Pros and Cons of Pakistan’s Trade Policy 2007-08

1. Leasing of complete projects will be allowed in all industrial sectors including high tech and export oriented sectors. This provision in trade policy will facilitate the industrialist and business men to carry out the expansion programs. Increase in expansion programs will be influential in substantial improvement in business sector. Vice versa, this will improve the Government image with respect to foreign direct investment. This provision if carried out as planned will surely help in better economic conditions for Pakistan. 2. Licensed call centres shall be allowed to import complete call centers, their parts, spare parts in second hand or used condition for their own use and these call centres are not allowed to sell it to somebody else. This provision in trade policy will encourage investors to start call center business in Pakistan. Call centre business is rapidly becoming one of the modern tools for the marketing of products. Moreover, it will create income opportunities for the unemployed people in Pakistan especially for the students because call centres job are not only for those who want to join it as full time job but it is also for those who want to do part times to support their education as well as their family. 3. Complete Laboratory projects for quality control and complete effluent treatment plants will be permissible for leasing. Quality of work is becoming very important now days, so this clause will help in improving the quality of products and its use for better and safer environment. On the other hand, such projects will also create employment opportunities. 4. Import of 2nd hand machinery for construction, mining and petroleum sectors. Importing high quality machinery for construction, mining and petroleum sectors will play significant part in helping the companies to reduce their costs, wastes, and maximize efficiency and quality. 5. Import of spare parts on regular inventory list of projects will be allowed for leasing. This will surely encourage investors confidence in the Government that government is facilitating the business operations

6. Passenger’s transportation vehicles either 1st hand or 2nd hand will not be allowed to import. This will encourage local investment in this sector. More investment will be done by local companies in transport vehicles manufacturing industry, more will be employment opportunities for the citizens of the country. 7. Import in export processing zones will be allowed. This facility will be helpful in enhancing the exports and opportunities to earn better foreign exchange. HaierRuba trade zone project that has been started last year is example of this facility. 8. Import of vehicles under personal luggage, transfer of residence and gift schemes. This extra-facilitation is provided for the Dual-nationality Holders. Specified rules and regulations regarding such import will be helpful in minimizing the mis-use of the facility. 9. Import of livestock, feed ingredients from BSE infected countries is banned. This will help the Government to prevent harmful diseases to spread in Pakistan. Ban will not applied on import of feed ingredients from other than BSE infected countries. 10. Substances harmful for Ozone layer or in other words Ozone depleting substances will be banned. This is an environment-friendly step towards for the better tomorrow. 11. Imports from India only under un-avoidable conditions. There are hostile relations between Pakistan and India, so trade shall be done only if there is no other way out. For example; Tents and blankets were imported from India at cheap rates that helped significantly in rehabilitation process in earth-quake infected areas of Kashmir and NWFP. Similarly, Meat as food is prohibited in Hindu Religion so it is available at low rates. Importing meat from India will help in meeting demand and stable price level. 12. Imported Medicines shall display name and other labeling requirements in accordance with Drug Rules of mid 1980’s. This provision in trade policy will facilitate in providing quality medicines to the public of Pakistan. 13. Banned items Translation of Holy Quran without Arabic text, and pictures and written material against Islam is strictly banned. Goods such as bears, wines, pigs

are banned. As Pakistan is Islamic Republic, so these items should be banned for sustenance of Islamic society. 14. Imports of any kind under any condition from Israel are strictly banned. Pakistan has not recognized each other as a country in United Nations due to her stand on Jerusalem and terrorist activities against Palestine. There is clear stand of Government on this issue. CONS 1. International trade in days of Globalization is incomplete without focus on research. The trade policy does not put much stress on the research and development. Role of Research in domestic commerce and better unique trade tools should be there to get the maximum out of international trade.There is a need for better Industry-academia links. 2. There is no clear reason to restrict the resale of imported machinery and plant & equipment because the resale of this machinery can enhance our domestic trade. 3. Industrial policy should support same, capacity building through innovative services in cooperation with the private sector and technical assistance agencies. 4. Need for establishment of industrial estates, sect oral villages and information technology parks in the financial and commercial hub of Pakistan is not focused by Government in Trade Policy. 5. Import of electric appliances such as cell phone are increasing by 27.65 which is more than increase in our textile and clothing exports which is our major source of exports this is not only increase the trade gap more but also increasing the unwanted expenditure of public towards mobiles as well as terrorism activities by using it. So there must be some controlled policy towards imports of mobiles. 6. There is no clear reason that why same call centres equipment that is imported cant be be further re-sold. This can be regareded as negative point towards local investors attraction towards this industry as well as financial loss on part of liscenced companies in case the equipment becomes out of date . 7. Passengers transport vehicles will not be allowed to import. This might make some companies with better financial resources dominant in the industry. The

example of HINOPAK is before us which is capturing more than 65% of market share of Local Buses in Pakistan. 8. Only Ministries, MNAs, MPAs, divisions, and provincial government officials are allowed to import items irrespecttive of their status. More facilitation should be there for Public representatives but steps sholud be taken to ensure that the liberty is not misused. 9. Some illegal and unwanted ways of getting banned items such as smugling will also prevail. There must be such policy which is also in favor of minorities because there are some things that are banned for Muslims but allowed for Minorities. 10. The increase in imports is mainly due to high import of petroleum products which are increasing day by day due to transport leasing policies by the Government. Are increasing day by day. It means even if our exports increase we can not eliminate the trade deficit because our imports are increasing at a high rate.

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