About the report
This report, “Pakistan: Business Perspectives” – a joint effort of the International Trade Centre and the World Bank Group, identifies the toughest trade hurdles facing Pakistani businesses and recommends a way forward.
The report, based on a survey of 1,152 importers and exporters, finds that almost half of companies’ hurdles are home-grown, which means the government has the ability to fix many of the problems holding back its exporters. The report suggests ways for the government and the private sector to crank up competitiveness by addressing issues such as export inspections, tax refunds and export certification.
Regulations in areas such as testing, certification and licensing are challenging for 60% of Pakistan’s agricultural exporters. That’s largely because most countries have stringent regulations in place to protect human health and the environment. But the survey found that 47% of companies that export manufactured goods also have difficulty with these rules.
The most demanding measures are conformity assessment requirements such as testing and product certification, the survey finds.
The report’s recommendations focus on greater transparency, upgraded quality and customs infrastructure, streamlined procedures and better enforcement of quality compliance. It also recommends digital solutions, such as an integrated trade portal to give exporters the guidance and information they need to succeed.
NTM survey overview
ITC implemented a large-scale business survey of exporter and importers in Pakistan to identify the key regulatory and procedural obstacles they face. Over 1200 Pakistani businesses were interviewed as part of this study, which will contribute to the Pakistan Trade and Investment Policy Program (PTIPP) led by the World Bank to support Pakistan’s efforts to increase regional trade and investment, with a particular focus on strengthening links to other South Asian markets.
The survey on non-tariff measures (NTMs) aims to identify:
- The most challenging non-tariff measures by sector, company size and partner country
- Existing national procedures and facilities, which need to be strengthened in order to better support the business sector in export and import operations
- Feasible actions to overcome existing trade obstacles and reduce trade cost
Information obtained from the survey will assist both the private sector and government in improving the enabling environment for private sector development and improved export competitiveness for Pakistan and the region.
Stakeholder consultation
As part of its stakeholder outreach and consultation, ITC and the World Bank jointly organized a national stakeholder meeting in Pakistan in order to present the results of the survey and to establish a roadmap with priority actions to overcome the identified obstacles. The event took place on 17 July 2019 in Islamabad, Pakistan.
About PTIPP
The Pakistan Trade and Investment Policy Program (PTIPP) is a three-year program which was initiated at the request of the Government of Pakistan, and is a collaborative effort between the Ministry of Commerce, the Australian Department of Foreign Affairs and Trade and the World Bank Group. The program aims to increase Pakistan’s share in regional trade and investment, with a special focus on connectivity with emerging Asian economies. Pakistan’s federal Ministry of Commerce (MoC) is spearheading national efforts to promote exports and trade and has already made some important strides on the regional economic cooperation agenda. In this context, the MoC is currently working towards developing a Strategic Trade Policy Framework (STPF), supported by institutional reforms within the Ministry and its associated institutions to better support and regulate trade as well as increase regulatory efficiency.
The World Bank Group (WBG) aims to assist the MoC in development of a comprehensive STPF, with a focus on gender, export competitiveness, investment and transit trade, amongst other areas. To ensure that the STPF is holistic and reflects the ground realities, the World Bank collaborated with ITC to conduct a survey on non-tariff measures that are currently affecting exporters in Pakistan.
Download
Presentation: PIDE World Bank Webinar on NTMs and Export (26 October 2020)
In collaboration with: