end of the year 2015. The financial 
instruments and lending practices will encompass import/export credit, supplier's credit and export 
credit guarantees. 
 WT/TPR/G/311, Page 12, paragraph 5.28.   
 
Your report mentions the significant progress in  bilateral trade with India since 2012, doubling 
from USD 1.2B to over USD 2.5B. What do you see as the next steps, both on Pakistan's part and 
India's, to remove the remaining barriers and re alize the potential you cite of over USD 10B in 
bilateral trade? Is there any discussion of a role for cross-border Special Economic Zones, such as 
were proposed in April 2014 by the Transnational Strategy Group (http://transnationalstrategy.com/pakistan-india-special-economic-zone-sez-study )? 
 WT/TPR/M/311/Add.1 
 
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  Answer: The two countries have an understanding to normalize trade relations and to provide 
Non-Discriminatory Market Access (NDMA) on reciprocal basis. NDMA requires elimination of Negative List on Pakistan's side and reduct ion of SAFTA Sensitive List from Indian side.  
 
To enhance bilateral trade, three agreements ha ve been signed between the two countries in 
2012, namely, Cooperation and Mutual Assistance in Customs Matters Agreement, Bilateral Cooperation Agreement on Mutual Recognitio n between PSQCA and BIS and Agreement on 
Redressal of Trade Grievances. The objective of th ese agreements is to remove Non-Tariff Barriers 
faced by exporters. It is expected that by ta king these steps the bilateral trade volume will 
increase substantially, resulting in improved regional integration.  WT/TPR/M/311/Add.1 
 
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  CHINA 
2.4 Investment Regime 
Page 31, para. 2.37  
The Report states that "Also, all foreign investment in Pakistan must be cleared by the Ministry 
of Interior."  
China would appreciate if the Government of Pakistan would elaborate on the "clearance" regime 
by Ministry of Interior, and provide domest ic laws that related to this regulation. 
 Answer: Clearance from Ministry of Interior is primarily required for the reasons of homeland 
security in wake of war against terror, preventing money laundering practices and to maintain the 
record of foreign investors/ex-patriates to ensure their security, which is in line with the Regulations of Securities and Exchange Co mmission of Pakistan (No. 3 of 2013 dated 
March, 18, 2013) 
 2.4 Investment Regime 
Page 31, para. 2.37 
 The Report states that "The share of foreign equity  is limited in the airline, banking, agriculture 
and print and electronic media sectors"  
 
China would appreciate if the Government of Pakistan would further identify how many percent of foreign equity is allowed in these sectors. 
 
Answer:  
Financial Sector: As per SBP's 'Guidelines and Criteria for Establishment of a Commercial Bank in 
Pakistan' it has been stipulated that non-bank foreign entities/ bodies desirous of conducting 
banking business in Pakistan must incorporated company with a maximum of 49% shareholding. 
Agriculture Sector: 100% foreign equity is allowed under Corporate Agriculture Farming (CAF) 
however, other than CAF, foreign investor is allowed to hold 60% stake in agriculture projects. 
Print Media: As per Press, Newspapers, News Agencies and Books Registrations Ordinance, 2002, 
a  person who is not a citizen of Pakistan must obtain approval to own or hold an interest in any 
newspaper printed or published in a province and in any event may not own or hold an interest 
of more than 25 percent in any such newspaper. 
Electronic Media: As per PEMRA Ordinance 2002, a broadcast or distribution service licenses shall 
be granted only to (1) Pakistani nationals or (2) company organized under the law of Pakistan 
where less than a majority of shares in such company are owned or controlled by foreign nationals 
and companies. A broadcast or distribution services license shall not be granted to a person or company that is funded or sponsored by  a foreign government or organization. 
Page 31, para. 2.37 
 
The Report states that "The Act also allows for th e private sector to establish a SEZ on its own."  
 
China would appreciate if the Government of Paki stan would explain on the approval and examine 
procedures for private sectors to establish a SEZ on its own, and the difference between government-established SEZ and private-established ones. 
 
Answer: Approval procedure already stated above ag ainst Paragraph 2.40. Moreover, SEZs Rules 
2013 having detailed approval criteria are available on BOI's website http://www.boi.gov.pk . 
The approval criteria for establishing SEZ by government and private sector is the same. In case 
of government-established SEZ, the land is ow ned by the government and development of the WT/TPR/M/311/Add.1 
 
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  land is also to be done by the government while in case of private sectors to establish a SEZ, 
private sector own and develop the land itself. However, all incentives are equally available to both SEZs without any discrimination. WT/TPR/M/311/Add.1 
 
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  SINGAPORE 
Investment Regime 
Page 31 (Para 2.38) 
 1.  We note that foreign firms are allowed to repatriate profits, dividends or any other funds in the 
currency of the country from which the investment came, with no minimum amount of foreign equity investment in any sector.  
 
- Is 100% repatriation allowed for all sectors?  
- If not, which are the sectors where the repatriation is restricted?  
- What are the limitations (e.g. withholding tax)?  
Answer: As per current foreign exchange regime of Pakistan, foreign firms are allowed to 
repatriate 100% profit, declared dividend and in vestment related other returns in the currency of 
the country from which the investment came or any other convertible currency.  
 
The repatriation of profit is allowed to all sect ors and even to those sectors where there is no 
requirement for minimum equity. However, repatriation of profit is subject to deduction of 
applicable withholding taxes. 
 It would be pertinent to mention that repatriation  of profit from banking sector is allowed after 
ensuring adequate loan loss provisions, meeting the Minimum Capital Requirement and prescribed 
Capital Adequacy Ratio and other statutory reserves.   Pages 31 (Para 2.39) 
 2.  We note that the customs duty on the import of plant machinery and equipment differ 
depending on end-use. The duty for these products is 5% for investment in the manufacturing and infrastructure sector; 0% in the agriculture sector; and varies in the services sector.  
 
- Could Pakistan explain the rationale for the differing duties? 
- How does Pakistan determine the end-use of these products at the customs borders to 
ascertain the duty to be applied? 
- What would be the duty for imports of these products for use in the construction sector? 
Answer: The rationale for different customs duties on plant and machinery for different sectors 
is the priority the government attaches to essential sectors like agriculture and development of 
manufacturing and infrastructure sectors.   
Pakistan Customs ascertains the end use of products at Customs borders level through a well-
defined procedure and expert staff.  
The products related to construction sector attracts customs duty ranging from 5-30%. 
 Page 32 (Para 2.44)  
3. Can Pakistan confirm if the industry-specific incentives are WTO-consistent, and how this is 
achieved?  
4. We note that tariff concessions on inputs are provided to companies in the pharmaceutical 
sector. Could Pakistan elaborate on the specific criteria for eligibility of these concessions?   WT/TPR/M/311/Add.1 
 
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  Answer: All industry-specific incentives provided to different sectors are compliant with provisions 
of the WTO Agreements.   Pharmaceutical sector being a critical and priority sector, has been incentivized through tariff 
concession on inputs (bulk drugs, molecules) to ascertain provision of drugs at affordable prices 
to common man. The criteria for these incentives is as under:  
- Inputs are imported by a manufacturer registered with Drug Regulatory Authority. 
- These inputs are solely used in manufacture of goods 
TRADE POLICIES AND PRACTICES BY MEASURE 
Import prohibitions, quotas, restrictions, and licensing 
Page 40 (Para 3.33)  
5. We note that the Federal Government may prohibit or restrict imports by notification in the 
official Gazette and ban imports from all or any source, where deemed to be in the "public interest". In this regard we would like to know if Appendices A to C are publicly available? 
If so, could Pakistan provide information on where/how these can be accessed?  
 Answer: These annexes are available publicly on the official website of the Ministry of Commerce; 
http://www.commerce.gov.pk  
 
Export licensing and restrictions Page 49 (Para 3.66) 
 
6. Could Pakistan share with us the benefits enjo yed by the removal of the issuance of licenses, 
and whether this has changed export declaration procedures in Pakistan? 
 Answer: The discontinuation of export licensing resulted in facilitating exports. Introduction 
of WeBOC has further simplified export declaration procedures  
Export-processing zones Page 52 (Para 3.77) 
 
7. We note that Special Economic Zones (SEZs) offer more incentives and flexibility for investors 
than in Export Processing Zones (EPZs). Could Pakistan elaborate on the key differences between 
the newly implemented SEZs and the existing EPZs?  
 
Answer: The fundamental difference between SEZ and EPZ is that products manufactured in EPZ 
are meant for export only, whereas purpose of SEZ is to promote industrialization in under 
developed areas of the country and facilitate investors interested in industrial ventures. WT/TPR/M/311/Add.1 
 
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  MEXICO 
GOVERNMENT OF PAKISTAN (WT/TPR/G/311) 
 
4 STRATEGIC FRAMEWORK OF TRADE POLICY 
Page 9, paragraph 4.3, paragr aph a, subparagraphs iv to vi. 
 The Strategic Trade Policy Framework (STPF) 2012- 2015 provides as measures, achievements and 
results and governance councils Export Promotion Leather; Development of Trade in Services, 
and the Organization Dispute Settlement.  MEXICO QUESTION 1:   
 
Could you please state the achievements and pr ogress of these tips and organization of 2012 
so far? 
 
Answer: Under STPF 12-15, the following institut ions have been developed and are fully 
operationalized: 
 
 Domestic Commerce Wing  
 Trade in Services Wing 
 Trade Dispute Resolution Organization 
 Services Trade Development Council 
The Leather Export Promotion Council shall be established by the end of year 2015 
 
5 Liberalization of International Trade 
5.2 Regional and Bilateral Trade 5.2.2 Bilateral Trade 
Paragraph 5.37, page 14 
 The Pakistan Government report notes that following the changes of the General System of Preferences of the European Union, Pakistan's exports can compete with other countries that 
enjoy duty free. 
 MEXICO QUESTION 2: 
 
What are these countries?  
Answer: These may include those countries which are enjoying duty free and quota free market 
access in EU through GSP/GSP+, Economic partnerships and Customs Unions etc. 
SECRETARIAT ON THE FOURTH REVIEW OF  THE TRADE POLICIES OF PAKISTAN 
(WT/TPR/S/311) 
 
2 TRADE AND INVESTMENT SCHEME 2.3 Trade Agreements and Arrangements 
2.3.2 regional and preferential agreements 
Paragraphs 2.20 to 2.34, pages 32-35.  
MEXICO QUESTION 3:   
 Of the regional and bilateral preferential which Pa kistan is part and are currently in force trade 
agreements, which of them contain chapters on trade in services? 
 WT/TPR/M/311/Add.1 
 
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  Answer: Services are part of the Pak-China FTA and Malaysia-Pakistan Comprehensive Economic 
Partnership Agreement (MPCEPA).  2.4 Investment Regime 
Paragraph 2.37, page 36 
 MEXICO QUESTION 4:   
 
What are the limits on foreign ownership that have been set in the aviation, banking, agricultural, of print and electronic media in Pakistan?  
Answer: As per SBP's guidelines, the following categories are allowed to enter in branch mode as 
well as through wholly owned locally incorporated subsidiary: - 
 
 Banks from countries belonging to regional groups and associations of which Pakistan is 
a member 
 Foreign banks having a global tier-1 paid up capital of US$5 billion or more.  
Apart from the above, a foreign corporate entity/b ody desirous of conducting banking business in 
Pakistan must incorporate a locally incorporated company with a maximum of 49% shareholding by the foreign strategic investor/entity/financial institution.  
Paragraphs 2.42 and 2.43, page 37 
 Pakistani authorities define the SEZs as "specialized areas where certain types of businesses 
operate in a well-defined geographical area and promoting certain economic activities through 
various policy measures that are not normally applie d in the rest of the country". The report of the 
Secretariat explained that among the incentives  given to the promoters of these areas and 
businesses operating in them are the only exempt ions from customs duties and taxes in respect 
of imported capital goods and tax income for 10 years.  MEXICO QUESTION 5:   
 
Could Pakistan explain how those provisions on incentives to developers of SEZs are consistent with the Agreement on Subsidies and Countervailing Measures WTO? 
 
Answer: The incentives given under the SEZ Schemes are of general nature and not specific, 
therefore, these do not fall under the definition of Subsidies 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Introduction Paragraph 3.2, page 39 
 
The Secretariat report explains further tariffs, impo rts are subject to sales tax and regulatory there 
levies 5% import about 284 products. 
 
MEXICO QUESTION 6:   
 
Could Pakistan elaborate on the sales tax on  imports and regulating import levies 5%?  
 Answer: Sales Tax on imports is a VAT which is adjustable at subsequent stages 
of production/sales of the commodities.  
 
Regulatory duty is levied to regulate trade of non-essential and luxury goods. The share of import value of the commodities on which regulatory duty was imposed viz total import value of the 
country during the period July-December, 2014 is only 0.11%. 
 WT/TPR/M/311/Add.1 
 
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  3.2 Measures Directly Affecting Imports 
3.2.3 Rules of origin Paragraph 3.15, page 41  
The Secretariat report criticizes the complexity of the trade regime in Pakistan, which refers to the 
administration, transparency and predictability of its regime of rules of origin.  
MEXICO QUESTION 7:   
 Are there currently any action by Pakistan to simplify its system of rules of origin?  
Answer: Ministry of Commerce is committed and actively pursuing the policy for ensuring 
uniformity and harmonization of all Preferential Rules of Origin.  
3.2 Measures Directly Affecting Imports 
3.2.6 prohibitions, quotas, restrictions and licensing Paragraph 3.39, page 49 
 
Paragraph 3.39 states that the Cabinet is considering a new law on the National Tariff Commission.  MEXICO QUESTION 8:   
 
What state is reviewing the law?  
Answer: The new trade remedy laws including NTC Ordinance have been promulgated and now 
are in force.  
Paragraph 3.41, page 50 
 Paragraph 3.41 states that Pakistan launched its first research on CVD in 2011, and was suspended by the Peshawar High Court for almost a year. 
 
MEXICO QUESTION 9:   
What to suspend the investigation was due? 
Answer: The importers challenged initiation of investigation in superior courts including the 
Peshawar High Court on following grounds, which inter alia includes: 
  
 Standing of the applicant  
 Like product 
 Period of investigation  
 Quorum of the NTC 
The superior courts dismissed petitions of the im porters. However, NTC terminated investigation 
on issues of injury to the domestic industry. 
 3.2.8 Standards and other technical specifications 
3.2.8.2 Sanitary and phytosanitary requirements 
Paragraph 3.49, page 53  Paragraph 3.49 explains that a draft law phytosan itary regulations, although not approved, which 
would confer official status to the National Service of APHIS was developed in 2012. 
 WT/TPR/M/311/Add.1 
 
- 25 - 
 
  MEXICO QUESTION 10:   
 Where can view the bill? When do you expect it to be approved?  
Answer: The Bill is under process in Parliament. 
 Paragraph 3.50, page 54 
 
Paragraph 3.50 states that the main national laws governing sanitary and phytosanitary measures are the Law on Quality Control and Marketing of  Agricultural Products, 1937, the Agricultural 
Pesticides Ordinance 1971, the Pest Quarantine Act 1976 Order on 1979 Animal Quarantine and 
Inspection Act and Quality Control Fish 1997. 
 MEXICO QUESTION 11:   
 
Could provide the respective links of laws?  
Answer: "These legislations can be seen at the website of Ministry of National Food Security and 
Research and www.plantprotection.gov.pk  and http://molaw.gov.pk/laws/" 
 
Paragraph 3.51, page 55. 
 
Paragraph 3.51 explains that, according to the Orde r on Import Policy of 2013, imports of poultry 
products and other captive live birds from countries in Africa, Asia and Europe is prohibited, 
as protection against the H5N1 strain of avian influenza 
 MEXICO QUESTION 12:   
 
Where can query the Order Import Policy 2013? Can you detail the countries that are subject to that restriction?  
Answer: The Import Policy Order 2013 is available on the Ministry of Commerce's website: 
www.commerce.gov.pk  
 
As per Para 5 (A)(iv) Poultry and poultry products and other captive live birds (pet, game, wild, 
exotic and fancy birds) from Vietnam, South Korea, Thailand, Japan, Indonesia, Myanmar, 
Cambodia, Laos, Chinese Taipei, Hong Kong, Malaysia, South Africa, Russia, Kazakhstan, 
Mongolia, Turkey, Greece, Romania, Croatia, Iran, Italy Azerbaijan, Ukraine, Iraq, Bulgaria, 
Slovenia, France, Nigeria, Slovakia, Austria, Bosnia, Herzegovina, Germany, Afghanistan, 
Scotland-United Kingdom and China on account of Avian Influenza H5N1 strain, shall not be allowed till further orders. 
 
3.3 Measures directly affecting exports 3.3.4 Subsidies and export support 
Paragraph 3.67, page 61. 
 The Report of the Secretariat explained that exporters benefit from a reduction to income tax, 
exports are exempt from sales tax but tax rate applicable to companies is 35%. Therefore, 
this report considers "profitable exporters benefit from substantial subsidies".  MEXICO QUESTION 13:   
 
Could Pakistan explain what these "heavily subsidized"?  
Answer: Pakistan is not providing any subsidy to exports in the form of reduced rate of income 
tax. Two separate taxation systems are in place in Pakistan. Under the first system, all exports are liable to pay 1 % of value of exports as income tax. The second system requires companies to pay 
35 % as corporate income tax on taxable income. These are two distinct systems and cannot 
be compared.  Paragraph 3.67 describes several aid given to Pakistan's exports, as a reduction of income tax and 
exemption from sales tax. WT/TPR/M/311/Add.1 
 
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  Mexico Question 14: Will that aid given to all exports, or what are the criteria for determining 
which exports may benefit?  It is clarified that there is no benefit given to exporters in the form of reduction in income tax as 
income tax on exports is levied under a different taxation system than the income tax levied on 
domestic sales as discussed in reply to the previous question.  
3.3.5 Export financing, export insurance and export guarantees 
Paragraph 3.70, page 63.  Paragraph 3.70 talks about a program whereby the State Bank of Pakistan refinance 100% of the 
loans granted to certain exporters. 
 MEXICO QUESTION 15:   
 
When do you plan the program notify the Committee on Subsidies and Countervailing Measures under Article 25 of the Agreement on Subsidies and Countervailing Measures? 
 
Answer: Necessary information is being collected from various sources to notify this program to 
the Committee on Subsidies and Countervailing measures.  
Paragraph 3.71, page 63. 
 Paragraph 3.71 states that Pakistan decided to establish the EXIM Bank to finance exports and 
imports, for which the Central Bank proposed a roadmap that is being reviewed by the Central 
Bank.  
MEXICO QUESTION 16:   
 In what state is the process of establishing EXIM Bank?  
Answer: The EXIM Bank is likely to be operational by the end of the year 2015. 
 Paragraph 3.73, page 64. 
 
The Secretariat report highlights that there ar e 13 banks that qualify for funding the Plan 
of Islamic banking refinancing of exports conditions. 
 
MEXICO QUESTION 17:   
 What conditions must be met banks for funding the Plan of Islamic banking refinancing exports? 
 
Answer: The banks have to ensure that the refinance facility under the Islamic Export Refinance 
Scheme is provided to companies which meet the following criteria: 
 
 Have good track record on the stock exchange; or  
 Have  a ratin g  of min imu m B + or e q uivale nt b y  the  rating  ag e nc ie s  ap p rove d  b y the 
State Bank for rating banks in Pakistan, such rating should be acceptable to  the bank as 
per its own lending policies, for advancing loans; or  
 Return on Equity during last three years should be at least higher than the rates of 
finance prescribed by the State Bank during th ose years on its conventional EFS. In case 
of a company, which is in operation for less than three years, the ROE of the available 
number of years shall be considered as sufficient; and  
 Does not have adverse Credit Information Bureau (CIB) report as also no export over 
dues that are not realized during a period of more than one year WT/TPR/M/311/Add.1 
 
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  MEXICO QUESTION 18:   
 Does the Plan of Islamic banking refinancing exports sets conditions according to products that are exported? 
 
Answer: No. 
 
MEXICO QUESTION 19:   
 If the previous answer be yes, what are these products?  
Answer: Not applicable. 
 3.3.6 Areas of export processing 
Paragraph 3.76, page 64. 
 The Secretariat report indicates that companies operating in the areas of export processing must 
export at least 80% of its production and are not a llowed to sell more than 20% of this production 
in Pakistan. It adds that it is not possible to draw certain products.  MEXICO QUESTION 20:   
 
How Pakistan ensures that the region's export proc essing and applicable to exporting companies in 
these areas fiscal measures are consistent with the Agreement on Subsidies and Countervailing 
Measures WTO? 
 Answer: Pakistan has more than one supervising authorities ensuring coordination and 
compliance. Some such institutions and regulatory authorities are; the Federal board of Revenue 
(FBR), Ministry of Commerce, National Tariff Commission (NTC), Competition Commission of 
Pakistan (CCP), State Bank of Pakistan (SBP) etc.  
3.4 Measures affecting production and trade 
3.4.2 Competition policy and price controls Paragraph 3.86, page 66. 
 
