Trade Development Authority of Pakistan

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN1
ACKNOWLEDGMENT
I would like to thank Almighty ALLAH, who is most beneficial and merciful, who enable me to
do this job very well and by His Blessings that he gave us Confidence, Guidance & Strength to
complete this report. We always need O Almighty ALLAH, always lead me to the right way; we
are nothing without your Blessings.
I would like to express our gratitude and appreciation to all those who gave me the possibility to
complete this research. Completion of this research was not an easy task, but by the support and
help of teachers, it becomes very simple to me. My parents and friends played an important role
as well.
Very special thanks to Mr. ALI SALMAN who was extremely cooperative and guided
throughout the research. Respected teachers made their efforts in building our personality and
enable me to do some creative work and to be a successful person in life. My gratitude will
always remain due to UNIVERSITY OF SOUTH ASIA, for expanding our knowledge and
experience.
Executive Summary
EPB contributed in a significant manner, as Pakistans exports - reported at just under quarter of
a billion dollars in 1963 - increased by over 70 times to touch nearly US $ 16.5 billion in
2005/06. However, professional human resources were lacking at the times of EPB, and so in
order to improve this deficiency, and to change the image of EPB as a Bureaucratic
Organization, need was felt for EPBs metamorphosis into a more dynamic, professionally wellequipped organization, which was to be the TDAP.
The Trade Development Authority of Pakistan (TDAP) is a body corporate established on 8
November, 2006, under a Presidential Ordinance. The Ordinance will be tabled in the Parliament
as an Act for approval. The TDAP is the successor organization to the Export Promotion Bureau
(EPB) and is mandated to become a dedicated, effective and empowered organization that is
professionally managed. TDAP, as part of its trade development mandate, as opposed to export
promotion only, will be dedicated to the holistic development and promotion of goods and
services for exports globally. TDAP in this enhanced responsibility and role will create direct
linkages with stakeholders, local and abroad, aiming for a Quantum Leap in exports. The
administrative ministry of the TDAP will be the Ministry of Commerce, with the objective of
promotion of sustainable growth in the quantum and value of export of goods and services.
TDAP Participates in 40 to 60 international trade exhibitions annually. TDAP sends 20 to 40
trade delegations abroad every year. It Organizes the EXPO PAKISTAN annually in Pakistan,
which is well-attended by foreign buyers. Also, it runs the Expo Centre, Karachi providing a
permanent exhibition space for holding trade events. It, Implements various Trade Policy
Initiatives announced by the Commerce Ministry. TDAP undertakes various sector-development
projects from the Export Development Fund.
Glossary & Abbreviations

TDAP
trade development authority Pakistan
Fostering
Encourage the development of something
EPB
Export Promotion Bureau
Collaboration
The action of working with someone to produce something
Delegations
A body of delegates or representatives; a deputation
Mandate
judicial or legal command
Quantum Leap
A sudden large increase or advance
Sustainable
Able to be maintained at a certain rate or level
Orient
the eastward part of earth
Duplication
Exactly like something else
Advisory
opinions, counsels
Exploring
inquire into, examine
Standardization
A level of quality or attainment
Dissemination
scatter abroad
GSP
Generalized System of Preferences
ISO
International Standards Organization
FCEF
Foreign Currency Export Finance facility
PEMPUF
Pioneering Export Marketing & Product Up gradation fund
Lounges
Lie, sit, or stand in a relaxed or lazy way
Horticulture
he art or practice of garden cultivation and management
Gem
cut or polished precious stone
DTRE
Duty Tax Remission for Export scheme
Pharmaceutical
pertaining to art of medicine
Clusters
bunch
UNIDO
United Nations International Development Organization
Mountaineering
The sport or activity of climbing mountains
Expedition
warlike enterprise
Exemption
release
FBR
Federal Board of Revenue
Narcotic
inducing drowsiness
Chassis
The base frame of a car, carriage, or other wheeled vehicle
Tampered
machinate, have secret of corrupt dealing
Baggage
luggage
Confiscation
legal robbery with sanction of ruling power
Penalty
punishment
PE
polyethylene
PP
polypropylene
Bilateral
of one, with two sides
FTAs
free trade agreements
PTAs
Preferential Trade Agreements
RTAs
Regional Trading Arrangements
FDI
foreign direct investment
Vis--vis
In relation to; with regard to
Boost
Help or encourage (something) to increase or improve
DTRE
Duty Tax Remission on Exports
IPO
Import Policy Order
AGPR
Accountant General of Pakistan Revenues
Red-Tapism
Excessive bureaucracy or adherence to official rules and

Formalities
Merchandise
commodities of commerce
B2B
business to business
Avenues
opening marked by trees
Infrastructure
The basic physical and organizational structures and facilities
GIS
Geographical Information Systems
NHS
National Health Service
Asymmetry
lacking symmetry
UNDP
United Nations Development Program
Prototypes
the first or original type
Prompting
encouragement
UNCTA
United Nations Conference on Trade and Development
ITC
International Trade Commission
KCCI
Karachi Chamber of Commerce and Industry
ICCI
Islamabad Chamber of Commerce and Industry
Liberalization
generous, open-handed
Diversification
unlikeness in nature quality
Legislation
enacting of laws
TCP
Trading Corporation of Pakistan
Chapter 1
Introduction:
The Trade Development Authority of Pakistan (TDAP) is a body corporate established on 8
November, 2006, under a Presidential Ordinance. The Ordinance will be tabled in the Parliament
as an Act for approval. The TDAP is the successor organization to the Export Promotion Bureau
(EPB) and is mandated to become a dedicated, effective and empowered organization that is
professionally managed. TDAP, as part of its trade development mandate, as opposed to export
promotion only, will be dedicated to the holistic development and promotion of goods and
services for exports globally. TDAP in this enhanced responsibility and role will create direct
linkages with stakeholders, local and abroad, aiming for a Quantum Leap in exports. The
administrative ministry of the TDAP will be the Ministry of Commerce, with the objective of
promotion of sustainable growth in the quantum and value of export of goods and services. The
division of TDAP consists of five sectors which are food agro, textile clothing, minerals and
metals, engineering&other.
TDAP's efforts based on aggressive marketing and institutional facilities to the Mineral sector
have resulted in the expansion of exports from the country. Gems & Jewelry, Petroleum group,
Marble& Granite, and Chromium ore, contributed a big share in the exports. Its the duty of
TDAP to update and current information for upcoming seminars and exbitions and workshops
arranged by TDAP.
Formation of TDAP
EPB thus contributed in a significant manner, as Pakistans exports - reported at just under
quarter of a billion dollars in 1963 - increased by over 70 times to touch nearly US $ 16.5 billion
in 2005/06. However, professional human resources were lacking at the times of EPB, and so in
order to improve this deficiency, and to change the image of EPB as a Bureaucratic
Organization, need was felt for EPBs metamorphosis into a more dynamic, professionally wellequipped organization, which was to be the TDAP.
Problem Definition:
How TDAP developing trade in Pakistan and internationally.
Research Question/Objectives (Research Gap):
Exports and imports of Pakistan

Functions of EPB(export promotion bureau)
To find out trade barriers for Pakistan
Significance of the Research:

Help to find regulations
Allow to get more information regarding exporters and importers.
Limitation of the research:

We getting information or implementing the methodology strategy the limitation face through the
interviewer in the sense of time .so the question are asked by the researcher is totally precise and
related . TDAP assistant managers just allow 10 minutes to ask related questions.
Second limitation face in the case of financial data collection some are confidential or some are
not available in their respective site.
Chapter 2
Literature Review:
According to Emery (1967) empirically proved that higher rates of exports growth leads to
higher economic growth. Traditionally, a developing country like Pakistan had the choice of two
alternative trade strategies for supporting industrial development, export promotion or import
substitution. A consensus has emerged among many development economists that an export
expansion policy by permitting resource exploitation according to comparative advantage and by
allowing for utilization and exploitation of economies of scale leads to higher growth rates of
output and employment, greater technological progress and availability of foreign exchange.
In a recent Punjab Board of Investment and Trade (PBIT) Working Paper on Pakistan
India trade potential by Bin Najib, Baig and Ansari (2012), the authors give an excellent
summary of various aspects of PakIndia trade including tariff and nontariff barriers to trade;
opportunities for Pakistani exports; general fears of the local industry, and specifically lists
the opportunities and threats for Agriculture, Cotton & Textile, Manufacturing Automobile
and Pharmaceutical sectors. The paper concludes that overall Pakistans economy would
benefit from opening trade with India and that the fear of being over run by cheaper
Indian commodities was unfounded as Indias industry is considerably less competitive than
Chinas.
One of the notable one is that of Nabi(2011).The author examines regional trade in the context
of Pakistans overall economic objectives, and promotes a view of India as a possible
significant export market. The author also presents some scrotal case studies, such as the role
of trade in accessing the Indian technical expertise in the pharmaceuticals. The same
author in a 1996 study concludes that treating India at par with the WTOGATT signatories
would make Pakistan consistent with the rules and regulations that govern the WTO. Doing so
would improve Pakistans access to the global market. Tariffs need to be reformed to ensure
that Pakistani producers do not suffer negative protection visvis Indian competitors. The
author suggests the opening of more land border crossings, ease of visa restrictions, and
tightening of customs administration. The author further proposes that a stopgo relationship
between the two countries should be avoided at all costs, as this would damage business
confidence. Khan and Tabish (2011) in a joint TDAP/SAARC study propose policy options
to decision makers in both countries. They discuss the issue of nontariff barriers in India and
the previous denial of MFN status by Pakistan. The study also offers shortterm and medium
term remedial options, covering trade facilitation, infrastructure, government policy and
other areas of bilateral cooperation. The paper also outlines the potential gains based on
empirical investigation by researchers and proposes means to enhance bilateral trade between
the two countries.
Husain (2011) highlights how greater trade with India offers an immediate and
rich possibility of economic growth for both Pakistan and India. The author stresses that
the Pakistani economy can hugely benefit if better trade relations with India were
established, mainly via the positive impacts to the private sector. This paper analyses, by key
sectors, some of the challenges and benefits greater trade with India would create. The
author mentions several empirical studies and concludes that IndiaPakistan enhanced trade
would lead to a winwin situation. The author lists some rules and regulations that inhibit
trade, and concludes that both countries should reactivate SAFTA agree on a phasing out
of the sensitive list (of items that each country deems important for its economy) over the
next few years. According to the author, a restrictive list would nullify all the potential gains of
preferential trade access.
The countries should also
promote trade
facilitation
through
expeditious border crossings; streamlining of documentation requirements; coordination of

border agencies; quick customs clearance; improvement of electronic data interchange;
telecommunication; and transport links; creation of new shipping protocols and easing of visa
restrictions for businessmen,
The author also suggests the harmonization of legal
regulations for investor protection, contract and intellectual property rights enforcement, and
labor relations.
Taneja and Kalita (2011) suggested that the most important step towards enhancing
trade would be to adopt the MFN principle, as the current policy inhibits trade, lacks
transparency and leads to high transaction costs. In a previous study Taneja (2007) identifies
the bilateral trade possibilities and nontariff barriers between India and Pakistan. Using
the potential trade approach, the study finds that the export potential from India to Pakistan
is to the tune of US$ 9.5 billion while that from Pakistan to India is US$ 2.2 billion. The
author also indicates that the imposition and application of standards in India was perceived as a
major nontariff barrier by Pakistani exporters. The study found that even though the TBT
and SPS measures are not discriminatory across trading partners, Pakistani exports to India
are surely affected by these. Pakistan has an export interest in textiles and agricultural
products which also happen to be sectors where import restrictions/standards are most
rigorously applied by India. It also found that due to a restrictive visa regime only selected
traders have access to traderelated information. Thus lack of transparency, market
imperfections and information, asymmetries on both sides raise transaction costs and
restrict market access for several.
Other aspiring traders
Naqvi and Schuler, editors in a World Bank publication (June 2007) on The
Challenges and Potential of PakistanIndia Trade, draw upon a series of papers on
PakistanIndia trade and link them thematically from a more general overview to impact on
specific sectors.
While giving reasons for the low trade volume, they cite three main reasons: political tensions,
the use of importsubstitution policies to promote industrialization, and, in contrast to
other regions of the world, relatively little commitment to regional integration.
In other
papers
such
in
the publication,
various
authors
discuss
several related
issues
as
quantification of informal trade between the two countries which is estimated at US$545
million; the trade cost of bilateral animosities through a standard gravity model; the
welfare implications of bilateral trade and free trade in the context of SAFTA and impact
of normalization of trade on textiles, light engineering, chemicals and agriculture.
TDAPs Mission:
TDAPs mission is to achieve a quantum-leap in Pak export. To fulfill such a mission, TDAP
shall employ the right skills and competencies, professional management techniques, advanced
international marketing strategy backed by competent market research and trade analysis,
supported by use of latest technology.
TDAPs Vision
The Trade Development Authority of Pakistan (TDAP) will develop and promote export
holistically, through focus, synergy, and with collective wisdom and counsel of its stakeholders.
In addition to aggressive innovative and proactive marketing and promotional efforts, it will
achieve the objective of rapid export growth through interaction and coordination with respective
public and privatesector stakeholders, and enhancing value of products and services by
broadening the export base of our products. Enhancing capability and capacity of the supply base
of goods and services; by fostering supportive export culture and facilitation; and by encouraging
export oriented foreign investment and joint ventures. TDAP will also help improve market
access through advising the Government on matters of trade diplomacy and promoting the
business image of Pakistan in the key export markets for Pakistani products and services, the
world over.
Head Quarter Location:

Address:TradeDevelopment Authority of Pakistan
3rd Floor, Block A, Finance & Trade Centre
P.O. Box No. 1293, Shahrah-e-Faisal,
Karachi 75200 Pakistan.
UAN: 111-444-111
Fax No: +92 21 99206461
Phone No. +92 21 99206487-90
Email: tdap@tdap.gov.pk , tdap.support2@tdap.gov.pk
Website: http://www.tdap.gov.pk/
History
The Export Promotion Bureau (EPB) was set up in 1963 as an attached department of the
Ministry of Commerce, the Export Promotion Bureau facilitated exporters across the country.
More than 20,000 exporters were facilitated and part- funded to exhibit their goods abroad, and
thus grow their exports. Over 2,000 trade delegatio112ns were sent abroad or hosted in Pakistan
in the 43 years of EPB. It provided a forum for dispute resolution between exporters and
importers through the mechanism of commercial courts in collaboration with the judiciary.
TDAPs Functions and Mandates
To implement directives of the Federal Government and the Board relating to export
development and promotion.
To encourage and promote and train new exporters.
To develop a consistent, sustainable and result oriented, holistic export development plan,
outlining vision, objectives, strategies and plan as approved by the Board.
To achieve synergy in development of exports at a national level by forging effective liaison
with private and public stakeholders and avoiding duplication of efforts.
To encourage and promote research in trade and policy related studies that may facilitate in
formulating an effective export policy and plans
To plan and organize foreign trade promotion through advertising in local, and international
print electronic and other appropriate media.
To provide advisory support to stakeholders.
To liaise with trade bodies abroad.
To promote exporters and stakeholders education.
To encourage the organized development of the export business and the related corporate and
commercial sectors in Pakistan.
To plan, organize exhibitions, delegations to and from Pakistan.
To plan and organize local, international and inter- provincial export promotional conferences,
workshops, seminars.
To prepare Annual Report of the Authority.
To include a quality assured ethic in exporters while encouraging value addition of exports.
To take, initiatives for maintaining facilities etc. to improve the performance of exporters in the
interest of generating economic activity, reducing cost of doing business and enhancing supply
chain efficiency.
To maintain the confidence of exporters by appropriate communications.

