The government, along with its numerous state-run corporations, is Pakistan's largest importer. The government subscribes to principles of international competitive bidding, but political influence on procurement decisions is common, and these are not always made on the basis of price and technical quality alone. Delays in bureaucratic decision-making are common. For example, preferential tariff rates are usually subject to the proviso that the goods in question are not domestically manufactured. Disputes sometimes arise over this provision, with investors arguing that local output, while available, does not meet their specifications.
Investors also cite arbitrary and inconsistent customs valuations and frequent changes in rates.
Charges that customs officers demand bribes are also common. Export Subsidies Policies Pakistan actively promotes the export of locally produced goods with government financing measures, a tariff rebate scheme and other concessions on imported inputs, tax concessions, and government-sponsored exhibitions. These policies appear to be equally applied to both foreign and domestic firms producing goods for export. Pakistan's main exports are cotton textile products, and until 1994 the government taxed raw cotton exports in order to keep their price low for domestic manufacturers. Cotton exports are no longer taxed, but they must be registered and domestic textile producers continue to call for reimposition of the tax.