Paragraph 3.86 states that although the Competition Commission of Pakistan officially under the Ministry of Finance, is an independent body. 
 
MEXICO QUESTION 21:   
 Could you clarify the relationship between the two bodies? 
 
Answer: The Competition Commission (CCP) of Pakistan is an autonomous quasi-judicial, quasi-
regulatory body in terms of enforcing the prov isions of the Competition Act, 2010. However, 
the CCP interacts with the Ministry of Finance for administrative purposes in terms of budget and 
government procedures pertaining to use of funds.  
3.4.6 Intellectual Property Rights 
3.4.6.2 Patents Paragraph 3.108, page 73.  
According to the Report by the Secretariat, in Pa kistan foreigners must apply for patents through a 
patent agent.  
MEXICO QUESTION 22:   
 Could Pakistan explain how works a patent agent, the need to maintain this figure for foreigners 
only if there is a similar requirement for nationals? 
 Answer: Fundamentally the purpose of this condition was to facilitate the foreign entities 
interested in obtaining patents, however, if the foreign entity has an establishment in Pakistan, 
there is no such requirement. WT/TPR/M/311/Add.1 
 
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4 TRADE POLICY BY SECTOR 4.2 Agriculture 4.2.1 Main features and policy objectives 
Paragraph 4.6, page 77. 
 According to the Report of the Secretariat, the rigi dity of the system of land ownership contributes 
significantly to impede productivity and keep in poverty to many landless peasants. 
 MEXICO QUESTION 23:   
Could you explain what Pakistan that rigidity of the ownership of the land? 
 Answer: In Pakistan 97% of the farms are less than 25 acres, of this 97% average farm size is 
6.4 acres, which accounts for 66% of the farm land in Pakistan. Government encourages 
corporate/co-operative/village farmers organizations farming to boost productivity.  
4.3 Mining, Energy and Water 
4.3.2 Energy 4.3.2.2 Oil Paragraph 4.52, pages 85 and 86. 
 
MEXICO QUESTION 24:   
 
What is the new policy adopted in 2012 by Pakistan to accelerate the exploration, production and 
promotion of foreign investment in the oil and gas sector?  
MEXICO QUESTION 25:   
 What activities related to prospecting, extraction and production of oil and natural gas are open to 
foreign investment in Pakistan? 
 
Answer: The petroleum exploration and production policy 2012 aims at enhancing production 
form existing and new fields, use of better extr action techniques to improve efficiency in 
extraction, facilitation for producers as well as extractors. We are working with the world bank on 
the natural gas efficiency project (NGEP) in coordination with other IFIs.   
As regards investment in oil exploration and related sectors, the government has announced 
certain incentives to attract foreign investors. Further details may be seen on the official website of the Ministry, http://www.mpnr.gov.pk  WT/TPR/M/311/Add.1 
 
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  AUSTRALIA 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
 
3.1 Introduction 
Page 33, Paragraph 3.4 
 Can Pakistan describe the "regulatory duties" that apply to exported products?  
 
Can Pakistan identify which exported products are subject to these duties and identify those which are excluded from these duties.   
If exclusions apply, what is the rationale for providing or maintaining these exclusions? 
 Answer: Presently, regulatory duties on export of  raw hides & skins and molasses etc are being 
charged to cater for local demand of value-added domestic industries for raw material. 
 3.3.3.1 Export prohibitions  
Page 49, Paragraph 3.65 
 Can Pakistan explain the reason why exports of certain foodstuffs, such as pulses, gram and gram flour are subject to export restrictions? 
 
Answer: Pakistan is a net food importing country and sometimes these measures are taken 
to prevent critical food shortage within the country. 
 
3.3.4 Export subsidies and support Page 51, Paragraph 3.68 
 
Box 3.1 describes the activities financed by Pakistan's Export Marketing Development Fund, which includes a 50% subsidy on the cost of plants and machinery for processing of meat; and a 50% 
subsidy on the cost of processing-plants and machinery for adding value to olives and dates from 
Khyber Pakhtun Khwa, FATA and Baluchistan. Can Pa kistan confirm if payment of these subsidies 
is contingent on the export of the processed products in question?  
Answer: These incentives are for the development of most disadvantageous regions and has no 
link with export performance.  
3.2.7 Anti-dumping, countervailing,  and safeguards measures  
Page 41, Paragraph 3.39  Pakistan notes that an Appellate Tribunal was re-established in 2011 to hear appeals against anti-
dumping and countervailing duty decisions. The repo rt notes that the Tribunal's decisions are on 
facts, not the law. Could Pakistan please clarify whether the Tribunal conducts its own investigations or does it rely on the facts presented by the parties? 
 
What has triggered the need to create a new NTC Act and revise Pakistan's anti-dumping and countervailing system? 
 
Answer: The Appellate Tribunal has the power to confirm, alter or annul NTC's determination. 
The Tribunal may make further inquiry as it may consider necessary. However, the Tribunal has to rely on facts presented by the parties in the investigation. 
 
NTC was established under NTC Act 1990 (the old law). That Act did not define quorum, which created problems in trade defense investigat ions/ determinations. The new NTC Ordinance 2015 
has resolved such issues, which inter alia includes: 
 
- Number of members have increased from 3 to 5 and Quorum is defined as 2 members 
(one Chairman and one member) WT/TPR/M/311/Add.1 
 
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  - Continuity through fixed term appointment of members of NTC 
- to address tariff/fiscal anomalies 
- To conduct tariff rationalization exercises 
- To assist exporters to defend trade remedy actions 
- To deal with WTO disputes 
New Changes in Trade Remedy Laws are: 
 
- Added lesser duty rule in Anti-Dumping and Countervailing Laws 
- No anti-dumping and countervailing duty will  be imposed on inputs solely used in 
exports 
- Rules for anti-circumvention investigation are added 
- Appeals against Initiation of investigation and preliminary determination are provided 
at Appellate Tribunal 
3.3.4 Export subsidies and support  
Page 50, Paragraph 3.67 
 The report notes that Pakistan has not notified any subsidy within the meaning of the 
WTO Agreement on Subsidies and Countervailing Measures. The report outlines the subsidies and 
programs provided by Pakistan in Box 3.1 on page 51 which appear to include a range of notifiable 
subsidies. Australia also notes Pakistan's privatization intentions under section 3.4.4.2, State owned enterprises and privatization, paragraph 3.99 and 3.100, page 58. 
 
Australia would appreciate clarification on whet her Pakistan is intending to notify the WTO 
Subsidies Committee any subsidies granted including any subsidies directly linked to a 
privatization program. 
 Answer: There are no subsidies linked with the privatization program. 
 
3.4.6.1 Intellectual property rights / Overview Pages 59-60, Paragraphs 3.104–3.107  
Australia notes the number of IP applications and registrations been increasing in recent years. 
What have been some of the major reasons for these increases?  
Answer: Given IP Revenue has increased significantly is IPO-Pakistan now operating as a self-
funded, or at least significantly self-funded, organization?  
Number of filing and registration of IP applications have been increased during last years due to: 
 
- Launching IP awareness campaigns at mass level; 
- Establishing system of receiving IP applications from two locations viz IPO Head Quarters 
Islamabad and IPO Regional Office, Lahore.  
- Specifically trademark applications have experienced a great increase due to:  
- Electronic publication of trade mark journal- which has significantly decreased the 
backlog. 
Now, IPO-Pakistan is operating as a self-funded organization. 
 WT/TPR/M/311/Add.1 
 
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  4 TRADE POLICIES BY SECTOR 
 
4.2.1 Main features and policy objectives  Page 64, Paragraph 4.7 
 
Given that around 44% of the population of Pakistan attribute their livelihood to agriculture; can Pakistan please outline the key features of its domestic food security policies?  
 
To what extent, if at all, does price support play  a role in the food security policy of Pakistan? 
 Answer: Govt. of Pakistan is taken several measures to ensure food security: 
 
(i) maintaining strategic food reserves. 
(ii) Benazir Income Support Program (cash payments for subsistence living to the poorest 
families) 
(iii) pro-active engagements at multi-lateral forums for substantial reductions in trade 
distorting support to increase competitiveness of resource poor farmers 
(iv) Pakistan offers Acquisition Price (derived from market prices) to ensure the subsistance 
of small farmers.  
4.2.2 Policy measures  
Page 64, Paragraph 4.12 
 
Can Pakistan advise what input subsidies are provided to agriculture and whether these individual subsidies have increased since 2008?  
 
If so, what are the reasons for any increase in each of the input subsidies?   
Have these input subsidies contributed to increased agricultural production across commodities in 
receipt of these subsidies?   What has been the cost to revenue to the Pakistan Government in financing these input subsidies 
in each year since 2008? 
 Answer: The increase in input subsidies is commensurate with the substantial increase in the 
international prices of agricultural inputs as of 2007 e.g. 200% increase in the international price 
of Potash and 400% increase in Phosphate fertilizer.  
These subsidies were provided to off-set the effect of sudden price surge in inputs to sustain the 
livelihood of subsistence level farmers and these subsidies not production enhancing subsidies.   Pakistan has notified its DS:I notifications covering 2007-08 to 2011-12 and these are 
electronically available, document number G/AG/N/16 dated 16th March 2015. 
 4.2.2.2 Domestic support  
Page 65, Paragraph 4.16 
 Can Pakistan advise when it will be making its next notification under the Agreement on 
Agriculture to the WTO and for what years? 
 Answer: Pakistan has notified its DS:I notifications covering 2007-08to 2011-12 and these are 
electronically available, document number G/AG/N/16 dated 16th March 2015. 
 WT/TPR/M/311/Add.1 
 
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  4.2.3.1 Crops  
Page 66, Paragraph 4.21  Given that Pakistan has 8.3 million farms, the aver age farm size being 6.4 acres, and given that 
average yields are generally low, is Pakistan considering any new initiatives for land reform to 
increase agricultural productivity?  
If so, could Pakistan provide details?  
 In addition, the Pakistan Agricultural Research Council has recommended co-operatives as a way to boost agricultural returns and the Pakistan Government has existing legislation allowing the 
formation of agricultural co-operatives to increase agricultural productivity. Has Pakistan made 
progress on the formation of co-operatives in agriculture in recent years and what have been the results? 
 
Answer: In Pakistan 97% of the farms are less than 25 acres, of this 97% average farm size is 
6.4 acres, which accounts for 66% of the farm land in Pakistan. Government encourages 
corporate/co-operative/village farmers organizations farming to boost productivity. 
 Yes, Pakistan Agricultural Research Council ha s recommended co-operatives as a way to boost 
agricultural returns and we have a generalized legislation for formation of Cooperatives in any 
field, but no legislation specific to agriculture cooperatives has so far been proposed, therefore, 
no notable results can be shared.  
4.2.3.1.1 Wheat 
Page 66, Paragraph 4.23  
How does Pakistan calculate the market price support for wheat and has this market price support 
been the driver for increased wheat production and exports in recent years?   Answer: Australia notes that in 2011 and 2012 Pakistan wheat exports exceeded wheat imports 
which was a significant change to previous years when Pakistan was a net importer of wheat. 
 Agriculture policy institute looks at market pric es, revealed comparative advantage, production 
cost. These prices are aligned with the market prices to ensure procurement target for food 
security stock.   
Data of wheat growing areas indicate that the area under cultivation has not increased whereas 
there is some improvement in yield because of new wheat varieties released in the last five years. 
 4.2.3.1.2 Rice 
Page 67, Paragraph 4.25 
 Since 1998-99 it has been compulsory for all Pakistan rice exporters to be members of the Rice 
Exporters Association of Pakistan (REAP). Can Pakistan explain why its rice exporters must belong 
to the REAP to be allowed to export?   
What is the role of the REAP?  
 Is REAP functioning as a single monopoly export seller of rice? Australia notes that REAP claims to have exported USD 2 billion of rice (Source: http://reap.com.pk/links/reap_glance.asp ) 
 
Answer: R e g i s t r a t i o n  w i t h  R E A P  i s  n o  m o r e  m a n d a t o r y  f o r  e x p o r t  o f  R i c e ,  h o w e v e r ,  R E A P  i s  a  
trade body established under the Trade Organizati ons Act, 2014 and the membership of REAP is on 
voluntary basis.  
 REAP like any other trade association works for the protection of the interests of the Rice 
Exporters.  
 REAP is not a monopoly for export of rice  WT/TPR/M/311/Add.1 
 
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  4.2.3.2 Livestock and dairy production 
Page 69, Paragraph 4.41  Can Pakistan explain the decision to ban exports of livestock from 1 October 2013? Can Pakistan 
also inform us as to what developments in the processed meat sector, including exports, have 
occurred as a result of this policy decision?  
Answer: E x p o r t  o f  l i v e s t o c k  w a s  b a n n e d  t o  e n s u r e  a v a i l a b i l i t y  o f  m e a t  t o  d o m e s t i c  c o n s u m e r  
at affordable prices. Export of meat and meat preparations has increased from US$211.1 million in 2012-13 to US$ 230.2 million during 2013-14.  
4.5.1 Services / Main features and policy objectives 
Page 77, Paragraphs 4.90 & 4.91  
Pakistan has identified "creating predictable market access in Modes 1 & 4" as a priority in the 
Doha services negotiations. However, we note from the Secretariat's report that Pakistan maintains "certain general (i.e. horizontal) market-access and national-treatment 
limitations….[including] on the presence of natural persons (e.g. presence of foreign executives or 
specialists, expenses of representative office, authorization for acquisition of real estate by foreign firms - Page 77 of the Secretariat's report). Given its aspirations, does Pakistan envisage making changes to its own future Mode 4 commitments as a means of encouraging others? 
 
Answer: Pakistan fully endorses the progressive liberalization of trade in Services in all modes 
of service supply including Mode-4 and expects the other countries especially the developed 
countries to open their markets in Mode-4. 
 Page 77, Paragraphs 4.90 & 4.92 
 
We note Pakistan's GATS services commitments cover 47 activities with the intention of expanding this to 65 activities in its 2005 Doha offer. We note too Pakistan's participation in the Trade in Services Agreement as a positive indication of its willingness to look at improved future 
commitments on services trade. Therefore, we would welcome further advice from Pakistan on 
whether it would consider broadening future services trade commitments, given its efforts to liberalize trade in services in other negotiations (both bilateral and plurilateral). 
 
Answer: Services trade is the backbone of our economic development, and we are actively 
engaged in services trade in various configurations: bilateral, plurilateral, and multilateral. 
We wish to seek trade liberalization with our trading partners on a mutually advantageous and 
commercially meaningful market access commitments.  Page 77, Paragraph 4.93 
 
Australia welcomes Pakistan's efforts to promote services exports under the Strategic Trade Policy Framework (2012-2015). Can Pakistan provide further information on the work undertaken by the 
Services Trade Development Council to assist in increasing exports? 
 Answer: Services Trade Development Council (STDC) as per its mandate given by Strategic Trade 
Policy Framework 2012-2015, started working from Oc tober 2013. As the organization was in the 
formative stage; the following activities have been done over the period of one & a half year of its formation:  
(i) Identification of priority sectors that the council will look after on its 1st year 
of formation. 
(ii) Nomination and formation of the council in the light of priority sectors identified by the 
Commerce Minister. 
First Meeting of the Council held under the Chair of Commerce Minister that lead the foundation 
and forum of stakeholders consultation for the promotion of Services Sector. 
The feedback of the Council will form basis for the export promotion strategy of Services Sector 
that shall be incorporated in Trade policy as well.  WT/TPR/M/311/Add.1 
 
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  STDC in collaboration with World Bank mission has done the diagnosis of Pakistan services sector 
to identify sectors and areas where STDC can work for the development of Services Sector. World Bank mission is also assisting STDC to design TORs for the Council.  
4.5.3.1 Telecommunications 
Pages 80–82, Paragraphs 4.107–4.117  
There are strong linkages between services liberalization and investment. We note from the 
Secretariat's report there has been considerable investment in Pakistan's telecommunications sector derived, in part, from Pakistan's efforts to reform the telecommunications sector. Does Pakistan intend to look at reforms in other sectors including financial services as a means of 
encouraging further investment? 
 Answer: The reforms process initiated by Pakistan has resulted in significant liberalization of the 
financial sector. The State Bank of Pakistan's entry criteria for foreign banks and non-bank 
corporate entities is already relaxed and they can op erate in Pakistan either in branch mode or as 
locally incorporated subsidiary. 75% of commercial banks are fully owned by foreign entities. 
 
Similar reforms process is envisaged in other services sectors as well  4.5.4 Transport services 
Pages 83-85, Paragraphs 4.121-4.141 
 Given the global nature of supply chains, encouraging further reforms in transport sectors (air, 
road and rail) will be important in maintaining an d increasing competitiveness of Pakistan's goods 
exports. Grateful for advice on what plans Pakistan has for further reforms in these sectors?  
Answer: Pakistan lauds the successful conclusion of the Trade facilitation agreement and we have 
undertaken extensive reforms to facilitating trade through integration of the GVCs that would further deepen the transport sector as envisaged in our commitments in trade facilitation.  
REPORT BY PAKISTAN - WT/TPR/S/311 
 
2 POLICY REFORM HIGHLIGHTS 
Page 5, Paragraph 2.1 
 Can Pakistan advise if agricultural exports are supported by the Export-Import Bank? If so, can 
Pakistan please describe the types of financial support offered (such as export credit financing or 
credit guarantees) and the range of agricultural products that are, or will be supported. Can 
Pakistan advise the expected agricultural program allocation? Can Pakistan advise the tenor lengths? 
 
Answer: The EXIM Bank will likely be operational by the end of the year 2015 and imports and 
exports of all sectors including the agriculture sector will be eligible for financing under EXIM Bank. 
Exim Bank is in the process of establishment and the details of financial instruments are yet to be 
formed.  
4 STRATEGIC TRADE POLICY HIGHLIGHTS 
Page 8, Paragraph 4.2  With regard to the Strategic Trade Policy Framework for 2012-2015 (STPF 12-15), can Pakistan 
please detail what specific policy measures will be undertaken in support of the following 
STPF 12-15 objectives:  
a) mobilize new investment in export-oriented industries 
b) increase exports from less-developed regions of Pakistan 
c) enhance access to export financing and credit guarantees WT/TPR/M/311/Add.1 
 
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  Answer:  
 a) Focus of the STPF 2012-15 was to alleviate the poverty in the under-developed areas by encouraging industrial activities by establishing SEZs  
 
b) In order to bring these under-developed areas in the mainstream economic activity the STPF 
12-15 has focused on FATA, Gilgit-Baltistan Region and Balochistan.  
 
c) EXIM Bank has been proposed to finance export oriented credits and credit guarantees.  5 INTERNATIONAL TRADE LIBERALIZATION 
5.1.3 Agriculture 
Page 9, Paragraph 5.6  
What changes are being made to Pakistan's anti-dumping and countervailing system? 
 Answer: Changes in Trade Remedy Laws are: 
 
- Added lesser duty rule in Anti-Dumping and Countervailing Laws 
- No anti-dumping and countervailing duty will be imposed on inputs solely used 
in exports 
- Rules for anti-circumvention investigation are added 
- Appeals against Initiation of investigation and preliminary determination are provided at 
Appellate Tribunal 
 WT/TPR/M/311/Add.1 
 
- 36 - 
 
  ARGENTINA 
Section 3.3.5 of the report refers to export finance, insurance and guarantees.  
 1. Could Pakistan inform about officially supported export finance insurance and guarantees 
amounts and conditions provided during last available year. 
 2. Could Pakistan provide more information and its opinion or plans on how its export finance 
system (including export finance with no official support) could be enhanced to increase exports of 
Pakistan (without circumventing the prohibition to provide export subsidies of any kind)?  Answer: The State Bank of Pakistan (SBP) provides financing to banks for exporters under the 
following schemes: 
 
i. The Long Term Financing Facility (LTFF) 
ii. Export Financing scheme (EFS) 
iii. Islamic Export Refinance scheme (IERS) 
Details of these schemes are available at SBP's official website, http://www.sbp.org.pk  
 
The government plans to establish EXIM Bank under the Strategic Policy Frame-work 2012-15, which is likely be operational by the end of year  2015. Import and exports of all sectors will be 
eligible for financing. 
 
