Pakistan WT/TPR/S/193/Rev.1 
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II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(1) OVERVIEW  
1. Since Pakistan's previous TPR, constituti onal changes have validated legislation  made since 
1999.  Fiscal and administrative decentralization has lagged political devolution to local governments.  
General trade policy objectives have focused on reduced protection, achieving a more outward-
oriented trade regime, increased market access for e xports, and greater global integration, aimed at 
increasing economic efficiency, competitiveness, a nd export-led growth.  The main institutional 
changes in the area of trade policy have been the replacement of the Export Promotion Bureau by the 
Trade Development Authority, and the restructuri ng of the National Tariff Commission to become an 
effective trade defence body focused on contingency protection. 
2. Pakistan continues to attach high importance to  an effective rules-based trading system and 
has participated actively in the Doha Round negoti ations.  Nevertheless, it has felt compelled to 
respond defensively to the proliferation of prefer ential agreements, while acknowledging the threat 
posed to multilateralism.  Its trade policy has b een focused on regional trade liberalization by 
deepening and expanding existing plurilateral comm itments (e.g. SAFTA, OIC, D-8, and ECO) as 
well as ambitiously expanding its network of bilatera l free-trade agreements (e.g. in place with China, 
Iran, Malaysia, Sri Lanka, and Maur itius, and negotiations well advan ced with other partners, e.g., 
Singapore and the GCC states).  Pakistan is con cerned by the restricted access under GSP treatment, 
especially provided by the EC and the United States, on key exports, such as textiles, clothing, and 
leather products, as well as preferential access to th ese markets given to LDC competitors.  Pakistan 
has benefited from trade-related technical assistance (Annex II.1).   
3. Pakistan’s investment framework has changed little during the review period.  Only a few 
activities are closed to foreign investors (e.g. arms  and ammunition, high explosives, and radioactive 
substances) or restricted (e.g. corporate agricultural farming, media, tourism, and air transport).  Generous investment incentives are based on national treatment.  While FDI performance has increased recently, foreign investment would be f acilitated by further improving the business climate, 
including ensuring political stability and secur ity and on-going reductions in corruption. 
(2) G
ENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  
4. Pakistan held National Assembly and Senate elections in October 2002 and February 2003, 
respectively.  The President (Head of State), elected by Parliament, is as of September 2007 also the Chief of Army, and as Chairman of the National Secu rity Council (NSC) retains authority to dismiss 
the Prime Minister (Head of Government) and Parliament.
1  The NSC, as Pakistan's supreme 
governing body, consults on national security matters, e.g. on sovereignt y, integrity, defence, security, 
and crises management. 
5. International and inter-provincia l trade and taxation (except farmers’ income tax) are federal 
responsibilities.  The Constitution (Article 151 (3)) provides for free trade and commerce nationally, 
by prohibiting provincial governments from levying discr iminatory taxes or other restrictions on inter 
or intra-district trade and commerce;  Parliament may impose them, however, if it is considered to be 
in the "public" interest, defined by the authorities as the need to ensure availability of products at 
"reasonable" prices.  Provincial governme nts may constitutionally ban or restrict  inter-provincial trade 
                                                      
1 Authority for the incumbent President to also be the Chief of Army was provided by legislation in 
accordance with the Constitution in 2004 (President to Hold Another Office Act, December).  Constitutional 
amendments, effective end-December 20 03, validated and affirmed all legi slation and orders introduced since 
14 October 1999 (Constitution (Seventeenth Amendment) Act, 2003).    WT/TPR/S/193/Rev.1 Trade Policy Review 
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only with the President’s consent where considered  "reasonable" in the interests of public health, 
order or morality;  to protect animals or plants from disease;  or to prevent or alleviate "serious" shortages of "essential" commodities.  The authorities indicate that while provincial trade taxes have 
never been imposed, inter-provincial movement of wheat and flour is periodically and temporarily 
restricted to maintain/stabilize local producer pri ces whenever there are harvest variations between 
provinces.  Thus, provincial governments have  a role in trade-related functions.   
6. Reportedly, the judicial system, one of the thr ee pillars of the State, functions poorly;  it is 
hampered by ineffective implementation of laws, a huge backlog of cases, and corruption.
2  It was 
separated from the executive in mid 2001, but publ ic concerns linger over the judiciary's operational 
independence.3  Anti-corruption efforts have intensifie d since 2002 under the National Accountability 
Bureau and the National Anti-Corruption Strategy (Chapter I).   
(3) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(i) Objectives and strategies 
7. Pakistan’s general trade policy objectives rema in to reduce protection, achieve a more 
outward-oriented trade regime, incr ease market access for exports, and greater global integration.  It 
pursues these goals through unilateral, multilateral, a nd, increasingly, regional or bilateral initiatives.  
Trade and investment liberalization is seen as cont ributing to economic efficiency, competitiveness, 
and export-led growth;  this is  a key government priority that includes traditional (textiles and 
clothing) and non-traditional goods.4  Government recognizes the inefficiencies of import substitution, 
and aims to achieve a more liberal trade regime, to  gradually expose producers to greater international 
competition; provide continuous raw material s upplies, and to facilitate machinery imports.5 
8. The main pillars of the Government’s Rapid Export Growth Strategy (REGS), announced in 
July 2005, are to reduce costs of doing business; up grade skills and technology; comply with social, 
environmental, and security concerns; encourage ex port-oriented foreign investment; develop region-
specific policies, including through regional pref erential trading arrangements; strengthen trade 
promotion and modernize infrastructure; promot e higher-value-added exports ; and diversify export 
products and markets.6  In particular, REGS has focused on raising exports of leather products, 
engineering goods, chemicals and pharmaceuticals, towels, denim, and services to US$1 billion each 
within three years.7 
9. Vision 2030, adopted in May 2005, aims to ach ieve a developed, industrialized, just, and 
prosperous country by 2030 through rapid and su stainable development in a resource-constrained 
economy, by deploying knowledge inputs, to, inter alia,  raise productivity and international 
competitiveness as well as the share of manufacturing in GDP and total exports.8  At the same time, 
the Government resumed five-year plans and a dopted the Medium Term Development Framework 
(MTDF) 2005-2010 to assist in implementation.  De velopment plans contain the Government’s broad 
trade policy lines, and the Planning Commission, the apex body for policy formulation, is actively 
involved in setting trade policies, including export prom otion and trade development.  It also releases 
                                                      
