This document outlines Pakistan's second strategic trade policy framework for 2012-2015. It discusses challenges facing Pakistan's economy like security issues and energy shortages but notes the economy has still grown. The framework aims to strengthen regional trade, export development, and monitoring. It proposes several initiatives like establishing an Export Import Bank, Services Trade Development Council, and subsidizing food processing plants in less developed areas to diversify and increase exports. The goal is to increase exports from $67 billion in 2009-2012 to $95 billion by 2015.

2. Introduction
 second strategic trade policy framework (STPF) for
three-year period, 2012-15.
 During past some years, business climate of the
country has unfortunately been affected by the
security situation prevalent in the region.
 Energy deficit, law and order situation and
devastating floods in 2010 and 2011 have also added to
the problems being faced by our industry.
 However, our economy has shown strength in the face
of these challenges and has continued to grow at a
steady rate

3.  Despite various challenges faced by economy, our
trade has shown consistent improvement.
 Our exports increased by 27 percent in the year 2010-11
and touched a record level of US $24.8 billion.
 There was a slight fall of 4.7 percent in exports during
2011-12, due to the global financial crisis and lower
prices of cotton in the international market.
 Textile still remains the mainstay of our exports.

4.  However, focused efforts by the Ministry of Commerce
for diversification of our export basket and markets
have yielded positive results and the share of non-
textile sector has risen from 36.5 percent of our total
exports in 2006-07 to 48 percent in 2011-12.
 Similarly, we have also been successful to a reasonable
degree in diversification of our export markets with a
gradually increasing quantum of our exports now
going to markets in Asia and Africa.
 Importantly Afghanistan has emerged as a major
trading partner and has become our third largest
export market.

5.  The strategic trade policy framework sets out policy
guidelines and identifies principal areas of action to
strengthen different aspects of Pakistan’s export
competitiveness directly or indirectly.

6. The major elements of STPF 2012-2015 are:
1. Focus on regional trade
2. Strengthening of the institutional framework for
promotion of exports
3. Export development initiatives
4. Increase exports from less developed regions of
Pakistan
5. Promotion of domestic commerce
6. Strengthen the monitoring and evaluation
mechanism

7. DOMESTIC COMMERCE REFORM
AND DEVELOPMENT
 A domestic commerce wing is being created in the
Ministry of Commerce comprising of two units i.e.,
1. domestic commerce unit
2. trade in services unit.
 The new set up will establish necessary institutional
and legal mechanism and business processes to
facilitate domestic commerce regulations.

8. RATIONALIZING TARIFF
PROTECTION POLICY (TPP):I. Promote competitive markets in Pakistan.
ii. Ensure conformity to international agreements and
practices.
iii. Promote domestic and foreign investment.
iv. Create level playing field for Pakistani firms in
international as well as domestic markets.
v. Due consideration to consumer welfare.
vi. Cater to the changing needs of Pakistan’s economy.
vii. Create an enabling environment to pursue the
legitimate goal of industrialization in Pakistan.

9. ESTABLISHMENT OF PAKISTAN
LAND PORT AUTHORITY (PLPA) TO
STRENGTHEN REGIONAL TRADE
 . In order to transform our land ports into efficient
facilitators of trade while simultaneously being
responsive to security issues and smuggling, human.
 It is proposed to establish a Pakistan land port
authority as a statutory body, under the administrative
control of the ministry of interior with representation
from relevant federal entities as well as from the
respective provincial governments.

10. SETTING UP OF EXIMBANK Pakistan’s exporters need legitimate trade financing
support in the wake of challenges of high interest rates
and limited availability of financing for export and
investment.
 It has therefore been decided to establish an Export
Import bank.
 The EXIM bank, with the help of provincial
governments, would not only provide export credit, it
would also provide supplier’s credit and export credit
guarantees.