3. Could Pakistan confirm that it has not used export subsidies under Art. 9:4 of the Agreement on Agriculture.  
 
Answer: All the subsidies provided so far under Articl e 9.4 of the Agreement on Agriculture have 
been notified 
 
4. In which agricultural products has Pakistan b een a net food exporter during the last year and 
throughout the last three years (period 2012-2014)?   
Answer: Pakistan is not a Net Food Exporting Country, on the contrary Pakistan is an NFIDC as 
notified by the WTO Committee on Agriculture.  
5. Could Pakistan inform about food import conditions and amounts through:  
 
a) Non-emergency food aid.  
b) Officially supported export credit and export  guaranty and insurance programs of other 
countries that export to Pakistan.   
Answer: Pakistan has not received any non-emergency food aid or food items exported under 
export credit/export guarantees of the exporting country during the period under review. However, 
Pakistan has received emergency food  aid through World Food Program. 
 6. Could Pakistan give an overview about so uth-south trade with developing countries?  
Answer: Over the last ten years, Pakistan's trade development strategy has had a visible 
South-South trade focus. The study includes; trade promotion initiatives, bilateral trade agreements in creation of joint business forums with regional, as well as, developing countries 
focus. In this regard, during the period 2003-2013, Pakistan has inked three FTAs with its regional 
trading partners i.e. China, Sri Lanka and Malaysia. Furthermore, the South Asian Free Trade Agreement (SAFTA) is also an example of the strategy focus. As a result, the share of Asian and African countries in our total exports has increased from 43 % in 2003 to 55 % in the year 2013. 
 WT/TPR/M/311/Add.1 
 
- 37 - 
 
  7. Could Pakistan inform in genera l about the export performance of:  
 
a) small and medium income enterprises.  
b) including farmers cooperatives or similar entities. 
Answer: Pakistan's major export items in the manufacturing sector are textiles while rice is the 
main agricultural export commodity. Production in both the sectors are dominated by small and 
medium enterprises and therefore, they  play a vital role in the exports. 
 WT/TPR/M/311/Add.1 
 
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  JAPAN 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.4 Measures Affecting Production and Trade 3.4.6 Intellectual property rights 
3.4.6.1 Overview 
 In Table 3.11, duration protected by patents is de scribed as "20 years from the date of grant". On 
the other hand, it is indicated in Paragraph 3.10 8 that "Patents are granted for a period of 20 
years from the date of filing". There seems to be a contradiction between the two. Could you 
confirm whether these sentences are correct?  
 
Answer: Following statement is correct; 
 "Patents are granted for a period of 20 years from the date of filing". 
 WT/TPR/M/311/Add.1 
 
- 39 - 
 
  EUROPEAN UNION 
Page 15 paragraph 1.18  on the fiscal situation and public debt of Pakistan and paragraph 1.21 
on fiscal issues and para 3.30 page 40 on the IMF package. Paragraph 3.18 of the Government 
report mentions an intention of the government to suppress SROs. In paragraph 3.30 it is reported 
that " in the context of its Extended Fund Faci lity, Pakistan submitted a comprehensive package 
of reforms, including budget and tax proposals, in return for the release of a loan tranche of over 
550 US D. The budget proposal includes the elimination of certain SROs granting concessions on 
imported plants and machineries and 33 addi tional items plus trimming concessions for 
21 sectors - to charge them the standard rate and charge a higher albeit still reduced rate for five e x p o r t  o r i e n t e d  s e c t o r s … "  I n  p a r a g r a p h  1 . 2 1  i t  i s  r e p o r t e d  t h a t  " c u s t o m s  S R O s  a r e  t o  b e  withdrawn by 2017 and that the remaining SROs in 2015 would be incorporated into tax law". 
 
The EU welcomes the commitment of the Government to establish a simplified and broader tax base and to eliminate Statuary Regulatory Orders. The Ministry of Finance of Pakistan informed in 
PR No. 986 of 9 February that the government incr eased duties on luxury items, furnace oil and 
metal scraps via new or updated regulatory orders.   
EU QUESTION N°1:  
 Can the authorities provide a detailed state of play  of the situation in terms of SROs that are still 
applied? Can Pakistan confirm that all SROs relating to customs duties will be phased out by 
July 2017? If not, what SROs would be maintained and according to what criteria? 
 Answer: All the active SROs are available at FBR's website http://www.fbr.gov.pk  
 
Government of Pakistan constituted in December 2013, a High Powered Committee headed by Finance Minister and comprising of representatives of different ministries/divisions and trade 
bodies across the country to review the conce ssionary regime in Income Tax, Sales Tax and 
Customs. Based on recommendations of the Committee, a huge number of concessions and 
exemptions amounting to Rs. 104 billion were el iminated in the FY 2014-15. The Government is 
committed to phase out the remaining concessions ov er a period of three years i.e. by June, 2017. 
 
Paragraph 3.25 page 39 states "Even though the FBR website now features specific information on active as well as amended or archived SORs, it is  very difficult to discern the applicable taxes and 
other measures imposed on individual tariff items that may be covered under multiple SROs with 
different exemptions and criteria". Paragraph 3.28 page 39 states "The regime is complex, discriminatory and lacks transparency" 
 
EU QUESTION N°2:   Can Pakistan detail what its intentions are in view of simplifying the current system and make it 
more predictable?   
 Answer: The Government of Pakistan is committed to make system more transparent and 
predictable by eliminating all concessions/ex emptions available under different statutory 
regulatory orders by June, 2017 except socially sensitive concessions which will be retained. 
 
Page 26 para 2.15 refers to trade being prohibited when directed to Israel:  
 EU QUESTION N°3:   
On which basis is Pakistan's trade with Israel prohibited?  
 Answer: Pakistan does not officially recognize Israel which is the basis of no direct trade linkage 
between the two countries. 
 WT/TPR/M/311/Add.1 
 
- 40 - 
 
  Pages 28-30, paragraphs 2.21 to 2.29 
 The WTO Secretariat's report gives a brief account of the trade agreements Pakistan has concluded with different trade partners on a regional and bilateral basis. The Secretariat's report gives 
a basic indication of tariff cuts negotiated and cove rage in terms of tariffs lines, but not in terms of 
trade covered. Under SAFTA, according to the Secretariat, Pakistan sensitive list consists of 938 tariff lines at HS 6-digit level or 22,6% of the total.  
 
EU QUESTION N°4:   
 Could Pakistan indicate: 1) how much in terms of import from other SAFTA partners does the 
sensitive list cover, and 2) what are the main product areas included in the sensitive list. 
 Answer: The volume of imports of sensitive list items from SAFTA members is low. However, 
presently the members states are in the process of further reducing their respective sensitive lists 
by 20% or more under SAFTA to furthe r liberalize the regional trade.  
 
The list consists of items such as Dairy Products , Vegetables, Fruit, Cereals, Sugars And Sugar 
Confectionery, Beverages, Tobacco, Mineral Fu els, Inorganic Chemicals, Precious Metal, 
Pharmaceutical, Cosmetics, Plastics, Rubber, Articles of Leather, Wood, Paper and Paperboard, Vegetable Textile Fibers, Woven Fabric, Manmade Filaments, Manmade Staple Fibers, Knitted or 
Crocheted Fabric, Articles of Apparel, Footwear, Ceramic, Glass, Iron And Steel, Boilers, Electronic 
equipment, Vehicles, Furniture.   
EU QUESTION N°5:   
 For each of the FTAs/PTAs concluded with Sri Lanka, China, Malaysia, Iran, Mauritius and 
Indonesia, could Pakistan indicate how much in terms of trade (for each of the parties) are 
covered by the tariff concessions.  Answer: The details of each FTA/PTA is as follows: 
PAK-MAURITIUS PTA 
i. During the 6th Session of Pak-Mauritius Joint Working Group held on 28-29 July, 2007, 
the PTA was finalized and signed on 30th July, 2007 at Port Louis, Mauritius. 
ii. Mauritius gave concession on 102 items/tariff lines, i.e. 1.64% of its total existing 
national tariff lines. Pakistan gave concession on 130 items/tariff lines, i.e. 1.9% of its total existing national tariff lines. 
iii. Pakistan agreed to allow 35% to 50% reduction on Margin of Preference (MOP) and a Tariff 
Rate Quota (TRQ) of 200,000 to 300,000 pieces to textile exports from Mauritius. Imports from Mauritius into Pakistan would enjoy 35% to 50% MOP in the end of year from the date of operation and 100% MOP in the next year. Mauritius has agreed to reduce duty 
on 50% Margin of Preference (MOP) on goods expo rted from Pakistan at the end of year from 
date of operation to 100% MOP in the next year. 
PAK-INDONESIA PTA 
It was decided that for trade in Goods Pakistan will eliminate tariff on 43.2% of the current 
imports from Malaysia by 2012. On the other hand Malaysia will eliminate tariff on 78% of imports from Pakistan. 
Indonesia provides preferential market access on  232 tariff lines—103 zero rated and Pakistan's 
provides preferential market access on 313 tariff lines—82 zero rated.  
PAK-SRILANKA FTA 
Under Pakistan-Sri Lanka FTA following concessions are in vogue:-  
- Number of tariff lines in the No Concession Lists of Pakistan and Sri-Lanka are 607 and 
697 respectively (at 6-digits) WT/TPR/M/311/Add.1 
 
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  - Number of tariff lines on which Pakistan agreed to grant access subject to Tariff Rate 
Quotas (TRQ) are 30 (8 digit). Pakistan has granted Margin of Preference on applied MFN to 29 (8 digit) tariff lines 
- Sri Lanka has granted access to the Pakistani Rice and Potatoes subject to Tariff Rate 
Quota 
Under the FTA arrangements, Sri Lanka has granted market access to Pakistan on products 
namely, Fish & fish preparations, vegetables, cere als, Rice, Cotton yarn, cotton fabrics, synthetic 
fabrics, knitted or crocked fabrics, Pharmaceuticals products, Iron & steel Chemical material, 
construction material, Leather, Paper & paper board etc. While Pakistan has granted market access to Sri Lanka on products namely, Fruits & vegetables, Oil seeds and oleaginous fruits, Tea & mate, Crude rubber and crude vegetable material, Textile fabrics and related products, Cereals, Spices, 
Iron & steel, Printed matter etc.  
PTA WITH IRAN 
 
Pak-Iran PTA was signed on 4th March, 2004. The Agreement was implemented on 1st September, 
2006 and is operational since then.  
 
Under the PTA Pakistan has granted tariff concessions to Iran on 338 tariff lines (HS 06), while 
Iran has granted tariff concessions on 309 tariff lines. Average tariff concessions are around 18%. Pakistan's major products covered under the PTA include rice, fruits, cotton, cotton yarn, pharmaceutical products and cutlery while Iranian products include chemicals, vegetables, fruits 
(fresh and Dry), spices, sea food etc. 
 In the PTA, both countries have agreed not to impose any non-tariff  measures without following 
the established principles of valuation. But contra ry to that, the Iranian side has imposed a ban on 
import of fruits except banana from other countries including Pakistan which is a clear violation of the Pak-Iran PTA. Furthermore, Iran imposes season al bans on Pakistani fruit & food exports such 
as Kinnow, mangoes and rice etc. 
 Details of Pak-China FTA are annexed.  
EU QUESTION N°6:   
 The EU is not aware that Pakistan-Iran PTA, Pa kistan Mauritius PTA and Pakistan-Indonesia PTA 
have been notified to the WTO. Could Pakistan confirm that the necessary notifications will be 
made and indicate when it will be done?   
Answer: The Pak-Mauritius PTA is ready to be notified soon. Also, Pak-Iran and Pak-Indonesia 
PTAs will be submitted in due course of time.  Page 32 paragraph 2.43 and para 3.75 page 52  report, inter alia, that developers and 
operators in SEZ are exempted from income tax for 10 years and that incentives are 
non-discriminatory.   
EU QUESTION N° 7:   
 Can the authorities elaborate on all the specific advantages that are available for entities that 
would be established in SEZs?  
 Answer: The Special Economic Zones (SEZ's) Act 2012 was approved by the Senate and National 
Assembly with an objective to develop the mo st disadvantageous and less developed regions 
of the country. The advantages include; availability of infrastructure, business friendly 
environment, investor-facilitation services to e nhance productivity, reduced cost of doing business 
for economic development and poverty reduction. 
 WT/TPR/M/311/Add.1 
 
- 42 - 
 
  Page 33, paragraph 2.37 
 The EU welcomes that most sectors are open to foreign direct investment and even allow for 100% foreign ownership. The Secretariat's report indicates that the Ministry of Interior must clear all 
foreign investment. 
 EU QUESTION 8:   
 
Can the authorities describe the rationale for clearance of all FDI and detail the process and timelines applicable for the clearance by the Mi nistry of the Interior? Could they also indicate 
if these procedures are published in an official publication? If so, could Pakistan indicate the 
references, the weblink if there is one? Could Pakistan indicate the criteria used to clear a foreign 
investment, and under what circumstances a foreign investment might not be cleared and point to the official publication where the criteria are published? In case an investment is not cleared, 
is such information made public?  
 Answer: Clearance from Ministry of Interior is primarily required for the reasons of homeland 
security in wake of war against terror, preventing money laundering practices and to maintain the 
record of foreign investors/ex-patriates to ensure their security, which is in line with the Regulations of Securities and Exchange Co mmission of Pakistan (No. 3 of 2013 dated 
March, 18, 2013) 
 
Page 34 paragraph 3.10  on Pakistan's trade with Afghanistan reports that "APTTA does not 
permit India to transit goods through Pakistan for export to Afghanistan." 
 
EU QUESTION 9:   
 
Could Pakistan clarify whether there are any plans to expand the scope of the agreement 
to neighboring countries?   Pakistan is working on exploring possibilities  of extending the scope of the agreement. 
For instance, Pakistan-Afghanistan-Tajikistan Trilateral Transit Trade Agreement has been initiated 
by Pakistan and has been under consideration since September 2012. The subject Agreement is an extension of Afghanistan Pakistan Transit Trade Ag reement to Tajikistan and an effort to further 
expand possibilities of promoting trade and in vestment in the region. The agreement once 
concluded would establish trade linkages with the Central Asian countries, which may be extended further to Russia. 
 
Page 48 table 3.7  Active export-related SROs. Reference is made to the imposition of Regulatory 
Duty of 15% ad valorem on molasses and 20% on raw and wet blue hides.   
EU QUESTION 10:   
 For each of the products subject to export duties , could Pakistan indicate what are the specific 
conservation objectives sought if any and what, if any, corresponding restrictions are placed 
on domestic production and consumption? What are Pakistan's plans to remove existing export taxes and, in particular but not only, for raw and wet blue hides and molasses?  
 
Answer:  These measures are meant to avoid critical shortages of these products for local 
consumption. Moreover, such measures are taken on temporary basis and are phased out as soon as the situation improves. 
 
For conservation purposes, domestic regulation prohibits the slaughtering of animals two days a week without exception. 
 
Page 39, paragraphs 3.25-3.2, page 76, para graph 4.86 and page 7 Government report 
page 7 
 
The Secretariat's report indicates that "a new Auto Development Policy 2014-2019 was under preparation as at November 2014 ….to realize horizontal and vertical growth of the industry….through the creation of an enabling tariff structure for the automotive sector". WT/TPR/M/311/Add.1 
 
- 43 - 
 
  The Government's report indicates that the tariff rationalization aims at having a maximum tariff 
rate of 25%.  EU QUESTION 11:   
 
Will this tariff rationalization apply to motor vehicles and motor vehicle parts as well?  
Answer: The government is committed in rationalizing the custom tariff structure with maximum 
rate of 25%, however, there would be certain exceptions and one such exception is auto-sector.  Page 40, paragraph 3.29, page 65, para graph 4.15 and page 74, paragraph 4.74.   
 
The report indicates that Pakistan has bound other duties and charges at zero, but a 5% regulatory import duty is levied on 284 agriculture and industrial products. 
 
EU QUESTION 12:  
Can Pakistan indicate the rationale for the regulatory import duty and whether an equal duty 
or tax is applicable to like domestically produced products?   Answer: Regulatory duty is levied to regulate trade of non-essential and luxury goods. The share 
of import value of the commodities on which regulatory duty was imposed viz total import value 
of the country during the period July-December, 2014 was only 0.11% .   
Regulatory Duty is leviable under the Customs Ac t 1969. These duties are levied in a transparent 
manner and are published before they are collec ted. These duties are mostly time bound and 
stand rescind accordingly. 
 
Page 41 para 3.38 on import licensing.   EU QUESTION 13: 
 
Can Pakistan confirm that it does not operate an import licensing system in the meaning of Article 1.1 of the Agreement on import licensing procedures?  
 
Answer: Pakistan does not maintain any import licensing regime. However, imports of certain 
restricted items such as arms are allowed subjec t to some permissions, authorization, etc.  
 
Page 43 para 3.44 8,857 standards, out a total of 30,927 (or 29%) are national standards based on regional or UK standards, rather than international standards.  
EU QUESTION 14:   
 Could Pakistan indicate what product areas are covered by the national standards and whether 
those standards are mandatory? Is there a weblink to easily access such information?  
 Answer: Pakistan Standards and Quality Control Authority (PSQCA) is Pakistan's standards setting 
body, which has notified Pakistan standards for various products available at PSQCA website which 
is http://www.psqca.com.pk  
 
Page 45, paragraph 3.51  states that "The import Policy wa s amended to exempt from import 
restriction due to BSE those countries which have been declared as 'negligible risk' by the OIE 
if the animals were only from herds where no incidence of BSE had been reported for the last eleven years." While the EU welcomes this opening of trade in live animals, Pakistan's import 
regime for bovine products is still not in line with relevant OIE standards. 
 EU QUESTION 15:   
 
Can Pakistan explain how and when it intends to allow imports of bovine products (both live animals and meat products) fully in line with OIE standards, including from countries declared as 
"controlled risk"? Can Pakistan explain the scientific rationale behind upholding the BSE ban for 
countries in the OIE 'controlled risk' group?  WT/TPR/M/311/Add.1 
 
- 44 - 
 
  Answer: The ban was imposed on various categories of livestock products in order to protect the 
historically BSE free status of Pakistan and further to safe guard our export of livestock by-products i.e animals' casings, gelatin and bone products, horns and hoofs etc. to other 
countries. The prohibitions imposed in the Import Policy Order, Chapter 5(A) (iii) are not country 
specific. It has been imposed on all BSE affected countries. The prohibition on import of live 
animals has been reviewed and import from BSE negligible risk countries is allowed under certain conditions 
 
It is indicated that there is no ban on feed ingredients of vegetable, poultry, mineral and sea sources origin from BSE infected countries. The prohibitions on meat and meat products is reviewed on case to case basis in the light of reviewed SRO and OIE guidelines 
 
Pakistan has no plans to allow import of bovine products (live animals) from countries declared as "controlled risk" in near future. However, import of meat and their products could be considered in 
the light of OIE guidelines BSE has never been reported in Pakistan. Import decisions are taken 
based on import risk analysis. Entry and exposure risk along with current absence of country wide 
specific and advanced diagnostic capability at the laboratory and field levels refrains Pakistan to 
import BSE risk materials from countries not having negligible risk status. 
 Page 49 paragraph 3.65  refers to export prohibitions that cover for example fissionable 
material. Paragraph 3.66 states that 'export licences no longer exist". 
 
EU QUESTION 16:   
 
How are export controls of dual use items managed (such as those listed in the 
Table 3.8 number 13 "goods and technologies related to nuclear and biological weapons and their delivery system")? Is there a legislation on those items that is inspired from UN Resolution 1540? 
 
Answer: The "Export Control on Goods, Technologies, Material and Equipment related to Nuclear 
and Biological Weapons and their Delivery Systems Act, 2004 (V of 2004)', regulates the dual use of these items. 
 
Page 64, paragraph 4.13 (and  page 40, paragraph 3.30).  As with tariffs, the use of SROs are 
also applied to domestic taxes leading to a lack of transparency, coherence and predictability in 
Pakistan's duty and tax regime related to imports. In the case of leather products, 
SRO 1125(I)/2011, with it amendments also introduces discriminatory treatment between imported and like locally manufactured products. SRO 1125 imposes domestic sales on imported 
products at a rate of 17% while like locall y manufactured products have a rate of 5%. 
 EU QUESTION 17:   
 
Could Pakistan confirm that different tax rates are applied to imported and like domestic products? 
Can Pakistan confirm that SRO 1125 and other SRO's with an incident on imports will be removed as part of its tariff rationalization programme, or at the very least remove discriminatory 
treatment? 
 Answer: SRO. 1125/2011 is also under review. Government of Pakistan is committed to eliminate 
all concessions/exemptions issued through SROs by June 2017. 
 Page 97 table A.3.3 Subsidy for halal certification  
It is mentioned that all edible products containing meat must be obtained from 'halal' animals 
slaughtered in accordance with the Islamic injunctions.   
EU QUESTION 18:   
 Could Pakistan clarify whether a system for obtaining halal certification has been developed and 
is functional? Are there efforts to coordinate with internationally recognized Halal institutes to 
avoid decisions specific for Pakistan, which can negatively affect imports?   WT/TPR/M/311/Add.1 
 
- 45 - 
 
  Answer: Currently, the exporters get halal certification from Moody International (Pvt.) Ltd, 
(a foreign firm) and local organizations i.e Animal Quarantine Department and Jama-e-Markaz-e-Uloom, Markaz-Uloom, Mansoora (JMUIM)  
Page 52, paragraph 3.75 . It is reported that the EPZA also administrates the labour laws 
within EPZs.  
EU QUESTION 19:   
 Could Pakistan please explain if the 8 ILO core conventions, which Pakistan has ratified, are also applicable in EPZs? If not, which ones are not applicable? 
 
Answer: Yes, they are applicable to all over Pakistan including EPZs. 
 