2 Economist Intelligence Unit (2006), p. 7. 
3 Reportedly the Government controls judicial appointments, transfers, and dismissals, especially of the 
superior judiciary (the provincial High Courts and the Supreme Court) (Transparency International, 2007a). 
4 Government of Pakistan (2003a), p. 38.  
5 Government of Pakistan (2006g). 
6 Government of Pakistan (2005).  
7 Ministry of Finance (2007a), p. 142. 
8 Government of Pakistan (2006f) and (2007b). Pakistan WT/TPR/S/193/Rev.1 
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with the Budget Annual Plans, which review ec onomic developments and reinforce the planning 
process for achieving the Vision and the MTDF, and fo rmulates Export Plans.  The current plan, for 
2006-13, targets raising exports fro m 13% of GDP (US$16.4 billion) to  15% (US$40-45 billion).  Its 
strategic thrust is focused on creating an enabli ng policy environment, including consistency and 
stability, as well as providing tax and investment incentives;  human resource development;  
revamping physical, scientific, and technological in frastructure;  improving logistic chains;  trade 
facilitation;  production of quality products;  aggressive regional ma rketing, including negotiating 
preferential trade arrangements for enhanced market access, especially in China,  the United States, the 
EC, Latin America, and the Central Asian republics;  and trade and social compliance, especially with 
WTO and bilateral arrangements.  The plan’s sectoral growth strategies concentrate on 
manufacturing, including additional investment totalling US$65 billion in textiles and clothing 
(US$20-23 billion), steel and engineering (US$13- 16 billion), chemical s and pharmaceuticals 
(US$5-8 billion), leather and leather products (US $3-6 billion), sports and surgical instruments 
(US$3-5 billion), gems and jewellery (US$2. 5-4 billion), marble (US$2-3 billion), rice 
(US$2-3 billion), and fish and fi sh products (US$1-2.5 billion). 
(ii) Institutional and legal framework 
10. The Economic Coordination Committee of the Ca binet (ECC), a Federal Cabinet standing 
Committee, remains the main executive arm making economic policy decisions;   it reviews import 
policies and their impact on production and invest ment, and evaluates promotional and other export 
policies.  It meets regularly to approve economic and trade policy recommendations.  General trade 
policies and initiatives are also approved annually by the Federal Cabinet.  The Ministry of 
Commerce’s trade policy responsibilities have not change d significantly during the review period.  It 
handles multilateral, bilateral, and regional trade arrangements, and retains primary responsibility for 
trade policy formulation and implementation along w ith the Central Board of Revenue (CBR), which 
administers Customs and collects domestic federal taxes on imports.  The Ministry’s WTO Wing deals with multilateral issues, including agreemen ts and negotiations.  Membership of the WTO 
Council, chaired by the Minister of Commerce, was revised in March 2007, and comprises many 
ministers, departmental secretaries, and the centr al bank governor.  It examines matters relating to 
WTO Agreements, evolves strategies for protecting Pa kistan’s interests while meeting its multilateral 
obligations, and ensures inter-ministerial and inter-p rovincial coordination on such issues.  Standing 
parliamentary committees in the Senate and the Nati onal Assembly also meet as required to supervise 
the Ministry of Commerce in formulating and im plementing WTO-related policies.  Many other 
ministries and agencies also have key roles in trade-related policy formulation and implementation (Table II.1).  The Trade Development Authorit y has progressively replaced the Export Promotion 
Bureau, and contains a WTO cell expected to in form Pakistani traders on market-access conditions 
and related WTO obligations.
9  The Foreign Trade Institute of Paki stan is also to be replaced by the 
Trade Competitiveness Institute of Pakistan , which will conduct policy research on trade 
competitiveness and build capacity and hum an capital development in commerce.10 
                                                      
9 Pakistan Trade Development Authority (2007). 
10 Government of Pakistan (2007a), p. 12. WT/TPR/S/193/Rev.1 Trade Policy Review 
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Table II.1 
Main ministries and agencies responsible for trade-related issues, 2007 
Government ministry/agency  Key areas of responsibility  
Ministry of Food, Agriculture and Livestock  Agri cultural policy, fisheries, forestry, SPS, quarantine 
Agricultural Prices Commission Support prices 
Trading Corporation of Pakistan Support prices, buffer stocks 
PASSCO Support prices, buffer stocks 
Ministry of Economic Affairs and Statistics External economic assistance, statistics 
Ministry of Finance and Revenue Finance, re venue (including tari ffs and taxes), budgets 
Central Board of Revenue Tariffs, taxes, investment incentives 
Ministry of Information Technology Telecommunications and information technology 
Pakistan Telecommunication Authority Telecommunications regulation 
Pakistan Electronic Media Regulatory Authority Broadcasting, television regulation 
Ministry of Communications Road transport 
Ministry of Petroleum and Natural Resources Petroleum and gas 
Oil and Gas Regulatory Authority Oil and gas regulation 
Ministry of Ports and Shipping Ports and shipping 
Ministry of Privatization  Privatization 
Privatization Commission Privatization 
Ministry of Railways Rail transport 
Ministry of Textile Industry Textile and jute 
Ministry of Water and Power Power and electricity 
National Electric Power Regulatory Authority Power regulation 
Ministry of Tourism Tourism 
Ministry of Commerce Import and export policies, WTO coordination, SAPTA and other 
regional agreements, investment incentives 
Export Promotion Bureau/Trade Development  Authority Export promotion 
National Tariff Commission Tari ffs, contingency protection 
Ministry of Industries, Pr oduction and Special Initiativesa Industrial policy 
National Productivity Organization Productivity 
Ministry of Health  SPS, pharmaceuticals  
Ministry of Planning and Development  Planning and development 
Planning Commission Vision 2030, five-year an d annual plans;  Poverty Reduction 
Strategy Paper (PRSP) 
Civil Aviation Authority Air transport 
Monopoly Control Authority Anti-m onopoly legislation and policies 
Public Procurement Regulatory Authority Government procurement 
Pakistan Standards and Quality  Control Authority Standards 
Pakistan Intellectual Property Organi zation Intellectual property protection 
Board of Investment Investment, includ ing foreign, promotion and facilitation 
Export Processing Zones Authority Export processing zones 
Trading Corporation of Pakistan State trading 
a The Ministry of Industries and Production until May 2005. 
Source:  WTO Secretariat, and the Pakistani authorities.  
(iii) Advisory bodies 
11. The National Tariff Commission (NTC) is the Gove rnment’s main advisory body on tariffs 
and other areas of assistance.  According to the au thorities, it enjoys operatio nal independence.  In Pakistan WT/TPR/S/193/Rev.1 
 Page 23 
 
