KARACHI, Feb 14: The government is in the process of promulgating an ordinance to give effect to its policies for the improvement of trade and transportation.
This was disclosed by Zamir Ahmed, Economic Consultant, Commerce Ministry, in a Project Mobilization Workshop on Pakistan Trade and Transport Facilitation Project, organized by the UNCTAD and the National Trade and Transportation Committee (NTTFC) on Thursday at a local hotel.
He said the Commerce Ministry in collaboration with the World Bank and UNCTAD has launched the trade and transport facilitation project. The goal of the project is to improve Pakistan’s competitiveness in global trade and modernizing trade and transport related laws, simplifying and streamlining trade and transport procedures.
Minister for Law and Justice, Barrister Shahida Jamil said the government would soon promulgate an ordinance on e-commerce.
She attributed the delay in promulgation on e-commerce as the government wanted to ensure and cover all aspects of trade on modern international standards.
On the initiatives taken in the workshop, she said the government would do all it could to promote such initiatives as it was quite pro-active, pro-trade and against isolation.
She also stressed the need for a powerful lobby in the NTTFC as the message of change had to filter down to all sections of the society.
She said that rules of business of previous years had acted as a big impediment to trade and commerce.
Aamir Durrani of the World Bank also emphasized the need for integrating the transportation system in Pakistan for taking up maximum benefits of the opportunities in Afghanistan.
He said lack of reform would lead to the formation of a parallel system that would prove counter productive.
He said the project could only be successful if it was owned by the trade. Citing Pakistan’s poor performance over the last decade, he stressed the need for reforms.
Vice-Chairman, Export Promotion Bureau, Ejaz Ahmed Qureishi, said dry ports in Pakistan were not being utilized to the optimum due to antiquated laws and procedures relating to trade and transportation.
In the wake of reconstruction in Afghanistan, he said, there was a need to improve the transportation facilities so that emerging markets like Central Asian Republics could also be explored.
Maxence Orthieb, trade facilitation programmer, UNCTAD, called for a transparent and predictable trade policy that can meet international standards.
Shanta De Silva, chief technical adviser, UNCTAD, cited a direct cost of 15 per cent emanating from inefficient procedures and paperwork.
Douglas Cruickshank, trade facilitation consultant, UNCTAD, in his presentation said that at ports procedures were cumbersome, too many agencies for same documents and payment of levies not at one convenient location.
At Customs many imports and exports procedures are inappropriate. There is a requirement to register with the EPB, form E from the State Bank, 0.25 per cent cess levied on each transaction and many. There is also no quality service coupled with discretionary powers. Problems are also there at Customs transits and Customs Laws.
He said there is a need to simplify all procedures, right staffing and accountability, service standards, organizational structures, infrastructure improvement and to modernize the Customs Laws.
Vince O’Brien, banking consultant, UNCTAD, said the immediate objective was to streamlining of financial and banking provisions related to foreign trade transactions and letter of credit provisions.
Ms Michiko Enomoto, regional coordinator of UNCTAD, explained the concept of trade point, which aims at benefiting SMEs through one stop shop. The trade point provides market info, business support, e-commerce and trade leads. She said that 120 trade points exist in 81 different countries.
Member Customs CBR, Dr Manzoor Ahmed, was of the view that Customs must be allowed to function independently as interference from too many other agencies will result in slowing down the whole process.
Legal expert of UNCTAD Gerard Auchter stressed for legislation for trade facilitation. He referred to the various antiquated laws that exist in Pakistan’s trade especially the carriage of goods Act of road, rail and sea.
Insurance expert of UNCTAD Matthew Marshal said there was no marine insurance act in Pakistan.