04 Syeda Aisha Ameer Gillani

Strategic Trade Policy Framework 2012-2015

Ministry of commerce unveiled its Strategic Trade Policy Framework 2012-2015 on January 30,
2013 setting $95 billion export target for next three years.
Under the framework, institutions will be strengthened and governance will be improved.
Pakistan Land Port Authority will be created with the objectives of development and strength of
regional trade and government will subsidize the exporters by creating EXIM Bank that will
offer economical and timely credit to exporters. Although services contribute 54% to the GDP of
the country but its portion is less than 25% in the total exports. In 2011-12, Pakistan contributed
just $5 billion in the global trade of $18.2 trillion which is just 0.1%. So in order to boost the
export of services sector, Ministry of Commerce, using its regulatory framework will form
Foreign Trade Wing for Services and Services Trade Development Council. International Trade
Dispute Arbitration Council will be formed constituting members from related ministries and
departments in order to solve trade related disputes and commercial courts will also be made
more efficient. To further increase the exports, Export Promotion Agencies will be revamped and
export promotion wing will be created in the ministry of commerce. In order to improve the
efficiency of the officers, a system of annual performance evaluation will be adapted.
Ministry has devised plans to subsidize the export sector to further increase the exports. These
subsidies will include mark up support of 2% on prevailing Long-Term Financing Facilities for
future import of machinery, mark up support of 1.5% on Export Finance Schemes to selected
importers, ad-hoc relief of 3% of FOB to offset the impact of higher cost of utilities for Pakistani
Exporters in selected sector, marketing development assistance for regional countries, export
promotions products for agro-processed products, encouraging the opening of retail outlets,
subsidizing 50% cost and machinery of dates and olive processing plants, subsidizing 50% cost
of plant and machinery for establishing processing plant and machinery for establishing
processing plants for fruits and vegetables on Gilgit Baltistan, up gradation of rice labs, mark up
subsidy for setting up meat processing plant, subsidies on marble cutting machinery and
establishment of Leather Export Promotion Council. In order to further improve the trade
regulatory amendments will be made.