TDAPs Activities
Participates in 40 to 60 international trade exhibitions annually.
Sends 20 to 40 trade delegations abroad every year.
Organizes the EXPO PAKISTAN annually in Pakistan, which is well-attended by foreign
buyers.
Runs the Expo Centre, Karachi providing a permanent exhibition space for holding trade events.
Implements various Trade Policy Initiatives announced by the Commerce Ministry.
Undertakes various sector-development projects from the Export Development Fund.
Departments of TDAP
Marketing
Market research
Fairs and exhibitions local and international
Trade delegation for exploring International Market
Overseas publicity to create brand / country /product awareness
Participation in trade related events
Facilitation through Commercial Counselors abroad
Expo centre- holding if international / local exhibitions
Seminar / conferences/ workshops to create awareness about export related issues.
Facilitation
Face to face counseling
Export Facilitation committee to resolve related problems
Standardization and simplification of procedures
Establish buyer- seller contacts
Information dissemination through website/Fax-on-Demand/Pakistan Export information
Bulletin
Regulation
To assist Government in formulation of export policies and setting of export targets
To monitor export and implementation of export strategy
To recommend establishment of export oriented industries
Issuance if GSP certificates
Enhancement of Competitive Edge of Export Sector
Skill development Council
Establishment of training institutes for capacity development in sectors like Textile,
Leather, Surgical, Jewellery, etc.
Seminars on export related issues
ISO-9000 and 14000 helping industry to adopt the standards
Facilities/incentives are provided to an exporter

In order to improve and enhance exports from Pakistan, the exporters have been provided
numerous incentives as well facilities. The objective of these facilities/incentives is to make the
exports Zero-rated, which means that the exporter does not pay any tax on the sales abroad.
Major facilities/incentives available to exporters at present are:
Export financing at below market mark-up under the Export Finance Scheme of the State Bank
of Pakistan.
Export financing under Foreign Currency Export Finance facility (FCEF/$. Window) for
purchase of Inputs domestically or for imports of foreign inputs for exportable goods.
Income Tax @ 0.75% to 1.25% for different commodities under the income tax ordinance 1979.
Facilities under temporary importation Scheme.
Facilities under common bonded warehouse Scheme.
Facilities under the Pioneering Export Marketing & Product Upgradation fund (PEMPUF)
(Facility is in development phase )
Duty Drawback Scheme.
Export House Scheme.
Payment of commission to agents abroad.
Opening of offices abroad.
Facilitation & Services:
Trade Dispute Settlement
In the course of the business of international trade, disputes often lead to conflicts between
parties involved. These conflicts/disputes are forwarded via our Commercial Sections abroad to
TDAP. The trade dispute section of Facilitation Division is tasked with investigating and if
possible, bringing both the parties to common point and resolving the issue through amicable
agreement. In extreme cases where the matter requires specialized investigations, the complaints
are referred to concerned regulatory authorities for further processing.
Facilitation Division
Primarily responsible for trade policy implementation, with specific emphasis on simplification
and harmonization of procedures with the objective of achieving a competitive edge in the
context of emerging business realities, Facilitation Division is devoted towards helping exporters
in availing the opportunities as well as in the removal of obstacles in expansion of the country
exports. It also collects processes and, disseminates information to different stakeholders. The
Division is also responsible for organizing Expo Pakistan, the mega event to showcase Pakistani
products to foreign buyers, held annually at Karachi Expo Center.
Expo Center
Expo Centre, having an area of more than 15,000 sqm including 6,000 sqm of exhibition area, is
the only place of its kind in the city which offers state of the art facilities for the large scale
events like Expo Pakistan, Ideas etc. Besides Expo Pakistan, Expo Centre also hosts more than
35 local and international exhibitions throughout the year.
Expo Pakistan
Expo Pakistan is the biggest trade fair, organized by Trade Development Authority (TDAP),
which is a premier trade promotion organization of Pakistan. The platform of Expo Pakistan
provides opportunity to showcase the largest collection of countrys Export Merchandise and
Services. Foreign Buyers are invited from all over the world by Government of Pakistan, not
only to see the product potential but also to avail the option of having on-spot B2B meetings
with Pakistani exporters. Foreign exhibitors, also use this platform to launch & display their
products. Held annually in the month of September, this 4 day Expo Pakistan has become
primary sourcing point for a large number of businesses worldwide, giving them a head start on
sourcing for coming seasons. First held in 2005, the success of last event in 2013 was manifested
by participation of large number of local and foreign buyers who settled business deals estimated
at USD 518 million. TDAP invites you to 10th EXPO PAKISTAN (26-29 September 2015), at
Karachi Expo Center and provides you an opportunity to become part of the largest ever
showcase of Pakistan Exportable Goods.
Registration to Trade Development and Authority can be carried out by filling the form on its
website
Why Register?
o
o
o
o
o
Participation in international fairs, delegations and exhibitions

Incentives and subsidies in multiple forms
Promotional campaigns and platform for product display
Means to explore trade leads worldwide
Familiarization to global markets
o Database access to all exporters in Pakistan for every product.

o Easy Access and entry to Expo Pakistan and Wexnet Exhibition
o Update and current info for up-coming seminars-exhibitions and workshops
arranged by TDAP
DIVISIONS
There are four broadly classified product divisions, namely, Agro and Food, Textile and
Clothing, Minerals and Metals, Engineering and Other Manufacturing. These product divisions
are focused on providing direction and road map pertaining to entire value chain of each product,
further development of export potential for the existing export products as well as facilitating
development of new markets, whereby broadening the export base of Pakistan.
Food & Agro:

Agriculture sector plays an important role in the economy of Pakistan, as it accounts for a
significant percentage of the country's GDP (nearly 22%), and employs an even larger percentage
of the country's workforce (nearly 45%). Despite such noticeable numbers, it is the considered
opinion of experts that Pakistan still has a huge untapped potential for grabbing a significant
share of world agro-food exports. The Agro Food Division at TDAP, is focused on helping
stimulate the export of agro-food products from Pakistan in order to achieve this potential. To
this end, various projects and activities are undertaken by the Division, which are as follows:
1.Exhibitions of Agro-Food products:
Participation in nearly 10 international exhibitions annually is undertaken for this sector by the
Agro-Food Division. Some significant exhibitions attended by our exporters include Gulf Food
World Food, Moscow, Sial Food Fair, Anuga Food Fair. Some local exhibitions are also
organized by the Division to showcase potential of our agro-food products.
1. Delegations of Agro-Food product exporters:
The Division organizes exporters' delegation to potential importer countries of Pakistani
agro-food products. In year recent years, some of the countries visited by such delegations
included Maldives, Sri Lanka, Australia, New Zealand, Malaysia, and Oman. Similarly,
delegations of buyers are invited to visit Pakistan in order to see the potential and range of
Pakistani agro-food products. In the last year, we had delegations from South Africa and Yemen.
2. Projects for Agro-Food exports:
There is a dire need in the country for improving the quality of our agro-food products by
transfer of technology, improving the hygienic conditions at production and packaging stage, as
well as value-addition. This need is met by various projects undertaken by the Agro-Food
Division, like setting up of the Cold Storage and Common Facility Centers to provide technical
training in crop protection, quality improvement, storage, processing, packing and marketing of
agro-food commodities.
Besides the above summarized major activities, the Division is continually engaged in
preparing commodity / country reports pertaining to the agro-food sector, as well as organizing
informational and training seminars and workshops for current and potential entrepreneurs in this
sector. Such activities are of course undertaken with full consultation - and sometimes in
collaboration - with the various stakeholders of the Agro-Food sector.
Textile & Clothing:

Textile is the largest sector of our exports, and the single largest employer. To endeavor to move
forward rapidly on the export front, it is inevitable that special attention be paid towards this
sector. TDAP has tried to provide a focused approach in attaining this objective. Steady growth
in worldwide demand in Textile & Clothing and rapid changes in the fashion industry have made
it unavoidable to equip this sector with modern techniques and technology to make it nimblefooted enough to identify and respond to changing tastes worldwide. The Division keeps a strong
liaison with the entire Textile related Associations on this platform. The Division has been doing
a region-wise market study to see the demand and future trends in Textile Sector in different
countries and regions. For this the Textile and Clothing Division is working in close coordination
with the Marketing Divisions at TDAP.
TDAP has been undertaking a lot of efforts on different avenues for the promotion of this
segment. The major emphasis is being given recently on Value-Addition in the Apparel Sector.
This division has initiated a number of Projects, Seminars, Exhibitions, Delegations, Special
Incentives/Subsidies, Alliance with Associations, Promotion of Fashion Designers, New

Institutes, in recent times to promote and create awareness among the stakeholders in the
different ways to make this Industry more viable and profitable.
TDAP's Textile & Clothing Division is also looking after exports of Carpets, Handicrafts,
Leather and Leather Goods. Trade Delegation for Leather was sent to Czech Republic / Poland /
Hungary / Japan in the recent years. More such delegations are planned for Australia / New
Zealand for leather and for Textiles to African countries. The Division also plans to hold a
product display for Pakistani textile products at Osaka, Japan, in the current financial year.
Minerals & Metals:

Pakistan has exceptional export potential of mineral & metals due to its significant natural
resources. The country is well-endowed with a great number such minerals and metals which
include: Petroleum Group, Marble, Onyx, Granite and other Dimensional Stones, Talc (Soap
Stone), Rock Salt, Sea Salt, Gypsum, Coal, Gemstones, Noble Metals, Chromites, Copper Ore,
Iron Ore, Lead-Zinc Ores etc.
Keeping in view the enormous export potential of minerals, the Minerals & Metals
Division was established at TDAP to tackle issues pertaining to entire value chain of minerals &
metals and to broaden the spectrum of exports. The Division is responsible for the following:
Extensive interactions with internal and external stakeholders
Developing new exportable products and new exporters
Identifying all potential minerals and metals available in Pakistan that can generate export
revenue.
Identifying aspects of production process with high wastage in the existing resource
extraction and processing activity sequence, prior to export
Preparing marketing plans for foreign investment, joint venture and technology transfer for
development of minerals and metals.
TDAP's efforts based on aggressive marketing and institutional facilities to the Mineral
sector have resulted in the expansion of exports from the country. Gems &Jewelery, Petroleum
group, Marble& Granite, and Chromium ore, contributed a big share in the exports.
Minerals & Metals Division is working to increase the export of natural resources by
maintaining a close liaison with stakeholders and participation in International Trade Fairs &
Exhibitions. The Division is also contributing to the human resource development endeavor for
the sector, by developing vocational institutes in different parts of the country.
Engineering & Other Manufacturing:

Engineering & Other Manufacturing Division mainly looks after export promotion of
Engineering goods including Electric Fans, Transport Equipments, Other Electrical Machinery,
Machinery Specialized, Auto parts & Accessories, Surgical Instruments, Cutlery, Sports Goods.
In addition, Pharmaceuticals, Other chemicals, Plastic & its products, Furniture & Cement are
also covered under the scope of this Division. Thus, the spectrum of manufacturing units range
from small to large scale industries spread across the country.
This division is mandated to facilitate the exporters by providing information regarding potential
markets and products to the stakeholders for the growth of exports from Pakistan. These
endeavors succeeded in maintaining the level of overall exports of engineering goods and
arresting the declining trend in exports.
The Engineering division maintains a close liaison with the stakeholders and relevant
associations, and regularly organizes seminars and workshops for exchange of information, ideas
with the view to create awareness and also as a capacity building initiative.
SERVICES
The services sector is becoming an increasingly important contributor to Pakistans economy
due to ever increasing share in GDP and also due to its immense export potential in the coming
years.
Information Technology
Information Technology is governed by the principles of constant change and innovation,
Pakistan offers an outstanding platform for organizations world over with an edge of freshness
due to its cost-effective services, ever growing inventive talent and significant communication
infrastructure.
Construction and Architecture
Construction is the second largest sector in Pakistans economy after agriculture. Pakistans
Construction & Architecture industry has built a solid reputation for market excellence, drawing
on a rich history and a strong heritage of quality, stability and innovative work.
Construction is the second largest sector in Pakistans economy after agriculture.
Pakistans Construction & Architecture industry has built a solid reputation for market
excellence, drawing on a rich history and a strong heritage of quality, stability and innovative
work. Pakistan has the multi-disciplined professionals (engineers, architectures, consultants, etc),
equipment, construction materials, experience and bonding capacity to complete almost any size
project on time and on budget. Pakistans Construction & Architecture industry have a
background working experience in countries like Germany, UK , Saudi Arabia, UAE, Sudan, and
various other countries of almost every continents of the world including Europe, South
America, Australia, Africa, the Middle East and Asia.
Pakistans civil construction & architecture industry is committed to providing quality
construction services to private industry, companies, owners and public agencies in any country
of the world.
Pakistans Construction & Architecture industry has following expertise:
(A)Infrastructure Planning, Design & Supervision:
* Roads (Highways, Urban Roads, Rural Roads, etc.