 
making recommendations to the Minister of Comm erce on assistance, the NTC must be convinced 
that the products concerned meet acceptable dom estic or international standards;  will not 
"excessively" raise consumer costs;  and that the industry is unlikely to "need" protection or assistance 
after a "reasonable" period.  Its statutory guid elines for providing protection are based on industry 
"need" rather than economic efficiency, without an y requirement to consider the national welfare 
effects of protection.  Since 2005/06, the NTC ha s increasingly focused on contingency protection and 
is being restructured to function as an effective trade defence body (Chapter III).11  It imposes anti-
dumping and countervailing duties, where consider ed appropriate, and makes recommendations on 
safeguards.  The NTC’s statutory guidelines do not apply to contingency protection requests that are 
generally anti-competitive and coul d "excessively" raise costs to consumers, including costs of 
intermediate inputs used by processors.  
12. The Government also receives formal and in formal advice from the private sector.  The 
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is the apex body of trade and 
industrial chambers and associations representing sp ecific products and/or industries. Importers and 
exporters must belong to a Chamber of Commerce or a relevant trade association;  this requires a 
national identity card and national tax number.  Mandatory import/export registration certificates from 
the former Export Promotion Bureau were abolishe d in 2006.  New legislation and rules governing 
the regulation and registration of trade organizations  are aimed at rationalizing the large number of 
chambers and associations, which often have overlapping membership (Trade Organisations 
Ordinance, 2006 and Trade Organisations Rules, 2007).12  They must be FPCCI members to be 
licensed and registered. 
(iv) Main trade laws and regulations 
13. Laws, regulations, ordinances and most administ rative guidelines or rules are published in 
English in the Government Gazette.  Trade-related measures are contained in laws, ordinances, and 
regulations, including statutory regulatory orders (SROs).   The Ministry of Commerce issues its Trade 
Policy annually, at budget time, af ter Federal Cabinet approval.  Customs legislation has been 
amended substantially since the last Review of Paki stan, including in the 2007/08 Budget, to facilitate 
trade:  it has introducing automatic/electronic clear ance and improved post-entry auditing practices;  
customs regulations enter into force when poste d on the CBR website.  All legislative changes, 
including to customs and taxation provisions, are in corporated at budget time in the annual Finance 
Act to be passed by Parliament.  Certain changes ha ve been made to the trade-related legislation since 
the last Review (Table II.2).  Regulatory arrangeme nts, including legislation, implementing rules, and 
regulations, have been strengthened mainly in cer tain key services covered by sectoral regulators, 
such as energy and telecommunications (Chapter IV). 
                                                      
11 Government of Pakistan (2007a), p. 13. 
12 Gazette of Pakistan, 2006;   and Notification SRO No. 1/2007. WT/TPR/S/193/Rev.1 Trade Policy Review 
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Table II.2 
Main changes in trade-related legi slation, 2001/02 to end-September 2007 
Area  Legislation  
Customs Amendments to Customs Act, 1969 
Import and export regulations Import Poli cy Order 2007-08; Export Policy Order 2007-08; Presidential Ordinance on Trade 
Development Authority, 2006 
Standards (imports and exports) Import Policy Order, 2007-08; E xport Policy Order 2007-08; Cotton Standardization 
Ordinance, 2002 
Government procurement Presidential Ordinance, 2002 
Sanitary, phytosanitary and quarantine 
measures Import Policy Order 2007-08; Export Policy Order 200-08; Animal Quarantine (Import and 
Export of Animal and Animal Products) Or dinance, 1979, Amendment Ordinance, 2002 
Marketing and labelling Import Policy Order 2007-08; Export Policy Order 2007-08 
Contingency measures Safeguard Measures Ordinance 2002 
Domestic taxes Federal Excise Act, 2005 
Intellectual property protection Import Poli cy Order 2007-08; Export Policy Order 2007-08 
Oil and gas Oil and Gas Regulatory Authority Ordinance, 2002 
Electricity NEPRA Eligibility Criteria for Consumer s of Distribution Companies, July 2003; Interim 
Power Procurement (Procedures and Standards) Regulations, 2005 
Financial services, including insurance Securities Act, 2005 
Telecommunications Pakistan Telecommunication Author ity (Functions and Powers) Regulations, 2004; Pakistan 
Telecommunication (Amendment) Ordinance, 2005 
Broadcasting and audiovisual Pakistan Electronic Media Regulatory Authority Ordinance, 2002 
Source: WTO Secretariat and Pakistani authorities.  
(4) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization 
14. Pakistan, an original Member of the WTO, provides at least MFN treatment to all WTO 
Members, except for Israel with which it has no offi cial relations, and India,  with which imports are 
subject to an evolving bilateral positive list.  It extends MFN tariff rates to non-WTO trading partners.  
Pakistan is not a signatory to the WTO Plurilateral Agreements but is actively considering joining the 
Information Technology Agreement, subject to overcoming tax revenue loss concerns, and the 
Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health.  
"Basic principles" of WTO Agreements, once ratified, are incorporated  into relevant domestic 
legislation. 
(a) Objectives and trade negotiations 
15. Pakistan has participated actively in the Doha  Round of negotiations and strongly supports an 
effective rules-based international trading syst em.  It sees further broad-based multilateral 
liberalization as benefiting Pakistani exporters, provided sound sectoral policies are followed to 
ensure their international competitiveness.13  In the current round of negotiations, the Government 
hopes to see certain multilateral imbalances and disc rimination against Pakistan and other developing 
countries redressed as well as developmental outcomes.14  It believes that the Uruguay Round 
agreements have strained Pakistan’s legal, econom ic, and technical capacitie s, and that negotiations 
should boost MFN trade by reducing tariffs and othe r trade barriers and eliminating discriminatory 
treatment.15  Pakistan has been particularly active in  the negotiations on non-agricultural market 
                                                      