Page 54-55, paragraphs 3.84 – 3.88 
 The EU welcomes that Pakistan considers having its competition regime submitted to UNCTAD peer 
review. The EU notes that the Competition Agency has recently suffered from reduction of staff. 
 EU QUESTION 20:   
 
To what extent is this reduction in enforcement capacities compatible with the objective to further 
disseminate a culture of competition among the economic operators taking into account that the Secretariat report notes that the reduction of staff has created a backlog of cases that 
is important?  
 Answer: The Competition Commission of Pakistan ( CCP) has witnessed some degree of staff 
attrition in 2013. The Commission has begun the process of recruiting professional staff in key 
departments in 2015.   The backlog of cases mentioned in the report pertains more to those that are currently under 
judicial review in the Courts of Paki stan and not with the Commission itself. 
 EU QUESTION 21:  
 
Could Pakistan clarify if its competition regime is applicable to state-owned enterprises? In 
addition, could the authorities clarify if the compet ition agency is solely in charge of enforcement 
of competition for all sectors or are there sectors for which the regulator rather than the 
competition agency is in charge?   Answer: The Competition Act, 2010, is applicable to all undertakings involved in economic and 
commercial activity, regardless of their public or private ownership. 
 The Competition Commission is the sole body responsible for competition enforcement in all 
sectors of the economy. 
 EU QUESTION 22: 
 
Is Pakistan considering the adoption of a leniency policy to facilitate the identification and sanctioning of cartel cases?  
 
Answer: Article 39 of the Competition Act, 2010, permits the Commission to be lenient and 
impose a lesser penalty on an undertaking that is alleged to have violated the law if it has made a full and true disclosure in respect of the alleged violation. There is also a possibility of a full 
exemption. Leniency is possible only for the first undertaking that makes a full disclosure. 
The Commission, though, may revoke leniency in case of failure to comply with the leniency 
conditions or false evidence. 
 
Pakistan has had a leniency programme in place since 2008 (under Competition Act 2007), and the Leniency Regulations were revised in 2014.  WT/TPR/M/311/Add.1 
 
- 46 - 
 
  Page 55, paragraph 3.89 mentions that Pakistan upholds price controls on certain items. The EU 
notes that Pakistan maintains strict price controls on pharmaceuticals and has just adopted a new pricing policy, which has sparked concerns about the ability of the industry to cover costs in Pakistan.  
 
EU QUESTION 23:   
 
Can Pakistan explain how the new pricing policy is expected to affect the viability of the 
pharmaceutical sector in Pakistan, in particular for imported medicines?   Answer: rug Pricing Policy-2015 has laid down a tran sparent mechanism for fixation and price 
adjustment of pharmaceutical products. It shall reduce the discretion of functionaries and facilitate 
the industry in predictability for business planning . It shall have positive impact on the viability 
of imported medicines: 
 
a. as annual price increase of medicines has been linked with Consumer Price Index;  
b. price fixation of new chemical entities which are mostly imported will be based on 
reference prices particularly in the neighboring countries. 
Page 58, paragraphs 3.98-100  mention that Pakistan has embarked on an ambitious 
privatization programme. Furthermore, it is stated that PIA was included in the priority list for SOEs scheduled for privatization. 
 
EU QUESTION 24:   
 
Could Pakistan update the EU on the strategy to pr ivatize the listed 32 entities as agreed with the 
IMF? Could Pakistan update about the state of play regarding privatization of PIA?  
 
Answer: The Cabinet Committee on Privatization has approved the following strategy: 
 
i. Capital Market Transactions Roadmap, whic h identifies 11 PSEs in the oil and gas, 
banking and insurance, and power sectors for block sales and primary or secondary 
public offerings. Financial advisors have been hired for successful selling of minority 
stakes in United Bank Ltd. and Pakistan Petroleum Ltd. in June 2014.  
ii. Strategic Private sector participation, wherein 24 PSEs have been identified for strategic 
partnerships. Efforts are being made to address labor market issues and social 
implications. Financial advisors have been hired for expected completion of transactions by end-October 2015. 
iii. Restructuring, under which we are developing medium-term action plans to restructure 
Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways (PR). 
As regards the state of play in of case of PIA, the government has appointed financial advisors in 
July 2014 to seek potential options for restructuring and strategic private sector participation in 
the company by end-December 2015.  
Page 59, paragraph 3.104.  According to the Secretariat's report Pakistan has only ratified two of 
the 24 treaties of the World Intellectual Property Organization (WIPO). This was the same status during Pakistan's last TPR. 
 
EU QUESTION 25:   
 Could Pakistan inform whether it plans to ratify other WIPO treaties? 
 
Answer: IPO-Pakistan is in consultative process and doing in-house preparation to accede Patent 
Cooperation Treaty (PCT) and Madrid Protocol. 
 
Page 60 para 3.106 IPR and national  institutions for enforcement . The report states that 
the 2012 Act allows for establishment of specialized IP tribunals. The EU notes that since the WT/TPR/M/311/Add.1 
 
- 47 - 
 
  finalization of the WTO secretariat report, an IPO has been set up and tribunals have also been 
created in 3 provinces.  EU QUESTION 26:   
 
Can the authorities develop on these new developments? What measures are being taken and under what timelines to put into operation these and other (if any) specialized IP tribunals. 
Has IPO exercised its enforcement authority? What measures are being taken to ensure it can?  
 Answer: I P  T r i b u n a l s ,  f o r  s p e e d y  d i s p o s a l  o f  I P  l i t i gations, have been notified by the Federal 
Government initially for three major cities: Karachi, to cover Balochistan; Lahore to cover all 
Punjab and Islamabad to cover the federal territory and KPK. Specialized IP Tribunals will be 
established in near future. IPO exercises its en forcement authority through enforcement agencies 
like FIA, Customs and Police.  
 
Following are some positive developments in relation to enforcement of IPRs:  
i. Establishment of dedicated Directorate in FIA and Directorate General in FBR to deal with 
IPR violations; 
ii. Establishment of IP Tribunals, for speedy disposal of IP litigations, have been notified by 
the Federal Government initially for 3 major cities: Karachi, to cover the province of 
Balochistan; Lahore to cover province of Punjab and Islamabad to cover the federal 
territory and province of Khyber Pakhtun Khawa (KPK); 
iii. In the year 2014 Urdu Bazar Lahore has been removed from the list of "Notorious 
Markets' by IIPA (International Intellectual Property Alliance) and 
iv. Complete stoppage of export of pirated CDs/DVDs from Pakistani borders since 2009. 
Page 65 Paragraph 4.17  The latest Pakistan notification to WTO on Domestic Support (DS:1) 
covers marketing year 2006/07. The report note s that the delegation to provinces of the 
responsibilities regarding agriculture makes the reporting complicated.  EU QUESTION 27:   
 
Does Pakistan intend to submit notifications for Domestic Support for subsequent years?  
 
Answer: Notifications Submitted till 2011-12.  
 Page 67, paragraph 4.24 on wheat 
 
EU QUESTION 28:  Can Pakistan indicate the quantities of wheat per marketing that have been bought in by the 
Pakistan Agricultural Storage and Services Corporation (PASSCO) since 2008; the average 
buying-in price per marketing year; and the level of wheat stocks held by PASSCO at the end of each marketing year? 
 
The requisite information has already been notified under DS-1 notifications on 15th March 2015 by Pakistan. 
 
Paragraph 4.25 on rice  "Rice exports are subject to minimum export prices, i.e. per metric ton: US$1,500 for Super 
Basmati, US$1,300 for Basmati, US$1,000 for IPRI-9 (long grain), and US$750 for IPRI-6." 
Paragraph 4.20, section 3. 3.2. and section 3.3.3.1  also refer to regulatory export duties and 
export prohibitions applied to certain agricultural products.  
 WT/TPR/M/311/Add.1 
 
- 48 - 
 
  EU QUESTION 29:   
 Does Pakistan intend to notify these measures?  
No such conditions of minimum export price or  regulatory duty exist under the procedure for 
export of rice, notified by Ministry of Commerce.  
Paragraph 4.28 on sugar 
 EU QUESTION 30:   
 
Can Pakistan indicate the quantities of sugar per marketing that have been bought in by 
Trading Corporation of Pakistan since 2008; and the average buying-in price per marketing year. On which market where the bought in quantities disposed of and through which sales channels?   
 
Answer: Trading Corporation of Pakistan (TCP) bought sugar at market price and bought 
quantities sold to Utility Stores Corporation at the Market Price. All TCP operations are done 
through open tenders. 
 Paragraph 4.29 : It is stated that "for exported sugar, an inland freight subsidy of PRs 1.75/kg 
was paid to the sugar mills between January 2013 and July 2014; payments under this scheme 
totalled PRs 2.1 billion." Article 9:4 of the Agreement on Agriculture establishes a derogation 
applicable on developing country members during the implementation period of the Uruguay Round. The same provision establishes that the derogation is applicable provided that the export 
subsidies in question are not applied in a manner that would circumvent reduction commitments.  
 EU QUESTION 31:   
 
How Pakistan defines the end date of the implemen tation period of Article 9:4? Could Pakistan 
provide clarification why it considers that the ex port subsidies for sugar were applied in a manner 
that would not circumvent the reduction commitment?  
 
This inland freight subsidy of Pak Rs 1.75/kg was only for domestic marketing, it was not an export subsidy. 
 
Paragraph 4.35 oil seed  
EU QUESTION 32:   
 Can Pakistan give further details on the nature and aims of the activities of the Pakistan Oilseed Development Board, including whether it only supports products grown in Pakistan? Can Pakistan 
also explain why it finances its activities by a fee on imported edible oil only?  
 Pakistan Oilseed Development Board is a development project for promoting production of edible 
oil seeds in Pakistan. Domestic Solvent Extracting Companies are paying fee for R&D only. 
 Paragraph 4.43 and 4.44 on fishery policy . "Pakistan supports the prohibition of harmful 
subsidies that contribute to overfishing and overcapacity". In para. 4.44 it is detailed that 
"the Fisheries Development Board" established in 2007 has the objective of promoting Pakistan's fishery sector. It is also stated that to promote the export of seafood, the government granted a subsidy of 25% of freight cost to such prod ucts exported by air between 2009 and 2012". 
 
EU QUESTION 33:   
 
How does Pakistan reconcile its endeavor to prohibit subsidies in the fisheries sector with 
its subsidized export promotion of fisheries pr oducts? Has Pakistan prolonged the same kind 
of support measures beyond the Strategic Trade Policy Framework 2009-2012"?  
 
Answer: STPF 2009-12 provided export promotion incentives to the export of live sea food. 
However, the said scheme was discontinued in the STPF 12-15 and the same shall not be extended in the coming trade policy so far. 
 WT/TPR/M/311/Add.1 
 
- 49 - 
 
  Paragraph 4.44  states that "deep sea fishing is the re sponsibility of the federal government." 
 EU QUESTION 34:   
 
Can the authorities develop which initiatives are being adopted by the Federal Government within 
the IOTC (Indian Ocean Tuna Commission)? What measures are implemented to enforce those resolutions? 
 
Answer: "Marine Fisheries Department under the Ministry  of Ports and Shipping is responsible at 
the federal level for participation in IOTC and ensuring compliance of IOTC regulations. We are fully committed to conservation and management of highly migratory fish-stocks.  
 
Stock-assessments are being regularly made in collaboration with FAO and effective fisheries management practices are followed in collaboration with RFMOs (Regional Fisheries Management 
Organizations). Pakistan has already framed regulations regarding the prohibition of catching and 
retaining marine turtle."  
Page 72, paragraph 4.62  assesses that "recurring circular debt is a major factor behind power 
shortages":   EU QUESTION 35: 
 
Can Pakistan explain what measures have been taken to overcome the circular debt on permanent basis?  
 
Answer: The government is taking several measures to address the issue of circular debt. 
 
i. Energy public sector enterprise (PSE) refo rm; governance of DISCOs, three GENCOs and 
the NTDC has been transferred to new boards of directors and management.  
ii. Institutional Capacity building; of the Water and Power Development Authority (WAPDA) 
through corporatization and commercialization, Ministry of Petroleum, OGRA and OGDCL. 
iii. Improving Supply of Gas; LNG is being import ed to help tackle gas shortages. We are 
committed to full pass-through of the cost of imported LNG to the end-user purchase price (including Compressed Natural Gas) as it comes online.  
iv. Efforts are being made to improve exploration and production of domestic gas resources.  
v. Gas prices are being rationalized to encourage new investment, promote efficiency in 
gas use. 
vi. We are working with the World Bank on the Natural Gas Efficiency Project (NGEP) in 
coordination with other IFIs. 
Page 82, section 4.5.3.3 on Postal services 
 
The report states that "private companies are allowed in national and international express mail 
services."  
EU QUESTION 36:   
 Could Pakistan authorities detail the exact scope of what is opened to international investors and 
what is left to national companies in the postal services sector? 
 Pakistan has unilaterally liberalized its postal services sector, though it has unbound commitments under GATS in Postal Services 
 
Page 84, paragraph 4.130  states that the 'Gwadar Port began commercial operations 
in March 2008, but due to insufficient road connectivity is hardly used by private sector'. 
 
EU QUESTION 37:   WT/TPR/M/311/Add.1 
 
- 50 - 
 
   
Can Pakistan update as to whether road connectivity has improved since 2008 and how much the Port is being used by the private sector in 2014-15?   
Answer: Gwadar Port was already linked with National Road Network through Makran Coastal 
Highway (600 km) much before oper ationalization of Gwadar Port. 
 
However, additional road connectivity work has also been undertaken by Government of Pakistan 
to provide efficient inter-land linkages by constructing National Highway N-85 (Hoshab-Basima-Surab 450 km) and Motorway M-8 connecting Gwadar with Ratodero on National 
Highway N-55. The work on N-85 is expected to be completed by end of December, 2016. 
 
WT/TPR/ G/311  
Paragraph 1.3 and paragraph 2.8 of S 311  refer to the 2nd Strategic Trade Policy Framework 
that is intended to boost consistency and coherence/predictability   
EU QUESTION 38:   
 Can the authorities share their assessment of the impact of the first Strategic Trade policy and the extent to which the experience of the first strategy has influenced the second one?  
 
Answer: After the trade policy 2009-12 and 2012-15 the exports have raised as per following 
details:- 
  
Years Exports Trades in Goods 
(million US $) 
2009-10 19,290 
2010-11   24,810 
2011-12  23,624 
2012-13   24,460 
2013-14   25,109 
 
Under STPF 12- 15, the following institutions have been developed and are fully operationalized:  
 Domestic Commerce Wing  
 Trade in Services Wing 
 Trade Dispute Resolution Organization 
 Services Trade Development Council 
The Leather Export Promotion Council is likely to be established by the end of 2015 
 Thus the 3-years trade policy i.e. STPF has been a successful experience and it has provided for 
consistency, coherence and predictability of actions. 
Page 5, paragraph 3.5  
The Government states that "Pakistan has one of the most open investment regimes in the world" 
and the EU welcomes that many sectors are open to foreign direct investment and even 100% foreign ownership. At the same time Pakistan scores relatively low in many of the World Bank's 
Doing Business indicators that are essential for attracting investment, both foreign and domestic 
(e.g. starting a business, getting electricity, paying taxes, enforcing contracts, costs and time related to importing a container etc.). Furthermore,  the WTO Secretariats report points to a very 
non-transparent, inconsistent and unpredictable tariff and tax regime (due in part to a multitude 
of concessions and exemptions granted through SROs), which would not be seen as conducive 
to the imports that are necessary for an investment, in particular for its day-to-day operations.  WT/TPR/M/311/Add.1 
 
- 51 - 
 
  EU QUESTION 39:   
 Could Pakistan elaborate on what is being done to improve the business and investment climate and to facilitate the import of goods necessary to investment?  
 
Could Pakistan develop on the objective to facilitate efficient trade dispute settlement mentioned in the paragraph 2.9 page 23 of the Secretariat report in particular the status of the preparation 
of the NTC Act and ordinance? 
 Answer: In order to improve the business and investment climate, under STPF 12-15, 
the following institutions have been developed and are fully operationalized: 
 
 Domestic Commerce Set-Up  
 Trade in Services Wing 
 Services Trade Development Council 
 The Leather Export Promotion Council is bein g established by the end of this year.  
To resolve trade disputes in an efficient manner, trade dispute resolution organization has been 
created and is fully operational. 
 The legislation on NTC Act and trade defense measures are in force now. The new NTC Ordinance 2015 has resolved such issues, which inter alia includes: 
 
 Number of members have increased from 3 to 5 and Quorum is defined as two members 
(one Chairman and one member) 
 Continuity through fixed term appointment of members of NTC 
 To address tariff/fiscal anomalies 
 To conduct tariff rationalization exercises 
 To assist exporters to defend trade remedy actions 
 To deal with WTO disputes 
Changes in Trade Remedy Laws are: 
 
 Added lesser duty rule in Anti-Dumping and Countervailing Laws 
 No anti-dumping and countervailing duty will be imposed on inputs solely used 
in exports 
 Rules for anti-circumvention investigation are added 
 Appeals against Initiation of investigation and preliminary determination are  provided at 
Appellate Tribunal 
Page 10, paragraph 5.9.  The Government indicates that it is conducting stakeholder 
consultations for exploring the possibility of join ing the Information Technology Agreement (ITA), 
Government Procurement Agreement and the Green Goods negotiations.  
EU QUESTION 40:   
 Could Pakistan please indicate what the timeline is for finalizing and drawing conclusions from 
these consultations?  
 WT/TPR/M/311/Add.1 
 
- 52 - 
 
  Answer: Pakistan is actively conducting stake holders consultations for arriving at a decision to 
join ITA and Green Goods Negotiations. However, Pakistan has been granted Observer status in GPA.  
Paragraph 3.8  refers to consultation of the private sector on public private partnership 
 EU QUESTION 41:   
 
Can the authorities elaborate on these consultations and their outcome?   Answer: The new STPF provides a mechanism to take trade policy decisions in consultation with 
the private sector. This will be implemented from 1st July 2015. 
 Page 10, Paragraph 5.10.  Pakistan reports that it has already submitted its "List A" 
of commitments to the WTO. 
 EU QUESTION 42:   
 
The EU welcomes Pakistan's submission of their category A notifications to the WTO. Can the authorities give an indication of the timing for ratification? Can they also give further information regarding the ongoing preparation of a needs assessment? 
 
Answer: Pakistan has submitted the Category A notification to the WTO. Pakistan is in touch with 
the WTO Trade Facilitation Section for needs assessment. The exercise will be conducted in 
April-May 2015. TFA ratification will be done after necessary approvals from concerned authorities 
in the subsequent months.  
Page 10, paragraph 5.13 
 EU QUESTION 44:   
 
When will the new trade remedy law enter into force?  
 Answer: The new trade remedy laws have been promulgated and have now entered into force. 
 
Paragraph 5.28 and paragraph 9, page 9 of S311 and paragraph 2.15 of S311 on : 
Pakistan's Trade with India. The government indica tes that 85% of the bilateral trade with India is 
liberalized and that this has induced a doubling of the exports. 
 EU QUESTION 45:   
 
Pakistan is in the process of offering India Non Discriminatory Market Access (NDMA), can Pakistan 
elaborate on the expected time frame for this initiative and which factors it will be dependent upon?  
 
Answer: The two countries have an understanding to normalize trade relations and to provide 
Non-Discriminatory Market Access (NDMA) on reciprocal basis. The government is in process 
of consultation with the relevant stakeholders to extend NDMA to India. 
 Paragraph 5.29  regarding Pakistan China corridor 
 
EU QUESTION 46 :  
 Could the authorities detail the conditions (preferential tariffs if any applied on imports/special 
subsidies or incentives) that are granted to Chinese operators in this framework?   
 Answer: The Pakistan China corridor framework is un der consideration and is being finalized. 
 
Paragraph 5.35  regarding the bilateral trade rela tions between Pakistan and Turkey 
 WT/TPR/M/311/Add.1 
 
- 53 - 
 
  EU QUESTION 47:   
 What are the conditions granted to Pakistan oper ators within the framework of the bilateral trade 
and investment relationships? Can more information be released?   
 
Answer: Both Pakistan and Turkey have decided to enter into negotiation for a bilateral FTA, 
further details shall be provid ed as soon as finalized. 
 
Paragraph 6.20 on State entities  EU QUESTION 48:   
 
In order to enhance transparency in the manage ment of State entities, would the government 
consider adopting accounting rules that would di stinguish in the accounts the subsidies received 
from the government or public authorities in the accounts? 
 Answer: All state owned entities (SOE) are registered  in the form of a company with SECP and 
are required to follow International Financial Reporting Standards and the International Accounting 
Standards under the Public Sector Companies (Corporate Governance) Rules 2013 ('Rules'). Hence SOEs prepare their accounts in accordance with IAS 20 (Accounting for Government Grants) under which all government grants and other forms of government assistance are required to be 
disclosed separately. In addition the follow ing mandatory disclosures are also given: 
 
a) the accounting policy adopted for government grants, including the methods of 
presentation adopted in the financial statements; 
b) the nature and extent of government grants recognized in the financial statements and 
an indication of other forms of government assistance from which the entity has directly 
benefited; and 
c) unfulfilled conditions and other contingencies attaching to government assistance that 
has been recognized. 
The aforesaid Rules require the SOEs to disclose their receipts from all sources, including those 
from the Government. 
 European Union Follow-up questions 
TRADE POLICY REVIEW OF PAKISTAN 
24 AND 26 MARCH 2015  
Page 39 paragraph 3.25  states "Even though the FBR website now features specific information 
on active as well as amended or archived SORs, it is very difficult to discern the applicable taxes and other measures imposed on individual tariff items that may be covered under multiple SROs with different exemptions and criteria". Page 39 paragraph 3.28 states "The regime is complex, 
discriminatory and lacks transparency" 
 EU QUESTION 2:  
 
Can Pakistan detail what its intentions are in view of simplifying the current system and make it more predictable?  
 