* Water Supply (Networks, Treatment, etc.)
* Sewerage (Networks, Treatment, etc)
* Drainage
* Irrigation
* Dams
* Electrical
* Railways
* Transportation Planning & Traffic Management
* Oil & Gas
* Feasibilities & Planning in all these sectors
(B)Building & Architecture:
* Commercial
* Residential
* Sewerage (Networks, Treatment, etc)
* Special purpose buildings like Hospital, Educational, Institutional, and Government
* Landscaping, Parks & Playgrounds
(C) Master Planning:
* New Cities
* City Level Planning
* Housing Schemes
* Industrial Estates
* Rehabilitation & Urban Renewal
(D) Geographical Information Systems (GIS), Mapping &Land Surveying
(E) Environment
(F) Other development areas like Land development, Surveying, Remote Sensing, 3rd Party
Validation
Healthcare
Medical tourism is fast emerging as a big opportunity for Pakistan due to its low cost advantage
and high quality healthcare providers having specialized research background. Most commonly
treated medical cases include heart surgery, knee transplant, cosmetic surgery and dental care.
Pakistan and the Medical Tourism Industry
Pakistan has a "huge potential" in becoming a regional medical tourism hub, comparable to many
other countries in its neighborhood. Medical tourism in Pakistan has been arranging potential
trips for many medical health and care procedures. A number of modern hospital facilities exist
in major cities such as Islamabad, Karachi and Lahore that are fully equipped and facilitated with
the latest medical technologies. Many doctors and surgeons in Pakistani hospitals tend to be
foreign qualified.
A number of patients from neighboring countries have traveled to Pakistan for treatment.
Many patients, mainly of Pakistani origin, from the Middle East, United Kingdom and United
States, also travel to Pakistan to seek a range of treatments which they cannot otherwise access in
their resident countries either due to expense or lack of insurance coverage there. Pakistan offer
services to medical tourists in orthopedic, optometric, urology treatments, cardiac surgery,
infertility treatments, plastic surgery such as liposuction, hair transplantation and cosmetic
surgery at cheap rates besides offering facilities in endoscopies, X-rays, MRI, CT scan,
cardiology, and arthroscopy. Costs for treatment in
Pakistan are more than 50% of what doctors and hospitals charge abroad. Liposuction can
cost between Rs0.7-0.8 million abroad, while the same procedure here can be done within Rs0.2
million.
Main Attractive Medical Treatments
* Hair Transplant
* Plastic & Cosmetic Surgery
* Cardiac Surgery
* Dental Surgery
Hair Transplant in Pakistan
With the increase of medical tourism, many transplant destinations are now in the world
from where you can get the cheaper transplant treatment and Pakistan is one of these destinations
providing hair transplants at a very low cost. Citizens of various countries come here to get
treatment and to save their money.
The foundation of most demanding hair transplantation in Pakistan was laid by the
Director of ILHT Dr. sajjad Khan. The strong passion and dedication of initiative of ILHT Dr.
Sajjad Khan is recognized and appreciated world widely and people from all over the world
come Pakistan to treat themselves. ILHT and Dr. Sajjad Khan is the pride for Pakistan.
Initially, people have to go abroad for experiencing hair transplantation but with ILHT it is now
possible to get hair transplant with international standards in Pakistan without the hassle of going
abroad. ILHT has been serving people since 2000 and has paved its way in the major cities of
Pakistan including Lahore, Karachi and Islamabad. All centers are being run by adept surgeons
under great care and complete attention with standardized equipments and methods. In the
experience of years, ILHT has performed thousands of surgeries.
Integrity & Honesty

Quest for Perfection
Passion for Customers
Commitment to Excellence
Accountable for Quality
ILHT is the name of excellence and the entire team is dedicated to provide quality treatment to
its respected clients. From consultancy session to post operative care, the staff members and
incredible team of surgeons are dedicated to serve you completely. ILHT is the benchmark of
excellence and the proof is that many renowned celebrities have also facilitated with the
exceptional
treatment
of
ILHT
are
happiest
with
the
consequences.
In short, ILHT is the complete source of satisfaction for those who has been suffering from hair
loss and looking for best hair transplantation center in Pakistan. In-depth information about each
and every perspective regarding hair transplant can be achieved by ILHT. Pay visit to ILHT for
detailed examination.
Plastic & Cosmetic Surgery in Pakistan:
Plastic surgery is a rapidly progressing specialty in Pakistan. All its sub branches have seen
tremendous expansion in the last few years. The spectrum of plastic surgery being practiced in
Pakistan includes:
Cosmetic Surgery
Cosmetic Surgery tourism is a price-driven phenomenon that has experienced increased growth
over the past decade. Since elective cosmetic surgery procedures are not covered by insurance,
price is the major selling point of cosmetic surgery tourism, with entire vacation/surgical
packages costing less than individual procedure, e.g., in the United States. With the growing
trend of surgical tourism, Pakistan has contributed significantly towards treatment of patients
from all over the world in particular patients from the United Kingdom, Austria, Siri Lanka,
Middle East and various other European countries. The reasons why patients chose Pakistan as
an ideal destination for their respective surgeries are many, e.g., treatment is performed by
professionals in accordance with the standards observed in the Uk and United States of America
and by professionals who have graduated from these countries and have been trained in their
respective specialties in the above mentioned countries; treatment costs are one-fifth of what
these patients would have to pay in their respective countries; staff are well versed in English,
etc. The range of cosmetic surgery being practiced in Pakistan includes:
Body contouring procedures include liposuction, tummy tuck, breast lift, breast
augmentation, breast reduction and procedures after massive weight loss

Facial enhancements include nose jobs (rhinoplasty), lip pumping, chin augmentation,
correction of asymmetry and scar revisions

Minimally invasive procedures include botox, fillers, lasers, peels dermabrasion, and
collagen treatments
Procedures to reverse the aging features include facelift, eye job, fat injections and hair
transplantation.
General Services
Pakistans services sector has strong forward and backward linkages with the major sectors of the
economy such as textiles and commodities. There is significant trade in services activity in all
four modes of supply in financial, construction, business services such as computer and IT,
engineering services, and legal and accounting services. Information technology and related
services are the most significant in terms of the scope and scale of the export markets and the
extent to which these services are currently being delivered in all four modes of supply.
Professional services such as legal and accounting is a promising sector. The courier services
stand out in terms of scale and Internet related services distinguish themselves in terms of scope.
Environmental services have significant exports in cross-border and consumption abroad in the
area of environmental impact assessments. Banking services are delivered in all four modes of
supply. Securities and asset management firms are also actively involved in international
transactions mainly to solicit funds from foreign institutional and private investors. The
insurance sector lags behind compared to the rest of the financial sector in international presence.
Communication, distribution, and transport services are significant in terms of scale of services
traded.
Accounting Services
Accounting services is an important sector with significant export potential. Presently,
accounting firms are providing services in three modes of supply (modes 1, 2 and 4). Accounting
firms have a number of multinationals as clients in Pakistan (Mode 2) and also offer services
electronically to foreign clients (Mode 1) located abroad. In addition to professional services
firms, management consulting firms also have significant export potential as these firms, like
accounting firms, are quite active in three modes of supply (Modes 1, 2 and 4). A number of
management consulting firms are serving multilateral and international firms such as UNDP,
World Bank, European Commission etc.
Handicrafts Division
The Handicraft Section is part of the Facilitation Division of the TDAP. The Section has been
working to create a strong synergy between the artisan community and the TDAP. Many wellattended handicraft fairs were held in 2009 in eight of Pakistans bustling cities including
Mirpurkhas, Sukkur, Hyderabad, Multan, Gujrat, Abbottabad, Gilgit and Muzaffarabad. Docufilms about the lives and work of handicraft workers were especially made to enable TDAP to
recognize each craftsperson as a promotional motif to introduce Pakistans handicrafts and to
also help the TDAP internally select the relevant craftspeople for an international delegation.
A handicraft web-link is therefore being developed so that orders from the international
market can be received. The categories those are available include: Textiles( hand-woven, blockprint,
Tie
and
Die,
Chundri&
Embroidery), Jewelery, Bangles, Glass

work, Metalwork, Carpets, Rugs and
Durries, Pottery, Ceramics and Clay Toys,
Basketry,
Woodwork
Paper
Mache
products,
and
furniture,
Candles,
Leather garments and accessories, and

Cutlery.
During Expo Pakistan, a special handicraft hall is always set up that garnered a wonderful
response from foreign visitors from different parts of the world. A handicraft show is also
organized that displayed garments and accessories. TDAP is further exploring the participation of
local Pakistani craftsmen in specific
handicraft exhibitions and encouraging
their participation in fairs in Russia,
Central Asia, Middle-East, Europe as well
as other countries such as the USA,
Canada, the UK and Australia.
USA imports a wide range of
Made in Pakistan wall hangings and
cushion covers and many other items duty free. A Handicraft Directory is being produced by
TDAP, which is expected to come out in the calendar year 2012. This would include a list of
artisans from the length and breadth of the country, along with their contacts and specialties. This
Directory shall be distributed to all of the Pakistans Missions abroad. Special Training
Workshops are being planned for Handicraft exporters, which are expected to commence in the
year 2011-12.
The Fashion Industry in Pakistan
Our Fashion Designing & Apparel industry is becoming an important dimension of

Pakistans economy due to its export potential worldwide. In Pakistan, the significance of
fashion industry is being realized in view of its huge potential for future expansion. The
importance of building individual brands in our fashion industry cannot be overemphasized.
Pakistans Fashion Industry requires originality in Fashion designs instead of merely pirating the
prototypes of foreign designers. Where creating a new label / brand from scratch is difficult, an
easy way could be Brand Transference from High Fashion EU Countries such as France,
Sweden, UK, Italy etc. In addition, we may build our own brand names in local, regional, or
international market as we may deem fit. We have to look for opportunities for creating new
concepts.
In Pakistan, other than catering the affluent and the elite all the fashion designers of haute
couture also have an exclusive line of prt a porter or ready-to-wear outfits, which again, before
being introduced into the market are made public at fashion shows. Fashion does not stand still,
tastes shift and so do geographic focus. In Pakistan, our designers have really defined creativity
and there are dozens of foreign / local educated new fashion designers who have stepped up in
the industry such as Maria B, Nadya Mistry (who is a trained designer from Paris), Sonya Batla,
Usman Dittu, Samar Mehdi,Maheen Khan, Honey Waqar, HSY, NiloferShahid, Ayesha Ibrahim,
Ismail Farid, and many more.
To educate our stakeholders about High Fashion Market, TDAP has been participating in
reputed international fashion exhibitions such as Heimtextile, Interjeans-Cologne, Prt-a-Porter
(Paris), Copenhagen International Fashion Fair, Poznan Fashion Week. Furthermore, TDAP in
collaboration with CBI (Centre for Promotion of Imports from developing countries
Netherlands) have been organizing series of workshops on THE EU FASHION CYCLE &
FASHION FORECASTS FOR EU for those exporters / designers who are working in the
textile garment sector and currently exporting or intend to export to the European Market. In this
regard, CBI has developed garment training cycle in which the EU Fashion Cycle was
explained through some of its renowned fashion designers and experts. These workshops impart
practical knowledge and create awareness for working with the EU Fashion Cycle. Through
this training, TDAP-CBI provided a good understanding for those who want to be a trustful
business partner with the EU or want to become a professional business player in the EU
Fashion Business
Women Entrepreneur
Women Entrepreneur Section is a part of the Facilitation Division at the TDAP. This Section has
been instrumental in facilitating and promoting women entrepreneurs since last many years. The
main aim is to support women entrepreneurs in meeting the requirements of local and
international marketing through promotion and facilitation so that opportunities could be created
for aspiring women entrepreneurs to expand and grow.
Some of the major projects undertaken by the Section are organizing of a series of
seminars on the topic basic requirements of exports and How to start a business at small and
large cities of the country. Furthermore, to boost the Pakistani Handicrafts /Craft Sectors (which
is mainly the source of income of women entrepreneurs of our rural and underdeveloped area,)
the Women Entrepreneur Section has also organized a series of handicraft exhibitions at the
major cities of Pakistan. WEXNET 2010 is also a big example which was organized at the Expo
Centre, Lahore this year and which is a mega platform for women entrepreneurs from all over
Pakistan to interact in trade activities and exhibit their products in an international scenario.
Similarly, this Section of the Facilitation Division, has sent women delegations
representing different women chambers in many traditional and non-traditional international
markets. These delegations were specialized in handicrafts, garments, Jewellery, pharmaceutical
etc. It is pertinent to mention that women are also included in all general delegations sent abroad
by TDAP and women entrepreneurs have been subsidized and made a beneficiary of all the
programs being undertaken by TDAP.
The Women Entrepreneur Section has been active in providing financial support to different
fashion designers to participate in the reputed international fashion shows and fairs. This Section
has developed a database of all women entrepreneurs of Pakistan in consultation with all major
chambers, and trade associations of the country. This database will help promote smaller units of
women entrepreneurs to grow into medium sized and push medium sized units through
marketing efforts to grow into large sized units. Also, a women entrepreneurs directory was
published, conducting women-only exhibitions and entrepreneurial skills training programs.
Women Entrepreneur:Maria B (real name: Maria Butt) is a

super top fashion designer in Pakistan. Maria says, fashion was
always second nature to me! I loved prints, fabric and style even
before I could pronounce words and glamour always had a
special place in my heart! One of the best examples of women
entrepreneur in Pakistan
WTO CELL
The Cell provides importers and exporters in Pakistan with data on market conditions related to
WTO obligations (import and export barriers) and trade flows (import and export volumes, value
and shares) in a form and context that is useful to traders. The Cell is also equipped to provide
specific analytical support to entrepreneurs for identifying market access opportunities in
existing as well as new markets and will respond promptly to general enquiries and requests for
advice about the WTO trading system, the status of multilateral and bilateral negotiations,
availability of trade information from multilateral agencies (WTO, UNCTAD and ITC) and
access to selected publications that provide more background on these issues.
Since its inception, the Cell has been actively involved in some substantive projects and
activities, some of which are listed below:
Seminar on 'Exploring Pakistan's Export Potential in China & Malaysia in the context of the Free
Trade Agreements' held at the Karachi Chamber of Commerce and Industry (KCCI) on 25th
March, 2008 and Islamabad Chamber of Commerce and Industry (ICCI) on 14th April, 2008.
Seminar on 'Clinical Research Management in Pakistan' in association with Ministry of Health
and JPMC, on 26th April, 2008 download report
WTO Workshop on Trade Facilitation Self Assessment of Needs & Priorities for Pakistan, from
23rd to 27th June, 08
WTO Workshop for the Training of Trade Officers on 3rd September, 2008
Highlights of the Trade Policy 2008-2009
R.A.D. (Research & Analysis Directorate)
The RAD was formed to provide in-house research support and analysis on trade matters to all
Divisions of TDAP, as well as the trader community. The RAD thus undertakes the following
specific tasks:
Maintaining Trade Statistics of Pakistan

Making fortnightly presentation to the senior management on the State of the Trade,
Preparing country reports and commodity reports;
Preparing research reports on international trade issues;
Preparing position papers for senior management on trade issues confronting Pakistan;
e.g. .Pakistans Import Management Strategy 9th August 2008 download report
Providing input to the Ministry of Commerce, Government of Pakistan on bilateral and
regional trade agreements.

