WT/TPR/M/311
13 May 2015
(15-2527)  Page: 1/34
Trade Policy Review Body 
24 and 26 March 2015 
 
  TRADE POLICY REVIEW 
PAKISTAN  
MINUTES OF THE MEETING 
Chairperson: H.E. Mr Atanas Atanassov Paparizov 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE RE PRESENTATIVE OF PAKISTAN ................................... 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 8  
4  STATEMENTS BY MEMBERS ........................................................................................ 11  
5  REPLIES BY THE REPRESENTATIVE OF PAKISTAN AND ADDITIONAL 
COMMENTS ..................................................................................................................... 29  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 33  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Pakistan are reproduced in document WT/TPR/M/311/Add.1 and will be available 
online at http://www.wto.org/englis h/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/311 • Pakistan 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The fourth Trade Policy Review of Pakistan was held on 24 and 26 March 2015. The 
Chairperson H.E. Mr Atanas Atanassov Paparizov (Bulgaria) welcomed the delegation of Pakistan headed by the Honourable Mr Muhammad Shehzad Ar bab, Secretary of Commerce; the rest of the 
delegation, including H.E. Ambassador Syed Tauqir Shah, Permanent Representative of Pakistan to 
the WTO; other colleagues from the mission in Geneva; and the discussant, H.E. Ambassador Abdolazeez Al Otaibi (Kingdom of Saudi Arabia). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Pakistan was contained in document WT/TPR/G/311 and that of the WTO Secretariat in WT/TPR/S/311. 
1.3.  The following delegations submitted questions before the deadline and had been transmitted 
to the delegation of Pakistan: Oman; Canada; Malaysia; Colombia; United States; Singapore; 
China; Mexico; Australia; Argentina; Japan; and the European Union. The following delegations submitted written questions after the deadline and ha d also been transmitted to the delegation of 
Pakistan: the Russian Federation; Thailand; the Re public of Korea; Peru; Nigeria; and Turkey. 
1.4.  The Chairperson was very pleased to note that despite a rather difficult environment, 
Pakistan's economy had proved to be resilient, an d had posted positive growth during the review 
period. Inflation rates had been declining, the current account deficit had decreased strongly, and 
the macroeconomic outlook was positive. 
1.5.  Pakistan also had one of the most liberal investment regimes in the region, with national 
treatment provided in all but five subsectors. However, various factors had resulted in declining 
FDI inflows. The Chairperson was sure that Memb ers would like to know how Pakistan hoped to 
overcome the main challenges restraining foreign investment. 
1.6.  With regard to the overall policy framework,  both the Government and Secretariat reports 
highlighted Pakistan's Vision 2025 which had the objective to make Pakistan an upper-middle 
income country by 2025. Both reports also underli ned the importance of the 18th constitutional 
amendment, which transferred political power to the provinces. Various Members sought 
information about the implications of this decentralization for trade policy formulation and 
implementation. 
1.7.  Pakistan had one of the lowest tax revenue to GDP ratios in the world; consequently, the 
country had been running persistent fiscal deficits. The low revenue collection could partly be 
attributed to a high number of tax exemptions an d the prevalence of Special Regulatory Orders or 
SROs which provided an ad hoc mechanism whereby existing legislation, including on tariffs and taxes, could be altered without recourse to the parliament.   
1.8.  These Special Regulatory Orders undermined the predictability and transparency of the trade 
regime and could encourage a culture of rent se eking. The Government and Secretariat reports 
stated that the Government of Pakistan planned to phase out tariff and tax-related SROs in the 
near future. Members were interested to know what progress had been made in this regard and 
what the Government's plans were. 
1.9.  Fiscal deficits were also exacerbated by the losse s of state-owned enterprises. In this regard, 
the Secretariat and Government reports mentioned a privatization plan. Members, the Chairperson 
was sure, would like to know more about this plan. 
1.10.  Since Pakistan's last Review, applied MFN tariffs  rates had slightly fallen. However, so-called 
regulatory import charges had been introduced on  a number of products, and duty-free tariff lines 
had been abolished.  
1.11.  Agriculture played a key role for employment and livelihoods, but was still of low overall 
productivity. The support regime for the agricultur e sector involved tariffs, support prices, input 
and export subsidies, as well as tax and tariff exemptions.  WT/TPR/M/311 • Pakistan 
 
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  1.12.  It was with much interest that the Chairperson had taken note of various reforms since 
Pakistan's last TPR in 2008, such as the adop tion of a National Procurement Strategy, the 
enactment of legislation on Special Economic Zone s, the strengthening of the competition policy 
framework, and improvements in the transport su bsector. In this context, many Members had 
taken note of Pakistan becoming an observer  to the Government Procurement Agreement in 
February. On the other hand, various systemic issues had also been raised, such as the lack of certain notifications, the high protection for the automobile sector, and a wide array of production 
incentives and export benefits. Members would appreciate if Pakistan could provide some details 
and rationale for these measures.  
1.13.  The Chairperson was sure that these topics and themes, and many more, would be touched 
upon in greater detail at the deliberations on the first and second day of the meeting.  
1.14.  The Chairperson closed his introductory remarks by wishing Pakistan a very successful 
fourth Trade Policy Review. He looked forward to its active engagement in this TPR. 
1.15.  He also noted that a podcast would be made which could be accessed on the Members' 
website. WT/TPR/M/311 • Pakistan 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF PAKISTAN (HONOURABLE 
MR MUHAMMAD SHEHZAD ARBAB) 
2.1.  I would like to begin today by thanking the Chairman, Ambassador Paparizov; our discussant, 
Ambassador Al-Otaibi; as well as the Secretaria t for their support and encouragement during our 
Trade policy review. 
2.2.  We believe that this periodical exercise is an excellent opportunity for Pakistan; it acts as a 
catalyst for change, invites greater openness and transparency in trade policy formulation, as well 
as an impetus for Pakistan to move forward in its reform process.  
2.3.  We are grateful to the Members for their interest in this review. We have received over 
200 questions so far and have responded in writing. Our team from the Capital, various Ministries as well as the Mission have done th eir best to ensure that we continue to respond to all questions.  
2.4.  Pakistan is an active Member of the WTO and a believer in the benefits of multilateralism in 
an increasingly polarized world order; we take this opportunity to reaffirm our commitment to the advancement of better and more trade through rules that are agreed to by all Nations.  
2.5.  We continue to engage meaningfully with the WTO, and are ardent supporters of the Doha 
round of negotiations. We believe that the successful completion of the Doha round would have more of an impact on world order and stability than any political agreement.  
2.6.  This is Pakistan's fourth Trade Policy Review since the establishment of the WTO and is being 
held at a time when the world is faced with many challenges, as is Pakistan. 
2.7.  The three biggest challenges to our economic and social growth are the ongoing security 
concerns, acute energy shortages and natural calamities. The scourge of terrorism that manifested 
in a chilling attack on school-going children in December 2014 in Peshawar, my hometown, had 
the potential to break our spirits; yet we are moving along, slowly but surely, with collective determination and greater national resolve.  
2.8.  Despite this backdrop, the economy has recorded a real GDP growth of 4.1%, the highest in 
five years and is projected to reach 5.1% by end of the Fiscal Year 2014-2015. Since the last trade policy review, Pakistan has experienced historic political developments which included the first 
orderly transition from one democratically elected Government to another in May 2013, the 18th 
constitutional amendment devolving a number of fe deral functions to the provinces, and the 7th 
National Finance Commission Award which redistribute d and shifted greater funds to the Provinces.  
2.9.  The new Government has set in motion a major reform agenda, particularly focusing on 
revival of the economy. Pakistan's key attractive qualities lie in its investment policies, growing 
Financial Markets, trade connectivity due to our unique geographical placement with the world's two major trade hubs and finally, a growing consumer market comprising 180 million + people out 
of which two-thirds are under the age of 30.  
2.10.  A significant move forward in Pakistan's trade policy formulation has been the replacement 
of an annual trade policy by a 3-year Strategic Trade Policy Framework (STPF). Currently, we are 
in the process of formulating our third Policy Fram ework and intend to use the input from the TPR 
for better cohesion with our WTO commitments as well as plans to further expand trade. Some of the largest shifts that have taken place in the realm of trade policy formulation and implementation is the rapidly changing landscape on social compliance, namely Labour, 
environment as well as enhanced transparency laws.  
2.11.  In the area of trade and environment, Pakistan has ratified many key environmental 
agreements. While a "green economy" has been a part of the Policy Framework 2012-2015, these 
new agreements shall ensure that Pakistan prov ides a fertile ground for a new generation of 
products and services. In this regard, a "National green export strategy" is being formulated.  
2.12.  Secondly, Pakistan is fully committed to enhancement of better working conditions for its 
labour force by continuing to implement the ILO's core labour conventions. Through the "Decent 
Work Country Programme", we have developed priorities for access to viable employment for WT/TPR/M/311 • Pakistan 
 
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  vulnerable groups, enhanced social protection coverage, provisions for strong and independent 
workers organizations, and elimination of child labour including its worst forms. Pakistan is sending strong signals that we are committed to moving away from the "business as usual model" and towards fair and equitable labour standards. 
2.13.  Another critical area for even-keeled social and economic development is the integration of 
women into the economy by providing sustainable and meaningful livelihoods. We continue to focus on the prevention of violence against wo men, reduction of gender inequalities, primary 
education and maternal health care, as well as fuller participation in the political arena. The 
Government has put in place programmes to target major bottlenecks such as lack of finance, restrictions on mobility, discrimination at the workplace, as well as providing entrepreneurial skills, and market access opportunities for women.   
2.14.  A key theme that we have witnessed in this review process is the matter of transparency. A 
few positive but strong developments that we are proud of are as follows. Firstly, on the nexus between transparency and the public sector, we ar e in the process of incorporating the Convention 
against corruption into our domestic legislation. Secondly, our commitment to streamline more 
transparency into public procurement systems is  evidenced by becoming an observer to the 
Government procurement agreement (GPA) at the WTO 
2.15.  Thirdly, on transparency and competition, the Competition Commission of Pakistan is fast 
becoming a guarantor of investment and ensuring protection against cartelization. Speedy legal proceedings and efficient tribunals, a transparent Board and a core team are responsible for ensuring a new age of doing business in Pakist an. Major interventions made in the automobile, 
private airlines and energy sectors are some exampl es to illustrate the commitment and vision of 
the Government to promote genuine competitiveness.  
2.16.  The most important elements in this quinte t are the relationships between transparency, 
investment and the effective protection of intellectual property rights. The sole vision of 
Intellectual Property Rights Organisation of Pakistan is that we become a model nation guaranteeing protection of investment and enfo rcement of IPRs. Pakistan  has revamped key IP 
legislation to ensure that all investments are protected and promoted in a manner conducive to 
21st century business models. The Organization has deep linkages with the Federal Investigation Agency and Customs for smooth working procedures and effective enforcement. Another recent achievement is the establishment of tribunals in major economic centres for resolution of IP 
disputes. 
2.17.  On the relationship between Transparency and SROs, Pakistan has undertaken to eliminate 
all discriminatory SROs granting tax exemptions by the end of the fiscal year 2016-2017. As a 
giant step forward, in the fiscal year 2013-2014 alone, we have abolished exemptions and 
concessionary SROs worth over US$1 billion and no new concessionary SROs have been issued till date. In addition, we are preparing the necessary legislation to permanently prohibit the practice. 
2.18.  Closely related to enhancing external trade as well as better facilitation is the matter of tariff 
rationalization. This exercise will result in a coherent and clean tariff structure which facilitates the ease of doing business in Pakistan. The process was initiated in the fiscal year 2013-14 when the 
number of slabs was reduced from seven to six. Our aim is a simple and transparent framework 
having a maximum of four slabs by July 2017.  
2.19.  As Members are aware, Pakistan has been a key contributor to the conclusion of the Trade 
Facilitation Agreement. According to one estima te, proper implementation has the potential to 
create 21 million new jobs world-wide and we are looking forward to increased coordination with 
the WTO and Member States. We have also requested the WTO for a need assessment to demonstrate our seriousness in wishing to fully implement this Agreement; we have provided our 
category "A" notifications and we will deposit the in strument of ratification as soon as possible.   
2.20.  Two institutions that will promote stronger trade relations and help businesses deal with 
disputes are the National Tariff Commission and the Trade Dispute Resolution Organization. We 
are in the process of revamping the National Tariff Commission as a priority; the Government has 
taken the first step by promulgating four trade remedy laws and procedures that are in greater WT/TPR/M/311 • Pakistan 
 