13 Government of Pakistan (2006g), p. 15. 
14 WTO document WT/MIN(05)/ST/23, 14 December 2005. 
15 Government of Pakistan (2006f), p. v;  WTO document WT/MIN(05)/18, 15 December 2005. Pakistan WT/TPR/S/193/Rev.1 
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access, rules, trade facilitation, agriculture (i ncluding as a member of the G-20 Group, the G-33 
Group, and since December 2005 of the Cairns Group), and services.16   
(b) Notifications 
16. Since its last Review, Pakistan’s annual WTO notifications have ranged from six (2006) to 
more than 32 (January to September 2007), co vering anti-dumping, safeguards, subsidies and 
countervailing measures, technical barriers to tr ade, state trading, and intellectual property 
(Table II.3).  By end-June 2007 more than 12 regular  notifications were outstanding in areas such as 
import licensing procedures, agriculture and services.17  Pakistan has submitted its 2006/07 customs 
tariff to the WTO Integrated Data Base.  
Table II.3  
WTO notifications, 2001 to end-September 2007 
Legal basis, instrument or 
provision Subject WTO documents Frequency 
Agreement on Implementation 
of Article VI of the GATT 1994 
(Article 16.4) Anti-dumping actions  
(taken within the 
preceding six months) G/ADP/N/158, 03/08/2007 
G/ADP/N/161, 11/09/2007 Semi-annual or ad hoc 
Agreement on Implementation 
of Article VI of the GATT 1994 
(Article 18.5) Laws/regulations (and 
changes thereto, including 
changes in the administration of such 
laws) G/ADP/N/1/PAK/2/Suppl.2, 14/04/2003 Ad hoc as and when a 
Member establishes or 
changes laws and regulations 
Agreement on Subsidies and 
Countervailing Measures 
(Article 25.11) Countervailing duty 
actions (preliminary and 
final) G/SCM/N/153/Add.1, 18/04/2007 
G/SCM/N/130/Add.1/Rev.3, 01/05/2007  Ad hoc 
Agreement on Subsidies and 
Countervailing Measures  
(Article 32.6) Laws/regulations (and 
changes thereto, including 
changes in the administration of such 
laws) G/SCM/N/1/PAK/2/Suppl.2, 14/04/2003 Ad hoc as and when a 
Member establishes or 
changes laws and regulations 
Agreement on Safeguards  
(Article 12.6) Administrative 
arrangements; 
laws/regulations (and changes thereto) G/SG/N/1/PAK/3, 10/10/2003 Ad hoc (promptly after 
the establishment of laws, 
regulations, etc. with updates) 
Agreement on  Safeguards 
(Article 12.1(c)) Termination of safeguard 
investigation G/SG/N/9/PAK/1, 04/10/2005 Ad hoc 
Understanding on the 
Interpretation of Article XVII of 
GATT 1994 (Article XVII:4(a)) Foreign trade by state 
trading enterprises G/STR/N/9/PAK, 07/07/2003 Annual 
Agreement on Trade-Related 
Aspects of Intellectual Property 
Rights (Article 63.2) Laws and regulations IP/N/1/PAK/ I/2, 01/10/2004 Once or ad hoc 
Agreement on Technical Barriers 
to Trade (Article 10.6)  Measures in force G/TBT/N/PAK/25, 06/06/2007  Ad hoc 
Source:  WTO Central Registry of Notifications.  
(c) Dispute settlement 
17. Pakistan has been a party in one WTO dispute since its last Review (as of June 2007), as 
complainant against Egypt imposing anti-dumping du ties on matches.  Its complaint was withdrawn 
in March 2006 when mutually agreed price undertaki ngs by Pakistani exporters were notified to the 
                                                      
16 WTO document TN/S/W/57, 6 December 2005. 
17 In 2006 there were 27 outstanding notifications (WTO, 2007). WT/TPR/S/193/Rev.1 Trade Policy Review 
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WTO.  Pakistan has been a third party in four disputes, one of which is on-going.18  It has also joined 
consultations on Colombia’s imposition of cu stoms measures on imported Panamanian goods.19  No 
formal complaints were made against Pakistan in the period under review. 
(ii) Regional and other preferential arrangements  
18. Pakistan has traditionally liberalized trade un ilaterally and multilaterally, but has focused on 
regionalism recently.  While expressing past concer ns in the WTO on the growing share of non-MFN 
trade, from proliferation of preferential trade arra ngements, and its impact on and compatibility with 
the multilateral trading system, it has embarked on an ambitious network of such agreements since the 
last Review.20  According to the authoriti es, this focus has been driv en by the proliferation of 
preferential arrangements elsewhere that have increasi ngly penalized Pakistani exporters; this left the 
Government no option but to negotiate them de fensively to neutralize these disadvantages and 
maintain world trade shares.21  The authorities indicate that Pakist an would prefer to see the primacy 
of the multilateral trading system returned rather th an encouraging further proliferation of preferential 
arrangements, as well as  increased effectiveness of the WTO Committee on Regional Trade 
Agreements in terms of transparency and monitoring. 
19. Participation in multiple and possibly overlappi ng preferential trade agreements could make 
Pakistan’s trade regime less transparent, more complex, and uncertain; benefits from such participation remain to be seen.  These discri minatory agreements are likely to encompass 
increasingly overlapping membership and varying levels  of progress with different rules, including on 
origin (Table III.2), coverage and implementation periods.  They risk reducing national welfare by 
diverting more trade than they create.
22  A government report indicated that the South Asia Free Trade 
Agreement (SAFTA) would be efficiency-reducing and that Pakistan would gain far more from 
unilateral and multilateral trade liberalization.23  Unilateral (and multilateral) liberalization would also 
allow Pakistan to better manage regional integra tion by minimizing the likely trade diversion effects 
of free-trade agreements (FTAs) (also section (c) below).24 
(a) Preferential arrangements 
20. Pakistan has maintained preferential tariffs  under the GATT Protocol Relating to Trade 
Negotiations Among Developing Countries and the Gl obal System of Trade Preferences (GSTP).  Its 
GSTP commitments cover seven 4-digit HS items.25  Pakistan, along with other members, has not 
                                                      
18 The on-going dispute is the U.S. complaint agai nst Turkey’s Measures Affecting Importation of 
Rice.  The three completed cases were India’s complaints  against U.S. Rules of Origin for Textiles and Apparel 
Products (Panel Report adopted in July 2003) and EC  Conditions for Granting of Tariff Preferences to 
Developing Countries (Appellate Body and Panel Reports adopted in April 2004), and Brazil’s complaint 
against U.S. Subsidies on Upland Cotton (Appellate Body and Panel Reports adopted in March 2005, and 
compliance Panel formed in January 2007).  
19 WTO document WT/DS348/9, 6 September 2006. 
20 See, for example, WTO documen t WT/REG/M/2, 14 August 1996. 
21 Government of Pakistan (2006g), p. 9. 
22 World Bank (2006b), p. 128 and p. 130.  A recent study that concluded SAPTA and other major 
ASEAN regional trading agreements (RTAs) had not on balance generally diverted trade nevertheless found this less so for members of overlapping agreements and cautioned that their proliferation without on-going unilateral 
and multilateral liberalization risked developing sub-optimal  trade patterns (IMF, 2007).  It also concluded that 
more coherence among RTAs in tariff preferences, ru les of origin, and phase-in modalities would help 
implementation, reduce administrative costs and minimize trade distortions. 
23 Ministry of Industries, Production an d Special Initiatives (2005), p. 153. 
24 World Bank (2006b). 
25 UNCTAD (2007). Pakistan WT/TPR/S/193/Rev.1 
 Page 27 
 