Provides trade data support to other Divisions of TDAP.
EXPORTS
(What to Export?)
Every product/service has a market. Even then, one has to be on the lookout for overseas
importer. Nevertheless, export control is to be imposed at times, but its scope is very limited.
There are also a few basic requisites for selling overseas. Determination land planning and
planning are the basic requirements. Overseas selling begins with a state of mind.
Any commodity and/or product including services produced, processed and manufactured in a
country can be exported, as there is hardly anything in the world that is not internationally
traded. There is a market abroad for all types of products and services as no nation can itself
produce everything to satisfy its needs in the modern world even if one chooses to sacrifice the.
To take advantage of the situation, all nations make every possible effort to sell their products
and services abroad. After all, exports are a vehicle of growth and development. They help not
only in the procurement of the latest machinery, equipment and technology but also the goods
and services not available indigenously, Expansion of export earning is as crucial for financing
development plans as the mobilization of domestic resources. It leads to national self-reliance
and reduces dependence on external assistance, which, howsoever liberal, may not be available
without strings.
Potential Market
Having made the planning and determination to sell abroad, the next step for TDAP is to know
the markets where one can export. Though the whole world can be a potential market for
ones(TDAP) product(s), it may not be possible and/or worthwhile to export to the world as a
whole. Each country has its own peculiarities, thereby, necessitating individual and specialized
approach. Moreover, one cannot sell every product to every country. It is better to specialize in
products first before start to export/market them.
The way refrigerators cannot be sold to Iceland, it may likewise be difficult, if not impossible, to
export watches to Switzerland. At the same time, it may be wrong to assume on the basis of
sketchy information that certain markets have no potential at all. For example, a Canadian
manufacturer of heating equipment discovered to his surprise that he could sell his products in
Jordan because, although days are hot there, the nights are cool; He is also selling them in
Venezuela, where his equipment is used not to heat houses, but to dry coffee beans.
What is therefore, important is proper and judicious selection of markets where ones product(s)
could sell best. Alternative usage, if devised and marketed, always helps.
Identification
In the selection of potential markets, the primary task for an organization like TDAP is to
identify the areas where products(s) similar to those of the prospective exporter, are currently
sold either by Pakistan or other countries. A number of organizations have been set up to help the
exporters in this task of identification. These include the Ministry of Commerce, Export
Promotion Bureau, and Federation of Pakistan Chamber of Commerce & Industry. Besides these,
there are number of Trade Associations/Chambers of Commerce which provide information on
potential market(s) for different product(s). The exporter should establish a contact with the
nearest organization. In addition, a little exercise at his desk and nearest export promotion
organizations library and/or any other good library is advisable to identify the markets.
Prospective Customers
The location of prospective customers or importers is the next important and perhaps arduous
task faced by the exporter after the identification and selection of markets. It usually takes a long
time in finding a serious and right customer who is interested in the exporters product(s). His
competitors in the country are naturally tight-lipped and would not like to reveal the name s of
their importers. Similarly, institutions like banks, shipping companies and custom houses are
supposed to keep secret the names of parties to whom exports are currently affected by other
firms.
However, the exporter(s) should not feel disheartened on account of this problem. These
problems are not peculiar to international markets and apply equally to the domestic selling.
There are a number of published sources of information and Organizations, which provide
information on prospective customers in overseas countries. It just requires a little exercise and
contact with different agencies and contact with different agencies and follow-up action on the
information provide by them.
How to Export?
The choice between the two basic methods of selling direct & indirect depends primarily on
the amount of money and effort you want to put in. To export directly, you need to organize
yourself in a suitable manner, with regard to staff and personnel, backed by skill and knowledge
of both product & market.
Export Selling
Basically, there are two methods of export selling direct and indirect. For direct exporting, the
TDAP makes its own arrangements either within the existing selling apparatus or by setting up a
separate and different department/ company to handle export transactions. In case of indirect
exporting, the TDAP sells through an intermediary like merchant exporters, Export Houses,
Export Consortia/Marketing Groups, and Trading Corporations Central and State.
Though the choice between the two methods of selling depends upon different
considerations, the most important being the amount of money and the effort one wants to put in.
It may some times be advisable to operate through agencies.
Procedure for pricing a product for export?
To price a product for export, TDAP would normally start with cost of production. Allow for
special designs, special runs, modification and costs necessary to produce a marketable product.
Rather than using normal administrative cost, it is much better to add a direct export
administrative cost, which may include representatives commissions, direct cost for attorneys,
freight forwarders, accounting, telephoning, mail, labor, etc. Some costs for exporting will be
less than for domestics sales and some will be more. When TDAP quote a price to your customer
be sure there is reasonable profit margin left for organization. Price can be quoted several ways.
Export Price Elements:
Profit
Export Packing, Marketing & Strapping

Export Credit Insurance
Interest on Credit to Importer
Advertising and Promotion Paid by Exporter
Agents Commission
F.O.B. (Free on Board)
Inland Freight to Port/ Rail/Airport

Handling Charges and Fees
Cold Storages Charges
Cost of Documents (Bill of Lading, Airway Bill)
Consular Invoices. Certificate of Origin Charges
C.I.F. (Cost, insurance, freight)
Freight (sea/Air/Rail)
Insurance Premium And Cost of Policy
Handling Charges (Sea/Air/Rail)

Landed Cost
Import Duty and Taxes
Unloading Charges
Clearing Agents Fee

Whole Sale Price
Inland Transport to Warehouse
Advertising and Promotion Paid by Wholesaler or Importers
Mark-up
Retail Price
Retail Mark-up
Federal Tax VAT, Commodity Tax

Sales Tax
Export procedure and Documentations are required in export trade
Following are some important factors, in connection with the export procedure.
Selection of a product
Opening of an Office
Registration for export
Selection of market
Quoting a price
Signing of a contract
Terms of delivery
Terms of payment
Financing for export
Packing
Transport and
Insurance etc.
Documentation
The Following documents are normally used in exports:
E Form (Through authorized Commercial Bank)
Shipping Bill (Through authorized clearing agents)
B/L or AWB (Through clearing agents)
Commercial Invoice
Packing list
Certificate Country of Origin (Through Chamber) or 6 (a) GSP (Through EPB)
Export Contract registration.

Port Shipment Documents
4th copy of shipping (through customs) bill to be used for rebates on bank/sales tax
refund/textile quota.
BCA (Bank Credit Advice) to be received from Commercial banks after foreign exchange is
received. The BCA is considered proof for the purpose of rebates, refinance scheme etc.
Facilities/incentives are provided to an exporter
In order to improve and enhance exports from Pakistan, the exporters have been provided
numerous incentives as well facilities. The objective of these facilities/incentives is to make the
exports Zero-rated, which means that the exporter does not pay any tax on the sales abroad.
Major facilities/incentives available to exporters at present are:
Export Financing at below market mark-up under the Export Finance Scheme of the State
Bank of Pakistan.
Export financing under Foreign Currency Export Finance facility (FCEF/$. Window) for
purchase of Inputs domestically or for imports of foreign inputs for exportable goods.
Income Tax @ 0.75% to 1.25% for different commodities under the income tax ordinance
1979.
Facilities under temporary importation Scheme.
Facilities under common bonded warehouse Scheme.
Facilities under the Pioneering Export Marketing & Product Up gradation fund
(PEMPUF) (Facility is in development phase )
Duty Drawback Scheme.
Export House Scheme.
Payment of commission to agents abroad.
Opening of offices abroad.

Protocol Passes to leading exporter for access to lounges at National Airport etc.
Procedure for participation in trade fairs and exhibitions, organized by TDAP in foreign
countries as well as in Pakistan:
Following is the procedure for participating in Trade Fairs and Exhibition abroad, organized by
Trade Development Authority of Pakistan:
Application on the prescribed forms available at all TDAP offices, along with
participation fee (Pay Order/Bank Draft), in favor of Accounts Officer, TDAP, Karachi. In case
of non-selection, Pay Order/Bank Draft is returned.
Once an applicants selection is confirmed, participation fee is not refunded.
Participants are required to provide top quality products in appropriate packing, which is
subject to final selection by TDAP. Brochures/Catalogues and company profile must also be
provided.
TDAP provides such facilities as display space, decoration and management of

stands/booths, dispatch and return of exhibits with clearing and forwarding facilities. Quantity
and weight of exhibits is also decided by TDAP.
Applicants who have already participated thrice in the fairs are considered on payment of
full participation cost without any financial subsidy from TDAP.
Category A where sample goods are taken for display:
Remittance of space rent direct to Fairs/Exhibition authorities against their debt note and
undertaking from the exporters firm/company on the form as marked A attached here to.
Remittance will be reported on Form M.
Release of exchange for construction of pavilion against estimate subject to rendition of

account for expenses incurred, and undertaking as marked A Remittance will be reported on
Form M.
Issue of an authority letter to the airline/travel agents for issue of ticket to and from the
country where the Trade Fair/Exhibition is being held, for the representative of the firm/company
on whose behalf foreign exchange for space rent and constructions of pavilion already released,
not exceeding two persons, on the format attached hereto as marked B on production of
documents showing confirmation for booking of space and credit note/receipt for foreign
exchange already released. This authority letter will be retained by the airline for submission to
State Bank through passage statements.
Release of foreign exchange on production of return ticket purchased against authorized

dealers authority mentioned in Sub-para (iii) above at the rate not exceeding Business Travel
Quota for number of days of the fair plus another seven days for setting up stall and winding up
of affairs but not exceeding 30 days. Release of exchange will be reported on T-1 Form under
this authority.
Payment for the cost of ticket and foreign exchange to be released for payment of rent for
stalls, booking of space, construction of pavilion, advance deposits etc. and for the expenses of
the representative(s) of the firm/company participating in international trade fairs/exhibition will
be received by the Airlines/Travel Agents/Shipping Companies and Authorized Dealers through

cheques
drawn
on
the
bank
account
of
the
firm/company
concerned.
Category B Trade Fairs/Exhibitions organized by the Chambers of Commerce and Industries

(of Pakistan) or where exporter is participating in individual capacity where goods are taken for
sale under Form E procedure.
Remittance of Advance space rent by the Chamber of Commerce and Industry direct to
fair authorities against Debit Note supported by (a) list of participating members with their share
of space rent an (b) undertaking in the form as marked A from each member participating in the
fair, Remittance will be reported to State Bank on Form M.
Certification of Form E on self-consignment basis or otherwise as recommended by the

organizing chamber of Commerce and Industry.
Issue of authority letter to airline/travel agent for the issue of ticket to and from the
country where the fair being held, for not more than two person of the participating firm on
whose behalf form E has already been certified, in the form as marked B (This authority
letter will be retained by the airline for submission to state Bank of Pakistan through passage
statement).
Issue of authority letter to airline/travel agent for issue of tickets to the pavilion officer(s)
nominated by the organizing Chamber on the format as marked B This authority letter will be
retained by the airline for submission to State Bank of Pakistan through passage statements.
Release of foreign exchange for Duty/sales Tax to the participating members on repatriate
able basis as per undertaking furnished on form A This will be reported on T-I Form with
Business Travel Quota.
Release of foreign exchange to the representative (s) of the participating firm/pavilion

officer (s) on production of return air tickets purchased against authorized Dealers authority
mentioned in Sub- paras (111) and (7) above, at a rate not exceeding the Business Travel Quota
for plus 7 days extra for setting up stall and winding up of affairs but a fair not exceeding 30
days. This will be reported on T-I form under this authority.
Issue of authority letter for re import of unsold goods exported under Form E procedure
as per sub-para (ii) above on freight to pay basis. The Airline/Shipping Company will retain
original and photocopy will be produced to Customs for release of the goods.
Payment for the cost of ticket and foreign exchange to be released for payment of rent for
stalls. Booking of space, construction of pavilion, advance deposit etc, and for the expenses of
the representative(s) of the firm /company participating in international trade fairs/exhibitions
will be received by the Airlines Travel Agents/ Shipping. Companies and Authorized Dealers
through cheque draw on the bank account of the firm/company concerned.
Authorized Dealers should carefully note that in case of failure of the participants to
submit evidence of any brought back the sample goods take for display or encashment certificate
of the samples sold and for failure to repatriate the foreign exchange released for space rent/ duty
etc., along with the sale proceeds (category B) the authorized dealers will report the matter to the
area Exchange Control of the State Bank for suitable action. The authorize dealers will also
report the outstanding sale proceeds including the amount release on account of space rent, duty
etc. in their monthly overdue statement prescribed in app.V-16 of the Exchange Control manual
(volume II) with specific remarks Exhibition case.
Rates of Customs Tariff and Development Surcharge, levied on exportable goods?
The Details of the Custom Export Tariff and Development Surcharge on Exportation of goods,
are contained in the following Statement:
Levy of 0.25% Development Surcharge on Exportation of Goods Under No. XIII of 1991
Development surcharge on exportation of good:
There shall be levied and collected a special customs duty as Export Development
Surcharge on the exportation of all goods at the rate of .025 per cent of the value of the said
goods as determined under section 25 or, as the case may be, fixed under section 25B of the
customs Act, 1969 (IV of 1969).
The Special Customs duty levied under sub-section (1) shall be in addition to any duty
imposed under section 18 of the Customs Act, 1969 (IV of 1969), or under any other law for the
time being in force.
The Federal Government, subject to such conditions, limitations or restrictions, if any, as

