Presentation on theme: "NON-TARIFF BARRIERS TO TRADE IN PAKISTAN"— Presentation transcript:
1 NON-TARIFF BARRIERS TO TRADE IN PAKISTAN MANSOOR AHMAD BAJWA
2 In This Presentation Definition of NTBs Invisible Trade Barriers Tariff Barriers in PakistanNon-Tariff Barriers in PakistanPrivate Sector’s Views on NTBsConclusionRecommendations
3 Definition of NTBsNon-Tariff Barriers include all measures, other than tariffs, that are used to protect domestic industry and discourage imports
4 Invisible Barriers to Trade Non Transparent and cumbersome Administrative Procedures and Government Policies and RegulationsMarket StructureInstitutional Factors
5 Tariff Barriers in Pakistan Max. duty is generally 25% but with many exceptions (e.g. Agri. Products)
6 Non Tariff Barriers in Pakistan Lack of information:Entry of new firms into trading with Pakistan indicates anonymous entry into trading which is facilitated by modern modes such as the internet.Lack of Adequate Banking Relations:Some Indian banks do not recognize L/Cs from all Pakistani banks. Moreover payments through Asian currency union are delayed.
7 Non Tariff Barriers in Pakistan contd. Application of standards:Barriers are often encountered in the application of measures related to standards necessary to protect human, animal or plant life or health, to protect environment and to ensure quality of goodsVisa Restrictions:Visas can be obtained only for specific cities prior to entry into Pakistan
8 Non Tariff Barriers in Pakistan contd. Communication Problems:Whenever there are disturbances at the Indo-Pak border, the mobile connections are not operational.Trade Logistics:Goods move by air, sea, and rail between India and Pakistan . While road routes for trade are non-existent, rail and air connectivity between the two countries has been erratic.
9 Private Sector’s Views Political uncertainty, instability and mistrust between the two countriesIndia cannot be viewed as reliable and long-run market for both imports and exportsPakistani consignment are subject to more stringent checking and detailed security checks in India (e.g. Pakistani Molasses is allowed in 1 ton packs only because of security reasons)Visa and travel restrictions, one port of entry and exit
10 Private Sector’s Views contd. Closure of land routes (Wagha, Khokrapar, and Ganda Singh Wala (near Kasur) is also seriously hampering trade with IndiaThere is higher port congestions, higher port and demurrage charges, more paper work, and generally more issues of trade and transport facilitation in PakistanLack of banking facilities of each other’s bank is also mentioned as a barrier to trade with India
11 CONCLUSION Pakistan is the least protected economy in south–east Asia. Tarifs used to be high in the past but now in non agricultural products max. tariff is 25%.Tariffs applied ad veloremThere is no accredited laboratory in the country. Now such laboratories are being established with the assistance of the world bank and Asian development bank.
12 RecommendationsThere should be no quantitative restriction in the guise of security reasons (e.g. restriction on Molasses)Pakistan is exporting food and agri. products all over the world, India should accept SPS certificate issued by Pakistani authorities
13 Recommendations contd. There cannot be a single bullet solution to deal with the most complicated issues between the two countries.Businessmen should be allowed visas without restrictions on number of citiesPakistan should ask India to compensate for the benefits that it gets from Afghan-transit facility by allowing e.g. transit facility to Pakistan for Bangladesh via Bombay
14 Recommendations contd. Strengthen institutions dealing with trade defense and related issues (e.g. NTC and CBR)Expedite the process of opening up of Bank branchesInsist on opening up of land routes for tradePakistan has to be very cautious as the Indian trade regime is very complicated and non-transparent