 
offered further commitments under the on-going third round of GSTP ne gotiations launched in 
June 2004, as principles and market access formulae are still being discussed. 
21. Pakistan benefited from the EC’s Generalized System of Preferences (GSP) scheme, 
including the special arrangements to combat drug production and trafficking during 2002-05 
involving duty-free access for all industrial items and certain agricultural products.  However, 
duty-free exports excluded leather and leather products, yarn, and fabrics, and, as from 
1 January 2005, clothing;  this meant that some  80% of exports to the EC were ineligible.26  While 
these exports are eligible under the EC’s new GSP scheme from 1 January 2006 to end-2008, Pakistan 
only qualifies under the "general arrangements" and preference margins are limited to 20% of MFN 
rates on textiles and clothing and to 3.5% on other exports classified "sen sitive".  It is ineligible for 
the EC’s "special incentive arrangement for sust ainable development and good governance" (GSP+), 
which provides additional (tariff-free) benefits to vul nerable countries that are applying international 
standards in sustainable development and good g overnance by effectively implementing specified 
international conventions.27  Pakistan believes that the eligibility criterion that requires exports from 
such countries to be less than 1% of total EC GSP covered imports (which it exceeds only slightly) 
and the cut-off date for ratifying and implementin g the specified conventions of end-October 2005 
generates a "closed" list that unfairly discriminat es against Pakistan, which has lower per capita 
income than many eligible countries.  Most textile  and clothing exports are ineligible under the U.S. 
and Japanese GSP schemes.  Pakistan’s long-term objective is for improved GSP access, especially to 
the United States and the EC.  Pakistan is also c oncerned that some of its LDC competitors receive 
more preferential access to these and other major markets.28 
(b) Regional, and plurilateral arrangements  
South Asian Association for Regional Cooperation (SAARC) 
22. Pakistan has joined the South Asia Free Trade Agreement (SAFTA), which entered into force 
on 1 January 2006 to supersede the SAARC Pr eferential Trading Arrangement (SAPTA).29  Tariff 
reductions began in July 2006 (Augus t for Nepal), to be completed by 2016.  Under SAFTA’s Trade 
Liberalization Programme (TLP), Pakistan is to redu ce tariffs to a maximum of 20% by January 2008 
and to reduce lower tariffs annually by 10%;  they  are to be reduced to a 5% ceiling on imports from 
LDC members by 2009.  Beyond 2008, Pakistan is to reduce tariffs to a maximum of 5% by 2013 (LDC members by 2016).
30  "Sensitive" listed goods are exempt fr om tariff cuts.  Pakistan’s list has 
the highest share of items among non-LDC members (1 ,183 tariff lines or 22.6% of total).  Services 
are excluded. 
Organization of Islamic Conference (OIC) 
23. The Framework Agreement on the Trade Pref erential System Among OIC Member States, 
which entered into force in 2002, has 18 signatories,  including Pakistan.  The Protocol on Preferential 
Tariff Scheme for TPS-OIC (PRETAS), which emer ged from the first round of trade negotiations 
concluded in 2005, called for specific tariff reducti ons on an agreed timetable.  The second round of 
                                                      
26 Government of Pakistan (2006a), p. 8. 
27 WTO (2007b).  
28 Government of Pakistan (2007a), p. 4.  
29 SAPTA resulted in very limited preferen ces and achieved little trade liberalization  (World Bank, 
2006b, p. 128).  A recent IMF study also concluded th at it had not boosted trade among members significantly 
more than with non-members (IMF, 2007, p. 12). 
30 Pakistan and other non-LDC members are "encouraged" to reduce tariffs in equal annual instalments 
of not less than 15%.   WT/TPR/S/193/Rev.1 Trade Policy Review 
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negotiations, launched in November 2006, declared a road map and target date of 1 January 2009 to 
establish PRETAS.31  Pakistan became the tenth signatory in February 2007;  ratification requires 
Cabinet approval.32  Reductions are to be based on app lied tariffs as of October 2003, and no 
products, including agricultural goods, are specifically  excluded.  Members must identify 7% of HS 
tariff lines with tariffs above 10% for reduction in four annual instalments (six for least developed 
members after a three-year grace period);  tariffs a bove 25%, 15% and 10% are to  be lowered to these 
levels.  An alternative voluntary fast track tariff reduction programme provides for all tariffs to be 
reduced except those in a negative list, which cannot  exceed a certain share of members’ total tariff 
lines (30% for least developed members).  Tariff pref erence margins are to rise to 50% in five annual 
instalments (seven for least de veloped members), and within three years on exports from least 
developed members. 
Developing-8 group of countries (D-8) 
24. The D-8 Group is a development and econom ic cooperation arrangement comprising 
Pakistan, Bangladesh, Egypt, Indonesia, Iran, Malays ia, Nigeria, and Turkey.  Trade and nine other 
sectors have been identified for cooperation and project development.  Members signed the 
Preferential Trade Agreement (PTA) in 2006 (Fifth Su mmit).  The PTA calls fo r tariffs above 10% to 
be reduced in four annual installments (eight for least developed members) on 8% of members’ total 
tariff lines .  None of the signatories have yet ratified the PTA.   However, visa, customs and shipping 
agreements have been reached, and a process of sectoral dialogue initiated in 15 working groups 
covering areas such as jewellery development, fruits, fisheries, and large-scale manufacturing 
investment.  
Economic Cooperation Organization (ECO) 
25. The Protocol and Additional Protocol on Pref erential Tariffs Establishing the Preferential 
Trade Agreement signed by Pakistan and other founding ECO members was  not ratified, and was 
superseded by the ECO Trade Agreement (ECOTA), signed in July 2003.33  The ECOTA called for 
non-tariff barriers to be eliminated progressively and tariff rationalization on a fast track approach.  
Since ECOTA has only been ratified by three (Pakis tan, Afghanistan and Tajikistan) of the five 
members required in order to become effective it has not yet entered into force.  Pakistan agreed to 
provide preferential tariff margins of 10 percentage  points under ECOTA on the same imported items 
as those eligible under SAPTA.34  In July 2005, Pakistan, Afghanistan, Iran, and Turkey signed the 
Protocol on Signing of Texts of Annexes of ECOTA, including rules of origin. 
26. Tariffs are to be reduced to a maximum rate of 15% within eight years (15 years for 
Afghanistan).35  Pakistan, Iran, and Turkey have discussed a possible optional fast track approach to 
reduce the highest tariff rate to 10% within five inst ead of eight years; a decision is expected to be 
finalized soon.  Sensitive goods excluded from tari ff reductions are limited initially to 1% of 
members’ 6-digit tariff items, and the coverage of  the positive list of reductions is to be expanded 
                                                      
31 Organization of Islamic Conference (2006). 
32 PRETAS will enter into force when ratified by ten Member States;  Malaysia and Jordan have 
currently ratified it (Organization of Islamic Conference, Press Release, "Pakistan signs the Protocol on the 
Preferential tariff scheme for TPSOIC (PRETAS)", February 2007). 
33 Other ECO members are Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyz Republic, Tajikistan, 
Turkey, Turkmenistan, and Uzbekistan. 
34 Pakistan’s domestic notification on ECOTA tariff preferences covered only imports from Iran and 
Turkey (Customs Notification SRO No. 558(I)/2004). 
35 Annual tariff reductions are to exceed 10%. Pakistan WT/TPR/S/193/Rev.1 
 Page 29 
 