it thinks fit to impose, may by notification in the official Gazette, exempt any goods from the
whole or any part of the special customs duty livable under sub-section (1), and no exemption
from payment of customs duty under the Custom Act, 1969 (IV of 1969), or any other law for the
time being in force shall apply to the special customs duty livable under the said sub-section.
Notwithstanding anything contained in any other law for the time being in force or any
court, the rate of special customs duty livable under sub-section (1) applicable to any
goods shall include the amount of such duty that may have become payable in
consequence of the withdrawal of the whole or any part of the exemption from such
special customs duty whether before or after the conclusion of a contract or agreement for
the sale of such goods or opening of a letter of credit in respect thereof.
Government
of
Pakistan Ministry
of
Finance Notification Islamabad,
1st
July,
1991 Customs
S.R.O604(I)/9: In exercise of the powers conferred by section II of the Finance Act, 1991 (XII of
1991), the Federal Government is pleased to exempt the Goods specified in the table below from
the whole of the Export Development Surcharge leviable thereon, namely:
Description of goods
1.Bona Fide baggage of the crew or the passengers of any out-going vessel or conveyance.
2. Goods constituting the stores or equipment of any outgoing vessel or conveyance.
3. Any goods transshipped at a port in Pakistan after having been manifested for such
transshipment at the time of dispatch from a port outside Pakistan.
4. Goods consigned under a procedure prescribed for regulating transit traffic.
5. Goods exported under a procedure prescribed for regulating trade between border areas for
Pakistan and those of the adjacent territories.
6. Any stores or equipment when sold abroad on Government to Government basis and exported
under an export license issued by the Director of Pakistan (Army) or by any other officer
authorized by the Ministry of Defense.
7. Bona Fide samples provided that:
a.The FOB value of such samples does not exceed the limit prescribed by the Ministry of
Commerce.
b.The samples are supplied free of charge; and

c.The consignor is a registered exporter under the Registration (Importers and Exporters) Order,
1992, or has been exempted from registration there under.
8. Gift parcels of value not exceeding Rs. 500 each.
9. Goods exported to and from the Export Processing Zone.
10. Relief goods sent as aid for those affected by natural disaster or catastrophe.
11. Goods sent abroad for repair and renovation or calibration.
INCO TERMS USED IN TRADE
Inco terms is an abbreviation of International Commercial terms. This is an International rule for
the interpretation of the most commonly used trade terms in international trade prepared by ICC
(International Chamber of Commerce), which is based in Paris. The purpose of Inco terms is to
avoid disputes between trading parties arising from different interpretation of such trade terms in
different countries.
Today, most of the business of international trade in the world is conducted using Inco terms as a
general business custom. In order to avoid this misunderstanding and confusion between a seller
and buyer, it is advisable for the exporter to add to the contract a clause to the effect that
interpretation of trade terms are based on Inco terms.
Most commonly, they stipulate the wording in the general terms to fulfill condition of the
contract. Trade terms such as FOB, CIF and other terms that may be used in this contract shall
have the meaning defined and interpreted by Inco terms 2000, ICC, as amended. Unless
otherwise specifically provided in the contract, there are 13 commonly used Inco terms as
follows:
EXW : Ex Works
FCA : Free Career
FAS : Free Along-side Ship
FOB : Free on Board
CFR : Cost and Freight (Formally C&F)
CIF : Cost, Insurance and Freight
CPT : Carriage Paid To
CIP : Carriage and Insurance Paid To
DAF : Delivered at Frontier
DES : Delivered Ex Ship
DEQ : Delivered Exquay (Duty Paid)
DDU : Delivered Duty Unpaid
DDP : Delivered Duty Paid

For a precise understanding of Inco terms, the exporters should keep at hand a copy of the Inco
terms 200 published by ICC Publishing S.A. Among the Inco terms, the most frequently used
Trade Terms are FIOB, CFR (Former C&F) and CIF. Summarized definition Inco terms 2000
is
as
follows:
FOB Free On Board (-------------- Named Port of Shipment)
The seller delivers when the goods pass the ships rail at the named port of shipment
The seller has to arrange clearance of goods for exports.
The buyer has to bear all cost and risks of loss or damage to the goods from the port.
Applicable only to sea or inland waterway transports.

CFR Cost of Freight (-------------- Named Port of Destination)
The seller delivers when the goods pass the ships rail in the port of shipment.
The seller must pay cost and freeing necessary to bring the goods to the named port of
destination.
The seller has to arrange clearance of goods for export.
Risk of loss and damage to the goods, as any additional cost due to events occurring after
the time of delivery are transferred from the seller to the buyer.
The terms can be used only for sea and inland waterway.
CIF Cost, Insurance & Freight (--------------Named Port)
The seller delivers when the goods cleared for export pass the ship rail in the port of
shipment.
The seller must pay the cost, freight and marine insurance (for minimum cover) necessary
to bring the goods to the named port of destination.
Risk of loss, or damage to the goods, as well as any additional cost due to event occurring
after the delivery, are transferred from the seller to the buyer.
The term can be used only for sea and inland waterway
Bilateral and Regional Trade Agreements
Bilateral and Regional Trade Agreements commonly referred to as FTAs, PTAs or RTAs have
emerged as salient feature of the contemporary trading scene. Such agreements contribute to the
development of global trade and take members of PTAs/FTAs one step nearer to the multilateral
trading regime. In addition, member countries to a FTA/PTA gain from economies of scale,
competition and increased FDI. The Ministry of Commerce has initiated market access
negotiations with various trading partners for two fundamental reasons
(i)
Seeking maximum market share for Pakistani export in foreign markets
(ii)
Ensuring level playing fields for Pakistani exporters vis--vis other competing exporters
who have bilateral or regional arrangements of free trade or preferential trade rights in these
markets. The detail about Free Trade Agreements (FTAs) or Preferential Trade Agreement
(PTAs) concluded/operational from various dates
Measures/steps taken by the government regarding exports and imports:
In July, 2009 the Federal Cabinet approved complete zero-rating of exports.
Incentives have been given to boost exports such as concessionary financing, duty free
imports of raw material under temporary importation scheme/Duty Tax Remission on Exports
(DTRE), duty drawback scheme, concessions in duty/taxes on import of machinery and raw
material of priority export
sectors, development of export clusters.
Through active trade
diplomacy, Government is trying its level best to get better market access for the local businesses
in international markets by concluding Free Trade Agreements (FTAs) and Preferential Trade
Agreements (PTAs) with different countries.
The following measures have been taken during 2011-12 in the import / export regime, through
Amendments in the Import Policy and Export Policy Orders:
Amendments in Exports Imports Policy orders during 2011-12

Sr. No. List of Amendment
1
Allowing export of organic brown sugar.
Rationale/Justification
To encourage local production of
organic brown sugar.
Allowing
units
registered
under
DTRE To bring DTRE users at par with
scheme also to import
normal importers.
inputs given in restricted list of the Import

Policy Order (IPO), subject to fulfillment of
3
conditions mentioned therein.

Restricting import of exhausted batteries to To safeguard environment
industrial consumers only subject to a fool
proof mechanism.
. Restricting disposal of ambulances before To avoid misuse of ambulances as
ten
years
imported
as
donation
in commercial vehicle after import.
secondhand used condition by imposing duty

5
taxes applicable at the time of import.

Importer duly registered with Oil and Gas To safeguard consumers interest.
Regulatory
Authority
for
importing
automotives engine/gear oil etc.

Another 17 categories were included in the To reduce cost of doing business.
positive list of items importable from India.

. Allowing export oriented textile and leather To facilitate export sector.
sector to import accessories on import cum
export basis from India.

Allowing raw material/inputs
including To reduce cost of doing business.
polythene, polypropylene, newsprint and pure

terephtalic acid from India through Wagha via
land route.
Banning import of CNG cylinders and To check fast depletion of existing
conversion kits. The ban shall however not gas resources.
apply in the following cases:
a) For which letters of credit established prior
to 15-12-2011.
10
b) Public transport vehicle i.e. buses and vans.

Positive List with India has now been To normalize Pakistans trade
replaced with a Negative List of 1209 items
Export Price Elements:

Factory Cost Profit
Export Packing, Marketing & Strapping
Export Credit Insurance
Interest on Credit to Importer
Advertising and Promotion Paid by Exporter
Agents Commission
F.O.B. (Free on Board)
Inland Freight to Port/ Rail/Airport
Handling Charges and Fees
Cold Storages Charges
Cost of Documents (Bill of Lading, Airway Bill)
Consular Invoices. Certificate of Origin Charges

C.I.F. (Cost, insurance, freight)
Freight (sea/Air/Rail)
Insurance Premium And Cost of Policy
relations with India.
Handling Charges (Sea/Air/Rail)
Landed Cost
Import Duty and Taxes
Unloading Charges
Clearing Agents Fee

Whole Sale Price
Inland Transport to Warehouse
Advertising and Promotion Paid by Wholesaler or Importers
Mark-up
Retail Price
Retail Mark-up
Federal Tax VAT, Commodity Tax

Sales Tax
EXPORT INTIATIVES
Pakistan has been experiencing severe macroeconomic problems since the last one year. Two
biggest economic problems faced by the new government are inflation and the trade deficit.
Trade deficit, defined as exports minus imports, started increasing in 2003-04. The deficit
figure increased from $1060.1 in 2002-03 to $3278.5 in 2003-04, showing a rise of 209 percent.
The average growth in trade deficit since 2003 is colossal 92%. the trade deficit has reached
20.75 billion US dollars in 2007-08, which is even higher than the total exports of Pakistan.
Table 1: Pakistan's Trade* (in US $)

Year
Exports
FY 03
11160.2
FY 04
12313.3
Imports
12,220.3
15,591.8
Balance
-1060.1
-3278.5
FY 05
14,391.0
FY 06
16,451.0
FY 07
16,976.0
FY 08
19,220.0
* Excluding Re-Exports & Re-Imports
20,598.0
28,581.0
30,540.0
39,968.5
-6207
-12130
-13564
-20748.5
Source: Federal Bureau of Statistics, Govt. of Pakistan.
Chart below, shows that the trade deficit has increased by around 7.2 billion dollars in 2007-08,
which is the highest ever increase in one year. This is not because of lower exports but due to the
unprecedented rise in imports. Pakistan achieved its export target of $19.2 bn in 2007-08, with a
growth of 13.22 percent. However, the sharp surge (31%) in imports took the deficit to all time
high. The upward sloping steep part of the curve in the front page diagram depicts the severity of
the situation. The decade-wise trend line shown as a dotted line shows the long-term rising
tendency of the trade deficit.
Rise in Trade Deficit
-7184.5
-8000
-7000
-5923
-6000
-5000
Rise in Trade Deficit
-4000
-3000
-2928.5
-2218.4
-1434
-2000
-1000
FY 04
FY 05
FY 06
FY 07
FY 08
If this growth in trade deficit is not controlled at this stage it can make the economy more
vulnerable. Government of Pakistan, realizing this problem, constituted a high-level committee
to examine different proposals to deal with the issue. The committee comprises of secretaries
from Ministries of Finance, Commerce, Industries & Production, Agriculture Food & Livestock,
and the Chief Executive of Trade Development Authority of Pakistan (TDAP).
This report, prepared by the WTO Cell of TDAP, is to be presented to the Chief Executive,
TDAP.
THE IMPORT PICTURE

In response to a question that what was the situation of trade in the previous years the manager
told us that the external trade data for the years 2006-07 and 2007-08, released by Federal
Bureau of Statistics, is reproduced in Table 2 with some modifications.
Analysis of the data reveals that out of the total $ 9.4bn rise in imports, $ 7.45bn i.e. almost 80
percent was contributed by few commodities that are shown in red in the table. The import
values of these commodities, namely wheat, spices, soybean oil, palm oil, power generating
machinery, CBUs & CKDs of motor cycles, CKD/SKDs of buses, trucks and other heavy
vehicles, crude petroleum, petroleum products, raw cotton, worn clothing, fertilizer and iron and
steel scrap, have increased more than 20 percent in 2007-08 over 2006-07. Highest growth was
recorded in wheat (1269%), CBUs of motorcycles (165%), soya bean oil (154.5%), fertilizer
(98%), palm oil (76%), petroleum products (65%), iron & steel scrap (63%), power generating
machinery (59.5%), spices (58%), crude petroleum (45%), and CKD/SKDs of motorcycles
(40%).
As regards, edible oil (Palm Oil plus Soya bean Oil), the jump in import value occurred
essentially through continued rise in world prices of edible oils, like palm oil, soya bean oil,
canola and rapeseed oil. Malaysia (largest producer of palm oil), USA (largest producer of soya
bean oil), Canada (largest producer of canola oil), and Europe (largest producer of rapeseed oil),
all engaged in biodiesel production in a big way, diverting their largest commodity away from
edible oil market. This supply constraint, in addition to other reasons like ballooning fuel prices,
resulted in high import prices for Pakistan for palm oil and soya bean oil, while the quantities
imported did not change significantly. It is forecast by commodity analysts that prices of oilseeds
would not increase this year, and are in fact likely to fall. This should then be reflected in lower
world edible oil prices, and thus lower import for Pakistan. Simultaneously there is an urgent
need for MINFAL to mobilize its Oil Seed Corporation to launch some kind of OIL SEED
UGAO campaign nationwide.
The second biggest import item, in Food Group, is wheat, whose import bill increased by
a whopping 1970% in the just-ending fiscal year. This very large import of wheat last year was
an extraordinary circumstance, when due to mistaken forecast of surplus production, wheat was
allowed to be exported. Later when the mistake was realized, it was too late, and a large quantity
had to be imported at high price, as the world wheat prices had gone very high by then. In the
current year, the government should be very careful, and closely watch the local production, and
distribution, to discourage speculation, and hoarding. Moreover, an export ban, along with tight
border control to thwart smuggling, would assure that high import of wheat is not required this
year.
Among machinery group Telecom apparatus has the greater share of 20.3%. Power
generating Machinery had 16% share in all machinery group import bill. Other important item
seems Mobile phone whose import has declined by 11%. Machinery Group consists of capital
goods which are required for production and are thus essential for the growth of the
manufacturing sector.
Electric generators comprise a large proportion of Power Generating Machinery. Import of
generators has increased substantially during the last 2/3 years, because of insufficient power
availability in the country. Before 2006-07 Generator having capacity below 20 kVA (for
residential or shop use), was not imported in great quantity. Usually capacity of 75 kVA or above
was imported for commercial/industrial purpose. Now due to acute shortage of electricity in the
country, small generator for household purpose is also imported in large quantity. If electricity is
available as per domestic demands, the import of generators is likely to go down significantly.
1. Financial and Commercial Support
- Long term, Fixed Rate, Export Oriented Projects Financing Scheme- to enhance production
capacity.
- Financial Support for compliance certifications for international quality, environment and social
standards.
- Research and Development Support for the textile sector, leather garments & footwear, and to
motorcycle industry on export of their products.
- Assistance for opening exporters offices abroad.