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  compliance with WTO laws and procedures. This is geared towards helping businesses operate 
smoothly without undue government interference and inordinate delays in obtaining redressal.  
2.21.  The Government has also established the Trade Dispute Resolution Organization and is 
taking steps to provide efficient settlement of trade disputes between foreign and local businesses.  
2.22.  I will now draw your attention to the efforts undertaken to improve our economic policy and 
environment. Our comprehensive reform agenda is  focused on inclusive economic growth. We aim 
to maintain price stability, provide jobs to our youth and rebuild key infrastructure of the economy 
through removal of energy shortages, management  o f  c i r c u l a r  d e b t  i n  t h e  e n e r g y  s e c t o r  a n d  
privatization of public sector enterprises.  
2.23.  Pakistan's macroeconomic indicators have shown visible signs of improvement. The 
economy grew by 4.1% in fiscal year 2013-14 as compared to 3.7% during the previous financial 
year. Inflation has remained in the single digit for over a year. For the current fiscal year GDP 
growth target has been set at 5.1%. The international financial institutions are also acknowledging the positive improvements in our economy. 
2.24.  We are presently engaged with the Internatio nal Monetary Fund (IMF) under an Extended 
Fund Facility (EFF) amounting to US$6.64 billion. We have successfully completed five quarterly reviews and are on track as far as prior actions, benchmarks, and policy actions for the sixth 
review are concerned.  
2.25.  Pakistan recognizes that an improved monetary policy framework requires central bank 
autonomy. We are thus taking both legislative and non-legislative measures for better internal operations and enhance the autonomy of the State Bank of Pakistan. The reserves, which were at 
the lowest level of US$7.58 billion in February 2014, have increased to over US$16 billion in the 
current month.  
2.26.  Fiscal consolidation is one of the major objectives of our economic programme. In the 
year 2014, fiscal deficit was recorded at 5.5% of GDP against 8.2% for the previous financial year. 
The budget deficit has been brought down successfully through prudent expenditure management strategy. Additionally, the Government is followin g a comprehensive resource mobilization strategy 
with the aim to increase tax-to-GDP ratio to 15% by the fiscal year 2017-18. It comprises 
broadening of the tax base, removing anomalies in the taxation system, improving tax compliance, eliminating the SRO regime and developing an integrated, risk-based IT system for all taxes. Resultantly, our tax collection posted a healthy growth of 16.4% in the last financial year.  
2.27.  On social protection, the Benazir Income Support Programme was launched in July 2008 
with the objective to protect the most vulnerable segments of society through the provision of cash transfers. The Nationwide Poverty Scorecard Survey prepared for the programme 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 Programme has disbursed more than PKR 269 billion among its 4.83 million beneficiaries so far.  
2.28.  To cater to growing demands, we are in the process of legislating three separate bills for 
regulating the financial sector, namely the Futures Trading Bill, the Deposit Protection Fund Act as well as the Corporate Restructuring Companies Act.  
2.29.  The Government has developed the National Power Policy (2013) which envisages a 
roadmap for providing affordable energy in the country through an efficient generation, 
transmission and distribution system. We are pursuing a time-bound strategy to tackle price distortions, insufficient collections, costly and poorly targeted subsidies.  
2.30.  We are also trying to address the issues of energy conservation, governance, regulatory 
deficiencies, low efficiency in energy supply, di stribution, and privatization of government-owned 
power generation and distribution companies.  
2.31.  Under the public sector enterprises reform  strategy, the Government is focused on 
improving corporate governance, restructuring public sector enterprises, and Strategic WT/TPR/M/311 • Pakistan 
 
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  Partnerships through Privatization. The recent divestment of United Bank Limited, Allied Bank 
Limited and Pakistan Petroleum Limited has attracted an encouraging response.  
2.32.  In view of these developments, the multilateral  donors and international markets have also 
reposed confidence in Pakistan's economic future which will go a long way in building up a strong 
economy. We have successfully completed two major transactions in international capital markets. 
These include two Euro bond transactions of US$1 billion each and a Sukuk transaction of US$1 billion.  
2.33.  Consequently, a revival of investor confiden ce has been captured in better returns on 
investment in the Karachi stock market. The stock market witnessed its highest level in history and is presently trading above 33,000. In terms of market capitalization, it improved from US$51.3 billion in May 2013 to US$73.8 billion by 2 March 2015 thus posting a growth of 43.9%. 
2.34.  In the short span of less than two years since this Government was elected, we have made 
noticeable improvements in our trade and economic conditions. Clearly, there is a long road ahead of us. Our structural and institutional reforms for an open trade and investment regime shall bear 
results and we look forward to securing cooperation from our trade partners to improve our 
competitiveness and business environment.  
2.35.  I would like to end my statement by reminding the Members that multilateral trade 
negotiations remain a top priority for Pakistan. Although it has been more than a decade since the 
Doha Round was launched, we firmly believe that the WTO is the only forum which can help create a level playing field for the poorest segments in the developing world, including millions of resource-poor farmers in Pakistan.  
2.36.  The Bali ministerial provided an opportunity to reinvigorate the Doha Round and we expect 
that the deadline set by our Ministers for developing the post-Bali work programme by July this year will be met.  
2.37.  For Pakistan, meaningful market access in Agriculture, NAMA and Services remains a 
priority and we look forward to seeing these issues addressed effectively in the work programme. 
2.38.  I thank you and look forward to a fruitful discussion over the next two days. WT/TPR/M/311 • Pakistan 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I warmly welcome the delegation of Pakistan, headed by H.E. Mr Muhammad Shehzad Arbab, 
Secretary of Ministry of Commerce and would like to greet H.E. Dr Syed Tauqir Shah who has recently moved to Geneva offering him our full support and cooperation. I am honoured to take 
part in the fourth Trade Policy Review of Pakistan as a discussant. Pakistan symbolizes "the land of 
pure" because of its natural beauty and has been th e centre of the great Indus Valley civilization 
dating back at least 5,000 years. 
3.2.  Pakistan's economy has shown resilience despite daunting challenges entailing security 
issues, global economic crisis and massive earthquake in 2008, and annual floods since 2010. 
3.3.  Real GDP growth averaged nearly 3.2% annua lly during the period under review, and is 
expected to be in excess of 4% in 2014-15. According to the April 2014 World Bank's report, 
Pakistan's economic activity is gradually improving, driven mainly by services and manufacturing 
sectors. Acceleration in growth of large-scale manufacturing came from strong performance of 
agro-based industries, iron and steel, construction, and external demand-driven cotton yarn- and 
fabrics-based textiles.  
3.4.  Due to its population of around 186 million, Pakistan has one of the largest labour and 
manpower resources in the world. The size of the labour force was about 60 million in 2012-13, 
making it the ninth largest country by available human workforce. About 43% of this labour is 
involved in the agriculture sector, 20.3% in indu stry and the remaining 36.6% in other services. 
3.5.  Like any economy, Pakistan has some serious challenges. These challenges include power 
shortages, weak fiscal position, significant expend itures covering losses of state-owned enterprises 
and lack of investment. In order to face these ch allenges, the Government of Pakistan should be 
commended for undertaking some remedial measures such as fiscal consolidation measures, 
improved tax collection leading to decrease fiscal deficit from 8% of GDP to 5.3% in 2013-14. In 
addition, other remedial measures such as underta king public sector enterprises' (PSEs) reform, 
tariff reform and improving the business climate, nd reform and restructuring of the energy and power sectors are noteworthy.  
3.6.  Trade continues to play an important role. Although exports are heavily concentrated; textiles 
in clothing and agriculture accounting 70% of exports, we see some diversification in products such as leather goods, sportswear, cement, tile s, marble, surgical instrument, etc. Promoting 
export dynamism remains a fundamental challeng e for sustainable improvement in the external 
trade balance.  
3.7.  Before taking a look at Pakistan's trade policy framework, I would like to highlight the 
significant political developments in the country. In 2010, under the 18th constitutional 
Amendment, institutional reforms have taken place aiming for more balanced sharing of powers 
and responsibilities between the federal governme nt and the provinces in a number of key areas 
such as agriculture, environment, social servic es including education and health. Through these 
reforms, the Government's objectives are to bring services closer to people through promoting 
more equitable governance, and removing key concerns of corruption and lack of accountability. 
3.8.  When it comes to Pakistan's trade policy fram ework, I am pleased to underline that during 
the review period, Pakistan has undertaken extensive reforms to deregulate, privatize and 
liberalize its economy. In 2014, the Government has launched the Pakistan Vision 2025 with the 
objective to make Pakistan an upper-middle income country and among the top ten economies by 2047. In 2013, the Government announced its three-year Strategic Trade Policy 
Framework 2012-15 to increase and promote exports. 
3.9.  As an original Member of the WTO, Pakistan's commitment to the multilateral rules-based 
trading system demonstrates its pro-active and constructive role in the DDA negotiations, 
especially in market access, rules, and trade faci litation. Besides the WTO, Pakistan is active on 
regional and bilateral fronts. In recent years, it had expanded its network of regional and bilateral free-trade agreements, most notably with Asian partners like China, Malaysia, Iran, Indonesia, Mauritius and Sri Lanka. It is also pursuing a joint FTA study with ASEAN and Japan while WT/TPR/M/311 • Pakistan 
 
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  negotiating with the GCC. In addition, Pakistan is  actively engaged in South Asian Free Trade Area 
(SAFTA).  
3.10.  Pakistan has one of the most liberal foreign investment regimes in South Asia. However, FDI 
has remained tepid during the review period. This can be attributed to security challenges, chronic 
energy shortages, and cost of doing business. I am  quite satisfied of seeing that the Government 
of Pakistan, which is fully aware of these challenges, had set an investment policy aiming to achieve a progressive increase in net FDI inflows to reach US$5.5 billion in 2018. In addition, 
Foreign Direct Investment Strategy 2013-17 has been established to facilitate and to promote FDI.  
3.11.  In this context, I would like to draw your a ttention to some of the Pakistan's trade policy 
measures which deserve noting.   
3.12.  Since its last Review in 2008, Pakistan has continued its tariff liberalization process. Its 
simple average applied MFN tariff had fallen slightly from 14.8% in 2008 to 14.3% in 2014-15. All 
but 45 tariff lines are ad valorem . Since July 2014, Pakistan no longer has duty free tariff lines. 
Almost 98% of tariff lines are bound with an average rate of 61.5%.  
3.13.  Pakistan should be credited for undertaking a three-year process to rationalize its customs 
tariff. The objective of the rationalization process is meant to deliver the much needed competitive 
environment through reducing the high tariffs and the total tariff's slabs, besides phasing out the 
Statutory Regulatory Orders.  
3.14.  Pakistan has shown its support for the Trade Fa cilitation Agreement (TFA) by submitting its 
category "A" list to the WTO. Customs was also  being reformed and automated, with clearance 
times generally shortened. World Bank's survey places Pakistan at 91 in the ranking of 
189 economies on the ease of trading across borders. 
3.15.  Since its last Trade Policy Review, Pakistan has been involved in two disputes at the WTO; in 
the first as a complainant and in the second as a respondent. Pakistan has also 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.  
3.16.  In measures regarding SPS matters, initiatives regarding capacity building and SPS 
management system were undertaken; the Pakistan Bio-Security Authority Bill and Food Safety and Phytosanitary Laws have been approved and a National Food Safety, Animal, and Plant Health Regulatory Authority is currently being established for better coordination.  
3.17.  A National Procurement Strategy was launc hed in 2013 which aims to make public 
procurement processes more efficient and transparent. Competition policy has been considerably strengthened through the adoption of a Competition Act in 2010. Pakistan initiative to join the 
Government Procurement Agreement (GPA) as an observer is a step in the right direction. 
3.18.  State intervention and ownership is being mini mized especially in energy and key services 
like banking, insurance and transportation. In October 2013, the Government published a new list 
of 32 companies to be privatized.  
3.19.  Pakistan should also be credited for strengthening protection of intellectual property rights. 
The Government has significantly invested in  IP awareness and enforcement, including 
coordination.  
3.20.  Turning to trade policies by sector, agriculture is the backbone of Pakistan's economy 
contributing 21% to the GDP and employing ab out 44% of the country's workforce. While 
livestock's share of agricultural value added increased from 30% in 1990-91 to 53% in 2013-14, 
the crop sub-sector gradually declined from 65% to 43% over the same period. It seems that 
productivity loss is due to small-scale land holding owned by resource-poor farmers and coupled by income losses due to natural disasters.  
3.21.  These challenges are reflected in the country trade regime through a number of various 
measures such as the formulation of a new Agriculture and Food Security Policy in November 2014 WT/TPR/M/311 • Pakistan 
 
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  and a set of policy for halving malnutrition by 2030  and bringing food insecurity to zero by 2050. 
Furthermore, one of the goals of the Strategi c Trade Policy Framework 2012-15 is the promotion 
of processed agricultural products and their export. 
3.22.  With regard to energy, Pakistan's energy shortage and electricity cuts have become a 
pressing economic challenge. Power generation, transmission and distribution are generally not so 
efficient. Electricity prices are usually insufficient to cover production. In order to solve this pressing problem, the Government has formulated a National Power Policy to increase energy 
supply and reduce reliance on fossil fuels for electricity production.  
3.23.  Manufacturing sector contributes more than 20% to Pakistan's GDP and employs some 14% 
of the labour force. The Government attaches particular importance to the manufacturing sector which includes marketing assistance, incentives, and standards certification. To spur economic 
activities, the Government established export proc essing zones. In addition, it recognizes the 
considerable challenges that need to be addre ssed, such as the high cost of doing business, 
outdated technologies, unskilled labour, power cuts and high electricity prices. As a consequence, 
many producers have opted for alternate sources of energy such as captive power plants and 
diesel-run generators.  
3.24.  Turning to the services sector, it contributes nearly 58% to GDP. Pakistan is a net importer 
of services, although the deficit has been declining over the past years. Its commitments under 
the GATS cover a wide range of activities. The financial services sector has shown resilience in a challenging macroeconomic environment, and the stock market has performed remarkably well. 
The telecom sector has grown strongly since Pakistan's last Review, mainly driven by mobile 
subscriptions.  
3.25.  To conclude, through this long presentation, I have covered a lot. But given the size and 
scale of Pakistan's economy, it may not have been  sufficient. Considering al l of these dimensions, I 
should share with the audience my satisfaction of seeing the resilience of Pakistan's economy, the 
great potential of its trade and investment policies, and the active role that Pakistan has assumed in regional and global forums and at the WTO in particular.   
3.26.  I wish Pakistan a successful review. Thank you.  WT/TPR/M/311 • Pakistan 
 
