Transcript BARRIERS TO TRADE IN PAKISTAN

NON-TARIFF BARRIERS
TO TRADE IN PAKISTAN
MANSOOR AHMAD BAJWA
In This Presentation

Definition of NTBs

Invisible Trade Barriers

Tariff Barriers in Pakistan

Non-Tariff Barriers in Pakistan

Private Sector’s Views on NTBs

Conclusion

Recommendations
Definition of NTBs
Non-Tariff Barriers include all
measures, other than tariffs, that are
used to protect domestic industry
and discourage imports
Invisible Barriers to Trade

Non Transparent and cumbersome
Administrative Procedures and Government
Policies and Regulations

Market Structure

Institutional Factors
Tariff Barriers in Pakistan

Max. duty is generally 25% but with many
exceptions (e.g. Agri. Products)
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.
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 goods

Visa Restrictions:
Visas can be obtained only for specific cities
prior to entry into Pakistan
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 nonexistent, rail and air connectivity between the two
countries has been erratic.
Private Sector’s Views




Political uncertainty, instability and mistrust
between the two countries
India cannot be viewed as reliable and long-run
market for both imports and exports
Pakistani 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
Private Sector’s Views
contd.



Closure of land routes (Wagha, Khokrapar, and Ganda
Singh Wala (near Kasur) is also seriously hampering
trade with India
There is higher port congestions, higher port and
demurrage charges, more paper work, and generally
more issues of trade and transport facilitation in
Pakistan
Lack of banking facilities of each other’s bank is also
mentioned as a barrier to trade with India
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 velorem
There is no accredited laboratory in the
country. Now such laboratories are being
established with the assistance of the world
bank and Asian development bank.
Recommendations


There 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
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 cities
Pakistan 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

Recommendations
contd.

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Strengthen institutions dealing with trade defense
and related issues (e.g. NTC and CBR)
Expedite the process of opening up of Bank
branches
Insist on opening up of land routes for trade
Pakistan has to be very cautious as the Indian trade
regime is very complicated and non-transparent
Thank You