Answer: The Government of Pakistan is committed to make system more transparent and 
predictable by eliminating all concessions/ex emptions available under different statutory 
regulatory orders by June, 2017 except socially sensitive concessions which will be retained. 
 
EU FOLLOW-UP QUESTIONS TO INITIAL QUESTION 2:  
What is meant by "socially sensitive concessions" and Pakistan specify what they are and in what 
sectors?  WT/TPR/M/311/Add.1 
 
- 54 - 
 
  Answer: Socially Sensitive concessions are those which have direct impact on common citizen. 
They include pharmaceutical raw materials , life-saving drugs , fresh vegetables and pulses etc.  Page 48 table 3.7  Active export-related SROs. Reference is made to the imposition of Regulatory 
Duty of 15% ad valorem on molasses and 20% on raw and wet blue hides. 
 EU QUESTION 10 :  
 
For each of the products subject to export duties , could Pakistan indicate what are the specific 
conservation objectives sought if any and what, if any, corresponding restrictions are placed on domestic production and consumption? What are Pakistan's plans to remove existing export 
taxes and, in particular but not only, for raw and wet blue hides and molasses? 
 EU FOLLOW-UP QUESTIONS TO INITIAL QUESTION 10: 
 
Pakistan indicates that its export restrictions are temporary and phased out as soon as the situation improves. Can Pakistan indicate when the export duties on hides/skins and molasses will 
be phased out since these have been maintained for several years and can no longer be 
considered as "temporary"  Answer: The Federal Board of Revenue is reducing the duties and tariffs under the tariff 
rationalization exercise and the duties on hides, sk in and molasses will also be reduced as a part 
of the said exercise.  
Page 45 paragraph 3.51  states that " The import Policy was amended to exempt from import 
restriction due to BSE those countries which have been declared as 'negligible risk' by the OIE if the animals were only from herds where no incidenc e of BSE had been reported for the last eleven 
years." While the EU welcomes this opening of trad e in live animals, Pakistan's import regime for 
bovine products is still not in line with relevant OIE standards.  EU QUESTION 15:   
 
Can Pakistan explain how and when it intends to allow imports of bovine products (both live animals and meat products) fully in line with OIE standards, including from countries declared as 
"controlled risk"? Can Pakistan explain the scientific rationale behind upholding the BSE ban for 
countries in the OIE 'controlled risk' group?  
Answer:  The ban was imposed on various categories of livestock products in order to protect the 
historically BSE free status of Pakistan and further to safe guard our export of livestock by-products i.e animals' casings, gelatin and bone products, horns and hoofs etc. to other 
countries. The prohibitions imposed in the Import Policy Order, Chapter 5(A) (iii) are not country 
specific. It has been imposed on all BSE affected countries. The prohibition on import of live 
animals has been reviewed and import from BSE negligible risk countries is allowed under certain conditions It is indicated that there is no ban on feed ingredients of vegetable, poultry, mineral 
and sea sources origin from BSE infected countries. The prohibitions on meat and meat products is 
reviewed on case to case basis in the light of reviewed SRO and OIE guidelines Pakistan has no plans to allow import of bovine products (live animals) from countries declared as "controlled risk" 
in near future. However, import of meat and their products could be considered in the light of OIE 
guidelines BSE has never been reported in Pakist an. Import decisions are taken based on import 
risk analysis. Entry and exposure risk along with  current absence of country wide specific and 
advanced diagnostic capability at the laboratory and field levels refrains Pakistan to import BSE 
risk materials from countries not having negligible risk status.  
 EU FOLLOW-UP QUESTIONS TO INITIAL QUESTION 15: 
 
Pakistan states that "import decisions are taken based on import risk analysis." In line with the WTO SPS Agreement, can Pakistan provide details on the procedure to be followed for getting 
market access for bovine and bovine products to the Pakistan market together with the standard 
processing period of each step in the procedure?   Pakistan also states: "The prohibition on import of live animals has been reviewed and import from 
BSE negligible risk countries is allowed under ce rtain conditions." And that "import of meat and WT/TPR/M/311/Add.1 
 
- 55 - 
 
  their products could be considered from countries with a controlled BSE country risk states." 
Can Pakistan provide the conditions set which would allow import from countries with a BSE negligible OIE country risk states? Can Pakistan indicate where these conditions are stricter than the OIE standard and provide its risk analysis based on science justifying a deviation from the 
OIE standard? 
 Answer: As per IPO 2013 Para 5(iii), the import of Live animals i.e. cattle, buffalo, sheep and 
goats, meat and bone meal, tallow containing prot ein and feed ingredients animal origin from BSE 
infected countries, such as U.K, Ireland, Belgium, Denmark, Falkland, France, Germany, Italy, Luxembourg, Holland, Spain, Brazil, Czech. Republ ic, Austria, Poland, Slovakia, Slovenia, USA and 
Alberta Region of Canada, provided import of meat and meat products from other parts of Canada 
shall however be allowed subject to certifying additional animal quarantine requirements. This ban 
shall however not apply on the import of feed in gredients, namely-milk enhancers, concentrates, 
growth promoters, enzymes, fish meal replacers, transmuted into premixes and growth promoters, 
feather meal and poultry meal which have originated from vegetable, poultry, mineral and sea 
sources from the aforesaid BSE infected countries:  
"Provided that the ban on import of live animals from BSE infected countries shall not 
be applicable from the countries which have been declared as "Negligible Risk" by OIE and shall be allowed if the animals are only from such herds where no incidence of BSE has been reported for the last eleven years and this fact shall be certified by the 
concerned veterinary authority of the exporting country" 
 WT/TPR/M/311/Add.1 
 
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  PERU 
Q: Can Pakistan give more details regarding the productivity outcomes for applying the 5% duty 
increase to several agricultural products? (par 4.15, WT/TPR/S/311)  
Answer: The subject duty increase was enforced in June , 2014, therefore, statistical data is being 
collected to analyse its impact.  
Q: Can Pakistan give more details regarding the reasons to remove "maintain prices measures" of 
cotton, rice and sugar? (Paragraph 4.18, WT/TPR/S/311).  Peru invites Pakistan to notify Sanitary and Phytosanitary Measures as well as Technical Barriers to 
Trade and Agricultural Domestic Support. 
 Answer: Pakistan has removed these pricing mechanisms to increase competitiveness. Domestic 
Support and TBT notifications are electronically available on WTO website. All emergency 
measures related to animal health are available on OIE website.  
Q: Regarding Pakistan's decision to eliminate exemptions and concessions granted by the Special 
Regulatory Orders (SRO) within three years, whic h will be the procedure in order to achieve this 
objective and what would be the reasons that are delaying their application. (para. 3.16, WT/TPR/G/311) 
 
Answer: Government of Pakistan has constituted a High Powered Committee headed by Finance 
Minister and comprising of representatives of diff erent ministries/divisions and trade bodies across 
the country to review the concessionary regi me in Income Tax, Sales Tax and Customs. 
The Government is committed to phase out these concessions over a period of three years i.e. by June, 2017. In the first phase of th e plan, implemented through Finance Act, 2014, 
concessions amounting to PKR 104 billion have been withdrawn. All remaining concessions shall be 
withdrawn by June, 2017 except socially sensitive concessions.  
Additional Questions by Peru 
REPORT OF THE SECRETARIAT 
 
3. POLICIES AND BUSINESS PRACTICES, BY MEASURES 
(3.3) Measures directly affecting imports 
3.3.5 Financing of expo rts, export and export guarantee insurance 
Paragraph 3.70. 
 
The Service of Long Term Financing of the Central Bank of Pakistan is intended to provide favourable financing conditions in order to promote the growth of exports, including long-term financing for textile companies for periods up to 10 years, as well as a grace period of two years 
for the import of machinery and the purchase of machines manufactured in the country for 
export-oriented projects  
Would the Government of Pakistan indicate what has been the period of duration of the Finance 
Export Scheme?  
Answer: Export Finance Scheme (EFS) is in operation since 1973 without any sunset clause. 
 Could Pakistan please indicate whether there are plans to establish a further period of duration for such program? 
 
Answer: Export Finance Scheme (EFS) is in operation since 1973 without any sunset clause. 
 WT/TPR/M/311/Add.1 
 
- 57 - 
 
  Could Pakistan please indicate if it intends to mo dify the annual rate of 9% currently applicable to 
loans for export-oriented projects for the textile sector? Could Pakistan indicate whether there are plans to modify the current requirements of access to those credits?  
Answer: Current rate of financing under LTFF is 7.5% p.a. effective February 02, 2015. Keeping in 
view the macroeconomic indicators, the rate is re viewed, if deemed necessary. Currently there is 
no plan to modify the requirements of availing finance under LTFF. 
 
Could Pakistan please specify the amounts alloca ted for the financing of exports throughout the 
duration of the Export Finance Scheme?  
Answer: EFS is a short term (180 days) export financing facility, provided to exporters through 
banks; therefore, maximum revolving refinance limits are sanctioned to banks on yearly 
(July -- June) basis. For FY 2014-15 total limit of Rs. 279.16 billion has been allocated to banks. 
 
4. Trade policies by SECTOR 4.4.2) main subsectors 4.4.2.2) Textiles and clothing 
Paragraph 4.80 
 
The Trade Policy Review prepared by the Secretar iat of the World Trade Organization reports that 
the Ministry of Textiles is in charge of formulating policies in this subsector. The Pakistani government set the objectives for the sector in a program called "Textile Policy 2009-2014", 
the most important of them being doubling the valu e of exports of textiles and clothing to 25,000 
million dollars in 2014.  
QUESTIONS: 
 Could Pakistan please indicate if the fulfillment of  the mentioned goal has been reached or in any 
case, provide information of the results of such policy in the textile exports of Pakistan?  
 Answer: The Textile Policy 2009-14 was partially implem ented and the target of $ 25 billion was 
not achieved by 2014. The Policy was successful in increasing textiles exports from $9.6 billion 
in the year 2008-09 to $13.7 billion in the year 2013-14. 
 As part of the Textile Policy 2009-2014 the creation of "textile cities" was contemplated; 
Could Pakistan please indicate whether currently they have completed the construction of 
industrial areas destined to the manufacture of cl othing and apparel, and if  applicable, specify how 
many of this cities are there, and where are they located? 
 
Answer: The Ministry of Textiles Industry initiated the first textile city in Karachi and in this 
regard the land has been purchased and developm ent work is being carried out. Further three 
textile garment cities were planned in Lahore, Faisalabad and Karachi. The first two are in 
operation while land for Karachi garment city is being procured. 
 Could Pakistan please explain the contents and f unctioning of the aid programs included in the 
Textile Policy 2009-2014? 
Answer: The Ministry of Textile Industry initiated 'Technological up-gradation fund support 
scheme' to improve the overall technological up -gradation under the Textile Policy 2009-14. 
However, the scheme could not be operationalized till date. 
 Could the Government of Pakistan indicate if it has available some study or indicator that allows measuring the impact of aid programs implemented within the framework of the Textile Policy 
2009-2014 in this sub sector?  
Answer: The Ministry of Textile Industry initiated 'Technological up-gradation fund support 
scheme' to improve the overall technological up -gradation. However, the scheme could not be 
operationalized till date.  
 WT/TPR/M/311/Add.1 
 
- 58 - 
 
  ADDITIONAL QUESTIONS 
In the Trade Policy Review prepared by the Secretariat of the World Trade Organization, it is 
mentioned that as of November 2014, the Pakistan government was preparing a new policy for the textile sector for the period 2014-2019.  
 
Could Pakistan please indicate which programs that were in force in the textile policy 2009-2014 has been kept within the framework of its new textile policy for the period 2014-2019? 
Answer: The Textile Policy 2014-19 is continuation of the Textile Policy 2009-14. The new policy 
includes the objectives like skill training, enhanced productivity, value addition and infrastructure development. Further, the Ministry plans to develop product development centres, testing laboratories and training centres for the SME sector. 
 
Could the Government of Pakistan please inform which new programs it is considering to implement under its new Textile Policy for the period 2014 -2019? 
Answer: The Ministry of Textile Industry has intended to develop World Textiles Trade Center, 
Apparel House etc. under the new Textile Policy. The Policy can be seen at http://www.textile.gov.pk  
 WT/TPR/M/311/Add.1 
 
- 59 - 
 
  RUSSIAN FEDERATION 
QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/311) 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.2.8.2 Sanitary and phytosanitary requirements 
3.50, page 44  
Pakistan is member of Codex Alimentarius Commission, the World Organization for Animal Health 
(International Office of Epizootics), the Internat ional Plant Protection Convention (IPPC) and the 
Asia and Pacific Plant Protection Commission. The principal domestic statutes governing SPS measures are the Agricultural Produce (Grading and Marking) Act of 1937, the Agriculture Pesticide 
Ordinance 1971, Pakistan Plant Quarantine Act 1976, Pakistan Animal Quarantine Ordinance 1979 
and Pakistan Fish Inspection and Quality Contro l Act 1997. The Department of Customs and Plant 
Protection and Quarantine (PPQ) are the two main agencies involved in regulating food imports, 
while the Department of Animal Quarantine (DAQ) is responsible for regulating imports and 
exports of animals and animal products. The Customs Department's primary functions are to ensure that imported foods meet Pakistan's la belling and shelf-life requirements and prevent 
imports of banned items. PPQ ensures that shipment of bulk commodities (e.g. dairy) meet 
phytosanitary requirements while DAQ is responsible for enforcing sanitary requirements for live animal shipments.  
Could you confirm whether Pakistan as a member of the international organizations listed in 
paragraph above and is involved in developing of the international standards, guidelines and 
recommendations in SPS sphere and incorporated Codex standards into its own legislation? 
 
Answer: Pakistan is member of Codex Alimentarius  Commission, the World Organization for 
Animal Health (International Office of Epizootics), the International Plant Protection Convention 
(IPPC) and the Asia and Pacific Plant Protection Commission and voluntarily adopted and following 
international standards of these organizations. Amendments in domestic regulations are made 
from time to time.  
3.51, page 45 
 As a result of Pakistan's 18th constitutional Amendment which devolved several functions to the 
provinces, Pakistan's food imports are regulated by the federal government while standard 
compliance of local production is a provincial responsibility. According to the authorities, provincial governments follow federal guidelines when adopti ng such regulations. The provinces do not have 
the authority to issue import-related SPS measures. Pakistan has ratified the Cartagena Protocol 
of Biosafety, which came into force in Ma y 2009, and maintains a framework of handling 
Genetically Modified Organisms (GMOs). A maximum of 1,000 kilos of genetically modified (GM) seeds are allowed to be imported for research purp oses only. Pakistan's only notification to the 
WTO under the SPS Agreement was submitted in January 2000, as a notification of emergency 
measures. However, a number of measures have been implemented, including as regular procedures under current legislation or as bans and restrictions through statutory notifications in 
Import Policy Orders. Although these measures have  not been notified to the WTO, the authorities 
expressed confidence that this would happen within a few months. Since 2001, Pakistan has imposed an import ban on live animals and a range of animal products originating in several 
European countries44 based on the risk of Bovine Spongiform Encephalopathy (BSE). 
This restriction was reconfirmed in Import Policy Orders in 2006, 2009 and 2013. In July 2014, the 2013 Import Policy Order was amended45 to ex empt from that restriction those countries 
which have been declared as "Negligible Risk" by the IOE and if the animals were only from herds 
where no incidence of BSE had been reported for the last eleven years. Poultry, poultry products 
and other captive live birds from some African, Asian and European countries are also banned for import on account of the Avian Influenza H5N1 strain. Health and safety requirements are also 
imposed on some commodities. The import of th ese goods is not prohibited, but quarantine, 
inspections and testing requirements may affect trade. Current measures, included in the 2013 Import Policy Order, are summarized in Table 3.6. WT/TPR/M/311/Add.1 
 
- 60 - 
 
  It is stated in p. 3.51 that Pakistan's food imports are regulated by the federal government while 
standard compliance of local production is a provin cial responsibility. Could Pakistan please specify 
whether it is federal or provincial authority responsible for the regulation of Pakistan's food export?  
Answer: Regulation of food exports is a federal subject. 
 3.2.8.3 Marking, labelling and packaging 
3.53, page 46 
 No uniform labelling and marking system is in place in Pakistan and there have been no relevant changes from the last Review. The requirements that apply to certain goods are part of Import 
Policy Orders, and include the following: cigars and cigarettes (of tobacco or of tobacco 
substitutes) packets should carry the warning "Smoking is injurious to heath" in English and Urdu. Dyes and chemicals must be marked with a full description, including quality and code numbers. 
Food colors must carry fair and true labelling about the product in both languages. Edible products 
should have at least six months or 50% of the shelf life, whichever is the lesser, calculated from the date of filing of the Import General Manife st (IGM) and also that they are free of Haram 
elements or ingredients. If these conditions are not shown on the packaging, a certificate issued 
by the manufacturers is accepted by customs.  Pharmaceutical raw materials and drugs and 
medicines should have at least 75% of the shelf life  calculated from the date of filing of the IGM. 
If indication is not given on the packing, the custom authorities may allow clearance. All imported 
packaged medicines or drugs should display the name and prescription material in accordance with 
the Drugs (Labelling and Packaging) Rules 1986.  
Could the Pakistan specify the legislation for exporters on labelling and marking requirements that 
apply to certain goods? Where this information can be found? Does TBT enquiry point provide this information? Please provide the reference for full details. 
 
Answer: The Import-export control Act 1950 regulates ex ports, under which export policy orders 
specifying precise conditions including labelling etc is published periodically. Details may be seen at PSQCA website, http://www.psqca.com.pk , which is the national enquiry point for TBT. 
 
4.2.2.1 Tariffs and other charges on imports 4.15., page 65 
 
In addition to tariffs, since June 2014 Pakistan has imposed "regulatory duties" of 5% on imports of numerous agricultural goods. Products affect ed include milk products, honey, several types 
of fruit (apples, cherries, pineapples, apricots, plums, oranges, lemons), and vegetables (potatoes, 
tomatoes, beans, sweet corn).  What is the rationale and timeframe for this measure? In what way this measure corresponds 
to Article II of the GATT? Does this duty apply for domestic products? Would the Pakistani 
government please elaborate further on "regulatory duties" with respect to other (non-agricultural) goods and in particular to certain types of metal products? (Order of Ministry of Finance 
of Pakistan №18(I)2015 of 14.01.2015)  
 Answer: Regulatory duty is levied to regulate trade of non-essential and luxury goods. The share 
of import value of the commodities on which regula tory duty was imposed viz total import value of 
the country during the period July-December, 2014  was only 0.11% . Regulatory Duty is levied 
under the Customs Act 1969. These duties are levi ed in a transparent manner and are published 
before they are collected. Mostly, these duties are time bound and stand rescinded accordingly. 
Moreover, cumulative incidence of regulatory and customs duty is not more than Pakistan's bound 
rates at WTO. Therefore, the regulatory duty is no t contrary to Pakistan's obligations to the WTO. 
 WT/TPR/M/311/Add.1 
 
- 61 - 
 
  QUESTIONS REGARDING THE GOVERN MENT REPORT (WT/TPR/G/311) 
 
5 INTERNATIONAL TRADE LIBERALIZATION 5.1.4 Sanitary and phytosanitary measures (SPS) 
5.7, page 9 
 In readiness for more and better agro-exports , the above-mentioned EU-TRTA programmes have 
provided a large number of capacity-building meas ures on SPS matters. Notably, training courses 
were conducted in method validation, measurement,  traceability, microbiology testing, and HACCP 
training of processors in fisheries/food sectors. Initiatives such as strengthening the SPS management system; the establishment of the NAPHIS (National Animal and Plant Health 
Inspection Service), and the approval of Pakistan Bio-Security Authority Bill and Food Safety and 
Phytosanitary Laws has been achieved. Model technical regulations were drafted and new guidelines for effective application of food safety control were published. Finally, support to testing 
and calibration laboratories, as well as business planning process, has been initiated. 
 QUESTION 1:  
 
In paragraph  3.2.8.2 Sanitary and phytosanitary requ irements of the Secretariat's report 
(WT/TPR/G/311) it is noted that Pakistan has adopted no new SPS-related legislation since its last Review. At the same time in p. 5.7 of the Government report (WT/TPR/G/311) it is mentioned that 
the approval by Pakistan of Bio-Security Authorit y Bill and Food Safety and Phytosanitary Laws has 
been achieved. Could you please clarify state of play for the mentioned SPS regulations?   
Answer: It is Pakistan's Bio Food Safety Authority Bill and this bill is being deliberated upon in the 
Parliament of Pakistan for enactment.  
QUESTION 2:  
 It is stated in p.5.7 that model technical regulations were drafted and new guidelines for effective application of food safety control were published. Could you please clarify whether Pakistan 
notified the drafts on technical regulations to WTO Members? What are the main elements of the 
new guidelines for effective application of food safety control? What was the legal basis for development of these guidelines? 
 