- Support for marketing of branded products.
- To encourage investment and facilities exports, scheme of export-oriented units has been
introduced.
- Zero rating of sales tax for entire textile chain, leather products, surgical goods carpets and
sports goods.
- Zero rating of certain duty on priority export machinery sector such a
Agriculture, Horticulture, Marble/granite, and Gem &Jewelers etc.
- Import of PSF under Duty Tax Remission for Export scheme (DTRE) for manufacture-cum-reexport.
2. Skill Development and Capacity Building
- Establishment of Export Skills Development Council and Conversion of existing training
institutes into Technological & Skill Development Resource Centers.
- Assistance for registration of pharmaceutical products in foreign countries.
- Enterprise capacity building of manufacturing units.
- Strengthening of industrial clusters in collaboration with UNIDO.
3. Marketing and Promotional Activities.
- Permission to import semi-finished carpets on temporary basis for processing for exports given.
- The EPB has been replaced with the Trade Development Authority of Pakistan (TDAP), which
will now focus on export marketing.
- Participation in international trade fairs and exhibitions.
- Holding annual Expo Pakistan International Exhibition at Karachi Expo Centre from 2005.
- Sending out trade delegations to foreign countries.
IMPORTS MEASURES
- To enable the construction, mining and petroleum sector companies to meet their requirements
of machinery and equipment, commercial importers have been allowed to import
machinery/equipments/specialized machinery.
- To ensure that only genuine construction companies can avail the above facility, only those
construction companies, which are registered with Pakistan Engineering Council, will be allowed
to import secondhand plant machinery and equipment.
- The import of used heavy duty prime movers i.e. 380 HP and above, not more than four years
old which are EURO-III complaint has been allowed.
- Pakistan based Associations and individual companies have also been allowed to import
products for display and exhibitions subject to endorsement by TDAP.
- Mountaineering expeditions have also been allowed to import their requirements on importcum-export basis without recourse to Ministry of Commerce.
- In respect of goods sent by overseas Pakistani, the authority to grant exemption from sales tax
Registration has been delegated to the Collector of Customs concerned instead of FBR.
- In order to prevent misuse of imported narcotic drugs and psychotropic substances,
pharmaceutical units having valid drugs manufacturing licenses will be allowed to import these
substances on the authorization of Ministry of Health. Import of formaldehyde has been allowed
only to industrial consumers who have valid licenses issued by the environmental agency/deptt.
Concerned under Pakistan Environmental Protection Act, 1979.
- To prevent the import of raw materials used in the manufacture of bullet proof jackets by antistate elements, it has been decided that such material may be allowed for import only on the
recommendation of Ministry of Interior.
- To discourage import stolen and chassis tampered vehicles under the Personal Baggage, Gift
and Transfer of Residence schemes, it has been decided that in addition to confiscation of the
said vehicles, the importers will also be liable to such penalty as may be imposed by any other
law for the time being in force. Re-export facility will also not be available for such vehicles.
- The input of waste, parings and scrap of polyethylene (PE) and polypropylene (PP) has been
allowed with mandatory certification by the Government of the exporting country or certification
by a pre-shipment inspection company in the exporting country specialized in this field.
Balance of Trade & Balance of Payment under TDAP:

The commercial balance or net exports (sometimes symbolized as NX), is the difference between
the monetary value of exports and imports of output in an economy over a certain period,
measured in the currency of that economy. It is the relationship between a nation's imports and
exports. A positive balance is known as a trade surplus if it consists of exporting more than is
imported; a negative balance is referred to as a trade deficit or, informally, a trade gap. The
balance of trade is sometimes divided into a goods and a services balance.
Factors that can affect the balance of trade include:
The cost of production (land, labor, capital, taxes, incentives, etc.) in the exporting
economy those in the importing economy;
The cost and availability of raw materials, intermediate goods and other inputs;
Exchange rate movements;
Multilateral, bilateral and unilateral taxes or restrictions on trade;
Non-tariff barriers such as environmental, health or safety standards;
The availability of adequate foreign exchange with which to pay for imports; and
Prices of goods manufactured at home (influenced by the responsiveness of supply)
Formula:
Balance of Trade = Net Earning on Export - Net payment for imports
BALANCE OF TRADE IMPROVES 2013-14
Pakistans balance of trade has improved by 13% in May 2013 over the same month last fiscal
year. During May 2012 trade deficit was US$ 1.7 billion while it was US$ 1.99 billion in May
2011.
As per released data, Pakistan exports during eleven months of the fiscal year 2011-12,
decreased by 3.8 percent. The cumulative trade figure shows that Pakistans exports during JulyMay were US$ 21.53 billion, while in the corresponding period of the last fiscal year, exports
were $ 22.39 billion. Imports during July-May 2011-12 were $ 40.93 billion as compared to US$
36.55 billion during the same period of the year 2010-11, registering a 12 percent growth.
On the other hand Pakistans exports during May 2012 were valued at US $ 2.16 billion which
was 5.96% lower than the level of US$ 2.3 billion during May 2011. Imports during May 2012
were valued at US $ 3.89 billion registering a decline of 9.3 per cent over the imports of US $
4.29 billion in May 2011.
Balance of payments
Balance of Payment (BOP) of a country is defined as, "Systematic record of all economic
transactions between the residents of a foreign country" Thus balance of payments includes all
visible and non-visible transactions of a country during a given period, usually a year. It
represents a summation of country's current demand and supply of the claims on foreign
currencies and of foreign claims on its currency.
A country's balance of payments is said to be in surplus (equivalently, the balance of
payments is positive) by a specific amount if sources of funds (such as export goods sold and
bonds sold) exceed uses of funds (such as paying for imported goods and paying for foreign
bonds purchased) by that amount. There is said to be a balance of payments deficit (the balance
of payments is said to be negative) if the former are less than the latter.
Formula:
Balance of Payments= BOT + (Net Earning on foreign investment -payment made to foreign
investors)
Cash
Transfer
Capital
Account
+or
Balancing
or
BOP = Current Account + Capital Account + or - Balancing item (Errors and omissions)
Item
How to Calculate the Balance of Payments

The balance of payments is an economics concept that compares the transactions of the people in
one country to the transactions of those in another country. Essentially, balance of payments
looks at imports and exports. If a country has a positive balance of payments, then that country
will have more cash flowing into the country than flowing out. If a country has a negative
balance of payments, then that country will have more cash flowing out of the country than
flowing in.
Difference between Balance of Trade and Balance of Payment

Basis of Difference
Balance of Trade (BOT) Balance of Payment (BOP)
1. Definition
Balance of trade may be Balance of payment is flow of

defined as difference between cash
between
domestic
export and import of goods country and all other foreign

and
services. countries. It includes not only

import and export of goods
and services but also includes
financial capital transfer.
2.Formula
BOT
Net
Earning
on BOP = BOT + (Net Earning
Export - Net payment for on

imports
foreign
payment
investors)
investment
made
to
foreign
Cash
Transfer + Capital Account

+or
Balancing
Item
or
BOP = Current Account +
Capital Account
+ or -
Balancing item ( Errors and

3.Favorable
If
export
is
more
omissions)
than Balance of Payment will be
or
import, at that time, BOT will favorable, if you have surplus
Unfavorable
be favorable. If import is more in current account for paying

than export, at that time, BOT your
will
be
all
unfavorable. past loans in your capital

account.
Balance of payment will be
unfavorable,
if
you
have
current account deficit and

you took more loan from
foreigners. After this, you
have
to
pay high interest on extra loan

and this will make your BOP
unfavorable.
To stop taking
4. Solution of Unfavorable
Problem
To Buy goods and services from

from
5.Factors
domestic
of
foreign
loan
countries.
country.
Following are main factors Following are main factors

which
a)
affect
cost
of
BOT which
production a)
affect
Conditions
BOP
of
foreign
b) availability of raw materials lenders.

c)
d)
6.Meaning
Credit
of
Debit
Exchange
Prices
of
rate b) Economic policy of Govt.

goods c) all the factors of BOT
manufactured at home
and Credit means total export of Credit means to receipt and
different goods and services earning
both
current
and
and debit means total import capital
account
and
debit
of goods and services in means total outflow of cash

current account.
both
current
account
and
and
capital
difference
between debit and credit will
be net balance of payment.
Balance of Payments
Pakistan's balance of payments shows a record increase in capital flows that has substantially
offset a gradual widening of the current account deficit during current financial year. External
account turned into surplus during Jul-April, FY14 compared to the same period last year.
Overall external account balance posted a significant surplus of US$ 1,938 million during JulApr, FY14 compared to a deficit of US$ 2,090 million in the corresponding period of last year
due to significant improvement in the financial account after realization of floating of Pakistan
Sovereign Bond inflows. This relative improvement has offset the deterioration in the current
account deficit that reached to US$ 2,162 million during Jul-Apr, FY14 compared to a deficit of
US$ 1,574 million in the corresponding period last year. The higher current account deficit was
largely caused by the widening of trade and services account deficits. Specifically, higher
services account deficit was the result of lower receipts under coalition support fund during JulApr FY14, compared to the same period last year (Table-8.10). However, it is expected that
receipt of CSF amount of $375 million in May, 2014 will improve the current account deficit.
On the other hand, capital and financial account improved substantially during the period under
review and recorded a higher surplus of US$ 5.0 billion during Jul-Apr, FY14 compared to a
deficit of US$ 0.4 billion during the corresponding period of last year.
Summary Balance of Payments

Items July-June
2011-12 2012-13 2012-13 P*
US $ million
July-April
2013-14 P
Current Account Balance
-4,658
-2,496
-1,574
-2,162
Trade Balance
-15,765
-15,431
-12,892
-13,259
24,696
24,795
20,544
21,038
40,226
33,436
34,297
-3,192
-1,472
-931
Services: Credit
5,035
6,733
5,860
4,189
Services: Debit
8,227
8,205
6,791
6,360
-3,245
-3,685
-2,958
-3,156
Income: Credit
826
488
395
438
Income: Debit
4,071
4,173
3,353
3,594
17,544
18,092
15,207
16,424
13,186
13,922
11,570
12,895
1,463
813
-440
4,998
Capital Account
183
264
244
1,755
Financial Account
1,280
549
-684
3,243
Goods: Exports
Goods: Imports 40,461
Service Balance
Income Account Balance
Current Transfers Net
-2,171
Of which:
Workers' Remittances
Capital & Financial Account
Direct Investment in Pakistan
744
1,258
670
654
Portfolio Investment (net)
-144
26
298
2,244
680
-735
-1,652
345
-80
-309
-76
-898
-1,992
-2,090
1,938
Other Investment
Net Errors and Omissions
Overall Balance -3,275
*P : Provisional
Source: SBP
As overall external account displayed surplus, the country's FX reserves improved substantially
and the Pak rupee- dollar parity remained stable when compared with end June, 2013.
Current Account
Current account deficit gradually further widened during current financial year (Jul-Apr) to $
2,162 million (0.9 percent of GDP) from $1,574 million during Jul-Apr, FY13 (0.7 percent of
GDP). A striking feature of this year's current account deficit is that it has widened even though
the import growth has slowed to 1.2 percent only but the performance of exports has remained
slow, resulting in widening of trade deficit. Deficit in services account also widened manifold
due to non- transfer of CSF and as such even a robust growth of 11.5 percent in current transfers
(net) could not narrow the current account deficit. However, CSF transfer during rest of the
financial year will improve current account position.
Capital and Financial Account
Unlike the current account, the capital and financial account improved and turned into surplus
substantially amounting to $4,998 million during July-April, 2013-14 as compared to a deficit of
$440 million in the corresponding period last year. Notwithstanding, higher surplus in the
capital and financial account, the overall external balance of the country witnessed a surplus of $
1,938 million during July-April 2013-14. This improvement in Capital and Financial account
comes from realization of sovereign bond amount, grants from friendly countries and
disbursements from multilateral and bilateral international financial institutions. This
improvement in the Capital and Financial account balance enabled the overall external account
balance in surplus.
Fig-8-6: Monthly Current Account Balance
Institutions working under TDAP:

MINISTERY OF COMMERCE
Mission of Ministry of commerce is to contribute to the national economy through trade
facilitation and liberalization, improve export competitiveness and reduce the cost of doing
business. To achieve higher market access for Pakistani products in foreign markets with the aim
of increasing our share of export in the global trade.
State Life Insurance Corporation of Pakistan
The Life Insurance Business in Pakistan was nationalized in March 1972. Prior to 1972, 32 Life
Insurance companies were involved in the life insurance business. These companies were later
merged and placed under three Beema Units named A, B and C Beema Units. Later, these
Beema Units were merged on November 1, 1972 and State Life Insurance Corporation of
Pakistan came into existence. The major function of State Life Insurance Corporation of Pakistan
is to carry out Life Insurance Business; however, it is also involved in the other business
activities such as investment of policyholders fund in Government securities, Stock market, Real
Estate etc.
2.Chamber of Commerce:
Mr. Nasir MahmoodRaufi