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  4  STATEMENTS BY MEMBERS 
OMAN 4.1.  Oman and Pakistan have long-standing multi-dimensional relations. We have historical, 
cultural and fraternal relations going back hundreds of years. Pakistan is not only a close 
neighbour of Oman but also an important trading partner. 
4.2.  We are pleased to note that Pakistan's economy has shown resilience despite a challenging 
environment and that it is recovering from a difficult period. The GDP growth rate has shown an 
improvement last year. We hope it will continue this year and beyond. 
4.3.  The Vision 2025 aims to make Pakistan an upper middle income country within 10 years. It's 
an ambitious target and we wish Pakistan success in its plans and policies. 
4.4.  Pakistan is one of the oldest Members of the multilateral trading system. It was a founding 
Member of both the GATT and the WTO. The delegation of Oman commends Pakistan on faithfully 
adhering to the multilateral trading system which it considers to be the cornerstone of its trade 
policy. Pakistan supports an open, fair and rule-based trading system. It is also an active 
participant in the Doha Round negotiations, and supports an early and successful conclusion of 
negotiations. 
4.5.  We note that, like Oman, Pakistan has bound almost its entire import tariff. However, unlike 
Oman, the average bound rate is rather high and the gap between bound and applied tariff is quite 
wide. 
4.6.  We have previously submitted to Pakistan ques tions about how it plans to widen its export 
base and would like to thank them for the answers provided.  
4.7.  To conclude, the delegation of Oman wishes the delegation of Pakistan a very successful 
Trade Policy Review. 
CANADA 
4.8.  I commend Pakistan for its overall economic performance in recent years. Indeed, between 
2007 and 2014, Pakistan's economy grew by 3.2% annually and its current account deficit decreased, despite a tight security environment, the global economic crisis and numerous natural 
disasters. Pakistan continues to meet its IMF commitments, which is an impressive outcome 
knowing the discipline that is required. I admire  Pakistan's ambition to increase exports to 
US$95 billion by 2015, and to transform itself into an upper income country by 2025 and a top ten economy by 2047. 
4.9.  In contrast, it appears that Pakistan has also pursued a number of policies that still call into 
question its support for open markets and international trade. The consequence is that Pakistan's growth is less than it could achieve. Let me high light three areas where we consider that Pakistan 
could make improvements. 
4.10.  Firstly, Pakistan's growth requires a favourable environment for business. The objective of 
the Government is to achieve a progressive increase in net Foreign Direct Investments (FDI) to 
reach US$5.5 billion in 2018. But despite allowing 100% FDI in most sectors, there are a number 
of worrying factors, including precarious security, chronic power and gas shortages, a high level of 
corruption, a high cost of doing business, and poli tical interference in the business activities of 
foreign companies, particularly in the extractive sector. For FDI to reach the Government's target 
for 2018, Pakistan should find ways to provide better guarantees to investments made by 
companies, whether by negotiating Foreign Inve stment Promotion and Protection Agreements 
(FIPAs) or by other signals, such as applying for and achieving "applicant status" under the 
Extractive Industries Transparency Initiative (EITI).  
4.11.  Secondly, the Government's overall policy objectives for the agricultural sector are, as noted 
by the Secretariat, to achieve food security and increase the sector's growth. In this connection, 
Canada values highly Pakistan's very constructive contributions here at the WTO to the ongoing WT/TPR/M/311 • Pakistan 
 
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  negotiations on public stockholding for food secu rity purposes and on agricultural issues more 
generally. But, here too, running against this positive element is Pakistan's discretionary import ban on livestock products, including from Canada, which deprives Pakistan's own farmers of enjoying the continuing benefits, and growth, that  would flow from the husbandry of competitive 
and high-performance animals. Even before this  review, we have repeatedly requested that 
Pakistan lift the ban to avoid jeopardizing cooperation and beneficial bilateral trade and we urge it again today to do so. This should be accompanied by reducing subsidies for certain products and 
eliminating certain export prohibitions. These are essential steps to ensure trade and growth in 
this important sector.  
4.12.  Thirdly, as noted by the Secretariat and the di scussant, Pakistan has entered into free-trade 
agreements with numerous countries, including China, Indonesia, Malaysia and Iran, and this 
should contribute to the country's overall growth. However, in spite of a recent revitalization of 
Pakistan's bilateral trade relations with India, which has led to a boost in trade, more can be done to improve economic ties. For instance, and at a minimum, Pakistan should provide most-
favoured-nation (MFN) treatment to India, to further contribute to Pakistan's growth. We welcome 
the media report that your High Commissioner to India has stated that Pakistan is ready to grant India the status of "non-discriminatory market access", which I understand is almost the 
equivalent of MFN, as a st ep in the right direction. 
4.13.  Pakistan deserves praise for the reduction of its MFN tariffs. Most notably to us, exports of 
raw and semi-processed wood, which have seen a yearly increase of 22% since 2010, are expected to continue to grow even more with th ese reductions. We encourage Pakistan to expand 
its tariff reduction commitment to go to 0% on all solar-related products entering the country. And 
I echo the Chair's concern about the imposition of import charges. 
4.14.  Finally, returning to the business environment, Pakistan has recently taken a variety of 
measures to address corruption and to reduce its devastating effects on the economy. In addition, 
as the Chair noted, Pakistan was granted observ er status at the 11 February meeting of the 
Committee on Government Procurement. We applaud these steps but cannot help but note that 
Pakistan still ranks 128th out of 189 economies in the most recent World Bank's Ease of Doing 
Business survey and 126th out of 175 in Transparency  International's Corruption Perception Index. 
Continuing efforts are required. 
4.15.  We prepared a series of questions and we are looking forward to receiving Pakistan's 
responses. We wish the Pakistani delegation success with this policy review. 
MALAYSIA 4.16.  To begin with, Malaysia commends Pakistan on its economic achievement which recorded a 
real GDP growth of 4.1% in 2014; the highest in five years and is projected to reach about 4.3% 
in 2015.  
4.17.  It is a credit to the Government that the turnaround in growth has been supported by strong 
fiscal consolidation, strengthening revenue generati on, investments in energy, increase in foreign 
remittances and improvement in large-scale ma nufacturing. We noted that total growth is 
expected to rise to approximately 5% in the medium-term due to easing fiscal adjustment and improvement in structural constraints in the energy sector, public enterprises and the investment 
sector. 
4.18.  At the multilateral level, Malaysia commends Pakistan's strong support of the WTO and DDA 
negotiations, in particular in the conclusion of the Agreement on Trade Facilitation. We are 
confident that Pakistan, along with other Members, would contribute towards a meaningful 
outcome of the current Doha negotiations. 
4.19.  Malaysia and Pakistan enjoy a robust and interlinked economic relationship. Pakistan was 
Malaysia's second largest trading partner, third largest export destination and the 2nd largest 
source of imports in 2013. We look forward to improvements in terms of investments by both sides, as both countries have a lot to offer in mutual benefits. WT/TPR/M/311 • Pakistan 
 
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  4.20.  Since 2007, the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) has 
enhanced bilateral economic relations between both countries in creating opportunities for bilateral collaboration in various areas. The FTA is now in its 9th year of implementation and trade performance between Malaysia and Pakistan has been  positive. In terms of value, Malaysia's total 
exports under the FTA in 2013 were US$1.8 billion wi th the biggest export being palm oil and palm 
oil related products.  
4.21.  Malaysia has submitted a series of written questions and we would like to thank the 
Delegation of Pakistan for the respective answers received.  
4.22.  While welcoming the trade initiatives and further liberalization undertaken by Pakistan over 
the review period, Malaysia is seeking further clarification from Pakistan on its trade and trade-related policies and measures in particular on import ban of poultry and certain bovine products. 
Thus, we encourage Pakistan to review the measures with a view to simplifying the procedures so 
as to better facilitate trade and businesses 
4.23.  I wish the delegation of Pakistan a very pr oductive and successful fourth Trade Policy 
Review. 
COLOMBIA 
4.24.  Pakistan's economy performed well during the period under review, with average growth 
rates of 3.2%. This was achieved despite the security problems and the major natural disasters 
that affected its economic environment. The economy has grown steadily and progressively since 2010, and this is expected to continue as a result of policies aimed at strengthening the manufacturing sector and boosting the services sector. 
4.25.  Of particular interest were Pakistan's positive economic results in terms of decreasing rates 
of unemployment and inflation as well as a decline in the levels of illiteracy and poverty, which contributed to the country's improved ranking in the United Nations Human Development Index. 
4.26.  Pakistan is currently facing competitiveness problems linked to power supply, high fiscal 
indebtedness, lower foreign investment, widespre ad tax evasion and corruption. However, the 
current Government is aware of this situation and has taken structural measures to increase 
government stability, reduce state intervention, and introduce tariff and tax control reforms in 
order to improve the country's policy and trade environment. 
4.27.  As regards foreign trade, the Secretariat report shows that goods exports from Pakistan 
mainly consist of agricultural products, textiles and clothing, which account for 70% of the total, 
with fuel making up 34% of total imports. We note that this high concentration of Pakistan's 
foreign trade makes the country very vulnerable to changes in world prices and other factors affecting trade in these products. 
4.28.  Pakistan has a liberal regime for attracting fo reign direct investment. However, the country 
has seen no more than a tepid increase in FDI due to infrastructural and security problems. We hope that the ongoing reforms will allow it to take advantage of its large pool of natural 
resources and skilled labour. 
4.29.  As regards developments in the trade policy under review, there has been effective 
inter-institutional coordination in formulating and implementing this policy. This is reflected in Pakistan's active participation in the Doha Round negotiations, the conclusion of regional 
integration agreements, cooperation with Afghanistan to facilitate transit and the use of Pakistani 
ports, the establishment of a National Food Safety , Animal and Plant Health Regulatory Authority, 
a customs modernization programme with a view to creating a Single Window, and implementation 
of an electronic system for goods clearance and risk management. 
4.30.  We agree that the use of ad hoc trade policy instruments, such as the Statutory Regulatory 
Orders (SROs), along with the complex tariff stru cture, undermines predictability and hence access 
to the Pakistani market. Although a number of SR Os were eliminated in 2014, some still remain, 
particularly in the agricultural sector. WT/TPR/M/311 • Pakistan 
 
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  4.31.  Lastly, we encourage the Government of Pakistan to finalize and submit notifications on 
domestic support for agriculture and SPS measures. This would lead to increased transparency and monitoring, both of which are vitally important for the review process and the regular work of the WTO Committees. 
4.32.  The Colombian Government recognizes the improvements made to Pakistan's economic 
fundamentals and hopes that Pakistan achieves the goals outlined in its "Vision 2025" strategy, 
so that it can become an upper-middle income country by 2025 and one of the world's top ten 
economies by 2047. 
UNITED
 STATES 
4.33.  The United States views Pakistan as an important partner – not just on trade issues but also 
on issues of global importance such as combating terrorism. We are committed to this partnership 
and the trade relationship between our two countries. The overwhelming success of the 
March 2015 U.S.-Pakistan Economic Partnership Week, featuring the visit of the U.S. Secretary of Commerce Penny Pritzker to Islamabad, is a recent example of this commitment.   
4.34.  We appreciate that this TPR covers a period of time when Pakistan has needed to dedicate 
significant resources to address security concer ns and respond to natural disasters, at times 
diverting resources from its economic development.  My comments today, therefore, are offered in 
the spirit of constructive engagement with full recognition of Pakistan's challenge of keeping its 
population safe while addressing the reforms needed to increase trade and investment while also respecting WTO rules.  
4.35.  The United States commends Pakistan for its first-ever transfer of power of 
democratically-elected governments in 2013 and reco gnizes the impact of political stability on 
economic performance. As observed by the Se cretariat, the subsequent passage of the 18th 
amendment rebalances powers between government branches and federal and provincial entities. 
While we recognize that devolution brings opportunities for improved local governance, we urge 
provincial officials to respect trade-related commitments taken at the federal level and refrain from imposing additional barriers to trade. 
4.36.  The United States echoes the comments of the Secretariat by acknowledging the resiliency 
of the Pakistani economy. The country has experi enced steady economic growth – GDP growth has 
accelerated each year for the past four - and gradually improving macroeconomic stability. This growth and stability are in large part due to well-grounded economic policymaking and adherence 
to IMF-prescribed reforms. We recognize Pakistan's strong performance in the sixth quarterly 
review of its IMF programme and encourage Pakistan to keep pressing forward with economic reforms that make Pakistan a more attractive trade and investment partner. Yet fiscal gaps and 
tax collection shortfalls remain. We concur with the Secretariat's concern regarding the prevalence 
of statutory regulatory orders (SROs) and their deleterious effect on fiscal accounts. We welcome the Government of Pakistan's efforts to begin phasing out SROs and look forward to continued 
progress on eliminating SROs that had established special rates and non-tariff trade barriers in 
some 4,000 product areas. 
4.37.  Bilateral trade between the United States and Pakistan, while healthy by any measure, still 
shows room for expansion. In 2008, our bilateral trade in goods was US$5.5 billion. During the 
period covered by this report, that balance has slightly decreased to US$5.2 billion for 2014. U.S. 
imports from Pakistan were US$3.6 billion in 2008 and grew to US$3.7 billion in 2014. U.S. exports to Pakistan were US$1.9 billion in 2008 and fell 20%, to US$1.5 billion in 2014.  
4.38.  During the period under review, the United States has been the largest direct investor in the 
Pakistani economy, with over US$2.2 billion invested from FY 2008/2009 to FY 2013/2014. As the Secretariat notes, however, overall foreign direct investment (FDI) into the Pakistani market has 
been tepid, with FDI as a percentage of GDP falling from 3.2% in 2008 to 0.6% in 2013. This 
disappointing result can be attributed to energy shortages, security concerns, and the bureaucratic 
hurdles to doing business in Pakistan. Current and potential U.S. investors have also expressed concerns regarding government intervention in pharmaceutical pricing. We urge the Pakistan 
Government to introduce FDI-friendly policies on setting pharmaceutical prices. Both foreign 
investors and our stakeholders have stressed the need for Pakistan to further strengthen its WT/TPR/M/311 • Pakistan 
 
