Islamabad praised for FDI openness, regulatory regime

The World Trade Organisation (WTO) has appreciated a report, prepared by the government of Pakistan, for its open and realistic assessment of the challenges faced by Pakistan and the country’s response in tackling them. The praises came during the fifth Trade Policy Review (TPR) of Pakistan which concluded on April 1, 2022.

During the two-day long review, close to 320 questions covering a broad range of areas from trade and economic perspective were asked by member countries. A committee comprising members from various federal government departments, including Pakistan’s permanent mission to the WTO, was constituted to respond to the queries raised by the member states. During the review, 33 member states intervened to give their comments on Pakistan’s policies, ask supplementary questions and to provide feedback on cross cutting issues.

The members appreciated Pakistan’s economic resilience in tackling the shocks of Covid-19 and its rapid economic recovery. They further appreciated Pakistan’s policies of tariff rationalisation, shift towards increase in exports and contraction in the current account deficit primarily in the wake of the balance of payment crisis and Covid shock. The country was commended for its effective implementation of the Trade Facilitation Agreement and the installation of the National Single Window which would gel in with the national priorities of regional connectivity of facilitation and trade and integration into global and regional value chains.

The members praised the legislative enactments in the areas of trade and industrial expansion, including STPF 2020-25, mobile manufacturing policy, automobile manufacturing policy, SME development and youth entrepreneurship, E-Commerce policy. With its eye on the future, Pakistan’s focus on green economy and gender mainstreaming were also noted. Pakistan’s openness towards foreign direct investment and streamlining of regulatory practices were also lauded by the members.

The members encouraged Pakistan to further concentrate on diversifying its export base and making use of the multilateral trading system to further boost its development objectives. The countries also appreciated Pakistan’s active engagement in the WTO and its firm support for the multilateral trading system along with the commitment to uphold the values and fundamental principles of WTO and support for developing countries.

The Pakistani delegation was led virtually by Commerce Secretary Muhammad Sualeh Ahmad Faruqui. Over 30 officers from more than 20 government ministries/departments participated virtually in the meeting. All WTO members are subject to a review and the frequency of members’ trade policies and practices depend on their shares in the world trade. The last trade policy review of Pakistan took place in March 2015.