ISLAMABAD, Jan 29: The World Trade Organisation (WTO) has expressed its regret over recent developments in Pakistan and hopes these will not adversely affect Islamabad’s economic development and prosperity.

These observations were made by the Geneva based 150-member body at the third trade policy review of Pakistan since 2002, according to the concluding report of the WTO secretariat issued recently.

The trade review was held between January 16 and 18.

The report carried the responses of various countries, which they either submitted in black and white or made verbally during the review period of Pakistan’s trading regime. Nearly 200 questions were posed to Pakistan.

Members recognised that economic fundamentals had improved in Pakistan, but also pointed to the challenges posed by the persistent structural weaknesses, low tax collection, current account deficit, lack of export diversification, and political uncertainty.

Despite widespread praise for Pakistan’s generally liberal investment regime and increased FDI inflows, certain members expressed concern over persisting impediments, including procedural complexities.

At the same time, through their verbal as well as written questions, they pointed out several shortcomings in Pakistan’s trade policy regime. In particular, India and Israel questioned Pakistan’s current trade policy of denial of MFN status to them.

They commended Pakistan for its impressive economic performance, the decline in the unemployment rate, poverty reduction, its improved ranking in the UN human development index, and also for becoming a more outward-oriented economy.

Members commended Pakistan’s active role in the multilateral trading system and, particularly its contribution to the Doha Round negotiations.