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  protection and enforcement of intellectual proper ty rights, including through improvements in its 
administrative and judicial capacity as well as increase transparency in IP decision making, which would help Pakistan attract investment in key sectors. To aid in Pakistan's efforts to improve its intellectual property system, the United Stat es has implemented numerous capacity building 
programs. 
4.39.  Despite these issues, we view Pakistan as a positive long-term bet. In addition to the 
stabilizing macroeconomic policy mentioned above, the Government of Pakistan has implemented 
recent measures that will boost trade and investment going forward. We congratulate Pakistan for 
the successful April 2014 auction of 3G and 4G spectrum bands and the approval of the LNG 
terminal at Port Karachi. These measures will contribute to an improved operating environment for businesses in Pakistan, large and small. 
4.40.  The United States welcomes Pakistan's continued support and commitment to the WTO's 
work and to trade liberalization through the rules-based multilateral trading system. We would like to congratulate you on the WTO Committee on Government Procurement's decision to accept 
Pakistan's request for Observer Status at their meeting in February. We are encouraged by your 
Government's demonstration of high-level political will in this area, and stand ready to work with you as you consider accession to the Agreement on Government Procurement. We were also 
pleased that Pakistan recently notified the WTO Secretariat of Pakistan's Category A commitments 
for the Trade Facilitation Agreement. We hope that Pakistan will also submit its acceptance of the Trade Facilitation Agreement as soon as possible and would welcome an update from Pakistan regarding its anticipated timing for doing so. We recognize Pakistan's active and constructive 
participation in the negotiations on non-agricultural market access, rules, trade facilitation, 
agriculture and services. This constructive role was one important element that led to success at Bali. 
4.41.  Pakistan has faced and continues to face many challenges, but nonetheless has made great 
strides in undertaking economic reform. My Government urges Pakistan to remain steadfast in its pursuit of the policies necessary to achieve your country's economic goals. The United States 
appreciates the opportunity to participate in this TPR and the work that Pakistan has undertaken to 
ensure a meaningful dialogue. We look forward to continuing to work with Pakistan in the future inside and outside the WTO. In closing, on behalf of the United States, I would like to wish Pakistan a peaceful and prosperous 2015. 
SINGAPORE 
4.42.  Pakistan has weathered significant challenges since its last TPR in 2008. The global financial 
crisis, coupled with domestic challenges such as natural disasters and the security situation, 
affected economic growth. Singapore notes, however, that Pakistan has put in significant effort to 
turn the situation around. For instance, the 2013-2017 investment policy has liberalized the Pakistan economy further, allowing for 100% foreign ownership in the social and infrastructure 
sectors, and the development of Special Economic Zones. Pakistan has also reformed its 
competition policy framework, upgraded its port infrastructure, and created a National Single Window to facilitate trade, am ongst other reform efforts. 
4.43.  Singapore welcomes these efforts. It is evident that they are starting to pay off as the 
Pakistan economy grew by 4.1% in FY 2014, the highest in five years. The improved economic 
climate in Pakistan has also had a positive impact on bilateral trade between Singapore and Pakistan. Bilateral trade has been on an upward trend, registering at US$1.2 billion last year. This 
was a healthy 21% increase from 2013. 
4.44.  There is, however, room for greater bilateral c ooperation on the investment front. Singapore 
companies have expressed interest in sectors such as education, infrastructure, and IT. We are 
hopeful that they will find suitable opportunities to invest in Pakistan as the investment climate 
improves and the political and security situation stabilizes. We also note from the Secretariat report that there is still a high degree of overall protection which favours import substitution. The use of ad hoc policy instruments also remains common and continues to undermine the 
predictability of Pakistan's trade regime. We hope that Pakistan will take steps to improve trade 
predictability and liberalize its economy. WT/TPR/M/311 • Pakistan 
 
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  4.45.  At the WTO, Singapore notes that Pakistan is considering joining the Information 
Technology Agreement (ITA) and has requested ob server status for the Government Procurement 
Agreement (GPA). We hope that Pakistan will acce de to these agreements soon. We also hope that 
Pakistan will ratify the Trade Facilitation Agreement as soon as possible so as to contribute 
towards its coming into force in Nairobi. 
4.46.  Finally, we would like to thank Ambassador Dr Syed Tauqir Shah and his able team for their 
hard work in Geneva. Singapore looks forward to continued cooperation with Pakistan to 
strengthen the multilateral trading system. We also thank Pakistan for their timely responses to 
our questions and wish the every success in their fourth Trade Policy Review. 
CHINA 4.47.  During the period under review, Pakistan's economy has exhibited resilience in a difficult 
international and domestic economic environmen t, and made notable achievements in both 
macroeconomic and international trade aspects. We  are glad to see its GDP growth has gradually 
increased from 1.7% in 2008 to 5.4% in 2014, and current account deficit significantly reduced 
during the same period. 
4.48.  In the meantime, we commend Pakistan for promoting economic reform and liberalizing 
trade and investment regime, especially their effort in formulating the 2025 Vision and the 
Strategic Trade Policy Framework. China encourages and supports Pakistan to continue in this 
direction. 
4.49.  On the bilateral front, 2015 marks the Year of Ch ina-Pakistan Friendly Exchange. Pakistan is 
China's Strategic cooperative Partner. Both Count ries have carried out all-round cooperation. 
4.50.  China and Pakistan have finalized the bilateral FTA agreement in 2007, which further 
bolstered our trade and investment cooperation. Nowadays, two countries are working on the second phase of the China-Pakistan FTA. The third negotiation meeting in this regards was just 
held in Islamabad on 6-8 January 2015. The two sides had talks on further expansion of opening 
up in trade in goods, trade in services and investment.  
4.51.  According to China's statistics, during 2008 and 2014, China-Pakistan bilateral trade went 
up from US$7 billion to US$16 billion, making China the second largest trading partner of Pakistan. 
By the end of 2014, China's aggregated investment  in Pakistan has reached US$3.2 billion. In 
2014 alone, China has invested over US$1 billion in Pakistan. 
4.52.  China and Pakistan agreed to conduct cooperation in key fields such as Port, energy, 
transportation infrastructure and industry to create a new pattern with all round and mutually 
beneficial cooperation.  
4.53.  Turning to the WTO, It is commendable that Pakistan remains firmly committed to the early 
conclusion of Doha Developments Agenda, and played a constructive role in pursuing the DDA's 
development dimensions as a member of the G- 20, G-33, and Cairns Group. We enjoyed our 
cooperation here in Geneva and hope to work cl osely with Pakistan delegation in the future. 
4.54.  Finally, China appreciates the Pakistan delegation for their reply to the question raised by 
China, which we will go through carefully. I wish the trade policy review of Pakistan a complete success. 
MEXICO 
4.55.  Mexico commends Pakistan for unanimously passing a constitutional Amendment which will 
lead to a more balanced sharing of powers and responsibilities between the federal government 
and the provinces. 
4.56.  It is also a good sign that inflation fell to 7.5% during the last quarter of the 2014 financial 
year and that revenue collection improved by 13% in 2014 over the previous year. However, Pakistan still ranks 116
th for "starting a business" in the 2015 Doing Business Index, due to long 
completion times, high costs and complex procedures. On the other hand, the study does WT/TPR/M/311 • Pakistan 
 
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  recognize that Pakistan has already made starting a business easier by introducing an electronic 
registration system that also allows online payment for sales tax. 
4.57.  Pakistan's average applied MFN tariff is still very high at around 15% (14.3% to be precise). 
4.58.  Our delegation recommends that Pakistan pursue the simplification of its regulatory 
environment by reducing the number of Statut ory Regulatory Orders (SROs), which create 
confusion for importers and exporters over the taxe s, charges and tariffs affecting each product, 
and clarify its rules of origin regime. 
4.59.  The recently introduced Web-Based One Customs (WeBOC) system, which is based on 
international best practice in risk management and is due to be fully operational by the end of 2015, will allow the electronic submission of  documents on a 24/7 basis. By late 2014, 
this system covered 91% of clearances at sea, 69% at inland dry ports and 60% at airports. 
While these achievements are praiseworthy, we note in the Category A notification submitted by 
Pakistan under the Trade Facilitation Agreement th at progress has yet to be made in implementing 
other provisions of the Agreement. 
4.60.  In this respect, OECD analysis shows that Pa kistan is above the average of Asian countries 
and those in its income group in terms of advance rulings and automation; however it is below the average for involvement of the trade community an d streamlining of procedures. Improvements in 
these areas, as well as in cutting down on formalities, increasing governance and impartiality, and 
facilitating appeal procedures would significantly lower trading costs in Pakistan and increase the 
country's trade flows. 
4.61.  Our delegation is concerned about a series of measures maintained by Pakistan to 
encourage sector-specific (e.g. textile) exports, tax exemptions, incentives for export processing 
zones and easy access to banking loans and guarantees. 
4.62.  We commend Pakistan for its continued progress in the intellectual property field. 
4.63.  Concerning services, we recognize the progress made in the financial sector through the 
enhanced use of technology and automation, and through the expansion of branches and branchless banking initiatives, which has brought in new investment. 
4.64.  Pakistan has also seen strong growth in its telecommunications sector. From 8 million 
subscribers in 2004, coverage has now reached 72% of the population and 92% of the land area. 
4.65.  We note that Pakistan continues to have problems with electricity supply and transport 
services, in the form of costly state-owned enterprises, poor road conditions and connectivity, and 
a country-wide shortage of electric power. Thes e are challenges but also areas of opportunity, 
which can be certainly be worked on in the near future. 
4.66.  We would like to thank Pakistan for its detailed information and wish it a successful review. 
AUSTRALIA 
4.67.  Australia and Pakistan enjoy enduring economic and trade cooperation. Australia's bilateral 
relationship with Pakistan is strong and rests up on a broad network of linkages, including defence 
cooperation, education and people-to-people links.  
4.68.  We note the resilience exhibited by the Pakist an economy in a difficult environment over the 
review period. Internal security concerns, the global economic crisis and a host of natural disasters have acted as brakes on Pakistan's economic growth. Australia appreciates the serious challenge 
Pakistan faces as a result of energy shortages. Senior officials of both our countries have assessed 
measures Australia could take to assist Pakistan in these areas and we look forward to discussing these options further. 
4.69.  Australia welcomes the Pakistan Government's focus on the economy and its commitment to 
progress its economic reform programme. The Government's vision 2025 provides an ambitious 
economic agenda for the future. Australia assures Pakistan of its continued support to assist it to WT/TPR/M/311 • Pakistan 
 