 
proportionately in eight equal annual stages to 80% of members’ tariff lines.  Pakistan is finalizing its 
lists.  ECOTA excludes trade in services.  
(c) Bilateral arrangements 
27. In line with its recent focus on preferential trade arrangements, Pakistan attaches high priority 
to improving market access conditions to the Unit ed States, the EC, and other major markets.  
Bilateral free-trade agreements (FTAs) are in operatio n with Sri Lanka, China, Malaysia, and Iran;  an 
FTA with Mauritius was signed in July 2007.  Paki stan expects to conclude FTA negotiations with 
Singapore and the Gulf Cooperation Council (Bahrain , Kuwait, Oman, Qatar, Saudi Arabia, and the 
United Arab Emirates) in 2007/08.36  It signed a Framework Agreement for negotiating a PTA with 
Turkey in 2004 (negotiations have since slow ed), and for an FTA with MERCOSUR (Brazil, 
Argentina, Venezuela, Paraguay, and Uruguay) in mid-2006, with which negotiations are to 
commence in 2007.  Pakistan has also initiated di scussions and in some cases begun negotiations on 
preferential trade arrangements with Afghanistan , Bosnia, Bangladesh, Canada, EFTA (Switzerland, 
Norway, Iceland, and Liechtenstein), Egypt, Jord an, Kenya, Mexico, Morocco, Myanmar, Russian 
Federation, Serbia, Syria, Switzerland, Laos, Thailand, Indonesia (following the signing of a 
Comprehensive Economic Agreement in 2003), Oman, K azakhstan, and Tajikistan.  Conclusion of an 
FTA with the United States remains longer term polic y;  an FTA with the EC is a high priority, 
despite the EC’s recent scepticism.37  I t  h a s  agreed to joint studies on possible preferential trade 
agreements with Japan and ASEAN,  with which it is working on a tw o-pronged strategy that includes 
individual bilateral FTAs with major me mbers and a joint bilateral agreement.38  These developments 
have not been notified or announced to the WTO.39  However, the authorities indicate that they will 
notify all developments in due course.  
Pakistan-Sri Lanka FTA 
28. This FTA, which entered into force on 12 June  2005, will remove tariffs on some 90% of 
Pakistan’s tariff lines on a margin of preference basis.  Pakistan’s margins are at least 34% on 
commencement, 67% within two years, and 100% af ter the third year.  Goods included in a negative 
(no concession) list are exempt from tariff reductions;  Pakistan has 540 six-digit tariff items on the 
list.  Its tariffs on 206 six-digit items were reduced immediately to zero, and ma rgins of preference of 
20% immediately applied (without quotas) on five six- digit tariff items.  Another 26 mainly six-digit 
Pakistani tariff items are subject to tariff rate quotas,  including tea (Chapter III).  Pakistan has met its 
first- and second-stage commitments and w ill implement its final stage in June 2008.   Both parties 
have agreed to include services and investment.  The FTA has reportedly expanded bilateral trade.40 
                                                      
36 Government of Pakistan (2006g), pp. 9-10. 
37 A Trade and Investment Framework Agreement (TIFA)  was signed with the United States in 2003.  
Under a Reconstruction Opportunity Zones Progamme being negotiated the United States would allow duty free 
entry of certain exports (e.g. textiles and clothing) from  such designated Zones in Pakistan’s border regions 
(Government of Pakistan, 2007a, p. 17).  
38 Government of Pakistan (2007a).  
39 Of those arrangements involving Pakistan, only SAPTA (April 1997) and ECO (July 1992) have 
been notified to the WTO, both under the "enabling cl ause", whereby neither agr eement was examined by the 
Committee on Regional Trade Agreem ents.  SAARC members (also Bangladesh, Bhutan, India, Maldives, 
Nepal, Sri Lanka, and Afghanistan since February 2007) are to notify SAPTA to the WTO under the "enabling 
clause" (Customs Notification SRO No. 501(I)/2007).  
40 Daily Times, "Pak-Lanka trade has doubled after FTA, says Hamayun", Staff Report, March 2007. WT/TPR/S/193/Rev.1 Trade Policy Review 
Page 30 
 
 
Pakistan-China FTA  
29. The FTA entered into force from 1 July 2007.  Ph ase I is to reduce or remove selected tariffs 
progressively over five years.41  Pakistan’s reductions cover ar ound 5,900 eight-digit tariff items 
(about 85% of total tariff items).42  Rates were reduced immediately by 25% on category I goods and 
are being phased out in three equal instalments by 2010 (35.6% of eight-digit tariff items);  
immediately lowered by 20% on category II goods and ar e to be reduced to or below 5% in five equal 
instalments by 2012 (19.9% of ta riff items);  immediately reduc ed by 8% on category III goods and 
are to be phased to a 50% margin of preference in  five generally equal instalments by 2012 (2.0% of 
tariff items);  and reduced immediately by 3% on category IV goods and to be phased to a 20% 
margin in five generally equal instalments by 201 2 (26.1% of tariff items).  Category V and VI goods 
are not subject to concessions or reductions.  Ne gotiations on services trade commenced in April 2007 
and are expected to be  concluded by end-2007. 
Pakistan-Malaysia PTA 
30. An Early Harvest Programme (EHP) entered into force in 2006.43  The PTA (Pakistan 
Malaysia Closer Economic Partnership Agreement)  was concluded in May 2007 and is due to be 
signed in 2007 and implemented from 1 Ja nuary 2008.  Pakistan has offered to  eliminate  tariffs of 5% 
and provide a preference margin of 50% on tariffs of 10% covering in total 125 tariff lines.  This 
Agreement includes investment and services.  
Pakistan-Iran PTA 
31. The PTA entered into force on 1 September 2006.   Pakistan extended preferential tariff 
margins of 5%, 10%, 15%, 20% or 30% (mainly 10% and 30%, and averaging 18%) on 338 six-digit 
tariff items from 1 September 2007.44 
Pakistan-Mauritius PTA 
32. This agreement provides for tariffs to be re duced substantially or phased down within two 
years of the date of implementation.  Pakistan has agreed to extend preferential tariffs (initially of 50% and full removal after one yea r) to Mauritius on a range of goods, including fresh flowers, fruits, 
tea, tinned tuna, sugar, soap, certain food prepara tions, pasta, non-alcoholic beverages, and certain 
knitted textiles.
45  Imports of certain other textile products will receive a preferential tariff margin of 
40% but subject to tariff quotas totalling some 8 million pieces annually.  Six memoranda of understanding were also signed to promote bilate ral trade and cooperation, including in customs, 
                                                     
