This budgetary support package would be the 19 th IMF program in Pakistan since independence. Although, Pakistan has had GDP growth of more than 4 percent each year since , however, due to present economic slowdown, the GDP growth rate is expected to between 3. Pakistan has a young population and a growing middle class, with English as the main business language, and a highly evolved services sector that contributes 67 percent of GDP. Pakistan has several attributes that make it an attractive market for multinational firms, particularly those in the fast-moving consumer-goods sector, and in infrastructure development.
American firms have a strong presence in Pakistan. Currently, there are more than 80 wholly- or majority-owned U. The U. Chamber of Commerce based in Washington D. There are also hundreds of local firms representing U. Some leading U. Achieving greater regional connectivity. Vision sets export targets to achieve greater market access for Pakistani products in existing markets and new markets through unilateral measures to promote its domestic industry as well as multilateral, regional and bilateral trade and other agreements.
The final trade policy took the form of a three-year Strategic Trade Policy Framework STPF rather than the previous approach based on annual trade policies. Setting up a Trade Dispute Arbitration Council. To achieve this, the laws creating the NTC were repealed and replaced to better implement evolving WTO commitments, and a Trade Dispute Resolution Organization was established to facilitate resolution of disputes between Pakistani businesses and their international counterparts. However, its decisions are not binding.
Despite these initiatives, exports have been decreasing since , particularly for value added products. To address this decline, the government announced emergency measures through the Prime Minister's Export Package in January , which involved tax breaks and institutional support to exporters for the manufacture of value added textiles and selected non-textile goods.
Further details can be found at: www. South Africa. The case relates to the imposition of provisional anti-dumping measures by South Africa on the importation of Portland cement products from Pakistan.
The US should pursue a trade policy reset in South Asia
On 10 November , Pakistan requested consultations with South Africa and the dispute is currently still in the consultation phase. On 27 November , Indonesia requested consultations with Pakistan relating to the continuation of, and failure to terminate in a timely manner, certain anti-dumping and countervailing duty investigations on certain paper products from Indonesia. In , Indonesia requested the creation of a panel but this has been deferred. The UAE. On 24 January , the UAE requested consultations with Pakistan concerning Pakistan's anti-dumping measures on imports of biaxially oriented polypropylene film from the UAE.
A panel has been established and was composed on 7 May A panel report has not been adopted and no withdrawal or mutually agreed solution has been notified. The EC. On 7 November , the EC requested consultations with Pakistan in respect of a Notification enacted by the Ministry of Commerce of Pakistan prohibiting the export of, among others, hides and skins and wet blue leather made from cow hides and cow calf hides. The EC contended that this measure limits access of EC industries to competitive sourcing of raw and semi-finished materials.
What are the benefits of international trade to Pakistan?
No dispute panel has been established and no withdrawal or mutually agreed solution has been notified. Trade agreements 2. What are the main international, regional or bilateral trade agreements to which your country is a party? WTO agreements are incorporated into domestic legislation once ratified by the legislature. Bilateral and regional agreements Pakistan is a party to the following bilateral and regional trade agreements:. Pak-Malaysia Trade Agreement. Pak-Mauritius Preferential Trade Agreement.
International trade in goods and services in Pakistan: overview
Pak-Indonesia Preferential Trade Agreement. See: www. Human and labour rights.
- Pakistan Balance of Trade | Data | Forecast | Calendar.
- Foreign trade figures of Pakistan;
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- Sarhad Journal of Agriculture.
Trade negotiations 3. What are the authorities responsible for negotiating trade agreements? How long does it usually take to conclude a trade deal with your country? The main federal government authority for negotiating trade deals is the Ministry of Commerce MOC www. The duration of negotiations of trade agreements varies from country to country, and there is no policy measure or binding regulation on timelines for negotiations. As Pakistan has entered into a relatively small number of bilateral trade agreements, the process can be long and protracted.
Trade agreements are negotiated within the framework of the prevailing general economic, trade and investment policies approved by the Economic Co-ordination Committee of the Cabinet, which is a federal cabinet standing committee comprising 12 ministries and chaired by the Prime Minister, as applicable to particular countries or regions. For example, the free trade agreements with China were negotiated as a prelude to the regional connectivity framework involving transport, energy, and infrastructure sectors under the CPEC programme www. Does your country apply interim rules during trade negotiations?
Trade agreements
The process for implementing interim rules is the same as for implementing final trade agreements, namely:. Ratifying the agreement. Enacting domestic laws or regulations granting favourable interim rates or non-tariff restrictions during negotiations for final agreements. The federal government can incorporate any concessionary rates agreed in "trade agreements" this is an undefined term into domestic law through the issue of special regulatory orders or notifications SROs without the government passing legislation amending the laws section 18C and section 18D, Customs Act However, for SROs to be used for implementing interim rules, the concessions must be contained in a formal government-to-government agreement.