Answer: In order to provide better coordination between various departments dealing with Animal 
and Plant Health and Food Safety, National Animal and Plant Health Inspection Services (NAPHIS) 
has been proposed and Legislation to establish the same is being deliberated upon in the 
Parliament for enactment. WT/TPR/M/311/Add.1 
 
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  THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT SUMMARY 
Page 9 (paragraph 14)  
 
QUESTION 1 :  
 
As Pakistan's current average bound rate is subs tantially higher than the average applied rate, 
does Pakistan have any plan to reduce some of  its bound rates in order to reduce this gap? 
 Answer: Pakistan is fully committed to Doha Deve lopment Agenda (DDA) negotiations process 
and looking forward to an ambitious outcome. Pakist an believes that this is the only forum capable 
of meaningfully addressing the issue of binding overhang prevalent in international trade.  
2. TRADE AND INVESTMENT REGIME Pages 28-30 (paragraphs 2.21-2.29) 
 QUESTION 2:   
 
Under this subsection of the Report, it appears th at only the Pakistan-China FTA and the Pakistan-
Malaysia FTA cover liberalization in trade in se rvices and that only the Pakistan-Malaysia FTA 
contains an investment chapter. 
 
1) D o e s  P a k i s t a n  h a v e  a n y  p l a n  t o  e x p a n d  t h e  s c o p e  o f  o t h e r  e x i s t i n g  o r  f u t u r e  F T A s  
to cover liberalization in trade in services? 
2) Are there any provisions regarding investment protection in any of Pakistan's existing 
FTAs? If not, what are the government's policy/measures regarding the protection of foreign investment in general? Does Pakistan plan to provide for an investment 
chapter in existing or future FTAs? 
Answer: Currently, Pakistan is in the process of preparation of its initial offer under the 
South Asian Association for Regional Cooperat ion (SAARC) Agreement on trade in services. 
 
There are provisions for investment protection in the existing FTAs. For instance, Article 91 of 
Pak-Malaysia MPCEPA covers investment. Pakistan is planning to include a chapter on Investment with an FTA with Turkey. 
 
Page 31 (paragraph 2.38)  
QUESTION 3:   
 Do foreign investors need to get permission from a relevant authority in order to repatriate profits, dividends or any other funds in the currency of the country from which the investment came? 
Please provide further detail on the procedures under which those foreign firms must follow in 
order to do so.   
Answer: As per Foreign Exchange Manual, permission from SBP is required by the foreign 
investors to repatriate profits, dividends or any other funds. WT/TPR/M/311/Add.1 
 
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  Page 31 (Paragraph 2.40)  
 QUESTION 4:   
 
As Special Economic Zones (SEZs) are a key factor for achieving the target of increasing FDIs 
in accordance with the Foreign Direct Investment Strategy 2013-17, Thailand would appreciate it if Pakistan could provide detail regarding: how to establish a SEZ, the number of SEZs established 
since the SEZ Act was promulgated in 2012, the areas in which the SEZs were established and 
how they are spread out, and the types of ente rprises operated in those SEZs. Other related 
information and data will also be appreciated.  
Answer: 
 
 In each province, Special Economic Zone Au thorities (SZEAs) headed by the respective 
Chief Ministers have been established. SEZA processes and recommends the cases to 
Board of Approval (BOAs)/Approvals Committee.  BOAs is headed by the Prime Minister 
and having members from economic minist ries, provincial governments and private 
sector while Approvals Committee is headed by Chairman BOI and it also has 
membership from economic ministries, provincial governments and private sector. BOA / Approvals Committee give final approval of SEZs applications. As per Law BOA can delegate any or all of its powers to Approvals Committee. 
 Three areas have been declared as SEZs af ter recommendation of SEZA Government of 
Sindh namely Port Qasim SEZ, Korangi Creek SEZ and Khairpur.Main features of these SEZs are as under: 
 Khairpur SEZ is characterized by agri-base & date processing and spreads over 
140 acres.  
 Korangi Creek SEZ spreads 240 acres and focus on Food & Pharmaceuticals, Textile and 
Garments.  
 Bin Qasim SEZ covers 930 acres and attract sectors like light engineering, auto vendors. 
 As indicated above enterprises relating to agri-business & date processing, 
Food & Pharmaceuticals, Textile and Garments, light engineering and auto vendors are 
likely to operate in these SEZs. 
Page 32 (paragraph 2.43 and Table 2.4) 
 
QUESTION 5:   
 Table 2.4 provides for main investment incentives . Please clarify if these incentives are granted 
automatically or investors need to apply in orde r to receive such benefits. If the application 
process is required, please provide the information regarding the procedures and considerations.  Answer: Incentives available to investors are not granted automatically rather investors have to 
submit claims to the concerned tax authorities. 
 3. TRADE POLICIES AND PRACTICES BY MEASURE 
Page 40 (paragraph 3.33)  
 QUESTION 6:   
 
As the Federal Government may ban imports, where deemed in the "public interest" under Import Policy Order 2013 Section 21, could Pakistan provide the definition of the term "public interest"?  
Answer: The term "public interest" includes public health and safety, animal and plant health, 
public morale, national food security, conservation of exhaustible natural resources, socio-economic expediencies, etc. 
 WT/TPR/M/311/Add.1 
 
- 64 - 
 
  Page 50 (paragraphs 3.67-3.68)  
 QUESTION 7:   
 
Thailand is keen in learning about the overall polic y of export subsidies. What sectors/products are 
covered by such programs/policy of Pakistan? Could Pakistan elaborate more on different measures it implements (i.e. income and tax exemptions)? How have they been implemented?  
 
Answer: Generally, Pakistan is not providing subsidies to exports in the form of reduced rate 
of income tax. Two separate taxation systems are in place in Pakistan. Under the first system, all exports are liable to pay 1 % of value of expo rts as income tax. The second system requires 
companies to pay 35 % as corporate income tax on taxable income. These are two distinct 
systems and cannot be compared.  
Page 58 (paragraph 3.101) 
 QUESTION 8:   
 
The report indicates that Pakistan is not an observer to the WTO Agreement on Government Procurement. In any case, we are aware that Pakist an submitted a letter to become an observer in 
February. Has there been any update on this information? If so, Thailand is interested in how long 
it took from the submission until the approval for Pakistan's observer status?  
 Answer: Pakistan has become an observer to the Government Procurement Agreement (GPA) in 
February 2015. It took us two weeks to get approval. 
 4. TRADE POLICIES IN SELECTED SECTORS 
Page 65 (paragraphs 4.16-4.18) 
 QUESTION 9:   
 
When does Pakistan plan to submit further notifications on domestic support measures? When did 
the government abolish price support for cotton, rice, and sugar? Could Pakistan provide more information on the price support for wheat? How much was the support in recent years? 
 
Answer: Pakistan has submitted notifications on domestic support measures from 2007-08 to 
2011-12. The government has abolished price support for cotton, rice, and sugar.  
 
To determine the acquisition price for Wheat, Agriculture Policy Institute (API) obtains cost of production, analysis of nominal and real market prices, monitoring of domestic and international prices and competitiveness of wheat production viz a viz  other crops etc. 
QUESTION REGARDING THE REPORT BY THE GOVERNMENT 
 
Page 4 (paragraph 1.9)  
 
QUESTION 10:  
 
 
Thailand is interested in learning about the following details with regard to the Benazir Income 
Support Program (BISP): 
 
  What are the principle and rationale behind the program? 
  How does the government implement such program? Does the government pay money 
directly to the individuals/families? What were the overall budgets for the past years? 
  What has been the result so far? Has the program been effective? 
Answer: Benazir Income Support Program (BISP) was launched in July 2008 with an immediate 
objective of consumption smoothening and cushioning the negative effects of slow economic 
growth, the food crisis and inflation on the poor, particularly women, through the provision of cash transfers to eligible families. Its long term objectives include supporting the achievement WT/TPR/M/311/Add.1 
 
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  of Millennium Development Goals (MDGs) to eradicate extreme and chronic poverty and to 
empower women.   The government has first identified the beneficiaries and then payment mechanism has been 
developed. BISP has agreement with six partner banks where virtual accounts of the beneficiaries 
have been opened. Government pays directly to beneficiaries and the amounts are credited directly to the beneficiaries' accounts by the relevant banks. The beneficiaries have the option 
to withdraw the money from ATM, franchise or any POS dedicated for this purpose by the relevant 
bank.   The overall budget allocation for BISP since its inception has been as under: 
 
Financial Year Total Allocation 
(PKR million) 
2008-2009 33,980.411 
2009-2010 70,000.000 
2010-2011 50,000.000 
2011-2012 50,000.000 
2012-2013 70,000.000 
2013-2014 75,000.000 
2014-2015 97,150.000 
 The beneficiaries of the BISP are poorest of the poor who have been selected scientifically on 
assets' based poverty survey. The cash assistance provided by BISP is not only valuable for the existence of the beneficiary families but a source of growth for them as well. BISP has disbursed 
more than PKR 269 billion among its 4.83 million beneficiaries so far. Independent studies have 
shown positive impacts in the living standard of the beneficiaries.   
The Nationwide Poverty Scorecard Survey prepared fo r the program is the first of its kind in South 
Asia. It has led to the creation of a large and reliable national database of the socio-economic status of almost 27 million households across Pakistan. The cash assistance provided by the programme is not only valuable for the existence of the beneficiaries but a source of economic 
advancement as well. Further details can be accessed on, http://www.bisp.gov.pk  
 
Page 5 (paragraph 2.1) 
 
QUESTION 11:  
Could Pakistan provide more detail on how the Export-Import (EXIM) Bank enhance export credit? 
How can exporters apply for the credit? What are the terms of and conditions for the credit?  Answer: The EXIM Bank will likely be operational by the end of the year 2015 and imports and 
exports of all sectors including the agriculture sector will be eligible for financing under EXIM Bank. 
 Exim Bank is in the process of establishment and the details of financial instruments are yet to be 
formed. 
 Page 6 (paragraph 3.6)  
 
QUESTION 12 :  
 The report indicates examples of three sectors which have upper limit on the share of foreign 
equity allowed, i.e. banking, airlines, and media sectors. Are there other sectors with the limitation 
of foreign shareholdings? What are the rationales behind the limitation in those sectors? Please also explain the procedures/criteria which foreign investors must follow in order to invest in 
Pakistan 
 WT/TPR/M/311/Add.1 
 
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  Answer: As per SBP's guidelines, the following categories are allowed to enter in branch mode as 
well as through wholly owned locally incorporated subsidiary: -  
 Banks from countries belonging to regional groups and associations of which Pakistan is 
a member 
 Foreign banks having a global tier-1 paid up capital of US$5 billion or more.  
Apart from the above, a foreign corporate entity/b ody desirous of conducting banking business in 
Pakistan must incorporate a locally incorporated company with a maximum of 49% shareholding 
by the foreign strategic investor/entity/financial institution.  QUESTION 13: 
 
As indicated in the report, corporate farming has been allowed with a 50-year land-lease tenure with the option to renew the lease. Is the lease automatically renewed for the company which 
wishes to continue or the company must affirmat ively request for a renewal? If the latter is the 
case, what are the conditions, if any, in granting renewal of the lease?  
Answer: Any company Incorporated in Pakistan under the Companies Ordinance, 1984 is entitled 
to a lease Agreement under the CAF policy, and renewal of lease is possible under the current Investment  
Under Pakistan's investment laws and policy, does Pakistan provide for investment protection for 
foreign investors with regard to expropriation? If so, what are the terms and conditions regarding compensation for expropriations? Does a foreign investor have the right to initiate dispute 
settlement proceedings against the host government? If so, what are the conditions for the 
investor in order to exercise such right?  
Answer: Yes, according to Foreign Private Investment Promotion and Protection Act 1979 and 
Economic Reforms Act 1992, Pakistan does provide for investment protection for foreign investors with regard to expropriation. The foreign investors have the right to initiate dispute settlement proceedings by going to international dispute settlement courts. 
 
Page 6 (paragraphs 3.7 and 3.9)  
QUESTION 14: 
 What is the definition of "industry status" refe rred to in paragraph 3.7? How can one sector be 
granted such status? What criteria does the sector need to have?  
 Answer: 'Industry status' means that these are eligible for lower tax and utility rates than banks, 
insurance companies and other businesses that are considered a part of the "commercial sector". 
 
Do investors need to submit an application in orde r to be eligible for incentive benefits? What is 
the process and how long does it normally take? 
 
Answer: As per Foreign Exchange Manual, 2001 permission from SBP is required by the foreign 
investors to repatriate profits, dividends or any other funds. 
 
Thailand is interested in Pakistan's benefit of "one-time exemption from customs duties and taxes for all capital goods imported into Pakistan for development, operations and maintenance of a SEZ." How does the authority implement such bene fit? How are "capital goods" determined? What 
is the procedure in receiving this benefit? How many cases have there been?  
 Answer: Federal Board of Revenue has already issued SRO 41(I)/2009 dated 19.01.2009 for duty 
free import of capital goods and procedures have also been laid down along with details 
of machinery in the above said SRO. The relevant SROs can be seen at www.fbr.gov.pk  
 WT/TPR/M/311/Add.1 
 
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  Pages 9 (paragraph 5.6) 
 QUESTION 15:   
 
Could Pakistan give some examples in order to elaborate its concern regarding "trade among 
developing countries" may be hampered by the SP and SSM flexibilities? What does Pakistan 
consider to be "current trade realities" that sh ould be taken into account in negotiating these 
flexibilities? 
 Answer: Trade among developing countries has increased manifold since 2001 
(67 billion US dollars to more than 300 billion US dollars in 2013). Higher number of special 
products and safeguards will have an impact on this increasing level of trade 
 OTHER QUESTIONS 
 
QUESTION 16:  
Does Pakistan recognize well-known marks in a foreign country? 
 Answer: Yes, Pakistan recognizes well-known marks of a foreign country provided that the foreign 
country is a member of the Paris Convention and / or TRIPS Agreement and which is also 
a well-known mark in Pakistan. 
 If so, what kinds of protection are available to well-known trademark owners? 
 
Answer: The owner of a mark which is entitled to protection under the Paris Convention as a 
well-known mark shall be entitled to restrain by injunction the use in Pakistan of a mark which, 
or the essential part of which, is identical or deceptively similar to the well-known mark in relation 
to identical or similar goods or services, where the use is likely to cause confusion or where such use causes dilution of the distinctive quality of the well-known mark.  
How does Pakistan define "well-known" trademarks? What are the criteria to be eligible for a 
protection of well-known trademarks in Pakistan?  
Answer: Well-Known marks are not specifically defi ned in the Trade Marks Ordinance, 2001 and 
Trade Marks Rules, 2004 of Pakistan. The following factors shall be considered as relevant criteria for establishing the well-known status 
of a mark: 
 
i) the amount of Pakistan or worldwide recognition of the mark; 
ii) the degree of inherent or acquired distinctiveness of the mark; 
iii) the Pakistan or worldwide duration of the use and advertising of the mark; 
iv) the Pakistan or worldwide commercial value attributed to the mark; 
v) the Pakistan or worldwide geographical scope of the use and advertising of the mark; 
vi) the Pakistan or worldwide quality and image that the mark has acquired; 
vii) the Pakistan or worldwide exclusivity of use and registration attained by the mark and 
the presence or absence of identical or deceptively similar third party marks validly 
registered or used in relation to identical or similar goods and services.  
 WT/TPR/M/311/Add.1 
 
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  REPUBLIC OF KOREA 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
 
Page 15 (Para 1.21) 
 
The authorities are targeting a fiscal deficit of 3.5% of GDP by 2016/17. In this regard, the Government plans to eliminate most SROs; these include income tax SROs that grant 
concessions on government subsidies, services, construction contracts outside Pakistan, large 
trading houses, advertising agencies and foreig n news agencies. Certain sales tax SROs, which 
grant concessions on imported plant and machinery as well as reducing concessions granted to certain sectors are also to be eliminated. In addition, customs SROs are also to be withdrawn, 
implying that 30 industries and 133 HS codes would be charged the normal tariff and, tariff 
concessions for 138 industries would also be withdrawn. The cumulative impact of eliminating the above SROs would be 1% of GDP by 2016/17. Furthermore, by 2015 the remaining SROs would be 
incorporated into the tax law, while the authority to issue new SROs, which grant concessions or 
exemptions, would also be eliminated.  
Page 74 (Para 4.74) 
 Numerous industrial products have been subjec t to ad hoc measures under SROs. These goods 
include toilet soap; hybrid electric vehicles; inputs for air conditioners, freezers, and refrigerators; 
and tractors and certain buses. Various SROs particularly apply to passenger cars. SRO 
568(I)/2014 of 26 June 2014 introduced "regulatory import duties" of 5% on a vast range of manufactured products (more than 100 tariff lin es), including cosmetics, marble and various 
natural stones, cooking ranges, fans, and freezers. As in other sectors of the economy, the use of 
SROs as policy instruments strongly reduces the transparency and predictability of the trading regime, increases its complexity, and ultimately supports a culture of rent-seeking. 
 
QUESTION 1:  The government of Pakistan plans to eliminate most SROs and incorporate other remaining SROs 
into the tax law, which could enhance the transp arency and predictability of its trading regime. 
Could Pakistan explain whether such plans cover the current SROs applied to manufactured products including hybrid electric vehicles, passenger cars, chemicals, electric and electronic 
products? Please elaborate on the plan in detail, particularly with regard to industrial products. 
 Answer: Government of Pakistan constituted in December 2013, a High Powered Committee 
headed by Finance Minister and comprising of repr esentatives of different ministries/divisions and 
trade bodies across the country to review the concessionary regime in Income Tax, Sales Tax and Customs. Based on recommendations of the Committee, a huge number of concessions and 
exemptions amounting to Rs. 104 billion were elim inated in the FY 2014-15. The Government is 
committed to phase out the remaining concessions ov er a period of three years i.e. by June, 2017 
except socially sensitive concessions, which shall be retained not as a statutory regulatory order but as part of schedules of releva nt Acts (i.e. Customs, Sales tax, Federal Excise and Income tax). 
 
Page 58 (Para 3.101)  
In September 2013, the Public Procurement Regulatory Authority (PPRA) launched a National 
Procurement Strategy 2013-2016 outlining a common vision for making procurement processes efficient and transparent. The Strategy contains an action plan, which includes such areas as introducing standardized bidding documents and the creation of an E-procurement portal. 
In April 2014, a draft E-procurement Strategy an d Roadmap was published by the World Bank on 
the basis of comprehensive consultations with stakeholders on how to design and implement an E-procurement portal. According to the authorities the E-procurement portal will be operational 
sometime in 2016-17 and will provide an im portant component in reducing corruption. 
 WT/TPR/M/311/Add.1 
 
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  QUESTION 2: 
 It has been pointed out that certain competitive bidding practices in Pakistan are not in compliance with international standards. Although Pakistan is not a signatory to the WTO Agreement on 
Government Procurement, all government procurem ent procedures should be conducted in a fair 
and transparent manner based on international pr actices aimed at improving transparency and 
ensuring accountability. In this regard, plea se provide further information on the 2013-2016 
National Procurement Strategy and present cases where improvements have been made within the 
context of the Strategy. Please also elaborate, if relevant, on any possible plans to initiate procedures for GPA accession.  
Answer: Pakistan Public Procurement Authority (PPRA) rules and procedures are mostly compliant 
to Government Procurement Agreement (GPA),  however to bring more transparency and 
compliance with international standards National  Procurement Strategy (NPS) has been drafted 
which is under process for formal approvals. Salient features of the NPS are as follows: 
 
1. Legal Framework including harmonization of legal framework for procurement, 
strengthening of PPRAs through operational autonomy and financial sustainability 
amendment and revision of rules, establis hment of independent grievance redressal 
forum, development of regulations, standard bidding documents and manual, strengthening procurement planning and its integration with budgetary operations, 
introducing e-procurement and creating enabling environment for public private 
partnerships. 
2. Institutional Arrangements focusing on strengthening HR of PPRAs, recruitments through 
competitive process, specialized training, framing of service regulations and provision 
of special incentives, professionalizing the procurement function by developing a procurement cadre, special incentive for pr ocurement officials and introducing a code 
of ethics and enhancing outreach of PPRAs through awareness programs. 
3. Monitoring and oversight through strengthening monitoring capacity of PPRA, setting up 
procurement data management and information system, strengthening monitoring capacity of procuring agencies and improv ing robustness of internal and external 
controls. 
4. Capacity Building of PPRA and Suppliers. 
Page 60 (Para 3.106) 
 
The Intellectual Property Organization (IPO) is an autonomous organization under the administrative control of the Cabinet Division. The Intellectual Property Organization Act 2012 
provides a funding structure and vests the IPO with  enforcement authority. According to the IPO, 
enforcement coordination is being institutionali zed and expanded by establishing cross-agency 
Enforcement Committees in Islamabad, Karachi and Lahore. These regions will also receive priority in terms of IPR enforcement with other area s following. The 2012 Act provides for the 
establishment of specialized IP Tribunals to exercise  exclusive jurisdiction on intellectual property 
cases.  
QUESTION 3 
 Please provide details with regard to the IPO's role in IPR infringement investigations taking into 
account the existing Federal Investigation Agency  (FIA) which functions as an enforcement body. 
 Answer: IPO exercises its enforcement authority through enforcement agencies i.e. FIA, Customs 
and Police. Following are some positive developments in relation to enforcement of IPRs: 
 
i. Establishment of dedicated Directorate in FIA and Directorate General in FBR to deal with 
IPR violations; 
ii. In the year 2014 Urdu Bazar Lahore has been removed from the list of "Notorious 
Markets' by IIPA (International Intellectual Property Alliance) and WT/TPR/M/311/Add.1 
 
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  iii. Complete stoppage of export of pirated CDs/DVDs from Pakistani borders since 2009. 
Page 62 (Para 3.121) 
 Pakistan has continued its efforts to advance IPR enforcement through raids, seizures, and arrests 
by various enforcement authorities, but has yet to  put into operation the specialized IP tribunals 
and the IPO Policy Board provided for under the IP O Act. Moreover, enforcement officials do not 
exercise ex officio authority without a formal complaint by a rights' holder. The IPO has 
established Enforcement Committees in Islamabad, Lahore and Karachi, respectively, and these 
committees meet regularly to discuss IP enforcement issues. Piracy remains a key challenge in Pakistan. There are enormous challenges to enfo rce law and reduce software and books piracy, 
as well as distribution of counterfe ited articles throughout the country. 
 