 
41 Under Phase II countries are to co nsult and try to eliminate tariffs on at least 90% of goods, both in 
terms of tariff lines and quantities, within a reasonable time period. 
42 Pakistan’s initial tariff reductions commenced from July 2007 and are to be phased in over 
five years, commencing 1 Januar y of each year (Customs Notif ication SRO No. 659(I)/2007).  
43 The EHP specified goods on which tariffs would be reduced immediately to zero and others whereby 
tariffs would be phased out in three years.  Rates above 15% would be reduced to:  10% by 2006, 5% by 2007, 
and zero by 2008 (category 1 goods);  rates from 5% to 15%:  to 5% by 2006 and to zero by 2007 (category 
2 goods);  and rates below 5% to zero by 2006 (category 3 goods).  Pakistan agreed to remove tariffs on 486 mainly six-digit tariff items immediately, and to provide immediate preference margins from mainly 5% on 
many agricultural and industrial goods to 100% on most seafood, covering in total approximately 570 six-digit 
tariff lines. 
44 The reductions, covering 475 8-digit items, were initially notified to commence from 
September 2006 but were delayed for one year (Customs Notification SRO No. 894(I)/2006 and 
No. 501(I)2007). 
45 Centre for Trade and Development (2007). Pakistan WT/TPR/S/193/Rev.1 
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small and medium enterprises, state trading corporations, technical standards, sanitary and 
phytosanitary measures, fisheries, and export pr omotion.  No further details on the PTA were 
available, including from the authorities. 
(5) FOREIGN INVESTMENT REGIME  
33. The Board of Investment (BOI) administers the legal framework for foreign direct investment 
(FDI).  In 2007, the requirements to register all non-oil and non-financial FDI and for the BOI to issue 
a permission letter were removed. 
34. Most activities, including infrastructure, agricu lture, and services, and all industrial sectors, 
except for arms and ammunition, high explosives, radioactive substances, and currency printing and 
minting, are open to full foreign ownership.  Th e maximum foreign equity of 60% in corporate 
agricultural farming (CAF) has be en abolished and full foreign ow nership is permitted.  Foreign 
equity limits apply in media (e.g. foreigners a nd majority foreign-owned or controlled television 
channels are ineligible for licensing), tourism and ai r transport;  new investment (domestic or foreign) 
in manufacture of alcoholic beverages (exc ludes industrial alcohol) is also banned.46  Joint-venture 
requirements apply in banking services (Chapter IV) and, in practice, in some other service areas, 
such as engineering and construction services, under va rious by-laws;  though 100% foreign equity is 
generally allowed.  Minimum FDI levels of US$300,000 apply in social, agriculture, and infrastructure activities and of US$150,000 in some services, e.g. retail and wholesale trade (reduced 
from US$300,000 in July 2004).  The FDI cap of 51% in life insurance was removed in 
September 2006 to allow 100% foreign equity, but minimum investment requirements were retained 
(Chapter IV).  FDI from India and Israel is banned. 
35. While Pakistan’s has been more successful in attracting FDI in recent years (Chapter I), 
further investment liberalization would generate additional economic benefits.
47  The authorities 
indicate that the major remaining investment limita tions, include:  poor coordination and collaboration 
between relevant regulatory bodies;  duplication of  requisite permissions;  inadequate implementation 
of incentives, and their non-competitiveness compared to those offered by regional governments;  an 
improper domestic arbitration framework to resolv e commercial disputes;  and lengthy and time-
consuming judicial procedures.  There have been several cases of foreign investors having difficulties 
enforcing contracts with domestic partners.  Investor s also remain discouraged by political instability, 
sectarian violence, weak infrastructure, high crime rates, and corruption.48   
(i) Incentives 
36. General investment incentives, including liber al tariff and tax concessions, administered by 
the Ministry of Commerce and the CBR, do not discriminate between foreign and domestic investors (Table II.4).  Sectoral incentives also apply e.g. for oil and gas (Chapter IV), and to exports (Chapter III).  The Government policy is to enhan ce the role of special economic zones in attracting 
investment (Chapter III).  
                                                     
 
46 EIU (2006), p. 13. 
47 Ministry of Finance (2006), p. 43. 
48 EIU (2006), p. 2;  USTR (2007a), p. 449. WT/TPR/S/193/Rev.1 Trade Policy Review 
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Table II.4 
Main investment incentives, 2007 
Measure Description 
A.  General incentivesa 
Tax credits Initial income tax allowan ce of 50% across the board under section 23 of the Income Tax Ordinance, 2001 
Tariffs Imports in the manufacturing sector of plant, mach inery, and equipment unavailable locally subject to 
concessionary tariffs of 5%, and in other sectors from free to 5%;  imports of agri cultural machinery unavailable 
locally are duty free;  no tariffs on imported raw material s, sub-components for manufacturing plants of sugar, 
cement, power, industrial, chemi cals, fertilizer, and oil and gas 
Sales tax Zero on imported and domestic plan t, machinery, and equipment by all sectors 
B.  Industry-specific incentives 
Financial services A rebate on investment in approved pens ion funds of up to the lowest of 20% of taxable income or PRs 500,000 
(raised from 10% or PRs 200,000 in 2005/06 Budget) 
Agriculture Agricultural income exempt from federal income tax (subject to provincial tax) 
Information 
technology Five-year income tax exemption for computer training ins titutions established from 1 Ju ly 1997 to 30 June 2005;  
export income from software and related services tax exempt until 30 June 2016;  customs duty of 5% on 
computer hardware and parts removed in 2006/07 Budget (imposed in 2004/05 Budget) 
Venture capital Venture capital companies exempt from income tax from 1 July 2000 until 30 Ju ne 2014 (extended from 
June 2007 in 2006/07 Budget) 
Mineral refining Income from mineral refining ta x exempt to up to 10% of the business’s capital 
Textiles Textile sector exempt from sales tax,  and import of raw materials exempt from tariffs and sales tax (2005/06 
Budget) 
Pharmaceuticals Tariff concessions on inputs 
C.  Regional incentives 
Tariffs  Full tariff exemption on imported machinery for facilities in designated rural and poorly developed areas, as 
well as approved industrial estates (Hub Tehsil in Baloch istan, districts of Mainwali and Bhakkar and tehsil 
Khushab in Punjab, and the districts of Tharpark ar and Dadu in Sindh, excluding Taluka and Kotri) 
Sales tax  Full exemption of sales tax on imported and domestic machinery for facilities in designated rural and poorly 
developed areas, as well as approved industrial estates (H ub Tehsil in Balochistan, di stricts of Mainwali and 
Bhakkar and tehsil Khushab in Punjab, and the districts of Tharparkar a nd Dadu in Sindh, excluding Taluka and 
Kotri) 
a The authorities indicated that no income tax holiday  is applicable under the Income Tax Ordinance, 2001. 
Source:  EIU, Country Commerce Pakistan , September 2006, pp. 19-22;  the Pakistani authorities.  
(ii) Bilateral investment treaties (BITs) and double taxation agreements 
37. Pakistan is a member of the World Bank' s Multilateral Investment Guarantee Agency 
(MIGA) and the International Centre for the Settleme nt of Investment Disputes (ICSID);  it ratified 
ICSID membership  in 2005 (signed in 1966).49  Three cases have been settled through ICSID since 
2002.  MIGA has seven outstanding contracts cove ring guarantees worth US$114.1 million (reduced 
from US$143.7 million at the time of the last Review ), mainly in the financial, telecommunications, 
and energy sectors in Pakistan.  Since 2002, two ne w contracts (totalling US$15.5 million) have been 
issued, both in the financial sector. 
38. Since its last Review, Pakistan has signed 30 BITs  bringing the total to 48;  these cover most 
developed countries.  BITs signed since 2002 incl ude with Kazakhstan, Tajikistan, Laos, and 
Cambodia;  Pakistan is still negotiating with Kuwa it, and the United States after signing a Trade and 
Investment Agreement with the latter in 2003.  The authorities indicate that a BIT with the United 
States would facilitate greater invest ment and other economic cooperation. 
39. Pakistan has signed agreements to avoid double  taxation with 54 part ners, including, since 
2002, Austria, Bosnia and Herzegovina, Saudi Arab ia, SAARC, Tajikistan, Yemen, and Viet Nam.
                                                      
