HIGHLIGHTS OF PAKISTAN STRATEGIC TRADE POLICY FRAMEWORK (2015-18)
23-03-2016: Islamabad: Following are the highlights of the Strategic Trade Policy Framework (STPF) 2015-18, announced by Federal Minister for Commerce, Khurram Dastgir Khan here Tuesday.
Enhancement of annual exports to US$ 35 Billion by 2018 Improvement in Export Competitiveness.
Transit from `factor-driven’ economy to `efficiency-driven’ and `innovation-driven’ economy Increase share in regional trade.
Enhance competitiveness through quality infrastructure, labour productivity, access to utilities, and level of technological development
Compliance to standards (convergence of local & international standards, protection of intellectual property, and effective and efficient disputes resolution mechanism)
Ensure policy environment (monetary policy, tariff & tax regime, and synergic industrial & investment policies)
Explore market access including multilateral, regional, and bilateral. enhancing share in existing markets, exploring new markets, trade diplomacy and regionalism)
Product sophistication and diversification (research and development, value addition, and branding)
Institutional development and strengthening (restructuring, capacity building, and new institutions)
Trade facilitation (reducing cost of doing business, standardization, and regulatory measures)
20% investment support upto a maximum of Rs. 1 (one) Million per annum per company will be available for import of new plant and machinery.
50% of markup support on up-gradation of technology will be provided for import of new machinery/plant, subject to a maximum of Rs. 1 (one) Million per annum per company
Matching grant upto a maximum of Rs. 5 (five) Million for specified plant and machinery or specified items to improve product design and encourage innovation in SMEs and export sectors of leather, pharmaceutical and fisheries
Common Facility Center for surgical sector will be established
Provision of matching grant to facilitate the branding and certification for faster growth of the SME and export sector in Pakistan’s economy through Intellectual Property Registration (including trade and service marks), Certification and Accreditation.
Draw-back for local taxes and levies will be given to exporters on free on board (FOB) values of their enhanced exports if increased by 10% and beyond (over last year’s exports) at the rate of 4% on the increase.
To reduce the wastage of produce, increase income of the farmers and foreign exchange earnings the policy envisages 50% support on the cost of imported new plant and machinery for specified under-developed regions
And 100% mark-up support on the cost of imported new plant and machinery on all Pakistan basis
In the wake of upcoming review of the GSP Plus in 2016, it envisages a robust public information campaign.
It envisages exploration of new markets through market research, opening of new trade missions, exhibitions and delegations.
It also envisages working on its three-pronged strategy of trade diplomacy in the multilateral, regional and bilateral arenas for increasing market access.
Resolution of outstanding issues in Afghanistan Pakistan Transit Trade Agreement (APTTA)
Negotiation and early conclusion of Afghanistan, Pakistan and Tajikistan Transit Trade Agreement (APTTTA)
Effective implementation of Transports Internationaux Routiers (TIR) Convention
Reactivation of Quadrilateral Transit Trade Agreement (QTTA) among Pakistan, China, Kyrgyz Republic and Kazakhstan
Restructuring/ Reorganization of Ministry of Commerce and Trade Promotion Organizations
Placement of Intellectual Property Organization-Pakistan (IPO- P) in Ministry of Commerce
Export Development Surcharge to Export Development Fund (Prospective) and capacity building
Creation of New Institutions: Export Development Councils and reducing cost of doing business
The Focus Markets for short-term export enhancement will be (i) Iran, (ii) Afghanistan, (iii) China, and (iv) European Union.
These markets have been selected on the basis of potential for enhancement of Pakistan’s market share in the short term.