QUESTION 4:  
Taking into account the growing global trends in  IPR protection, please explain the plans by the 
government of Pakistan to further enhance IPR protection.  
Answer: I P  T r i b u n a l s ,  f o r  s p e e d y  d i s p o s a l  o f  I P  l i t i gations, have been notified by the Federal 
Government to cover the whole country. Specialized IP  Tribunals will be estab lished in near future.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT 
 
Page 10 (Para 5.11)  
In order to enhance the scope of automation in customs procedures, Pakistan Customs 
Computerized System (PACCS) has been discontinued and in its place a locally-developed Web Based One Customs (WeBOC) system has been introduced. The new system is paperless, allows 
online manifest filing and goods declaration, is available on a 24/7 basis and is based on the best 
international practices of risk management system. Manual interference for Customs examination and clearance times have been substantially reduced. Multiple import and export steps have been reduced to a single step. 
 
QUESTION 5:  
Since Pakistan's last Review, the government has been implementing a modernization program in 
the area of customs clearance including the creation of a National Single Window. However, despite these efforts, decisions regard ing inspections are reportedly often based on 
informal payments and procedures for inspection of transit cargo are often inefficient and lack 
transparency. Please provide details with regard to plans by the government of Pakistan to further enhance transparency in the area of customs declarations made by importers as well as to alleviate delays in customs clearance. 
 
Answer: Initially, the clearance of Afghan Transit Cargo was made through one customs system, 
however, the system has been replaced and all the cargo are now cleared under WeBOC 
(web-based one customs clearance system) whic h has inbuilt risk-management system and the 
consignments are selected on the basis of the risk-c riterion. In this way, the system is transparent 
and efficient. WT/TPR/M/311/Add.1 
 
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  NIGERIA 
Measures affecting trade and investment 
 To ensure Nigeria's trade and investment relations/interest are not adversely hampered, the 
followings issues can be considered and raised during the Review: 
 a) Page 12, paragraph 5.28  of the Pakistan report, in March 2012, Pakistan abolished the 
limited positive list of imports substituting it with a negative list of 1209 items. 
QUESTION 1:   
 Could Pakistan Government give comprehensive details on what is contained in the 1209 items? 
 
Answer: The comprehensive list of items may be seen on the official website of the Ministry of 
Commerce, Import Policy Order, 2013 (Appendix-G). 
 
b) Page 7, paragraph 3.28  of the Pakistan report, Pakistan has a three year process to 
rationalized its customs tariff to reduce the maximum tariff and the number of total slabs of 
tariff. Also, Pakistan trade policy reforms on simplifying tariff rates, phasing out SROs that 
establish special rates and/or non-tariff trade barriers in some 4,000 product areas. 
QUESTION 2:  
 
Could Pakistan Government provide more details on the 4,000 products area and the phasing out 
schedule as well as the criteria for the special rates to ensure transparency?  
Answer: Government of Pakistan is committed to eliminate all concessions/ exemptions by the 
end June, 2017 excluding socially sensitive items which shall be retained as part of schedules of tax statues and shall be published. 
 
c) Page 7, paragraph 3.19, Pakistan is finalizing the design of the new system to simplify the 
tariff structure to four over three years to a simple transparent framework, with four slabs between 1% and 25% rates with fewer exceptions. For FY2014-2015, tariff slabs were 
consolidated from seven to six. All items at  30% have been moved to a new maximum rate 
of 25% rate. 
QUESTION 3:   
 
Could Pakistan Government give an indication of the exceptions?  
Answer: The exceptions include auto sector and alcoholic beverages. 
 WT/TPR/M/311/Add.1 
 
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  TURKEY 
1.1 Recent Economic Developments, pp. 12, para. 1.2 
 It is mentioned in the report that "Recent growth  has been driven by construction and services 
(finance and insurance, public administration and defence). Electricity, gas and water also posted 
robust growth between 2009 and 2011. GDP per capita  also registered modest growth (Table 1.2) 
to reach over US$1,300 in 2013/14. Furthermore, the authorities stated that it is estimated that 
over 40% of the economy is not documented, implying that GDP and GDP per capita are grossly 
underestimated."  To improve transparency and accountability, could Pa kistan Delegation kindly give information if 
there is any intention to improve process of collecting national statistics. 
 Answer: The Pakistan Bureau of Statistics is the Government of Pakistan's statistical department. 
The department is part of the Statistics Division of  the Ministry of Economic Affairs and Statistics 
of Pakistan. It is the largest repository of social sector and economic data in the country. The Bureau keeps improving its data collection process for bringing its standard at par with 
international best practices. 
 2.2 Trade Policy Formulation and Implementation, pp.22  
It is mentioned in the 2nd part, 2.2 subsection of the part titled "Trade and Investment Regime" 
of the Secretariat Report that the President's Powe rs were given to provincial governments. One of 
these responsibilities is transferring health issues to decentralized provinces.  
 
Could you please give information on the kinds of health implementations that are considered to be transferred?  
 
Answer: After the 18th Constitutional amendmen t, health-related Policy formulation, 
health planning and services delivery are now with the provinces.  
2.2.1 Objectives and strategy, pp. 22, para. 2.6 
 It is mentioned in the Secretariat Report that "The pillars of growth address: developing human 
capital; achieving sustained, indigenous and inclusive growth through inter alia exports; good 
governance; energy, water and food security; private sector and entrepreneur-led growth; 
developing a knowledge economy through valu e addition; and modernizing transportation 
infrastructure and greater regional connectivity. The last two pillars have a strong export bias, 
whereby Pakistan needs to become competitive in the global economy and export high value added products regionally and outside the region . As a result, exports are targeted to reach 
US$150 billion by 2025." 
 
Given the fact that 25.1 billion US$ of export was recorded in 2014, it would require 17.7% export 
growth rate on average, on a yearly basis, reaching 150 billion US$ in 2025. 
 
If any, what are the Government's plans to impr ove technological level of export products which 
we believe can help attaining such a high growth rate?  
 
Answer: Government has always been keen to provide plans for technological up-gradation of the 
products through its trade policies, for attaining this high growth rate.  WT/TPR/M/311/Add.1 
 
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  2.2.1 Objectives and strategy, pp. 22, para. 2.8 
 It is mentioned in the Secretariat Report that "In January 2013, the Government announced its three-year Strategic Trade Policy Framework (STPF) 2012-15. Under the framework, 
the Government envisages exports of US$95 billion during the three-year period, compared with 
exports of US$67 billion during 2009-12. To achiev e its target, the Government has identified 
seven areas of focus. These are: regional trad e; strengthening the institutional framework for 
promotion of exports; creation of regulatory efficiencies; export development initiatives; increasing 
exports from less-developed regions of Pakistan; promotion of domestic commerce; and strengthening the monitoring and evaluation network. Initiatives underway include the creation of a domestic commerce wing and a trad e in services wing, both in the Ministry of 
Commerce. Furthermore, the authorities also stated that the establishment of an EXIM Bank was 
underway and the Leather Export Promotion Council had already been formed."  
What is going to be the credit volume of EXIM Bank? Do Pakistani authorities plan to establish 
branches of EXIM Bank in other countries?   
Answer: It is informed that the establishment of EXIM Bank of Pakistan is at its initial stage. 
The draft Act, Memorandum & Article of Associat ion and Business Plan and are being finalized in 
consultation with the relevant stakeholders. The Bank will be formally incorporated after completion of all procedural formalities, laid down by State Bank of Pakistan (SBP) and Securities 
& Exchange Commission of Pakistan (SECP). 
 2.4 Investment Regime, pp. 31, para. 2.37 
 
It is mentioned in the Secretariat Report that "Under the current investment policy, 100% FDI is permitted in all sectors and industries except arms  and ammunitions; high explosives; radio-active 
substances; security printing; currency and mint; and consumable alcohol. The share of foreign 
equity is limited in the airline, banking, agriculture and print and electronic media sectors. Also, all foreign investment in Pakistan must be  cleared by the Ministry of Interior." 
 
Could Pakistan kindly provide further information on  the rates of equity limitation in the airline, 
banking, agriculture and print and electronic media sectors?   
Answer: As mentioned in the report that "Under the current investment policy, 100% FDI is 
permitted in all sectors and industries except arms  and ammunitions; high explosives; radio-active 
substances; security printing; currency and mint; and consumable alcohol and share of foreign 
equity is limited in the airline, banking, ag riculture and print and electronic media sectors 
 Could the Delegation also elaborate on the abovem entioned practice of the Ministry of Interior 
towards foreign investments? 
 
Answer: Clearance from Ministry of Interior is primarily required for the reasons of homeland 
security in wake of war against terror, preventing money laundering practices and to maintain the 
record of foreign investors/ex-patriates to ensure their security, which is in line with the 
Regulations of Securities and Exchange Co mmission of Pakistan (No. 3 of 2013 dated 
March, 18, 2013) 
 
3.2.4.2 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Tariffs – MFN Applied Rates , pp. 36, para 3.19 – Table 3.3  
It is mentioned in the Secretariat Report that "…However, compared to 2007/08 where some 
400 duty free tariff lines were registered, the 2014/15 tariff structure reveals that Pakistan no longer has duty free tariff lines." Furthermore, Table 3.3 indicates that simple average MFN applied 
rates of both WTO and non-WTO agricultural products are only marginally lower in the comparison 
of 2007/08 and 2014/15 terms.  
Could Pakistani Delegation kindly reflect on th e above mentioned situation from the view point 
of overall trade policy?  Answer: It is pointed out that in budget FY 2014-2015, floor in tariff structure was lifted from 0% 
to 1 %. Consequently, 400 Tariff Lines which were at 0% duty in the past are now subject to 1%. WT/TPR/M/311/Add.1 
 
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  In addition thereto, we lowered our tariff ceiling from 30% to 25% during budget 2014-15. 
As a result of this, the cumulative effect of tari ff reduction appears very marginal as compared to 
the tariff structure for the year 2007/08.  
3.2.4.5 Tariff exemptions and co ncessions, pp. 39, para. 3.25. 
 It is mentioned in the report that "Regulatory exemptions and concessions provided for various 
industries under SRO regimes remain an important source of deviation from MFN rates. Scrutiny 
and analysis of the structure and level of Pakistan's tariffs are complicated by the number of exemptions, partial exemptions and concessions which are announced separately through SROs and which do not affect the customs duty rate shown in the tariff schedule. Other SROs detail 
whether certain products are exempted from sales and other domestic taxes, as well as rules and 
ordinances affecting imports. Imports by charitable organizations or in the context of humanitarian efforts and operations are not subject to customs duties. Although other government agencies are 
not exempted per se from import restrictions, Section 5(A) of the 2013 Import Policy Order 
provides the required flexibility for most governmental institutions to circumvent such restrictions. Even though the FBR's website now features specif ic information on active as well as amended or 
archived SROs, it is very difficult to discern the applicable taxes and other measures imposed on 
individual tariff items that may be covered under  multiple SROs with different exemptions and 
criteria. It has been argued that the distortion s created by this web of exemptions result in 
a de facto licensing scheme by limiting regulations to a selected group of economic actors."  
 
We understood that applied tariff rates are complicated due to SROs in force. Could Pakistani Delegation kindly give information if there is any intention to eliminate SROs that affects tariff 
rates and transparency of tariff regime? 
 Answer: Government of Pakistan constituted a High Powered Committee in December 2013 
headed by Minister for Finance and Revenue and comprising of representatives from various 
ministries and trade bodies. On the basis of recommendations of the committee a huge number of 
concessions have been withdrawn during budget FY 2014-2015. Government is committed to phase out all concessions over a period of three years by end June, 2015 except socially sensitive 
concessions which will be retained as part of schedules in tax statues. 
 3.2.5 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Other Duties and Charges Affecting Imports, pp. 40, para. 3.29 
 It is highlighted in the Secretariat Report that "…On 26 June 2014, the Government circulated an 
SRO containing some 284 products on which a 5% regulatory import duty is levied." 
 Could Pakistan detail the context and goal underlying the implementation of this tax? Turkey kindly requests Pakistan to share its pe rspective concerning whether such implementation 
may bring forth certain restrictive effects to trade or not. 
 Answer: Regulatory duty is levied to regulate import of non-essential and luxury items. This duty 
is levied under the Customs Act, 1969. The share of  import value of products on which regulatory 
duty levied viz total import value is just 0.11 % during period of July- to Dec, 2014. The commutative impact of regulatory duty and customs duty on these goods is less than bound 
rates on these goods. The government will review the regulatory duty on these products during 
budget for FY 2015-2016.  3.2.6.2 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports – 
Import Prohibitions, Quotas, Restrictions an d Licensing – Restrictions and Licensing, 
pp. 41, para. 3.38  
It is underlined in the Secretariat Report that "… Although no licences are required for the import 
of importable items, specific authorizations and No Objection Certificates (NOC) from a range of authorities must be obtained for import of products listed in Appendices B and C of the Import 
Policy Order." 
 Taking into account additional licensing and regi stration requirements on transmission apparatus 
and crude palm oil; for instance, could Turkey re quest the esteemed Delegation to explain whether WT/TPR/M/311/Add.1 
 
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  these practices create a licensing procedure in de facto nature within the context of the Agreement 
on Import Licensing Procedures?  Answer: Pakistan does not maintain any import licensing regime. However, imports of certain 
items are allowed subject to some permission, authorization mainly because of health, safety, 
security and environment reasons.   
3.2.8.1 Standards and quality ce rtification pp. 43, para. 3.44 
 It is stated in the Secretariat Report that Pakist an, as a member of ISO, IEC, and the International 
Organization of Legal Metrology (OIML), continues to harmonize standards with international 
requirements. 
 Given that, agriculture and husbandry are very important to Pakistan's economy and export, does 
Pakistan plan to be member of any other international organizations like The Standards and 
Metrology Institute for Islamic Countries (SMIIC) to cooperate with other Islamic countries in the field of halal food and so on? 
 
Answer: Pakistan National Accreditation Coucil (PNAC) and Pakistan Standards and Quality 
Control Authority (PSQCA) are continuously striving to get accreditations and to enter into the Mutual Recognition Agreements (MRAs) with other international bodies specially dealing with Halal 
Certifications. 
 3.2.8.2 Sanitary and phytosanitary requirements, pp. 44, para. 3.51.  
 
It is mentioned in the Secretariat Report that "Since 2001, Pakistan has imposed an import ban on live animals and a range of animal products originating in several European countries based on the 
risk of Bovine Spongiform Encephalopathy (BSE) ... Also, poultry products and other captive live 
birds from some African, Asian and European countries are banned for import on account of the Avian Influenza H5N1 strain. Current measures, included in the 2013 Import Policy Order, are summarized in Table 3.6" 
 
It is known that WTO Members may, in certain circumstances, deviate from their main obligations and apply trade restrictive measures. Such trade restrictions are considered to serve legitimate 
objectives, such as the protection of health or the environment. However, Members are bound to 
implement these objectives through measures cons istent with the requirements provided in the 
relevant WTO Agreements. 
 
What necessary steps does Pakistan follow so that the measures could be justified under Article XX (GATT) or XIV (GATS)?  
Answer: Pakistan has implemented these measures in accordance with the OIE guidelines and the 
same have been notified to relevant WTO Committee i.e. SPS Committee for information of all members. 
 
3.2.8.3 Marking, labelling and packaging, pp. 46, para. 3.53  
It is mentioned in the report that "Food colors must carry fair and true labelling about the product 
in both languages. Edible products should have at least six months or 50% of the shelf life, whichever is the lesser, calculated from the date of filing of the Import General Manifest (IGM) and also that they are free of Haram elements or ingredients. If these conditions are not shown on the 
packaging, a certificate issued by the manufacturers is accepted by customs." 
 As known Halal is any object or an action which is permissible to use or engage in, according to 
Islamic law. Halal certification is a process where a credible organisation certifies that the products 
and or services offered by a company meet the specified halal standard.   
Is there any specific halal certificate, given by  certifying organization, Pakistan looks for its 
imported products?  Answer: Halal certification is required for all edible imported products as well. 
 WT/TPR/M/311/Add.1 
 
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  3.4.4.2 State-owned enterprises and privatization, pp. 56, para. 3.100 
 It is stated in the report that "Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA), and Pakistan Railways (PR) are considered to be the major budgetary drains among SOEs. In the case 
of PSM a professional board was appointed and approved a comprehensive restructuring plan in 
April 2014 so as to prepare for strategic private sector participation in the company."  
Could Pakistan kindly elaborate if there are any future privatization plans for PIA and PR?  
 Answer: The government is currently working on a strategy under which there are medium-term 
action plans to restructure Pakistan International Airlines (PIA) and Pakistan Railways (PR). In case 
of PIA, the government has appointed financial advisors in July 2014 to seek potential options for 
restructuring and strategic private sector participation in the company by end-December 2015.  
3.4.5 Government procurement, pp. 58, para. 3.101 
 It is mentioned in the Secretariat Report that "In September 2013, the Public Procurement 
Regulatory Authority (PPRA) launched a National Procurement Strategy 2013-2016 outlining 
a common vision for making procurement processes efficient and transparent."  Could Pakistani Delegation kindly explain the details of this Strategy? Are there any restrictions for 
some products of some countries in attending public procurements?  
What are the parameters used in decision making process?  
Answer: The objectives / goals of the National Procurement Strategy, 2013-2016 (copy enclosed) 
are as under:-  
a) Harmonization of procurement laws, rules and procedures including nomenclatures; 
b) Improving and updating laws, rules and proc edures and making use of technology to 
facilitate; transparency, fairness, competition and achieve value for money; 
c) Improving governance and institutional ca pacity of PPRA's and procuring agencies; 
d) Strengthening monitoring and oversight capaci ty of procurement regulatory authorities; 
e) Capacity building of procuring entities and suppliers  
It is clarified that National Procuring Strategy (NPS) is the outcome of consultative meetings of the 
advisory group on public procurement, having re presentation of all PPRA's concerned organizations 
of Pakistan. As Federal PPRA Board has delimitation, NPS was not presented to the Federal PPRA's Board. However, the proposal to prepare the National Procurement Strategy was one of the areas 
indicated for assistance of ASP-RSPN. Agenda item # 6 relating to the said technical assistance 
of ASP –RSPN was presented to the PPRA Board in its 13th Meeting for information / confirmation. The Board noted the proposal without any observ ation of any of the members, that might the 
consulted as consent of the Board.  
 
In terms of rule 24(1) of Public Procurement Rules, 2004  procuring agencies shall allow all 
prospective bidders to participate in procuring procedure without regard to nationality, except in 
cases in which any procuring agency decides to limit such participation to national bidders only or 
prohibit participation of bidders of some nationalities, in accordance with the policy of Federal Government.  
 
Trade and Commerce related policies are administered by Ministry of Commerce. In public procurement, restrictions, if any, imposed on some products of some countries are observed by the Government departments as per policies of Ministry of Commerce, Government of Pakistan. 
 
