Annexure 2: Trade Policy Summary Matrix Trade Policy Objective Short Term (1 year) Medium Term Encourage export Simplification of the tariff regime toward a 3-slab structure (0%, In the medium-term, a move toward a uniform 10% diversification, through the 10%, 25%), continued abolition of the present system of distortive tariff regime is recommended. promotion of intra-industry regulatory duties and highly complex trade regulations. This would competition have important positive effects in the long run, with the transitory effects of adjustment in terms of output and employment limited to some sectors and a relatively small impact on tariff revenues. Pursuing greater regional Opening up the border with India and facilitating deep forms of Accelerating the implementation of deep integration through deep trade integration would be mutually beneficial. Potential measures preferential trade agreements and signing of other agreements that look beyond include transit agreements, one-stop border posts, and other agreements in that vein are key initiatives. market access measures to promote both transit and cross-border trade. Upgrade the quality and Developing the land transport links to Pakistan’s neighbors, Modernizing regulation of the trucking industry is reliability of logistics services, including India, should be the priority. Ratifying a few main important to enhancing the quality of logistics contributing to reduce trade international conventions and other regional trade facilitation services. Roads carry the most amount of domestic costs instruments recently negotiated or under negotiation will be the traffic. It is imperative to implement capacity key. This is feasible in the short term based in particular on the TIR building programs for this sector, including fleet (Transports Internationaux Routiers) and other instruments which modernization. A phased approach is recommended Pakistan is recommended to join. to minimize the potential for disruptive upheavals in Improvement of port operations and customs procedures is the road transport markets. paramount, especially if trade in time-sensitive products is to Addressing domestic connectivity disparities is grow. Recent measures by customs to introduce a unified and important to create opportunities for trade in new comprehensive customs system should be complemented with products. Revamped rail services linked to dry ports reforms in: an effective risk management system, a formal AEO can serve as the core for provincial logistics clusters regime, and an expedited regime for transit shipments. to support exports in new products, specially fruits and vegetables. The Sialkot Dry Port experience can be used as a model for the future.
Annexure 2: Trade Policy Summary Matrix Trade Policy Objective Short Term (1 year) Medium Term Encourage export diversification, through the promotion of intra-industry competition Simplification of the tariff regime toward a 3-slab structure (0%, 10%, 25%), continued abolition of the present system of distortive regulatory duties and highly complex trade regulations. This would have important positive effects in the long run, with the transitory effects of adjustment in terms of output and employment limited to some sectors and a relatively small impact on tariff revenues. In the medium-term, a move toward a uniform 10% tariff regime is recommended. Pursuing greater regional integration through deep agreements that look beyond market access Opening up the border with India and facilitating deep forms of trade integration would be mutually beneficial. Potential measures include transit agreements, one-stop border posts, and other measures to promote both transit and cross-border trade. Accelerating the implementation of deep preferential trade agreements and signing of other agreements in that vein are key initiatives. Upgrade the quality and reliability of logistics services, contributing to reduce trade costs Developing the land transport links to Pakistan’s neighbors, including India, should be the priority. Ratifying a few main international conventions and other regional trade facilitation instruments recently negotiated or under negotiation will be the key. This is feasible in the short term based in particular on the TIR (Transports Internationaux Routiers) and other instruments which Pakistan is recommended to join. Improvement of port operations and customs procedures is paramount, especially if trade in time-sensitive products is to grow. Recent measures by customs to introduce a unified and comprehensive customs system should be complemented with reforms in: an effective risk management system, a formal AEO regime, and an expedited regime for transit shipments. Modernizing regulation of the trucking industry is important to enhancing the quality of logistics services. Roads carry the most amount of domestic traffic. It is imperative to implement capacity building programs for this sector, including fleet modernization. A phased approach is recommended to minimize the potential for disruptive upheavals in the road transport markets. Addressing domestic connectivity disparities is important to create opportunities for trade in new products. Revamped rail services linked to dry ports can serve as the core for provincial logistics clusters to support exports in new products, specially fruits and vegetables. The Sialkot Dry Port experience can be used as a model for the future.
862550NWP0Worl0ng0the0Trade0Agenda.docx