Supply of services 5. Is your jurisdiction a party to international agreements on cross-border trade in services? On 21 February , Pakistan entered into a bilateral agreement relating to trade in services with China. Article 6 of the agreement provides for the mutual recognition of education or experience obtained, requirements met, or licences or certifications granted in respect of suppliers of services in one country by the other.
Computer and IT related services. Additionally, the FTA services provisions provide for the accreditation of educational institutions and academic programmes in both countries through mutual recognitions arrangements.
Foreign trade of Pakistan - Wikipedia
For further information on the FTA with Malaysia, see www. What domestic legislation and international rules apply to the supply of financial services, legal services and retail sales in your jurisdiction? What are the main requirements that suppliers must comply with? The financial services sector in Pakistan is divided into the banking, insurance and non-banking finance sectors, each of which are regulated under a distinct legal framework. Banking services Regulatory framework. Banking is defined in the BCO as the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise.
The other key laws and regulations governing the banking sector include the:. State Bank of Pakistan Act Financial Institutions Recovery of Finances Ordinance Electronic Transactions Ordinance All banking companies must be incorporated as companies under the Companies Act Companies Act , which governs the formation and administration of all limited companies in Pakistan. Banking companies must comply with the restrictions and requirements applicable to companies under the Companies Act, provided they do not conflict with, or are inconsistent with, banking laws and regulations.
Main requirements.
The SBP can grant a banking licence to a company incorporated outside Pakistan to open branches in Pakistan, provided that the government or law of the country of incorporation provides the same facilities to banking companies incorporated in Pakistan. A foreign banking company must also comply with same requirements relating to the maintenance of prescribed liquid assets in Pakistan as those applicable to locally incorporated companies.
Foreign financial institutions can set up locally incorporated commercial banks in Pakistan either directly or in collaboration with local sponsors, subject to the same conditions of capital ownership and minimum capital requirements that apply to local banking companies.
To conduct business through branches, the foreign bank must be a:. Bank from a country belonging to regional groups and associations of which Pakistan is a member. Foreign bank with a global tier-1 paid up capital of USD5 billion or more. Non-banking financial services Regulatory framework. The main laws and regulations governing the provision of finance services by non-bank finance companies include the:. Companies Act along with its predecessor, the Companies Ordinance The majority of the Companies Ordinance has been repealed, apart from Part VIII A which provides for the establishment and regulation of non-bank finance companies.
All related and connected provisions of the Companies Ordinance are applicable mutatis mutandis to non-bank finance companies as if it had not been repealed. The Rules were framed under the Companies Ordinance , which was repealed and replaced in by the Companies Act. To form an NBFC, the promoters, its proposed directors, chief executive and chairman must comply with the fit and proper criteria provided by the SECP. Asset management services for management of collective investment schemes including both open and closed-end public funds.
Private equity and venture capital fund management services for private funds. Management services for real estate investment trusts. To this extent, cross-border offering of any of the services above is not permitted in Pakistan. However, the regulations do not prescribe a maximum ceiling on the shareholding percentage held by non-residents or foreign companies in the NBFC or other licensed entity. It is technically possible for a foreign institution to incorporate and operate an NBFC and provide licensed services without a local sponsor.
Insurance services Regulatory framework. The main laws and regulations governing the provision of insurance services in Pakistan include the:. Insurance Ordinance The insurance sector is regulated by the insurance division of the SECP. To offer insurance services in Pakistan, a service provider must be either:.
A public company incorporated under the Companies Act. Any other body corporate incorporated under the laws of Pakistan. Once incorporated as a corporate entity under the laws of Pakistan, the prospective insurer must apply for the grant of a registration certificate by the SECP section 6, Insurance Ordinance Before the enactment of the Insurance Ordinance, foreign insurers were permitted to provide insurance services in Pakistan subject to compliance with all regulatory requirements. The Insurance Ordinance changed this by requiring all existing insurers incorporated outside Pakistan to transfer their insurance business to a locally incorporated public limited company through a scheme of amalgamation no later than six months after the Insurance Ordinance came into force.
Any insurer who does not comply with or acts in contravention of the Insurance Ordinance or the provisions of the SECP will be subject to a fine of up to PKR1 million in cases of a continuing default, PKR10, for each day the default continues section , Insurance Ordinance. Any insurer or agent of the insurer that carries out any class of insurance business in contravention of sections 5, 6 and 29 of the Insurance Ordinance will be subject to a fine of up to PKR2 million.
Nationality and residency requirements. There are no nationality or residency requirements. However, if a foreign entity intends to provide services through a locally incorporated company in Pakistan, all foreign shareholders and foreign directors must apply for a No Objection Certificate NOC or security clearance from the SECP at the time of:. Following this, they can invest, incorporate or become directors but they must, at the time of application, submit a legally binding undertaking committing to disinvest or resign as directors if security clearance is denied.
The SECP forwards the application to the Ministry of Interior who will also circulate it to all other government ministries and security agencies for comments, a process that takes between six to eight weeks. If no comments are received, the application will be considered approved on a "no objection" basis. If security clearance is denied by the SECP, the foreign director or investor must immediately resign as director or disinvest from the local company.