4.2.1 Main features and policy objectives, pp. 63 para. 4.6.  
It is mentioned in the Secretariat Report that "Rural areas are still characterized by strong 
inequality in the distribution of assets, particularly land and water, and income. Entrenched land ownership plays a large role in keeping yields low and many landless in poverty.3 Since its last WT/TPR/M/311/Add.1 
 
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  Review, numerous severe floods have impacted Pakistan's rural economy while global climate 
change, through rising temperatures and increasingly  unpredictable rain patterns, is also becoming 
a major concern for the agriculture sector."  
Could Pakistan Delegation kindly give information if there is any strategy to eliminate land, water 
and income distribution inequality in the rural areas?  
Answer: Government is constantly trying to eliminate such inequalities by bringing reforms in the 
existing systems. Various poverty alleviatio ns programs are underway to remove income 
disparities specially focusing on the lower strata's of the society.  
4.4.2.2 Textiles and clothing, pp. 75, para. 4.80 
 It is mentioned in the Secretariat Report that "A new Textile Policy 2014-19 was under preparation 
as at November 2014. It aims to further promote high value added activities, improve productivity 
and establish new garment cities."  
Could Pakistan provide further information about new Textile Policy which is being prepared? What 
are the main features of the said policy? How does Pakistan plan to improve productivity and quality of textile and clothing products?  
Answer: Under the Textiles Policy 2014-19, it is intended that the Ministry will carry out 
productivity analysis on processes and energy conservation. Trainings would be provided to improve per capita productivity on cost sharing basis. To attain international compliance in 
Occupational health and Safety, trainings would also  be provided to the SME sector in partnership 
with the provincial governments, ILO and other ag encies, especially for initiating Better Work 
Program. 
 
4.5.2.2 Banking, p. 79, para. 4.99  It is mentioned in the Secretariat Report that "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 tier 1 minimum paid-up capital of US$5 billion. Otherwise, foreign ba nks may operate only as a locally incorporated 
subsidiary, with foreign equity capped at 49%. Existing foreign banks as well as those formed 
under the above criteria are allowed to open up to 100 branches as per Branch Expansion Plans submitted and approved by the SBP. Commercial ba nks with over 100 branches must open 20% of 
their branches in regional centres where no bank branch exists." 
 It is clearly seen that there are several restrictions in the banking sector of Pakistan, either in terms of market access or national treatment.  
 
Is there any plan to further liberalize the sector in the mid-term by empowering with the independent regulatory and supervisory mechanisms?  
 
Answer: As per the State Bank of Pakistan's (SBP) guidelines, the following categories are allowed 
to enter in branch mode as well as through wholly owned locally incorporated subsidiary: - 
 
 Banks from countries belonging to regional groups and associations of which Pakistan is 
a member 
 Foreign banks having a global tier-1 paid up capital of US$5 billion or more.  
Apart from the above, a foreign corporate entity/b ody desirous of conducting banking business in 
Pakistan must incorporate a locally incorporated company with a maximum of 49% shareholding by the foreign strategic investor/entity/financial institution. 
 
4.5.4.1.2 Road transport, p. 83, paras. 4.123-125  
It is stated in the Secretariat Report that "High import tariffs on high-capacity multi-axle trucks 
protect local manufacturers producing low-capaci ty and low-powered trucks, and hence prevent 
the trucking sector from improving its fleet. In addition, lack of road safety is a serious problem, WT/TPR/M/311/Add.1 
 
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  caused by overloading, long crew hours, poor road conditions, truck modification, and limited 
enforcement of safety regulations.  At the federal level, the Ministry of Communications is responsible for formulating policies for road 
transportation. Implementation is with the National Highway Authority (for infrastructure) and the 
National Highway and Motorway Police (for safety  regulations). The state-owned National Logistics 
Cell (NLC) has the exclusive right to collect street tolls; it also operates the Karachi and Hyderabad 
dry ports and various warehouses. Under the transit agreement with Afghanistan, the NLC also has 
a near monopoly (first right of refusal) over Afgh an transit trade. In addition, NLC is exempt from 
tax payments."  
Could Pakistani Delegation kindly explain the reason behind these policies despite the inadequacy 
of road transport infrastructure?   
Answer: The Government is already considering reduction of duties on goods related to 
transportation and trade facilitation.  
Is there any specific plan –especially included in  Vision 2025 strategy emphasized also in the 
Government Report- to attract foreign investment?  Answer: The Vision 2025 does not have any such specific plans. There is a separate 
comprehensive investment policy where the foreign investment is fully protected through Foreign 
Private Investment Promotion and Protection Act 1979 and Economic Reforms Act 1992.  
Are there any attempts for privatizing certain fiel ds, while observing national economic security 
and development perspective of Pakistan?  
Answer: The Government of Pakistan has already approved a comprehensive Privatization 
strategy which is as under:  
i. Capital Market Transactions Roadmap, whic h identifies 11 PSEs in the oil and gas, 
banking and insurance, and power sectors for block sales and primary or secondary 
public offerings. Financial advisors have been hired for successful selling of minority stakes in United Bank Ltd. and Pakistan Petroleum Ltd. in June 2014.  
ii. Strategic Private sector participation, wherein 24 PSEs have been identified for strategic 
partnerships. Efforts are being made to address labor market issues and social implications. Financial advisors have been hired for expected completion of transactions 
by end-October 2015. 
iii. Restructuring, under which we are developing medium-term action plans to restructure 
Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways (PR). 
THE GOVERNMENT REPORT 
 
1.3 Socio-Economic Development, pg. 4, para. 1.9 
 
It is stated in the Government Report that, "To protect vulnerable segments of the populace from 
the impact of the indicators described, Pakistan has put in place a social protection programme, 
the Benazir Income Support Program (BISP), to compensate for reduction in domestic electricity 
subsidies, inflation and fiscal adjustment measures. Recently, the Government has increased the stipends paid to the poorest families from PRs 3,600 to PRs 4,500 per quarter starting from FY2014-2015." 
 WT/TPR/M/311/Add.1 
 
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  Could Pakistan kindly provide further information about the above mentioned program? Are there 
any other dimensions under the program in addition to monetary support?  Answer: Benazir Income Support Program (BISP) was launched in July 2008 with an immediate 
objective of consumption smoothening and cushioning the negative effects of slow economic 
growth, the food crisis and inflation on the poor, particularly women, through the provision of cash transfers to eligible families. Its long term objectives include supporting the achievement of 
Millennium Development Goals (MDGs) to eradic ate extreme and chronic poverty and to empower 
women.   The government has first identified the beneficiaries and then payment mechanism has been 
developed. BISP has agreement with six partner banks where virtual accounts of the beneficiaries 
have been opened. Government pays directly to beneficiaries and the amounts are credited directly to the beneficiaries' accounts by the relevant banks. The beneficiaries have the option to 
withdraw the money from ATM, franchise or any POS dedicated for this purpose by the relevant 
bank.   
The beneficiaries of the BISP are poorest of the poor who have been selected scientifically on 
assets' based poverty survey. The cash assistance provided by BISP is not only valuable for the existence of the beneficiary families but a source of growth for them as well. BISP has disbursed more than PKR 269 billion among its 4.83 million beneficiaries so far. Independent studies have 
shown positive impacts in the living standard of the beneficiaries.  
 There are programs in addition to monetary support. These include;  
 
i) Waseela-i-rozgar (scheme for technical and vocational training)  
ii) Waseela-i-sehat (scheme for life and health insurance) and 
iii) Waseela-i-taleem (scheme for primary education) 
Further details can be accessed on, www.bisp.gov.pk  
 
1.4 Security Environment, Energy: the Challenges, pg. 4, para. 1.11 
 
As stated in the Government Report, "Pakistan is facing an unprecedented energy crisis in recent 
history. This has contributed to lagging economic activity and increasing public discomfort with 
outages of electricity in the summer and gas in the winters. Certain industries are more affected 
than others. The current energy deficit amo unts to 6,500 MW. The federal and provincial 
governments have focused their efforts on inviting investments in hydro and alternative energy 
sources to ensure a continuous supply of energy to the business sector." 
 Could Pakistani Delegation kindly provide us with details of implemented policies, plans and directions in energy sector within the scope of National Power Policy? 
 
Answer: According to the National Power Policy 2013-18, the Government of Pakistan has set the 
following nine goals to achieve the long-term vision of the power sector and overcome its 
challenges; 
 
i. Build a power generation capacity that can meet Pakistan's energy needs in 
a sustainable manner. 
ii. Create a culture of energy conservation and responsibility 
iii. Ensure the generation of inexpensive and affordable electricity for domestic, commercial, 
and industrial use by using indigenous resources such as coal (Thar coal) and hydel. 
iv. Minimize pilferage and adulteration in fuel supply 
v. Promote world class efficiency in power generation WT/TPR/M/311/Add.1 
 
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  vi. Create a cutting edge transmission network 
vii. Minimize inefficiencies in the distribution system 
viii. Minimize financial losses across the system 
ix. Align the ministries involved in the energy  sector and improve the governance of all 
related federal and provincial departments as well as regulators 
2 Policy Reform Highlights, pp. 5, para. 2.1  
 
It is expressed in the Government Report that "Pakistan's economic reform agenda revolves 
around 4 Es i.e. Economy, Education, Energy, and elimination of Extremism. The Government has maintained a steady course in the face of challenges and has recorded some noteworthy achievements. Recent major achievements include: 
 
…under Public Sector Enterprises Reform Strategy, the Government has initiated restructuring plan to reduce the losses of various state-owned enterprises (SOEs) like Pakistan Steel Mills, 
Pakistan Railway and Pakistan International Airlines (PIA)" 
 Could Pakistani Delegation give broader information concerning the said "restructuring plan"? 
What are the measures projected to be taken by the Government of Pakistan to enhance the value 
of these SOEs for future privatization?   Answer: The Cabinet Committee on Privatization has approved the following strategy: 
 
i. Capital Market Transactions Roadmap, whic h identifies 11 PSEs in the oil and gas, 
banking and insurance, and power sectors for block sales and primary or secondary 
public offerings. Financial advisors have been hired for successful selling of minority 
stakes in UBL and PPL in June 2014.  
ii. Strategic Private sector participation, wherein 24 PSEs have been identified for strategic 
partnerships. Efforts are being made to address labour market issues and social 
implications. Financial advisors have been hired for expected completion of transactions by end-October 2015. 
iii. Restructuring, under which we are developing medium-term action plans to restructure 
Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) and Pakistan Railways 
(PR). 
3.2 Economic Environment and Policies – Investment Policy, pp. 6, para. 3.8 
 
The Government Report specifies that "To further improve the investment climate in the country, Pakistan shall implement the following main features of the 2013-2017 policy: (a) public-private 
sector dialogue (PPD) for policy formulation;  (b) FDI generation and promotion campaign; 
(c) investment facilitation (one window operation); (d) development of special economic zones (SEZs); (e) coordination networks with stakeholders."  
Could Pakistan elaborate on what measures/plans are being currently forged concerning those 
"main features of the 2013-2017 policy" in regard to improvement of the investment climate?   
The Special Economic Zones (SEZ's) Act 2012 was approved by the Senate and National Assembly 
with an objective to develop the most disadvan tageous and less developed regions of the country. 
The advantages include; availability of infrastructure, business friendly environment, investor-
facilitation services to enhance productivity, reduced cost of doing business for economic 
development and poverty reduction.   WT/TPR/M/311/Add.1 
 
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  3.2 Economic Environment and Policies – Investment Policy, pp. 6, para. 3.11 
 As pointed out in the Government Report that "Pakistan offers sound opportunities for investment especially in oil and gas exploration, financial business, communications, construction and 
chemicals, which are major sectors for foreign direct investment in the country. There is bright 
potential for FDI in power, liquefied natural ga s (LNG), gas, infrastructure development and 
petro-chemicals' sectors. In addition, thetextile sector can attract local investment in the country 
after the GSP-plus status given by the European Union. Similarly, other sectors in manufacturing 
like electrical machinery, electronics,transp ort equipment (automobiles), rubber and rubber 
products, metal products, and leather and leather products have a potential to attract foreign investment into the country." 
 
Could Pakistani Delegation kindly explain the latest steps taken to improve the general security and stability within the country in detail, bearing in mind that it is one of the major criteria for 
foreign investors' investment decisions? 
 Answer: Government is aware of security issues and vigilant to tackle this menace. Government 
has launched successful military operation: Zarb-e-A zb against terrorism, which is yielding a very 
positive and encouraging results.  3.2 Investment Policy, page 6, para. 3.7 
 
It is mentioned in the Government Report that "The construction, housing, information technology and tourism sectors have been granted "industry" status, i.e. they are eligible for lower tax and 
utility rates than banks, insurance companies and other businesses that are considered a part of 
the "commercial sector"".  
Can Pakistan kindly provide further information ab out the advantages granted to the construction 
and housing sectors after being granted "industry" status?   Are there any similar advantages granted to architectural and engineering consultancy services?  
 
Answer: These are eligible for lower tax and utility rates than banks, insurance companies and 
other businesses that are considered a part of the "commercial sector". 
 
What are the shares of foreign/domestic investments within the total investment in the construction and housing sector? 
 
Answer: As per Investment Policy 2013, 100% foreign equity is allowed in all sectors however 
there are some caps in few sectors including construction sector.  
3.2 Investment Policy, pg. 7, para. 3.8 
 As stated in the Government Report, "To further improve the investment climate in the country, 
Pakistan shall implement the following main features of the 2013-2017 policy: (a) public-private 
sector dialogue (PPD) for policy formulation;  (b) FDI generation and promotion campaign; 
(c) investment facilitation (one window operation); (d) development of special economic zones 
(SEZs); (e) coordination networks with stakeholders." 
 Could Pakistan kindly clarify the details of mentioned policies? What are the roadmaps, main pillars, primary expectations and goals of each policy measure? 
 
Answer: Brief features of the policies are as under:  
 
a) Policy Formulation & Public-Private Sector Dial ogue: To foster Public-Private Partnership 
for investment promotion, a Public-Private Se ctor Consultative Dialogue (PPD) has been 
launched. PPD on priority Sector Advisory Boards i.e. Infrastructure-Communication, 
Agriculture-livestock-Fisheries-Dairies, Mi ning, Energy and Aviation have been 
constituted for policy consultation.  WT/TPR/M/311/Add.1 
 
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  b) FDI Promotion Campaign: Trade and marketing efforts through the participation in 
international conferences, seminars, sending and receiving delegations and to explore the possible joint ventures in Pakistan.  
c) Investment Facilitation (one window):For investment facilitation and acting as an 
intermediary between private investors and public sector authorities. BOI will act as 
coordinator between them under "One Window" for provision of all services and utilities to investors by concerned federal and provincial agencies.  
d) Development of Special Economic Zones (SEZ s): SEZs law enacted in 2012 with a view 
to establish industrial clusters in the country. SEZs would be established under Public Sector, Private Sector and Public-Private Sector. The Provincial Governments are front line players with BOI as its Secretariat. SEZs extend 10 years income tax holiday to both 
for zones developers and zones enterprises along with duty free import of capital goods. 
e) Coordination Networks with Stakeholders Ministries: Close interaction with Business 
Chambers/individuals, Commercial Counselors through Foreign Missions and Honorary 
Investment Counselors (HICs) are being further strengthened. Meetings and interactive 
sessions with visiting business delegations from different countries having interest for investment in Pakistan. 
3.6 Economic Environment and Policies – Tariff Rationalization, pp. 7, para. 3.18 
 It is stated in the Government Report that "Pakistan has undertaken a three-year process to rationalize its customs tariff. The objective of the rationalization process is to reduce the maximum 
tariff and the number of total slabs of tariff. Trad e policy reforms focus on simplifying tariff rates, 
phasing out SROs that establish special rates and/or non-tariff trade barriers in some 4,000 product areas, and improving trade relations should deliver the much needed competitive 
environment." 
 Turkey would like to commend Pakistan for setting  such an ambitious goal regarding phasing out 
numerous SROs that affect a very large number of product areas. Within this framework, 
could Turkey kindly request Pakistan to specify products/product areas which will be prioritized in the tariff rationalization process?  
Answer: At present, Pakistan tariff structure has six tariff slabs (between 1% to 25%) with few 
exceptions. The government is committed to bring number of tariff slabs from existing six to five during budget 2015-16 and to further reduce them to 4 by June, 2017.  
 
4.2 Strategic Trade Policy Framework, pp. 8, para. 4.2  
It is emphasized in the Government Report that "The salient features of STPF 12-15 to achieve its 
goals are as follows:    xi. increase exports from less-developed regions of Pakistan.. " 
 
Given the fact that attaching a particular impo rtance on the issue of the development of less-
developed regions of a country in economic and commercial terms, could Pakistan kindly explain 
that which policies are envisaged to be implemented for improving the export potential of 
abovementioned regions within the country?  
Answer: Focus of the STPF 2012-15 was to alleviate th e poverty in the under-developed areas by 
encouraging industrial activities by establishing  SEZs. In order to bring these under-developed 
areas in the mainstream economic activity the STPF 12-15 has focused on FATA, Gilgit-Baltistan Region and Balochistan. 
 
5.1.7 International Trade Liberalization – Trad e Remedy Laws, pp. 10, paras. 5.13 – 5.14 
 
It is specified in the Government Report that "…Pakistan initiated a major overhaul of the country's 
trade remedy laws in 2014. These laws have been sent to the Cabinet and shall be presented to the Parliament early 2015. Amendments and changes therein reflect best practices all over the WT/TPR/M/311/Add.1 
 
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  world employed by investigative authorities… During the period under review, 58 antidumping 
investigations were initiated and 31 measures were imposed."  Considering Pakistan as an active implementer of trade remedies, especially anti-dumping, during 
the period under review, could Turkey kindly ask for a clarification whether the Government 
of Pakistan has an intention to use the tool of trade remedies more actively following the said 
overhaul of related laws and regulations? 
 
Answer: In order to bring more transparency and consistency with WTO trade remedy 
agreements, the government of Pakistan has introduced new legislation. Changes in Trade Remedy Laws are: 
 
 Lesser duty rule has been added in Anti-Dumping and Countervailing Laws 
 No anti-dumping and countervailing duty will  be imposed on inputs solely used in 
exports 
 Rules for anti-circumvention investigation are added 
 Appeals against Initiation of investigation and preliminary determination are provided at 
Appellate Tribunal. 
5.2.1 International Trade Libera lization – Regional and Bilate ral Trade – Regional Trade, 
pp. 12, paras. 5.26 – 5.27   
It is remarked in the Government Report that "Pakistan signed a Framework Agreement on Trade 
with MERCOSUR in 2006, aiming at concluding a PT A leading to FTA to enhance trade… Pakistan is 
actively engaged in pursuing an FTA with the Gulf Cooperation Council (GCC)… Finally, Pakistan, 
along with the ASEAN, constituted a Joint Study Group (JSG) to explore the possibility of economic 
and trade integration…"  
Considering the fact that Pakistan believes preferential trade agreements (PTAs) are 
complementary to the multilateral trading system, could Turkey requests Pakistan to state whether the Government of Pakistan basically aims to focus on Trade in Goods or other noteworthy issues like Services, Investment etc. are also anticipate d to be included within the context of these 
agreements? 
 Answer: Conventionally, during the earlier phases of  PTAs negotiations, the main focus is on 
trade in goods. However, in order to make the bilateral arrangement into a more Comprehensive 
Economic Partnership, other issues like services and investment etc. are added depending upon the will and ambition of the Partners. 
 
7 WAY FORWARD-VISION 2025, pp. 16, para. 7.1  It is stated in the Government Report that, "The  Government's Strategic Development Plan aims at 
creating a globally competitive economy, focusing on macroeconomic stability through inclusive 
growth. Pakistan aims to achieve over 7% gr owth by FY2018, to address growing poverty and 
unemployment, while improving socio-economic indicators including health and education." 
 
Regarding the above-mentioned paragraph of the report, what kind of socio-economic measures are planned to be implemented in health and education sectors?  
 
Answer: Pakistan has to make significant leap forward in areas like education, health and social 
development to catch up with its peers. Vision 2025 presents a comprehensive approach to addressing human and social development gaps with an emphasis on developing human and social 
capital to take full advantage of Pakistan's youth bulge. WT/TPR/M/311/Add.1 
 
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  In addition, the Vision recognizes the rising po wer of a socially aware population and seeks to 
move towards a knowledge-based society with harmon y, ethics and values. It aims at substantial 
expansion in levels of education as well as improvements in the quality of education. A larger share of the GDP, at least 4% to education and at  least 3% to health, would have to be allotted. 
Key goals under this pillar are; 
 
 Universal primary education with  100% net primary enrolment. 
 Increase Higher Education coverage from 7% to 12 % 
 Increase proportion of population with access to improved sanitation from 48% to 90% 
Could the Delegation kindly provide information co ncerning the conditions of broadcasting foreign 
television programs, films and series on local platforms? 
 
Answer: According to Pakistan Electronic Media Regulatory Authority (PEMRA) a licensee can 
broadcast 10% foreign content including all kinds of films and series. 
 
Concerning the easy access of Pakistani people to qualified health services, could the Delegation kindly provide information regarding the conditions of cooperation with foreign health institutions? 
For example, are promotion activities performed by foreign health care providers or activities 
of foreign health liaison offices permitted in Pakistan?   Answer: Yes, such activities are permitted subj ect to coordination with the Ministry 
of Inter-Provincial Coordination (IPC).  
 
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