11. PROMOTION OF SERVICES SECTOR
EXPORTS Services sector contributes 55 percent to the GDP but
export of services from Pakistan has not been
reflective of its true potential.
 Our services exports stood at US $5 billion in 2011-12
whereas the global trade in services was $18.2 trillion.
 To tap the enormous potential of export of services,
especially to Asia, it has been decided to establish a
Services Trade Development Council in collaboration
with the relevant sectors.
 A special task force is also proposed to be constituted
for facilitating the development of e-commerce

12. CREATING REGULATORY
EFFICIENCIES A framework of lesser but smarter regulations is
necessary for promotion of international trade
therefore; it has been decided to strengthen the
National Tariff Commission.
 A Resource Management unit in the Ministry of
Commerce and an International Trade Dispute
Arbitration Council will be established.
 We will also revamp the existing Commercial Courts to
give the country a more efficient, time saving,
relatively inexpensive mechanism for trade dispute
resolution.

13. STRENGTHENING OF TRAINING
AND PRODUCT DEVELOPMENT
INSTITUTES
 The training and product development institutes,
running under Ministry of Commerce will be
strengthened.
 This would help these institutions produce better
quality human resource and designs for our industry.

14. REVAMPING EXPORT PROMOTION
AGENCIES &TRADE MONITORING
COMMITTEE
i. Overhaul trade offices abroad by providing both
financial and improved human resource after
carrying out a performance analysis
ii. Constitute a high level ‘Trade Committee’ to evaluate
our trade performance on a quarterly basis and to
address specific issues hampering Pakistan’s foreign
trade and competitiveness.

15. MARK-UP SUPPORT OF 2 PERCENT FOR
INFANT INDUSTRIES
 In order to encourage fresh investments in export
oriented industries in a challenging economic
environment, it has been decided to provide mark up
support of 2 percent to leather, engineering goods
including auto parts, horticulture, processed food,
marble & granite, sports goods and computer related
services sectors.

16. ESTABLISHMENT OF SERVICES
EXPORT DEVELOPMENT COUNCIL
 To promote the export of services, it has been decided
to establish a Services Export Development Council in
collaboration with the private sector.
 This council shall work as a nucleus body for
promoting services exports from Pakistan.

17. Export promotion campaigns for
agro-processed products In order to help our farmers align themselves better
with the international market, it has been decided to
launch export promotion campaigns with the help of
graduates of agriculture universities of Faisalabad,
Rawalpindi, Peshawar and Tando Jam.
 Selected students will be trained to reach out to the
farmer community and train them in best agricultural
practices needed to bring their produce in conformity
with the international standards.

18. ENCOURAGING THE OPENING OF
RETAIL OUTLETS
 To support the initiative and to motivate exporters to
introduce their finished products, it has been decided
to provide subsidy on these outlets up to 75 percent, 50
percent, 25 percent per annum of the rental cost of
retail outlets or ware houses in the first, second and
third year respectively in the export markets in Asia,
Africa and Australia.

19. SUBSIDIZING 50 PERCENT COST OF PLANT AND MACHINERY FOR
ESTABLISHING PROCESSING PLANTS FOR MEAT, FRUITS, VEGETABLES, DATES
AND OLIVES IN BALUCHISTAN, GILGIT BALTISTAN (GB), FATA AND KHYBER
PAKHTUN KHWA
 A big quantity of fruits and vegetables produced in
Gilgit Baltistanis wasted due to lack of processing
plants and facilities and long distance from major
urban centers.
 This wastage causes reduced income for the farmers of
this region.
 To promote food processing and encourage investment
and value addition in this region, the government has
decided to provide 50% subsidy on cost of processing-
plants and machinery for fruits and vegetables .

20.  the country’s exports can become an engine of growth
and prosperity in Pakistan, if the relevant institutions,
both in public and private sector implement adopt a
holistic strategy to enhance competitiveness of
exports.
 successful implementation of this policy framework
would contribute significantly to increase our exports.
 It is estimated that as compared to exports of $ 67
billion during 2009-12, we would be able to achieve a
target of $ 95 billion exports during the three year
period of 2012-15.

21. conclusion
 despite all the challenges we face as a nation, we
should be willing and prepared, at all times, to
transform challenges into opportunities.
 all the relevant ministries and sectoral
bodies/associations/organizations, chambers and
other stakeholders should join hands with the
Ministry of Commerce to enhance our trade
performance thus laying a solid foundation for
sustainable economic growth for a prosperous
Pakistan.