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  meet its goals. We supported the ambition outlined  in the government's three-year Strategic Trade 
Framework for 2012-15 which envisaged increasing exports to US$95 billion. 
4.70.  Economic growth is essential to Pakistan's ability to overcome its economic challenges. We 
encourage the Pakistan Government to continue its structural reform programme and to meet its 
reform targets. 
4.71.  Australia received its first commercial shipment of mangoes from Pakistan in 2014. We note 
Pakistan is seeking to build its capacity to implement rigorous sanitary and phytosanitary 
measures. Australia looks forward to working with the Pakistan Government in building this 
capacity, which should support increased two-way trade in agriculture. We have already achieved a high level of cooperation in a number of agriculture related areas including water management and in the dairy sector. 
4.72.  Australia has been pleased to receive a significant number of delegations from Pakistan in 
the areas of agriculture and education. This month, a Pakistan agricultural delegation jointly led by the Minister of Food Security and the Chief Minister of Balochistan visited Australia. In 
December 2014 we received a delegation of Vice-Chancellors led by the Higher Education 
Commission. A visit by senior members of the agribusiness community (the Pakistan Agricultural Coalition) in 2014 was highly productive. 
4.73.  Australia looks forward to continuing its constructive relationship with Pakistan in the Cairns 
Group to achieve a fair and market-oriented agricu ltural trading system under the auspices of the 
WTO. It is not only critical that we implement the agreed outcomes from the 9th Ministerial Conference in Bali, but also to ensure that agriculture remains central to the WTO's forward work 
program, ideally across all three pillars: market access; domestic support; and export competition.  
4.74.  Australia welcomes Pakistan's active and valuable contribution to the regular work of the 
trade remedy committees and the WTO Rules Negoti ating Group's Technical Group, as well as 
Pakistan's engagement in the Trade in Services Agreement negotiations. We further welcome 
Pakistan's strong support for the WTO Agreement on Trade Facilitation and the work Pakistan has undertaken to expand on its trade facilitation enhancement initiatives. We applaud Pakistan's 
position in seeking disciplines on harmful fisherie s subsidies that contribute to overcapacity and 
overfishing.  
4.75.  We are pleased to note Pakistan's bilateral trade with India is being liberalised and today 
over 82% of all tariff lines are importable. We wish to work with Pakistan and other countries to 
strengthen trade and commerce in the Indian Ocean-Asia Pacific region. 
4.76.  For this review, Australia has submitted a number of written questions relating to Pakistan's 
trade and investment regime. This includes trade policies and practices by measure, such as, 
transparency, customs valuation, export prohibitions, restrictions and licensing, export duties and 
taxes, and export subsidies. We look forward to Pakistan's response to these questions, and wish 
the Pakistan delegation a successful Trade Policy Review. 
ARGENTINA 
4.77.  We are pleased to note that Pakistan's economy posted growth in 2014, that progress has 
been made in a number of economic spheres an d that the country has experienced stronger 
economic and social development. 
4.78.  Pakistan ranked 37
th as a destination for Argentina's exports and 56th among our country's 
suppliers in 2014. 
4.79.  In 2014, bilateral trade reached US$356.8 mi llion, i.e. a 67.7% increase over 2013. 
There was a 99.5% rise in Argentina's exports compared to 2013, whereas imports declined 
by 10.5%. Argentina will continue to strengthen its commercial ties with Pakistan in order to further expand bilateral trade between the two countries. 
4.80.  We wish to highlight the meeting held in 2010 under the Framework Trade Agreement 
signed with MERCOSUR in 2006 and the note rece ntly sent to the MERCOSUR Secretariat with WT/TPR/M/311 • Pakistan 
 
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  a view to reinitiating discussions towards a pref erential trade agreement that would subsequently 
lead to the establishment a free trade agreement. 
4.81.  Pakistan has played an important role among the developing countries since the beginning 
of the Doha Round negotiations. 
4.82.  We highlight Pakistan's special interest in seeking increased market access in agriculture, 
NAMA and services under the Doha Round. These areas, and especially agriculture-related issues, are of vital interest to our country, as is their inclusion in the post-Bali work programme, pursuant 
to the agreement reached at the Ministerial Conferen ce in Bali. We hope that Pakistan will also 
support Argentina's efforts to that end. 
4.83.  Our country shares Pakistan's concerns regarding the need for tariff reductions, the 
elimination of export subsidies, and a substantial reduction in trade-distorting domestic support for 
agriculture, in order to contribute effectively to significant improvements in non-agricultural 
market access. 
4.84.  To conclude, while reiterating our appreciation of this renewed opportunity to exchange 
to exchange points of view and comments on the trade policies and practices of Pakistan, 
we would like to draw attention once again to the importance of this exercise in transparency from 
every point of view, and to wish the Pakistani authorities a successful fourth trade policy review. 
JAPAN 
4.85.  Despite the global economic crisis and a host of natural disasters, Pakistan's real GDP 
growth averaged nearly 3.2% annually from 2007 to 2014. In particular, Pakistan has been accelerating its economic growth in recent years with 5.4% real GDP growth in FY 2013. Japan 
hopes that Pakistan will continue its economic growth by developing its business and investment 
environment with improvements to the electricit y supply and security situation, and improving a 
weak fiscal position. 
4.86.  Now let me touch upon trade policies. We have two points to make here: the WTO and 
RTAs. 
4.87.  On the WTO, Pakistan has been contributing to the multilateral trading system over the 
years as an original Member of the WTO. In 2013, Mr Shahid Bashir, the former Ambassador of 
Pakistan to the WTO, assumed the chairmanship of the General Council, and took an important 
role to conclude the Bali Package. Although Pakistan has not participated in any plurilateral agreements in the WTO, it obtained observer status of the GPA this February, and is also 
considering participation in ITA according to the report by the Secretariat. In addition, it has taken 
part in TiSA negotiation. Japan highly commends these efforts for further trade liberalization. 
4.88.  On RTAs, the report by the Secretariat mentions that Pakistan is a signatory to the South 
Asian Free Trade Area (SAFTA) and has concluded six FTAs. An FTA between Pakistan and Gulf 
Cooperation Council is also under negotiation. Japan commends Pakistan's endeavours for liberalizing its trade, and hopes that these RTAs will contribute to further trade liberalization under 
the multilateral trading system. 
4.89.  Finally, I would like to turn to specific points related to the business and investment 
environment. 
4.90.  As mentioned in the report by the Secretariat, a lack of investment is considered as one of 
the serious challenges which Pakistan faces. In order to continue its economic growth in the 
future, it will be important for Pakistan to attract further foreign investments by improving its business and investment environment. I would like to raise two issues; tax systems and 
pharmaceutical pricing. 
4.91.  First, on tax systems, a provincial government recently introduced a measure imposing a 
new sales tax on royalties remitted by foreign companies in addition to corporate income tax 
imposed by the central government, since the prov incial governments were granted the authority 
to levy some taxes including sales tax. Increasing the effective tax rate through such measures WT/TPR/M/311 • Pakistan 
 
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  could become a heavy burden for foreign companies which invest in Pakistan, acting an obstacle to 
business and investment activities. Japan hopes that Pakistan will address this issue in a proper manner through the revision of its tax system. 
4.92.  Second, on pharmaceutical pricing, it has been reported that some pharmaceutical 
companies has not been able to afford to produce their medicine, including infusion fluid. Although 
those companies have to address increasing costs for their products and inflation, sufficient increase in the pharmaceutical price has not been admitted. Japan requests Pakistan to review its 
policy regarding the pharmaceutical price, so as to lift an excessive burden for foreign companies 
producing in Pakistan and contributing to Pakistan's social stability and development over the years.  
4.93.  Before I conclude, I wish Pakistan a very fruitful and successful TPR. 
EUROPEAN
 UNION 
4.94.  Since its last review, Pakistan has been consolidating its transition to democracy. This has 
certainly been an asset in tackling the many significant economic, security and social development 
challenges Pakistan faces, in addition to recurrent and devastating natural disasters. 
4.95.  Pakistan is an important partner to the EU. In 2012, we jointly launched the 5-year 
Engagement Plan which offers a political framework for enhanced dialogue and cooperation across 
a wide range of areas including political cooperation, security, governance, human rights, 
migration, trade and energy. The EU will increa se its development assistance to €635 million for 
the period 2014-20 to support rural development, education, the promotion of the rule of law, and good governance. These domains and activities to support stability and peace are also crucial 
factors contributing to an environment conducive to investment and business.  
4.96.  Trade plays an important role too. The EU is Pakistan's biggest export market, taking over 
20% of Pakistan exports to the world. These exports consist mainly of textile and clothing, which 
reflects the fact that the textile sector is the ba ckbone of Pakistan's industry. Within the EU's new 
Generalized Scheme of Preferences, which entered into force on 1 January 2014, Pakistan was granted the so-called "GSP Plus" regime related to sustainable development and good governance. 
"GSP Plus" offers duty free access to the EU market for a very large number of products, but is 
conditioned to the ratification and effective impl ementation of core international conventions on 
human and labour rights, environmental protection and good governance.  
4.97.  Pakistan is at the crossroads of South Asia, Central Asia, China and the Middle East and thus 
at the centre of markets with vast populations, diverse resources and untapped potential for trade. 
However, important economic reforms will be needed , in particular in the energy sector, and also 
in Pakistan's trade regime. In this respect, the EU welcomes the formulation of a Strategic Trade 
Policy Framework that will hopefully provide a more  long-term, coherent and predictable trade and 
tax regime. The EU also acknowledges the positive attitude of Pakistan in the DDA negotiations.  
4.98.  The EU concurs with both the Government's and the Secretariat's report that the almost 
impenetrable web of concessions and preferences given through a multitude of Statutory 
Regulatory Orders (SROs) is in dire and urgent need of reform and rationalization. Indeed, the 
SRO regime related to tariffs and taxes, which also introduces discrimination against imports – for example SRO 1125 related to leather goods and other products - is quite prevalent in the 
advanced questions submitted by the EU. The EU would be pleased to get a clearer understanding 
of the current situation regarding SROs and of th e intentions of the government with regard to 
further reform.  
4.99.  Among several important issues that the EU has raised in its advanced questions, I would 
like to mention the following ones: 
4.100.  Import restrictions on bovine products. While the EU welcomes the steps taken by Pakistan 
to allow for imports of live animals from certain categories of countries, Pakistan's import regime is 
still far from being in line with relevant international standards. This is an issue of longstanding concern for the EU and we look forward to learn from Pakistan when it intends align itself fully with its obligations under the WTO. WT/TPR/M/311 • Pakistan 
 
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  4.101.  Pakistan applies export duties and restrictions on a number of products and in particular 
those on hides/skins and molasses negatively affect EU producers. These export restrictions can also undermine the potential benefit of the "GSP Plus" regime. The EU would therefore like to know when these export restrictions will be removed. 
4.102.  Lastly, the EU welcomes that Pakistan has recently become an observer to the Government 
Procurement Agreement and hopes this bodes well for a future expansion of the GPA membership. 
4.103.  The EU has great expectations that this Trade Po licy Review will be seized by Pakistan as a 
good opportunity to get feedback from the member ship on the means to further develop trade for 
the benefits of its population. We wish Pakistan a very successful TPR. 
THE
 RUSSIAN  FEDERATION 
4.104.  Pakistan is Russia's traditional trading partne r. The Russian Federation and Pakistan have 
been enjoying a long history of progressive relations including cooperation in trade and investment 
areas. Our bilateral trade shows up to 15% growth  in the recent years and we believe that Russia 
and Pakistan have high potential to enhance mutual trade in goods and services as well as to 
accelerate investment flows between the two countries.  
4.105.  The commitments by the Government of Pakistan to market reforms and trade 
liberalization have already brought positive effe ct in terms of general economic situation and 
investment climate in the country. In this context, a comprehensive package of the current 
reforms in key sectors of Pakistan's economy deserves every support and encouragement. We are of a view that promoting macroeconomic stability and securing ongoing reforms - including business, investment and trade-related ones - could further serve as important factors for 
economic growth of Pakistan in the years to come.  
4.106.  During this review Russia has submitted a number of written questions to Pakistan, 
highlighting some of trade and investment measures of the country which are of particular interest 
to us regarding certain TBT and SPS measures as well as some customs regulations. We look 
forward to receiving replies to our questions in due course. 
4.107.  In conclusion, I would like to thank the delegation of Pakistan, the Secretariat and the 
discussant, for their hard work done so far and wish our partners from Pakistan a successful trade 
review exercise. 
THAILAND 4.108.  Pakistan is currently Thailand's second largest trading partner, export destination, and 
import source from Southern Asia. In 2014, our bilateral trade value stood at US$1.01 billion, 
slightly decreasing from 2013 by 2.27%. Major exports from Thailand to Pakistan are motor vehicles, parts and accessories, chemical products, rubber products, and iron and steel. Main 
exports from Pakistan to Thailand are fresh, chilled, frozen and processed fishery products, yarn 
and fibers, and other metal ores. 
4.109.  In the past years, Pakistan and Thailand have developed a closer and stronger bilateral 
trade relationship. During the first official visit of the Thai Prime Minister in Islamabad in 
August 2013, the Joint Trade Committee had its inaugural meeting and agreed to establish a free trade agreement to reinforce the economic and commercial ties between the two countries. The 
second Joint Trade Committee was held in December last year, where the two sides deepened the 
discussions on the future FTA. The JTC is expected to meet again in April or May this year in order 
to consult more on the progress of groundwork und ertaken by both sides, including a feasibility 
study by Thailand. We hope that negotiations will begin in the near future so that our trade and 
economic relations can become even more meaningful and robust. 
4.110.  Pakistan's economy has proved to be resilient and was able to grow around 3.2% annually 
from the last review in 2008 despite facing a di fficult environment, including a flood in 2010. 
Since 2008, Pakistan has also taken some cautious steps of trade liberalization. However, we still 
observe a big difference between the average app lied MFN tariff of 14.3% and the average bound WT/TPR/M/311 • Pakistan 
 
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  rate at 61.5%. We hope that further liberalization steps taken by the Government will address this 
issue.  
4.111.  Thailand commends Pakistan on the recent de velopment in its investment regime, which 
currently permits 100% FDI in most industries. The Government's implementation of the Foreign 
Direct Investment Strategy 2013-17, aiming to improve facilitation procedures and project-focused 
promotions with target sectors, indicates how Pakistan takes into account the role of investment in enhancing economic growth. Thailand supports this positive effort. Thailand would also like to 
commend Pakistan on its reform in the trade facilitation area, such as a National Single Window 
and electronic submission and processing. 
4.112.  Regarding the multilateral trading system, Thailand appreciates being able to work with 
Pakistan in this Organization, including as members of the Cairns Group and G-20. We look 
forward to further cooperation with Pakistan and other Members in order to achieve an agreeable 
and meaningful outcome by the July deadline fo r the work program and the MC10 in December.  
4.113.  In this review, Thailand submitted several questions to Pakistan, covering, among others, 
Pakistan's regional and bilateral trade agreements, investment measures and policies, including 
Special Economic Zones, agricultural supports, and the social protection programme or Benazir Income Support Program. We look forward to re ceiving Pakistan's responses in due course.  
4.114.  In conclusion, Thailand would like to express its appreciation to Pakistan's delegation from 
Islamabad for today's presentation. We especially wish to thank the Geneva-based delegation for the work we have been able to undertake together. We wish Pakistan every success in this fourth Trade Policy Review. 
REPUBLIC
 OF KOREA 
4.115.  I am pleased to note that Korea and Pakistan have expanded their trade relations over the 
years, with bilateral trade reaching US$1.6 billion in 2012. Korea indeed hopes that its economic 
partnership with Pakistan will continue  to grow and develop in the future. 
4.116.  Turning to Pakistan's overall economic performance, I wish to note that Pakistan's real GDP 
growth averaged 3.2% annually during the period under review and it recorded 4.1% in 2014, the 
highest in five years. I would like to applaud Pakistan's efforts towards its economic recovery 
including the strengthening of revenue generation and investments in energy as well as improvements in large-scale manufacturing. 
4.117.  Despite this progress, Korea would like to provide a few brief comments on Pakistan's 
trade policies and practices where we find there is room for improvement. 
4.118.  First, we note that despite Pakistan's trade liberalization, overall tariff levels remain high. 
Protection in manufacturing is particularly high in the automotive subsector, with tariffs of up to 
100%. Coupled with limited local competition, this leads to prices for passenger cars in Pakistan 
that are significantly higher than in other countries. We share the view that, as pointed out in the Secretariat Report, Pakistan's tariff regime could weaken productivity growth and constitute an 
impediment to efficient resource allocation and the integration of Pakistan into global value chains. 
4.119.  We also note that Pakistan has initiated 58 anti-dumping investigations to protect its 
domestic industries since 2008, which led to the imposition of 31 definitive measures. Taking into account their adverse effects on trade, it would be advisable that more prudent approaches be 
taken in initiating anti-dumping investigations. 
4.120.  To be clear, Korea appreciates the regulatory and institutional reforms undertaken by the 
Government of Pakistan to improve the management  of procurement operations. However, we find 
there is still progress to be made towards enhancing transparency. Although Pakistan is not a 
signatory to the WTO GPA, we encourage it to comply with international standards so as to ensure fair and transparent bidding practices. 
4.121.  We would also like to express our concern that there are a number of wide-ranging general 
and sectoral programmes to assist production and exports. However, Pakistan has submitted no WT/TPR/M/311 • Pakistan 
 
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  notifications about domestic support including subsidies to the WTO since its last review. We would 
like to request Pakistan to notify its subsidies to the WTO in order to enhance the transparency of its scheme. In addition, we urge Pakistan to fully address any issues related to prohibited subsidies in a way that is consistent with WTO rules. 
4.122.  In closing, I would like to express my sincere appreciation to the Pakistani delegation for 
its hard work and I wish Pakistan every success in its TPR. 
NIGERIA 
4.123.  Nigeria is happy to note from the Secretariat report that the economy of Pakistan grew 
significantly during the period under review as  the GDP average nearly 3.2% annually and has 
been projected to be 4% this year, despite its en vironmental difficulties such as tight security 
environment, the global economic crisis and a ho st of natural disasters. However, challenges 
remain that include power shortages, weak fiscal position and lack of investment both foreign and 
domestic. We, therefore, urge Pakistan to continue with the investment liberalization in order to improve the business environment, develop private sector and attract more FDI. 
4.124.  As indicated in the Secretariat report, Nigeria notes the continued efforts and 
determination by Pakistan at promoting its economic reforms through strong policy instruments. We also note the progress in trade liberalization, particularly, efforts, being made towards poverty 
reduction. We also appreciate Pakistani's continued commitment to deregulate, privatize and 
liberalize its economy including increasing trade, improve per capita income, employment generation and poverty alleviation. In that regard, we encouraged Pakistan to continue along the path of macroeconomic reforms to improve domestic savings, productivity and international 
competitiveness. 
4.125.  We commend Pakistan for its active participation in the Doha Round negotiations and for 
its fore-sight to support an effective rules-based international trading system. As a member of 
G-20 and G-33 we shared with Pakistan many Doha Round objectives, particularly those related to 
development. My delegation also agrees with Pakistan that the successful conclusion of the DDA lies with political will and positive engagement from all Members in demonstrating more flexibility 
to bridge the differences. 
4.126.  Nigeria is committed to enhance its trade relations with Pakistan, also a D-8 member. In 
June, 2014, Nigeria and Pakistan signed agreements that would lead to the increase in their bilateral trade which is expected to rise from US$100 million to at least US$1 billion in the next 
few years. Both countries have a high population and huge resources in which their working will 
improve the wealth of their citizens. The MoUs on bilateral chamber of commerce and industry 
between Nigeria and Pakistan was also signed afte r bilateral talks between the two presidents. The 
agreements and MoUs cover industrial cooperation, agricultural cooperation, drug and narcotic, 
and cultural cooperation. 
4.127.  The Nigerian top exports to Pakistan in the year 2013 were cotton which amounted to 
US$19,117,016; leather US$1,749,576; crude veg materials US$1,228,682; printed matter 
US$19,957 and worn clothing US$85,707. While Nigeria's top imports from Pakistan in the year 2013 include passenger cars, tractors, agriculture machine extractor, textile yarn, medicaments, rice and pottery. 
4.128.  My delegation notes that there is huge trade and investment opportunities between Nigeria 
and Pakistan which include palm oil, crude oil, textiles and garment, heavy machinery's and automobile. We look forward to more collabora tive efforts to move our economies forward. 
4.129.  In conclusion, Nigeria also look forward to collaborating with Pakistan in the ongoing Doha 
Development Agenda (DDA) negotiations. We wish the delegation of Pakistan a very successful Trade Policy Review. 
TURKEY 
4.130.  During the period under review, Pakistan not on ly experienced significant challenges on the 
security front but was also hit by major natural disasters, not to mention the effects of the global WT/TPR/M/311 • Pakistan 
 
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  economic crisis. Turkey deeply sympathizes with the Pakistani people over the difficulties they 
have endured. 
4.131.  In spite of all these problems, Pakistan mainta ined steady growth averaging 3.2% over the 
review period. Construction, services and investment  in infrastructure largely contributed to this 
stable performance and to maintaining a relatively low unemployment rate of 6.2%. 
4.132.  However, Pakistan yet has to address some structural problems. The challenges facing the 
country include harnessing the informal economy, which is estimated to account for 40% of the 
overall economy, broadening the tax base and achieving fiscal consolidation, as well as 
establishing conditions conducive to foreign direct investment. 
4.133.  Insufficient tax revenue, recovery of the losse s of state-owned enterprises and persistent 
fiscal deficits call for special attention in order to avoid a crowding-out effect on the financial 
markets and to resume infrastructure works and re vive inward investment. That being said, we are 
pleased to note that the Pakistani authorities have initiated a comprehensive programme of fiscal consolidation and privatization of state-owned enterprises to address these fundamental issues. 
4.134.  Pakistan has a fairly liberal investment regime and its production factors are very 
favourable for attracting foreign direct investment. The adoption of Pakistan's Competition Act in 2010 and stronger enforcement of intellectual property rights have unquestionably enhanced the 
country's investment climate. However, Pakistan ranks 110
th in the World Bank's Doing Business  
report, which shows, among other things, the need for broader administrative reforms. Moreover, the inadequacy of electricity infrastructure, for example, is an issue that needs to be addressed to ensure that Pakistan provides an environment conductive to foreign investment. These matters 
are dealt with under the Government's Foreign Di rect Investment Strategy, and we look forward 
to the establishment of special economic zone s, which are the bedrock of this strategy. 
Special economic zones largely resemble Turkey's free zones, which have proved successful 
as part of our country's investment strategy over the past 40 years. 
4.135.  Pakistan's trade policy can be regarded as relatively liberal despite vast discrepancies 
between the different sectors. Average tariffs on  agricultural products and on manufactures are 
almost equivalent, at around 14.5%. However, this can be considered high for industrial products. 
Moreover, Pakistan has bound 98% of its tariff li nes. The average bound rate of 61.5% is four 
times higher than the applied level. In the automotive sector, tariffs are unbound and currently as high as 100%, up from 75% in 2008. Despite protectionist measures and tariff increases in the 
automotive sector during the review period, production has declined significantly across most 
of this sector. During that same period, the share of machinery and transport equipment in the country's exports also fell from 4.5% to 1.5%. This clearly shows that protectionism does not bring 
any competitive gains to the manufacturing sector. 
4.136.  Pakistan and Turkey are linked by special bo nds of friendship and shared values and are 
also partners in the Developing-8 group of countries (D-8) and the Economic Cooperation 
Organization (ECO). Preferential agreements have been signed under both organizations, and the 
ECO Trade Agreement entered into force for Pakistan and Turkey in 2010. Pakistan enjoys preferential access to the Turkish market under Turkey's autonomous system of preferences, 
and a bilateral investment agreement was signed in 2012. 
4.137.  In spite of these trade arrangements, the volume  of bilateral trade is far from reflecting 
the excellent relations between our two countries. Ou r bilateral trade contracted significantly over 
the review period, from over US$1 billion in  2011 to around US$700 million. I am convinced 
that this downturn is only temporary. We are strongly committed to a balanced development 
of our bilateral trade. 
KINGDOM
 OF BAHRAIN 
4.138.  Bahrain shares a strong deep-rooted economic relationship with Pakistan, which has seen 
an increase in its overall value of bilateral trade by as much as 65% to US$215 million during the period under review due to Pakistan developing into an important destination for Bahrain's manufacturing and petrochemical industries. WT/TPR/M/311 • Pakistan 
 
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  4.139.  We are therefore happy to see that despite many challenges faced by Pakistan, it has been 
able to record growth in its GDP and manufacturing in the latest fiscal year. We are also happy to see that during that same period, Pakistan has managed to considerably cut its fiscal deficit, which has been a longstanding challenge, through a strong fiscal consolidation improvement. 
4.140.  Bahrain would also like to applaud recent developments in Pakistan's investment policy, 
namely the increase in the allowed foreign ownership in certain sectors, which has seen it further open up its economy to foreign and joint investments projects and further improve its investment 
climate. We thus look forward to more liberalization in that aspect and will be closely following 
developments in its 2013-2017 Investment Policy and its Economic Vision 2025 plan. 
4.141.  In conclusion, we commend Pakistan, a foundin g Member of the WTO, for its longstanding 
commitment to the multilateral trading system, and we look forward to continued cooperation with 
Pakistan to deepen our relationship both bilaterally and within the WTO.. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.142.  Pakistan has for a long time been considered an important emerging market with huge 
potential. At the bilateral front, we have seen that the amount of our import from, and export to 
Pakistan increased by 20% (of US$2.5 billion) an d 180% (of US$1.7 billion) respectively, over the 
past six years since the last Trade Policy Review. We expect this positive trend to continue. 
4.143.  So we are delighted to learn that since its last Trade Policy Review Pakistan's real GDP 
growth averaged nearly 3.2% annually, despite adve rsities such as a tight security environment, 
the global economic crisis, and natural disasters; moreover, its real GDP growth is projected to be 
in excess of 4% in 2014/2015. 
4.144.  My delegation welcomes the launch of Vision 2025 to make Pakistan an upper-middle 
income country by 2025 and a top ten economy by 2047 via series of policy framework and areas 
of focus to achieve its target. However, my delega tion did notice that some Members have already 
raised their concerns on Pakistan's phase-out of customs-related Special Regulatory Orders 
(SROs). We share the same views on seeing improvements on this regards. It's not only because that this is for increasing transparency but also creating predictability for all traders. 
4.145.  Nevertheless, we are much encouraged to ha ve learnt from the reports of both the 
Government and the WTO Secretariat that Pakistan attaches great importance to an open, rule-based, multilateral trading system, especially for its endeavour on improving customs procedures. In addition to this, we welcome that Pakistan has provided its Category A Notification 
of the TFA. 
4.146.  We also welcome Pakistan for having become an observer to the Committee on 
Government Procurement since last February and we look forward to Pakistan's active engagement 
with regard to its accession to the GPA. 
4.147.  In conclusion, I would like to stress that we look forward to strengthening our existing 
economic and trade ties with Pakistan. We wish Pakistan a very successful Trade Policy Review. 
KINGDOM
 OF SAUDI  ARABIA 
4.148.  The period of review has been marked by si gnificant adversities. Pakistan has had to 
address the consequences of natural disasters, the global economic crisis and a complex security environment, but has managed generally to improve its economic performance. 
4.149.  On the macroeconomic front: annual real GDP growth averaged over 3% and has 
continuously been improving since 2009/2010. The fiscal deficit, while remaining problematic, declined from 8% in 2011/2012 to 6% in 2013/2014. Exports, manufacturing and agricultural 
production all grew over the period of review. 
4.150.  The resilience of the economy of Pakistan is the consequence of the ambitious overall 
economic and financial reforms undertaken by the Government of Pakistan, particularly under the 
first two Strategic Policy Frameworks. Pakistan is to be commended for the three following WT/TPR/M/311 • Pakistan 
 