Finance Manager
Mob: +92-321-4775875
Tel: +92-42-36305538-40
Ext: 339
E-mail:
finance@lcci.org.pk
Under the Rules of Business 1973, Commerce Division is

assigned the following functions:
Imports and exports across custom frontiers
Export promotion
Commercial intelligence and statistics
Tariff policy and its implementation
Anti-dumping duties, countervailing duties and safeguard laws
Inter-Provincial trade
Domestic Commerce
Organization and control of Chambers and trade associations
Law of Insurance and regulation and control of Insurance companies
Administrative Control of Attached Departments/Organizations
Selection of Trade Officers for posting in Pakistans Missions abroad
Objective of Trade Policy

People centric: Poverty alleviation and employment generation through export led growth
Supply side:
Value addition and Higher Unit Value (e.g.Yarn-Fabric-TextileChain)
Coordination for Improvement of Infrastructure
Improving competitiveness through reduction in cost of doing business
Facilitating investment in manufacturing sector
Marketing:
Focus on Export Marketing
Better Commercial Intelligence
Trade diplomacy/market access
Diversification of export products and markets
ORGANIZATION/FUNCTIONS
ADMINISTRATION:
Administrative, financial and budgetary affairs of main Ministry and affiliated organizations,
trade offices abroad and administration of Commerce and Trade Group. PAC/DAC meetings,
Insurance & related matters for all the organizations of the Ministry. Administration of three
Governments owned insurance companies i.e. State Life Insurance Corporation of Pakistan,
National Insurance Company Limited, Pakistan Reinsurance Company Limited and dispensation
of policy as well as legislative/ legal direction.
FOREIGN TRADE:
Trade diplomacy and market access initiatives.
WTO:
Multilateral trade negotiations and compatibility of domestic laws with WTO laws.
IMPORTS WING:
Formulation of Trade Policy in conjunction with other wings. Implementation of import policy
initiatives.
EXPORTS WING:
Formulation and Implementation of annual Trade Policy, jointly with the Imports Wing.
Implementation of Export policy initiatives. TCP Affairs.
ITO WING:
Formulating, processing and monitoring of development projects of Ministry and affiliated
organizations. Tabulations of Trade Statistics and Analysis based thereon.
3. Trading Corporation of Pakistan:

Trading Corporation Of Pakistan Trading Corporation of Pakistan (TCP) is the principal trading
arm of the Government of Pakistan. Established as a premier international trading house in 1967,
the Corporation has gradually moved from barter, through commodity exchange to cash trade.
Acting on the directives of the Federal Government, amongst other things, TCP undertakes
import of essential commodities to help ensure their availability to the common man at
affordable prices.
Vision
It serves the nations as a highly motivated corporate entity responsive to national needs and
modern trading challenges.
Mission
Development of corporate structures managed by professionals.
Continuous human resources development.
Development of web, IT-based operational environment.
Ensure total transparency and zero tolerance for corrupt practices.
Optimal use of resources and economy in operations without compromising quality.
Continuous update on national and international markets.
4. INSTITUTE OF LEATHER TECHNOLOGY, LAHORE

The leather made-ups industry plays a significant role in the economy of Pakistan as its share in
GDP is 4%. Ten years ago, it was the fifth most important export industry in the manufacturing
sector, and now it is second, after textiles. Institute of Leather Technology will be established at
Lahore to impart short term training to workers, supervisors and entrepreneurs. It will also
provide professional advisory services the exporters for process improvement, product
development and international technological trends. The institute will comprise lecture rooms,
pattern cutting and swelling halls laboratories, R&D cell and Common Facility Centre. Estimated
cost of the project is Rs. 200 million.
Capacity enhancement.
5. AGRO FOOD TECHNOLOGY INSTITUTE, LAHORE
The establishment of Agro Food Technology Institute, Lahore is a project of EDF. The institute
will enhance the Agro Food sector of Pakistan. The institute will include class rooms,
laboratories processing equipment and machine rooms. A land of approximately one acre is
required for this project. Technical expertise from international institutes based in USA, Austria,
china and EU will be arranged. The institute will closely work with the TDAP and exporting
units/establishment so as to keep the curriculum in line with requirements of export markets. An
initial allocation of Rs. 5 million has been sanctioned by EDF to develop a feasibility study and
cost of the project will be financed through PSDP.
6. EXPORT PROMOTION BUREAU:

Their vision is to Provide Leadership, Direction, Pro and Re-active Facilitation, to an aggressive
national drive for sustainable growth of Pakistan's Foreign Trade, achieving a level of US$ 14
billion by year 2002-2003 as a minimum
Objectives of EPB:
Export Promotion Bureau is under the department of the Ministry of Commerce and was
established in 1963 with the main objective of promoting and supporting sustained growth in
exports, of goods services both in term of volume and value .
It Assist the govt. in formulating and administering export policy:
Formulate export targets and monitor exports

Recommend production for export and establishment of export oriented industries.
Function of E.P.B:
Business has become an activity. Nations used for survival. As a country rich in natural resources
and a rowing economy, Pakistani products compete globally to a favorable degree. Now even a
single nation cannot fulfill its even residential needs with only domestic business. So the nations
now think how to promote their export. As it is happening in all over the world so, in Pakistan, at
the time of its inception, Chief Controller of Imports and Exports CCI&E was established for this
purpose but it was not so efficient to meet the growing needs of receiving and disseminating
latest market information and taking regulatory measures wherever necessary. In order to cater
the need of the time, Export Promotion Bureau of Pakistan took the place of this institute in
1963.In very beginning EPB was a small department with a few functions to perform. But with
the passage of days and night it expanded its scope, functions and facilities and now it has a wide
setup with country-wise branches. Where EPB foremost function is to promote exports, it
provides facilities existing exporters and prospective businessmen who want to venture into the
international markets by establishing stronger bonds with foreign countries. Export Promotion
Bureau has always tried its utmost to maintain and sustain relationships in the existing markets
and to capture the new potential markets. It performs various functions to assist in trade, one of
that is marketing pertaining to market research, execution of fairs and exhibitions both local and
international, and trade delegations for exploring international markets. The EPB produces a
number of documentary films each year which are distributed to Pakistan embassies abroad for
screening before potential buyers and at trade fairs abroad .At present, there are over 40 trade
offices in Pakistani Missions abroad .The main purpose of these trade offices is to boost
Pakistani exports. EPB maintains a close working relationship with all of these trade offices
which also act as export houses. In order to introduce Pakistans exportable commodities to the
world, EPB has been arranging permanent display of products within Pakistan and in selected
centers abroad to attract prospective foreign buyers. EPB maintains permanent display centers
where samples of exportable goods are prominently displayed. The display centers are regularly
visited by foreign importers or to say so, attract considerable attention of the foreign buyers. One
of the important roles of EPB is its participation in international and national trade fairs.
Pakistan, as a member of community of developing nations, has developed policies aimed at
exploiting the international market. Opting for a policy of export promotion (rather than import
substitution) does entail strong orientation towards overseas markets and a liberalization of the
domestic market for goods, services and capital, as also the external trade of a country. This in
view, EPB acts as a conduit to striking a manageable balance of trade.EPB has set up a number
of research and training institutes as well. In these institutes main emphasis is given on quality
consciousness and efficient production techniques enabling exporters to enrich themselves for
better results .In order to maximize the export potential of Pakistan and take on the challenge of
adapting our approach to one which takes into account the rapidly changing world economic
climate, EPB is expanding its promotional activities and attempting to position the Made in
Pakistan label as a hallmark of quality. On the demand side, EPB helps exporters to participate
in exhibitions abroad and sends delegations to export markets with a view to explore new
markets and develop the traditional markets. On supply side, EPB has established over 32
training institutes and projects in various export sectors to train necessary manpower that can
manage the export trade and industry, professionally, meeting the requirements of the export
markets. Export promotional activities are carried out in co-ordination with trade bodies at home
and Pakistan's trade missions abroad. EPB has its head office in Karachi, which is also the main
industrial and commercial center and the major export outlet of the country.
Chapter 3
METHODOLOGY
Chamber of Commerce, working under TDAP was visited by researcher. Two managers of
Lahore branch of TDAP and faculty members of the company were taken into account (gender;
male) aged 27-45 years; volunteered to participate in the study (survey task).
The research methodologies of the project will include a combination of a theoretical analysis
through a critical perspective to the exports and imports of Pakistan and an empirical study of
trade. The data presented were collected both from primary and secondary sources. The primarily
sources were retrieved through interviews from chamber of commerce/Lahore branch of Trade
development Association of Pakistan. The secondary sources were retrieved from former
investigations and internet.
Population and Sampling Method:

Sampling method is based on selective style or the population is based on TWO Assistant
manager Raheel Rao, Usman Elahi of Trade Development of Lahore branch of marketing
sector.
Interview conducted by researcher on 13-1-2016, with gap of 20 minutes.
Chapter 4
FINDINGS
An interview of the managers and supervisors of Chamber of commerce and Universal Trading
Corporation has been conducted to understand the situation of trade in Pakistan along with the
Balance of payment and Balance of Trade.
During the interview the respondents and managers provided a detailed feedback regarding our
queries.
Where to Export? The manager told that TDAP haveto give consideration to where to
export. The whole world can be a potential market for your products. Individual and specialized
approach is needed to ensure that each countrys import requirements are met. In addition to the
various publications there are a number of agencies that provide help to locate your markets
overseas.
TDAP facilitating the decision whom to Export?
The respondent explained that to find prospective customers and that too in overseas markets is
the most arduous task for TDAP. But a little experience and contact with different agencies
backed by a concerted follow up action on the information provided by them will help the
exporter in locating overseas customers. But selective approach will prove to be advantageous
for very important institutions like TDAP.The manger also explained the current Trade Policy.
Ministry of Commerce announced a 3-year Trade Policy in 2009-10, which is available for
perusal on the website of Ministry of Commerce.
This section is deputed to formulate and implement various trade policy initiatives announced
annually by the Ministry of Commerce. Proposals are developed after consultation with various
stakeholders for consideration by Ministry of Commerce. The Initiatives announced in the Trade
Policy are then implemented and business procedures of schemes are worked out. In order to
devise a proper implementation mechanism and to install an effective evaluation system, a close
coordination and liaison with Pakistani Missions/Consulates/Embassies abroad, is established
that not only enables the smooth flow of the processes involved but also ensures transparency of
the schemes.
Inco terms is a wide term used in global world, the manager explains that Inco terms is an
abbreviation of International Commercial terms. This is an International rule for the
interpretation of the most commonly used trade terms in international trade prepared by ICC
(International Chamber of Commerce), which is based in Paris. The purpose of Inco terms is to
avoid disputes between trading parties arising from different interpretation of such trade terms in
different countries.
Today, most of the business of international trade in the world is conducted using Inco
terms as a general business custom. In order to avoid this misunderstanding and confusion
between a seller and buyer, it is advisable for the exporter to add to the contract a clause to the
effect that interpretation of trade terms are based on Inco terms.
The procedure for pricing a product for export was also detailed that, to price a product for
export, TDAP would normally start with cost of production. Allow for special designs, special
runs, modification and costs necessary to produce a marketable product. Rather than using
normal administrative cost, it is much better to add a direct export administrative cost, which
may include representatives commissions, direct cost for attorneys, freight forwarders,
accounting, telephoning, mail, labor, etc. Some costs for exporting will be less than for domestics
sales and some will be more. When TDAP quote a price to your customer be sure there is
reasonable profit margin left for organization. Price can be quoted several ways.
Barriers to investment in Pakistan?.
The respondent explained that the mostly barrier face while to attract the investors because they
need the security of the cash or the project where they are going to invest. Somehow the law and
regulation rules also the cause of low investment system in Pakistan.
Today, most of the business of international trade in the world is conducted using Inco
terms as a general business custom. In order to avoid this misunderstanding and confusion
between a seller and buyer, it is advisable for the exporter to add to the contract a clause to the
effect that interpretation of trade terms are based on Inco terms.
Chapter 5
Recommendation:
Government should eradicate the inefficiency in the TDAPs running. TDAPs running should be
made compatible with changing governments as every time a new government tries to implement
a new policy. There should be an internal audit team instead of sole AGPR (Accountant General
of Pakistan Revenues).In short Finance and audit should be managed internally as well (partially
or fully).Being a public enterprise, TDAP should keep government representatives who are more
responsible and have experience of Trade and Commerce only. TDAP should encourage the trade
of handicrafts and cottage industry and promote local Pakistani heritage internationally via
platforms like Expo held annually. TDAPs Regional office should expand even to small cities of
Pakistan. TDAP should keep a larger budget for research and development and should study the
international markets more thoroughly, their local demands, what they really want that is which
country wants which products and to what extent. Goals should be achieved with set targets to
get good outcomes.
TDAP should provide a complete platform for new entrepreneurs who have less experience in
international trade, and who want to export and import with proper assistance.Lowering of tariff
barriers through negotiations of SAFTA concessions on items of Pakistans export interest in
particular textiles, light engineering and agricultural goods.
Prompt removal of nontariff barriers including the following:
Transport Protocol:
Open all routes that were previously in operation before 1965. For example: Munaba
Khokharapar rail route to link Karachi with Mumbai, SahiwalFazilka to connect the Southern
parts of Punjab LahorePatti road KasurFirozpur road. Provide direct shipping routes to east and
south India. Allow direct transportation from all existing dry ports without the requirement of
rechecking at the port of exit. Allow warehouse to warehouse shipment in order to address yard
capacity issues at the port. Allow containerized shipment at land ports Improve the bilateral
railway SOPs to allow 8 wheeler train wagons and more than one interchange a day. Allow
vehicles to carry full container loads.
Port Infrastructure:
Upgrade infrastructure (including covered sheds, automated handling, cold storage,
weighbridges, fork lifters etc.) at all ports. Also develop an ICP at,. the railway port. Provide
electronically generated reports for scanners and weighbridges so they may be used as evidence
in case of disputes on quantities exported. Provide auxiliary services at ports for faster clearance.
Establish bank branches of each others countries at ports.
Standards:
Establish a single point of enquiry for TBT and SPS regulations. Changes should be
disseminated through a subscription system. Establish certification, inspection and textile
laboratories at ports. PSQCA may be allowed to issue certificates and conduct inspections on
behalf of BIS. Training may be offered for packaging and labeling requirements via online
tutorials. Extend the MRA signed in February 2012 to remove the requirement of establishing a
branch office in India to get BIS certification. Certificates of third part international laboratories
e.g. SGS may be accepted.
Clearance procedures:
Allow electronic issuance of SPS, Rules of Origin and SAFTA certificates in a mutually
recognized format. Enforce best practices identified in electronic risk management system
(RMS), including opening a green channel for reliable importers at land ports. Develop inter
Customs SOPs to address classification and valuation issues. Create an automated mapping of
HS codes at level 8 to address classification issues. Make Customs SOPs available electronically.
Encourage data sharing between Customs. Accept copies of the SPS certificate for fast clearance
of perishables without waiting for the original to arrive via courier.
Visa Facilitation:
There should be no restrictions of cities and visas should be for multiple visits. Till the
establishment of a more facilitative mechanism, visas should be allowed on the
recommendations of the Chambers of Commerce and Industry. Additional visa processing offices
should be opened. There should be a visa office at Karachi, Lahore and Faisalabad. Single day
permits may be issued to businessman for meetings in a designated area.
Other:
Open direct courier services.
Allow opening of bank branches of the other country.
Prompt harmonization of the following nontariff barriers:
SPS requirements for agricultural products (vegetables, fruit, vegetable oils and packaged halal
foods)Customs SOPs for import of agricultural products Preshipment test requirements for
textiles Certification requirements for cement Labeling and packaging requirements for all
packaged commodities including food products Labeling requirements for textiles.
CONSIDERATIONS
Commodities are the way to go: Countries in the Developing World have always been
grumbling about the unjust terms of trade. Whether in the 1960s or the 1980s, the refrain
in the international trade forums has been that most developing countries are producers of
commodities (whose prices are stagnant), while the Developed countries produce
industrial goods (whose prices are buoyant). This results in unequal terms of trade
between the two groups, thus trapping the Developing Countries in perpetual poverty.
Now in a long, long time, there has arrived an opportunity for the hewers of wood and
drawers of water. Thanks to the liberalization of international trade, great wealth has
been generated globally. Tremendous growth rates achieved by countries like China and
India, have resulted in unprecedented demand for commodities, resulting in historically
high prices. Our trade deficit is largely due to dollars expended on commodities,
especially cotton, wheat, sugar, etc which Pakistan has a great potential to boost
production of, given the large population engaged in agriculture. Similarly, import bill for
petroleum can be significantly reduced, by developing biofuels like ethanol and biodiesel,
both requiring an agricultural production base which potentially Pakistan does possess.
We should be celebrating and gearing up to take advantage of the rising commodity
prices instead of mourning over them.
Falling Exchange Rate is an implicit tariff on imports: We are living in an era of