49 The authorities indicate that Pakistan is reviewing its 1940 Arbitration Rules to provide a "proper" 
framework for resolving commercial disputes.  Pakistan WT/TPR/S/193/Rev.1 
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Annex II.1:  Trade-related Technical Assistance (TRTA)1 
Overview 
1. Since its last Trade Policy Review, Pakist an has benefited from TRTA provided both 
bilaterally and through the WTO.  During the pe riod the WTO undertook several assistance projects 
on trade policy, regulations covering a broad ra nge of WTO Agreements, and Doha Development 
Agenda (DDA) issues.  These activities, provided mainly through national seminars/workshops and 
hands-on training, specifically in areas of rules, focused on developing human resources;  building 
institutional capacity; and support to implement WT O Agreements and to participate in the DDA.2 
Pakistan also benefited from a technical assistance activity in the context of the current Trade Policy 
Review. Pakistani officials have attended the WT O trade policy courses.  Overall, Pakistan has 
benefited from 15 national technical assistance activiti es, either directly organized by the WTO or in 
collaboration with other bodies. 
2. The WTO also supported the establishment of f our WTO Reference Centres in Pakistan for 
use by government officials, students, academics,  and businessmen.  These Centres are located in the 
Trade and Development Authority (formerly the Export Promotion Bureau) in Karachi (formed in 
November 2004), the Chamber of Commerce and I ndustry in Lahore (April 2005), the Ministry of 
Commerce in Islamabad (September 2005) and the Punjab Government’s Pl anning and Development 
Department in Lahore (September 2005).  The firs t three Centres were formed as part of the 
ITC/WTO Joint Mission. 
3. During the period under review se veral development partners, e. g. UN specialized agencies 
(FAO, UNDP, UNCTAD), WIPO, the World Bank, the EC, and the British Government, have 
supported Pakistan’s development of human res ources and institutional capacity for international 
trade.  Non-governmental bodies have also been active in this regard. 
WTO action plan for 2007 
4. The WTO 2007 Technical Assistance and Training plans provided for Pakistani officials to 
participate in Geneva-based and regional trade policy courses, workshops or seminars on various 
issues at the regional or sub-regional level, ne gotiating techniques, and meetings to promote 
awareness among parliamentarians.  
Future TRTA needs and priorities 
5. The authorities seek to improve understanding of the multilateral trading system among 
Pakistani trainers and international trade experts,  mainly by reinforcing and continuing training and 
trade policy courses as well as technical meetings fo cused more at the national level.  These activities 
should continue to deal with subjects such as human resource development, institutional capacity, and implementation of the WTO Agreements and the DDA. 
6. To benefit fully from technical capacity-build ing assistance, Pakistan has identified three 
priority areas:  the Standards and Trade Developm ent Facility (STDF) in the area of sanitary and 
                                                     
 
1 Based on the joint WTO/OECD Doha Developm ent Agenda Trade Capacity Building Database. 
2 The activities included general capacity building such as trade negotiation techniques and DDA 
advanced training programmes (19), Geneva-based and regional trade policy courses such as university and 
academic programmes (26), rule s (13), services (8), trade-related inte llectual property (TRIPS) (6), dispute 
settlement (6), technical barriers to trade (TBT) (6),  development issues (6), sanitary and phytosanitary 
measures (SPS) (5), trade facilitation (5), non-agricu ltural market access (NAMA) (5) and agriculture (4). WT/TPR/S/193/Rev.1 Trade Policy Review 
Page 34 
 
 
phytosanitay measures;  institutional capacity build ing of the new Intellectual Property Organization 
(IPO);  and up-grading, enforcing, and enhancin g the effectiveness of the TBT National Enquiry 
Points (NEPs). 
7. Pakistan has requested a Project Preparation Grant (PPG)  under STDF to help develop (i) a 
policy for guiding the public sector in performi ng testing, inspection, certification, approval 
procedures and quarantine treatment;  and (ii) a national incentive mechanism to help the private 
sector to effectively implement/follow SPS regulations  and to comply with international standards, 
(especially in fisheries, livestock, and crops), and with those of partners including laboratories, pre-
shipment agencies, quarantine departments and the Small and Medium Enterprise Development 
Authority.  The STDF project is also expected to  strengthen public-private partnership, increase 
market access, expand exports, and raise the awaren ess of Pakistani scientists and technicians to the 
trade-related implications of SPS. 
8. Pakistan’s new IPO integrates all forms of intellectual property rights and provides a single, 
consistent primary source of policy advice. In  order to be business-like and have a modern 
administration for fee-paying clients, the IPO management and staff requires comprehensive 
familiarization and capacity building on WTO Agre ements, especially the TRIPS Agreement.  A 
targeted capacity-building programme on TRIP S, including resolving issues and highlighting 
flexibilities in implementation, would be important.  The Pakistani authorities have also expressed interest in an advisory mission on geographical  indications adopted by other WTO Members, 
especially on how to determine the distinctive f eatures of goods peculiar to a specific geographical 
area and the various tools available.  Assistance ha ve also been identified for developing national and 
international linkages for upgrading infrastructur e and building capacity to help the IPO adopt 
international best practices in pr otecting intellectual property rights. 
9. Specific technical assistance n eeds and targeted capacity bu ilding measures (CBMs) for up-
grading, enforcing, and enhancing the effectiveness of NEPs in the context of TBT Agreement have 
been identified.  Pakistan’s Standard and Quality  Control Authority (PSQCA) is drafting technical 
regulations for commodities as mandated under the PSQCA Act.  Such targeted technical assistance 
from IGOs, bilateral donors, and other regional orga nizations would facilitate  digitalization of the 
relevant material such as specifications/standards, requiring specialized training of technicians. This 
would assist in establishing a reliable mechanism for regular interaction/collation with other 
Members' NEPs. 
10. The authorities have a  strong interest for th e Aid for Trade initiative and how it can benefit 
Pakistan.  They hope that the initiative will provide a good opportunity for addressing, inter alia , 
Pakistan’s institutional and trade capacity deficienci es, infrastructural impediments, and supply side 
constraints.  The authorities highlight the importa nce of thorough needs assess ments in trade-related 
areas in order to benefit most from the initiative.