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  landmark initiatives that have led to the improvement of its economic and trade performance: 
tariff rationalization, fiscal consolidation and the implementation of the Web Based One Customs 
System. Under the Vision 2025 that was adopted last year, the Government aims to further pursue economic reforms with a long term strategy so as to transform Pakistan into an upper-middle 
income country and among the top ten economies by 2047. 
4.151.  The Kingdom of Saudi Arabia and Pakistan are prominent trading partners. Saudi Arabia 
was the fifth largest exporter of goods to Pakistan in 2013 and the sixth most important importer 
of goods from Pakistan. With a population of Pakistani workers numbering well over one million, 
trade in services between the two countries is also significant. The Custodian of the two Holy Mosques, King Salman Bin Abdulaziz, during his visit to Islamabad just over a year ago, called for greater cooperation on trade, investment, energy, infrastructure development, and agriculture for 
the benefit of the two countries. 
4.152.  As an original Member of the WTO, Pakistan is an active Member of this Organization and 
an active supporter to the multilateral trading system. The Kingdom of Saudi Arabia looks forward 
to continuing to work with Pakistan and the rest of the membership on the implementation of the 
Bali Package and the Post-Bali Programme over the coming months. 
BRAZIL 
4.153.  Brazil acknowledges with satisfaction that Pakistan's economy had solid GDP growth in the 
last two years, with an equally positive outlook for the near term. Moreover, despite challenges at both local and international levels in the past decade, the country was able to improve the welfare of its population in the period of analysis. Overcoming these adversities is not an easy feat, 
especially while reducing inflation, controlling unemployment and taking actions towards 
strengthening international trade.  
4.154.  Nonetheless, sustaining high growth levels an d achieving the economic objectives outlined 
in the "Pakistan Vision 2025 programme" requires, among other measures, an efficient tax policy, 
broadening the tax base where applicable, improving its fiscal policy, and curtailing public debt. Brazil wishes that the efforts already underway come into fruition in the near future so that the 
Pakistani economy can continue to thrive.  
4.155.  The bilateral trade with Brazil amounts to about US$255 million in 2014. A modest figure, 
taking into account the size of both economies. And yet, unfortunately, we must recognize that the exchange between both countries has been decreasing in the past ten years with a tenuous 
increase in 2013/14. There is surely plen ty of room to improve this situation. 
4.156.  T h e  m a i n  g o o d s  i m p o r t e d  b y  P a k i s t a n  f r o m  B r a z i l  c o n t i n u e  t o  b e  c o t t o n ,  f o l l o w e d  b y  
soybean meal and mechanical machinery. Wherea s goods imported by Brazil are also cotton, 
articles of apparel, clothing accessories, and te xtiles. Therefore, Brazil is ready to work with 
Pakistan in order to expand and diversify our bilateral trade with a view to reaching its full potential.  
4.157.  In this opportunity, Brazil wishes Pakistan a very successful Trade Policy Review exercise. 
INDONESIA 4.158.  We are pleased to be here today to participate in the fourth Trade Policy Review of 
Pakistan. We note with positivity Pakistan's economic resilience despite facing adversities, such as 
a tight security environment, the global economic crisis, and a host of natural disasters. We also 
take note that serious challenges still remain in the form of power shortages, a weak fiscal position, and lack of investment. However, we have considerable confidence in the recently 
launched Government programme, Vision 2025, which aims to make Pakistan an upper-middle 
income country by 2025 and a top ten economy by 2047. 
4.159.  We want to emphasize that Pakistan is indeed a very important trading partner for 
Indonesia. Trade balance between Indonesia and Pakistan in 2014 was around US$2.2 billion 
which as a 39.2% increase from the previous year. Indonesia's export to Pakistan in 2014 was around US$2 billion, or a 44.5% increase compar ed to 2013. Meanwhile, import from Pakistan WT/TPR/M/311 • Pakistan 
 
- 27 - 
 
  decreased from around US$169 million in 2013 to  US$159 million in 2014. Overall Indonesia's 
trade with Pakistan had seen an annual averag e growth of 26.95% between the period 2011 to 
2014. 
4.160.  Indonesia is confident that our countries' economic partnership will continue to foster in 
the future, particularly following the Indonesia- Pakistan Preferential Trade Agreement, which 
entered into force in September 2013. 
4.161.  Having said that, we would like to express our concern with some of Pakistan's trade 
policies that undermine the legitimate interest of  Indonesia and other WTO Members. We note that 
Pakistan's overall tariff levels remain, with large gaps between bound tariffs and applied tariffs, making trade less predictable, especially fo r agricultural products and wood products. 
4.162.  We are also concerned with Pakistan's subsidies in their various forms to promote export, 
build processing plants, and provide utilities for selected industries. Pakistan is also implementing 
mark-up rates for Export Finance Schemes to support the development of certain products, such as fisheries, fruits and vegetables, meat, leathe r, as well as other products. Meanwhile, the 
Government of Pakistan also provides price support for wheat. 
4.163.  We also have our concerns with Pakistan's import licensing procedures and safeguard 
mechanisms, which hinder Indonesia's export of crude palm oil to Pakistan. 
4.164.  We hope that the delegation of Pakistan will take this opportunity to address our concerns 
and we await those responses with great interest. 
4.165.  Finally, we would like to conclude by expressing once again our profound appreciation to 
the delegation of Pakistan for its hard work, and wish Pakistan every success in its fourth Trade 
Policy Review. 
INDIA 4.166.  As brought out in the Secretariat report, duri ng the period under review, Pakistan economy 
has demonstrated considerable resilience notwithstanding domestic challenges as well as uncertain 
global economic environment. Pakistan's GDP grew  by 3.2% on an annual basis during the period 
under review. The economy is projected to grow by about 4% in 2014-15. On the other hand, 
Pakistan's economy continues to grapple with unprecedented energy crisis, difficult fiscal position 
(persistent high fiscal deficits) and slow pace of investment inflows. Pakistan's exports continue to remain heavily concentrated in certain sectors with agriculture, textiles and clothing accounting for over three quarter of its global exports. On the current account side, the recent growth in 
remittances and buoyancy in the services trade has enabled the government to contain the deficit 
to about 1.2% of GDP. 
4.167.  We take note of Pakistan's policy objectives, as brought out in the Government's report, of 
simplifying its tariff structure, enhancing automation in customs procedures, promoting FDI flows 
including through Special Economic Zones and ad dressing chronic power shortages, which have 
been an impediment for achieving high econ omic growth and boosting trade. Under the 
"Vision 2025" launched in 2014 for economic and social development, the Federal Government 
aims to make Pakistan an upper middle income country by 2025 through institutional reforms and providing conducive business environment to facilitate investments and enhancing trade capacities. Its strategic trade policy framework envisages ambitious targets for exports growth and 
diversification and enhancing competiveness. We wish Pakistan every success in maintaining a 
positive trajectory of economic growth. 
4.168.  At the bilateral level, our two way trade was over US$2.7 billion in 2013-14, an increase of 
about 50% over the 2009-10. The period under review witnessed the inauguration of the 
Integrated Check Post at Attari in April 2012, providing improved  infrastructure to facilitate trade 
and travel. While our bilateral trade has registered growth in recent years, we believe that the 
potential is much higher and could be realized with some efforts in an appropriate direction. WT/TPR/M/311 • Pakistan 
 
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  4.169.  Before I conclude, let me acknowledge Pakistan's active engagement at the WTO and we 
look forward to working with the delegation of Pakistan as well as other partners in ensuring balanced outcomes in the ongoing negotiations to help conclude the Doha Round. 
4.170.  With these words, my delegation would like to wish Pakistan a successful Trade Policy 
Review. 
GHANA 4.171.  Pakistan has undertaken extensive trade and economic reforms since its last review with 
the objective of attracting Foreign Direct Investment (FDI) flows, promoting exports and 
expanding its economic outlook in the midst of challenges and harsh global environment. The 
strides made in the services sector especially the telecoms sub-sector, through regulatory reforms leading to the high growth in the sector, needs particular mention. 
4.172.  As indicated in the Secretariat report, agriculture remains a major contributor to GDP and 
employs about 44% of its workforce. However, this sector is beset with challenges including large post-harvest losses which need to be addressed. 
4.173.  The introduction of policies to diversify the economy, including agro-processing, to add 
value to its exports are welcome, they will cont ribute to curbing the challenge of post-harvest 
losses and securing its export markets. 
4.174.  Ghana urges Pakistan to redouble its efforts at reforming the economic and business 
environment with a view to reducing the cost of do ing business if its policy to attract FDI is to be 
successful. 
4.175.  We further encourage Pakistan to review its import bans and high import charges to ensure 
the citizenry enjoy the best from the marketplace at affordable prices. 
4.176.  Ghana notes with appreciation the commitment and contribution of Pakistan to the 
multilateral trading system (MTS) in Geneva and in particular, in promoting the interest of 
developing countries. 
4.177.  In concluding, my delegation would like to express appreciation to the Secretariat for the 
hard work in putting together the documents fo r this review. We also recognize the detailed 
presentation and deep analysis by the discussant. 
4.178.  Finally, we congratulate you for your election to the Chairmanship of the Trade Policy 
Review Body (TPRB) and wish you success during your tenure. 
4.179.  The delegation of Ghana wishes Pakistan a successful fourth TPR. WT/TPR/M/311 • Pakistan 
 
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  5  REPLIES BY THE REPRESENTATIVE OF PAKISTAN AND ADDITIONAL COMMENTS 
5.1.  I would first like to thank Ambassador Paparizov for successfully conducting our TPR; his 
command over several languages created a cordial atmosphere and helped to ensure that the exercise was engaging and constructive. I would also like to warmly thank our discussant, 
Ambassador Al-Otaibi for all his hard work which was evident in his insightful and detailed 
comments.  
5.2.  We are happy to have witnessed the keen intere st displayed by the Members in our TPR. On 
Tuesday, twenty-four delegations made interven tions, which we consider a positive sign. 
Encouragement, positive engagement and constructive feedback ensure that we remain on track with fulfilling our commitments as we move ahead into the next phase of developing our trade and 
economy. 
5.3.  As I mentioned in my opening statement on Tuesday, Pakistan views this TPR as both a 
catalyst for further reform and a valuable opportunity to listen to, and to learn from other Members.  
5.4.  We therefore welcome the comments, suggestions and further questions that we have 
received from Members as well as the spirit in which they were presented. During the course of this meeting, we may not be able to respond to a ll the questions that we received on Tuesday or in 
their entirety. We hope that the efforts we have made in responding to your written questions will 
be valuable. However, I do intend to touch upon  key themes that we witnessed on Tuesday and 
shall respond in writing in further detail.   
5.5.  Pakistan finds itself at crossroads today. We have to ensure sustainable development of the 
economy, provide decent employment opportunities to our people while a considerable portion of 
our resources is increasingly devoted to address security concerns.  
5.6.  Therefore, this TPR has also presented us the opportunity to display how our WTO 
commitments are taking shape in the backdrop of political and human realities as well as practical 
governance of Members. While these challenges have made it difficult to always implement our commitments, we have endeavoured to balance public policies geared towards strengthening of 
our domestic regime as well as the multilateral trading system.  
5.7.  I shall now respond to some of the concerns raised by the Members on Tuesday. 
5.8.  On the matter of transparency and predictability in taxation and tariffs, the SRO issue, the 
Government of Pakistan constituted a High Powered Committee in December 2013, headed by the 
Finance Minister, comprising representatives of different ministries, divisions and trade bodies 
across the country. The task of this Committee was to review the concessionary regime in income tax, sales tax and customs (SROs). 
5.9.  On the basis of recommendations of this Committee, a vast number of concessions and 
exemptions amounting to over US$1.4 billion have been eliminated in the national Budget for the 
financial year 2014/15. To illustrate, the discriminatory concessions to inputs of 98 industries were 
withdrawn. Similarly, discriminatory exemptions  from customs duty given to 129 items and 
17 sectors were also abolished. The Government is fully committed to phasing out the remaining concessions over a period of three years i.e. by June 2017. 
5.10.  Among other legislative and oversight measures that the Government has undertaken on 
transparency and elimination of corrupt practice s from the country, the National Accountability 
Bureau has most recently embarked upon a nation-wide anti-corruption awareness campaign. This campaign includes: public awareness workshops, media releases, whistle-blowing incentives and 
seminars on best practices and good governance.  
5.11.  Furthermore, the Bureau, in collaboration with the State Bank of Pakistan and the Securities 
Exchange Commission of Pakistan, has initiated a background checking service for investors and 
entities desiring to undertake business activity in the country. These initiatives are reflective of the 
zero tolerance policy of the present Government against corruption. WT/TPR/M/311 • Pakistan 
 
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  5.12.  Another area where members showed concern was the element of transparency and 
investment. By way of illustration, the Telecom sector in Pakistan is open and encourages foreign investment with no restriction on the extent of foreign investment with a straightforward licensing 
regime. In April 2014, the Government held an auct ion of the spectrum required to roll out 3G and 
4G services.  
5.13.  Successful bids were made by local and foreign operators, resulting in revenues of 
US$1.2 billion. Pakistan was recognized by the GS M Association for its transparency and effort in 
this endeavour and bestowed the prestigious "Gov ernment Mobile Excellence Awards" on Pakistan.  
5.14.  Furthermore, to ensure an open, competitive and transparent telecom regime, Pakistan has 
withdrawn the International Clearing House regime and fully deregulated international incoming traffic rates. As another key effort towards reform in this area, Pakistan is also actively engaged in 
stakeholder consultations on the ITA.  
5.15.  On the issue of "Pharmaceutical Pricing", the me mbership will be pleased to note that on 
5 March 2015, the Government of Pakistan has announced a new "Drug Pricing Policy-2015" which 
provides for a transparent mechanism for fixation and price adjustment of pharmaceutical 
products. It substantially reduces the discretion of  functionaries and facilitates the industry by 
ensuring predictability for future business pla nning. The main pillars of the new policy are: 
• Fixation of prices for new chemical entities, which are mostly imported on the basis of 
reference prices, particularly in the neighbouring countries; and 
• linking annual price increase of medicines with Consumer Price Index. 
5.16.  On the energy-challenge faced by investors, the Government is actively pursuing alternative 
sources of energy generation to overcome the ener gy crisis. Moreover, we would like to inform the 
Members that the customs duty on products havi ng dedicated use of renewable energy resources 
such as solar, wind and geo-thermal is zero percent.  
5.17.  I would also like to apprise the Members of some recent positive developments pertaining to 
enforcement of Intellectual Property Rights. IP Tribunals for expeditious disposal of IP related 
litigation have been notified by the Federal Government initially for three major cities namely, 
Karachi, Lahore and Islamabad which would practically cover the major trading hubs in Pakistan. 
Moreover, dedicated Directorates have been established in the Federal Investigation Agency (FIA) and the Federal Board of Revenue, in order to deal effectively with IPR violations.  
5.18.  The Government of Pakistan is also committed to improve the business environment in the 
country and the action plan that has been undertaken in this regard includes: 
• The launch of the "virtual one-stop-shop" (VOSS) for multiple business registrations with the 
Securities and Exchange Commission of Pakistan, the Federal Board of Revenue, the Board 
of investment, as well as Social security institutions; 
• a complete roll out of "Web based one customs" system (WEBOC) at all customs stations in 
the country for risk-based, automated customs clearances of cargo; 
• the introduction of the concept of Limited Liability Partnership (LLPs); 
• re-engineering of business processes for domestic taxation; and 
• legislation for secured financial transactions. 
5.19.  Some Members expressed their concerns on the import ban on live animals and bovine meat 
products from BSE-infected countries. The ban was imposed on various categories of livestock 
products in order to protect the historically BSE-free status of Pakistan and to ensure the bio-safety of exports of livestock  by-products to other countries. The prohibitions imposed in the 
Import Policy Order were across the board and not country-specific.  WT/TPR/M/311 • Pakistan 
 
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  5.20.  In this regard, we would like to inform the Members that we have recently removed the ban 
on import of live animals from "Negligible Risk  Countries" subject to certain conditions. This 
decision was taken on the basis of an import risk analysis. Entry and exposure risk along with absence of country-wide diagnostic capability at the laboratory and field levels restrains Pakistan 
from importing BSE-risk animals from countries not having "negligible risk" status.  
5.21.  Nevertheless, we have initiated a scientific evidence-based, consultative process with 
relevant stakeholders in order to come up with a viable solution to this issue as well. Furthermore, 
it is also worth noting that there is no ban on feed ingredients of vegetable, poultry, mineral and 
sea-sources.  
5.22.  We have also noted concerns raised by some Members regarding the gap between our 
bound and applied tariffs. I would like to draw your attention to the fact that despite being a 
lower-middle income developing country, we have still managed to bind 98% of our tariff lines; 
out of these more than 800 tariff lines were bound at applied levels and other than a few sensitive sectors, we have rarely resorted to imposing tariffs at the bound rates.  
5.23.  However, this is as good an opportunity as any to reiterate that for Pakistan the Doha round 
of negotiations on market access is the only plat form capable of meaningfully addressing the issue 
of binding overhang prevalent in international trade.  
5.24.  Before I conclude, we have some more positi ve news. Only yesterda y, Moody's Investors 
Service has revised the outlook on Pakistan's foreign currency government bond rating from stable to positive, the rating is affirmed at Caa1. 
5.25.  To conclude, this has been a very interesting and engrossing two days for me and my 
delegation. I thank all the Members once again for their interest in our trade and economic 
policies.   
DISCUSSANT 
5.26.  I would like to thank H.E. Mr Muhammad Shehzad Arbab, Commerce Secretary and his 
delegation for their constructive engagement in this meeting and for the efforts that they have made to answer the questions they received prio r to this meeting, which have been extremely 
useful to us.  
5.27.  I believe that the fruitful discussions on the trade policies of Pakistan during the first day of 
the review have provided an opportunity for us to improve our understanding of recent developments in Pakistan's trade and trade-related policies, and to identify areas in which there is 
room for improvement.  
5.28.  Pakistan was congratulated by Members for having overcome its challenging environment in 
an efficient manner. Despite being severely hit by economic and natural crisis since 2008, 
Pakistan's economy had managed to recover through economic and financial reforms.  
5.29.  Members highlighted Pakistan's active role in the multilateral trading system, and its active 
participation in regional and bilateral agreements. Pakistan considers these agreements to be 
complementary to the multilateral trading system.  
5.30.  I would like to briefly sum-up the points which drew my attention: 
5.31.  Many Members welcomed the Government of Pakistan's efforts to begin phasing out SROs 
and encouraged it for further reforms and rationalization in order to eliminate the remaining SROs 
especially the regime related to tariffs and taxes. This would certainly help the Government to 
improve trade predictability and liberalize its economy. 
5.32.  Despite the fact that Pakistan is one of the most liberal foreign investment regimes in South 
Asia, some Members raised their concerns about the investment regime and the business climate 
in Pakistan. These Members urged the Government for further improvement and reforms in this area. In this regard, I believe that reviewing investment regime, reinforcing the security 
measures, reducing the costs of doing busine ss, and strengthening the protection and the WT/TPR/M/311 • Pakistan 
 
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  enforcement of the intellectual property rights would help Pakistan attract more foreign 
investments. 
5.33.  Members also noted that, despite the steps of trade liberalization taken by the Government 
of Pakistan, tariffs remain high. The gap between  the overall bound tariff rates and the applied 
MFN rates was also emphasized during discussions. Thus, Members encouraged Pakistan to lower 
its tariffs.  
5.34.  Some Members expressed concerns regarding the trade and trade-related policies and 
measures in particular on import restrictions in live animals and a range of animal products and 
urged the Government to review these measures and align its import regime with relevant international standards and with its obligations under the WTO. Other Members pointed out the export duties and restrictions on a number of products and asked Pakistan to remove these 
restrictive measures that could affect trade and business negatively.  
5.35.  The willingness of Pakistan to join the Government Procurement as an observer was 
welcomed by a number of Members. 
5.36.  My overall assessment is that the participation of a large number of delegations in this 
meeting indicated the clear importance of Pakistan as a trading partner for WTO Members and its active role in the multilateral trading system.  
5.37.  In closing, I wish Pakistan success with its reforms and trust that these reforms will 
contribute to sustainable economic development for the direct benefit of the country and for the international trade. 
EUROPEAN
 UNION 
5.38.  The EU thanks Pakistan for having replied co mprehensively to our 48 questions in advance 
of the meeting as well as for the additional information from this morning. 
5.39.  These replies have allowed us to get an overall and better understanding of Pakistan's 
economic and trade policy. 
5.40.  However, the EU would like to get some complementary information on certain aspects of 
Pakistan's trade policy and has, therefore, prep ared and submitted a few follow-up questions, 
notably on export restrictions and SPS measures. 
5.41.  Once again, the EU thanks Pakistan for its constructive participation in this exercise. 
CANADA 5.42.  We thank the Pakistani delegation for its engagement during this TPR and its responses to 
our advance written questions. 
5.43.  We have a small number of additional questions in the areas of government procurement 
and SPS requirements for live animals. We will provide them in writing to the Secretariat later 
today. 
UNITED
 STATES 
5.44.  The United States would also like to express its appreciation to the delegation of Pakistan 
for its engagement during the TPR. 
5.45.  We thank Pakistan for responding to our advance written questions and we are continuing to 
review them in Capital. 
5.46.  Once again, thank you for your engagement this week. WT/TPR/M/311 • Pakistan 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The fourth Trade Policy Review of Pakistan has offered us a good opportunity to examine the 
trade, economic, and investment policies of Pakistan since the last Review in 2008. The large number of questions submitted before the meet ing and the number of delegations that posed 
those questions and intervened during our two days of discussions highlight the importance 
attached to Pakistan's trade and investment policy and its role in the multilateral trading system. Our discussion was greatly facilitated by the st atement from the head of the delegation of 
Pakistan, Mr Shehzad Arbab, Secretary of Commerce, and by the well-researched and 
comprehensive comments from the Discussant, the Ambassador of the Kingdom of Saudi Arabia to the WTO, Dr Abdolazeez Al-Otaibi. I would like to note also that Pakistan has answered the questions posed to it before the deadline as we ll as those that were asked later, and we look 
forward to answers to any outstanding questions no later than one month after this meeting. 
6.2.  Members noted Pakistan's resilient economy and drew attention to the fact that despite facing 
a myriad of adverse circumstances and challenges, Pakistan had managed to post positive growth 
during the review period. It was also highlighted that the economy is expected to expand further 
in the current year. Members reiterated that mo re needed to be done with respect to fiscal 
consolidation as well as overcoming infrastructure shortfalls such as acute power shortages. 
6.3.  Members welcomed the reform agenda that Pa kistan had embarked upon under Vision 2025 
and the Strategic Trade Policy Framework. Member s expressed hope that Pakistan would be able 
to sustain the reforms undertaken and achieve the goals it had set out for itself and acknowledged the successful democratic transition of power as well as the devolution of power brought about by 
the 18th constitutional amendment.  
6.4.  Members commended Pakistan's constructive approach to the DDA negotiations and its 
positive role in the formulation of the Bali Package and on the continuing Post-Bali work 
programme. Members were also appreciative of the submission of Pakistan's Category "A" 
commitments under the Trade Facilitation Agreement and welcomed Pakistan becoming an observer to the Government Procurement Agreement as a significant signal of the country's 
commitment to greater transparency. 
6.5.  Members expressed esteem, that with a view to  facilitating trade and investment, Pakistan 
implemented a number of reforms, including inter alia : further liberalization of the foreign 
investment regime, development of Special Economic Zones, enhanced competition policy, 
upgraded port infrastructure, and setting up a national single window.  
6.6.  While welcoming a small reduction in the applied MFN tariff since 2008, several Members 
voiced concerns with respect to the large difference between applied and bound rates. Similar 
reservations were also stated regarding the abolition of duty-free tariff lines. A number of 
Members raised the issue of what they considered to be a high degree of overall tariff protection which favoured import substitution. They also re ferred to the continued use of ad-hoc trade policy 
instruments, such as special regulatory orders, which undermined the predictability of the trade 
regime. Members, in that context, appreciated Pakistan's commitment to phase out tax and trade-related special regulatory orders as highlighted in Pakistan's intervention. Some Members also raised concerns regarding the high degree of protection afforded to the domestic automobile 
industry. 
6.7.  Concerns were expressed by some Members regarding subsidies provided in various forms. 
These included subsidies promoting exports, building processing plants, providing selected 
industries with preferential access to certain utilities and applying mark-up rates for export finance 
schemes to promote certain products. Certain Members reiterated the need to reduce subsidies, and export prohibitions.  
6.8.  Other issues raised by Members included the support price for wheat, pricing in the 
pharmaceutical industry, import licensing procedures, safeguard mechanisms, and the high number of anti-dumping investigations. Members no ted the ban on the import of bovine products, 
livestock and poultry and hoped that Pakistan would consider lifting these. WT/TPR/M/311 • Pakistan 
 
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  6.9.  The lack of notifications, particularly those pertaining to agriculture and domestic support was 
also mentioned. 
6.10.  I would like once again to underline that despite the many challenges faced by Pakistan, the 
economy has proved to be resilient and several of its policies since the last Review have 
demonstrated Pakistan's commitment to moving towards more transparency and predictability. I 
am encouraged by the progress Pakistan continues to make in its pursuit of a more prosperous future. Pakistan has a vast array of natural resources, a strategic geographical position and a 
large, willing and young labour force. The challe nge for Pakistan is to harness this potential 
through appropriate policies and reforms, including inter alia : improving the business climate, 
further liberalizing the trade regime and ensuring its predictability, reducing state intervention in the economy, providing adequate infrastructure fa cilities especially those related to the power 
sector, and improving the fiscal situation by broa dening the tax base. Members have recognized 
these key challenges and have voiced concerns about some sectors and issues which are important to them. Therefore, I would encourage Pakistan to reflect on the comments and 
deliberations over the past two days and introduce some of the recommendations into its reform 
and policy agenda. 
6.11.  In closing, I would like to thank Secretary Arbab and the rest of the Pakistani delegation, all 
the other delegations, the Discussant and the Secretariat for this very successful fourth Review of 
the trade policies of Pakistan. 
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