liberal trade regime. Using a floating exchange rate in a market economy, trade balance is
the most important factor (besides interest rate and inflation) in determining our exchange
rate. Vice versa, the floating exchange rate is also a corrective to negative trade balance.
As the trade deficit rises sharply (like in our case), the rupee starts to depreciate against
dollar and other currencies of our major trading partners. This automatically would make
our imports more expensive (for the local population) and our exports cheaper and more
attractive for our trading partners. Thus as the basic economic theory would predict,
imports should fall (if they are elastic) and exports should rise (if there are no supply
constraints), correcting our deteriorating trade balance. In such a scenario, the talk of
using tariff measures to restrict imports is not advisable, as the depreciating currency is
already taxing the imports. In case of Pakistan, rupee-dollar exchange rate has changed
from Rs.61 to Rs. 72 (in August 2008), thus imposing an implicit tariff of around 20
percent on all of our imports. In such a situation, imposing tariff on even non-essentials
would be of dubious use, besides creating distortions in the economy, resulting in what
economists term as a net welfare loss.
To increase your exports you have to increase your imports: A mercantilist mindset of
the 1960s is still strong and kicking in Pakistan when it is suggested that somehow we
can strategize and boost our exports while at the same time cutting our imports through
imposing tariffs. In this day and age of integrated trade and intra-industry trade, this
dictum does not work. The more one aspires to boost exports, the greater is the need to
allow imports freely. China is a great example. While its annual exports are around one
and a quarter trillion dollars, its imports are not far behind being near to the trillion dollar
mark.
Short-term, and Long-term Strategy: Even if under severe circumstance an economy

decides to cut down its imports, it needs to design short-term, medium-term and longterm strategies. If the short-term focuses on reducing imports to improve balance of
payment position, long-term shall focus on enhancing both exports and imports.
Contractionary Fiscal & Monetary Policies: If the rise in imports is mainly because of
rising aggregate demand due to rising incomes and remittances, and falling interest rates,
contractionary monetary and fiscal policies can also bring down the imports. Since the
State Bank has already taken a stringent stance, a downward pressure on imports is
expected. With the rise in interest rates and raised margin requirements the imports are
expected to fall. This stance would get a support from the fiscal side when tariff or non-
tariff measures are taken.

Inflation vs Trade Deficit: Increasing the tariffs on imports can reduce the trade deficit,
but it can also push inflation up, which is already galloping at a high rate. Hence, extreme
care is necessary in identifying the exact tariff lines to be taxed. Price elasticities of the
products need to be taken into account. Impact on substitutes & complementary products
also needs to be considered.

Which Commodities to be targeted for tariff hike? : Our imports, when broken down
into components, fall into the categories of industrial raw materials, capital goods, foods
& grains, fuel & energy, pharmaceutical & other life saving drugs, and consumer goods.
Industrial/agricultural raw materials, fuel & energy, and capital goods cannot be
considered for possible tariff hike, as it would have a direct negative impact on the
countrys industrial/agricultural growth. Similarly, foods & grains (which includes edible
oil, wheat, sugar, etc.) are not good candidates for tariff hike, since it is a necessity for the
whole population, and would cause further food inflation, which is likely to hit the
common man. Pharmaceutical & other life-saving drugs cannot be further taxed for
obvious reasons. Thus the only remaining category, consumer goods, can be labeled as
non-essential goods, and be looked at for possible tariff hike. An attempt has been made
to pick and choose such imported consumer goods for tariff hike, which either are
produced locally as well, or which if not produced locally are consumed by the middle
and upper classes. These could be items like imported cheese, mobile phones, toys,
apparel, etc. such possible items from the non-essential consumer goods category.
Possible raised tariff levels are also suggested, taking into consideration our Bounded
Tariff commitments at the W.T.O.
Conclusion
TDAP shall be a dedicated, effective, and an empowered organization, which shall be
professionally managed. TDAP's Textile & Clothing Division is also looking after exports of
Carpets, Handicrafts, Leather and Leather Goods. The services sector is becoming an
increasingly important contributor to Pakistans economy due to ever increasing share in
GDP and also due to its immense export potential in the coming years. Pakistans services
sector has strong forward and backward linkages with the major sectors of the economy such
as textiles and commodities. There is significant trade in services activity in all four modes of
supply in financial, construction, business services such as computer and IT, engineering
services, and legal and accounting services. Information technology and related services are
the most significant in terms of the scope and scale of the export markets and the extent to
which these services are currently being delivered in all four modes of supply. The
Handicraft Section is part of the Facilitation Division of the TDAP. The Women Entrepreneur
Section has been active in providing financial support to different fashion designers to
participate in the reputed international fashion shows and fairs.WTO Cell provides importers
and exporters in Pakistan with data on market conditions related to WTO obligations (import
and export barriers) and trade flows (import and export volumes, value and shares) in a form
and context that is useful to traders. The RAD was formed to provide in-house research
support and analysis on trade matters to all Divisions of TDAP, as well as the trader
community. Every product/service has a market. Even then, one has to be on the lookout for
overseas importer. Nevertheless, export control is to be imposed at times, but its scope is very
limited. There are also a few basic requisites for selling overseas. Determination land
planning and planning are the basic requirements. The commercial balance or net exports
(sometimes symbolized as NX), is the difference between the monetary value of exports and
imports of output in an economy over a certain period, measured in the currency of that
economy.
For developing countries like Pakistan the major barriers to growth are:
Regulatory, informational and coordination failures that hamper the efficient operation of
markets;
Poor conditions for private sector investment (poor governance, lack of infrastructure,
etc.
Limited financial services with lack of access to credit for small businesses that holds
back production;
Poverty which restricts the growth of internal consumer demand and encourages a large
informal sphere; and difficulty in accessing international markets For Pakistan, enhancing
productivity (of labour, capital, land and knowledge); a stable and conducive policy
environment; and strong incentives for investment by individuals and businesses holds
immense importance.
Giving incentives to the exporters and lowering the need for imports will ultimately lead
to an improved economy of Pakistan. Improving trade situation and enhancing the level of
investment in profitable sectors of the economy will lead to increased employment
opportunities. Balance of payment and Balance of trade of Pakistan will improve as a result
of rising exports and reducing imports.
In this manner Trade Development Authority of Pakistan can play a vital role in
upgrading the economy of the country.
References:
Trade development authority of Pakistan (n.d.). Retrieved June 15, 2014 from
http://www.tdap.gov.pk/about.php
Upcoming projects, (n.d.), Retrieved June 15,2014 from

http://www.tdap.gov.pk/upcoming_projects.php
http://www.pakistantoday.com.pk/2011/01/15/business/tdap-running-without-board-andordinance/
Export initiatives ,(n.d.) Retrieved June 16 , 2014 from

http://www.dawn.com/news/222150/tdap-to-help-promote-exports
Departments , (n.d.) , Retrieved June 16,2014 from

http://www.gcsnc.com/pages/gcsnc/Departments/Health_Services/Tdap
Exports, (n.d.), Retrieved 17 June,2014 from http://en.wikipedia.org/wiki/Export
Fashion industry in Pakistan (n.d.) Retrieved 18 June,2014 from

www.profashionstyle.com/
WTO CELL (n.d.), Retrieved 20 June ,2014 from www.tdap.gov.pk/wto_cell.php
Ministry of Commerce (n.d.) Retrieves 22June , 2014 from www.commerce.gov.pk/?

page_id=6
www.commerce.gov.pk/
Medical services (n.d.), Retrieved 20June ,2014 from

www.health.gov.tt/sitepages/default.aspx?id=114
Institute of Leather and technology (n.d.) Retrieves 21st June ,2014 from
http://pkeducation.org/professional/institute-of-leather-technology-diploma-andcertificate-courses/
Inco terms (n.d.), Retrieved 21 June,2014 from www.en.wikipedia.org/wiki/Incoterms
Emery, R. (1967) The Relation of Export and Economic Growth. Kyklos 20:4.
Nabi, I. and Nasim, A., editors, (2001) Trading with the Enemy Regionalism and Globa
lization Retrieved 13 June ,2014 from
http://www.tdap.gov.pk/word/Report_040712%20rev.pdf
Taneja, N. and Kalita, P. (2011) Most Favoured Nation: New Opportunities for India and
Pakistan Economic and Political Weekly, Vol 46, No 49, 3 December 2011 ,Retrieved
13 June ,2014 from http://www.tdap.gov.pk/word/Report_040712%20rev.pdf

Khan, S.R., Shahid, S.H., Yusuf, M., Tanveer, A., (2007) Regional Integration, Trade an
d Conflict in South Asia. Working Paper, Sustainable Development Policy Institute (SD
PI), Islamabad.Retrieved 13 June ,2014 from
Husain, I. (2011) Prospects and Challenges for Increasing IndiaPakistan Trade. Atlanti
c Council, Washington, D.C. Retrieved 13 June ,2014 from
Taneja, N. and Kalita, P. (2011) Most Favoured Nation: New Opportunities for India and
Pakistan Economic and Political Weekly, Vol 46, No 49, 3 December 2011 Retrieved 13
June ,2014 from http://www.tdap.gov.pk/word/Report_040712%20rev.pdf

Naqvi, Z.F. and Schuler, P. Editors (2007) The Challenges and Potential of Pakistan
India Trade. The World Bank, Washington, D.C. 185pp. Retrieved 13 June ,2014 from

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TRADE DEVELOPMENT AUTHORITY OF PAKISTAN1

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN2

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN3

Glossary & Abbreviations

trade development authority Pakistan

Encourage the development of something

Export Promotion Bureau

The action of working with someone to produce something

A body of delegates or representatives; a deputation

judicial or legal command

A sudden large increase or advance

Able to be maintained at a certain rate or level

the eastward part of earth

Exactly like something else

inquire into, examine

A level of quality or attainment

Generalized System of Preferences

International Standards Organization

Foreign Currency Export Finance facility

Pioneering Export Marketing & Product Up gradation fund

Lie, sit, or stand in a relaxed or lazy way

he art or practice of garden cultivation and management

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN4

cut or polished precious stone

Duty Tax Remission for Export scheme

pertaining to art of medicine

United Nations International Development Organization

The sport or activity of climbing mountains

Federal Board of Revenue

The base frame of a car, carriage, or other wheeled vehicle

machinate, have secret of corrupt dealing

legal robbery with sanction of ruling power

of one, with two sides

free trade agreements

Preferential Trade Agreements

Regional Trading Arrangements

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN5

foreign direct investment

In relation to; with regard to

Help or encourage (something) to increase or improve

Duty Tax Remission on Exports

Import Policy Order

Accountant General of Pakistan Revenues

Excessive bureaucracy or adherence to official rules and

opening marked by trees

The basic physical and organizational structures and facilities

Geographical Information Systems

National Health Service

United Nations Development Program

the first or original type

United Nations Conference on Trade and Development

International Trade Commission

Karachi Chamber of Commerce and Industry

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN6

Islamabad Chamber of Commerce and Industry

unlikeness in nature quality

Trading Corporation of Pakistan

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN7

TRADE DEVELOPMENT AUTHORITY OF PAKISTAN8

Research Question/Objectives (Research Gap):

Exports and imports of Pakistan

Significance of the Research:

Limitation of the research: