The Ministry of Commerce has announced adoption of a number of guiding principles to create a competitive environment by rationalising the tariff protection policy (TPP).
According to the new Strategic Trade Policy Framework (STPF) 2012-15 announced by the government recently, the high tariff protection maintained over a period of time erodes competitiveness and affects consumer welfare.
Thus the ministry will adopt the following guiding principles: promote competitive markets in the country, ensure conformity to international agreements and practices, promote domestic and foreign investment, create level playing field for Pakistani firms in international as well as domestic markets, provide due consideration to consumer welfare, cater to the changing needs of Pakistan’s economy and create an enabling environment to pursue the legitimate goal of industrialisation in the country. Similarly under the STPF 2012-15, the ministry will establish the Pakistan Land Port Authority (PLPA) to strengthen regional trade.
According to the policy, trade integration with South Asia, China and the Economic Cooperation Organisation (ECO) countries is likely to increase the volume of trade flows across land borders.
However, “our borders at land ports lack world class trade facilities,” the policy said. According to the policy, the land ports will be transformed into efficient facilitators of trade and simultaneously become responsive to security issues and smuggling.
The ministry in the trade policy has proposed to establish the 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.
