S-Space Graduate School of International Studies (국제대학원) Dept. of International Development Policy(국제개발정책학과) Theses (Master's Degree_국제개발정책학과)
Enhancing Trade Competitiveness of Pakistan through Trade Facilitation Measures
- Moon, Woo-Sik
- Issue Date
- 서울대학교 대학원
- 학위논문 (석사)-- 서울대학교 대학원 : 국제개발정책학과, 2012. 2. Moon, Woo-Sik.
Enhancing Trade Competitiveness of Pakistan through
Trade Facilitation Measures
Muhammad Hassan Farid
Impasse in the Doha Development Agenda has been generating new alternatives
which can drive a wedge between export and import prices. The role of trade facilitation
policies in bridging that wedge has been recognized among economic and trade pundits.
Trade facilitation is multi-faceted area which can shape the competitiveness of trade by
interacting with multi-dimensional spheres of increasing complexity of trade by reducing
trade transaction cost.
Pakistan’s share of global exports has been decreasing since 1999. Export
growth is stagnant. Many factors and policies may be responsible for this. It may be the
result of both the external and internal environment, political and economic reasons, and
regional and national policies. Since the 1970s, Pakistan has not prioritized trade
development agenda. Thus, Pakistan has not particularly pursued trade facilitation
measures aggressively. In the meantime, many regional countries as well as East Asian
countries have vigorously adopted trade facilitation measures alongside trade policies.
Results have yielded in the form of elevated share of their products in world markets. In
this context, trade facilitation measures, particularly customs efficiency, port and logistic
efficiency, regulatory environment and e-business usages appear attractive and suitable
to Pakistan. Trade facilitation measures (four) have received less attention than it
deserves when it can increase its export growth by adopting trade facilitation agenda in
addition to other policy measures. Inefficiency in governance, corruption in public
institutions, deteriorating law and order situation due to lack of legal strength and
effective judicial apparatus, inefficient property registration process, weak protection of
private businesses, increasing transaction trade cost associated with archaic colonial
customs infrastructure, burdensome procedures of manual-based customs clearance,
congested seaports and very low e-connectivity are hallmarks of Pakistan’s trade
To increase the port efficiency, there should be open competition for terminal
handling companies. Semi structures (gantry cranes and reach stackers) should be
sufficient in numbers to avoid congestion inside the port. Optimum usage of information
technology (IT) should be ensured for speedy port operations. Automation of custom
procedures of entire Pakistan is needed. Development of its own customs software is
required to ensure transparency. Pakistan needs to improve its legal system.
Comprehensive reforms must be introduced for semblance of independent judiciary,
effective governance and corruption free society. Pakistan’s e-connectivity is abysmal
and needs to focus on the service sector. Automation in all government departments is
urgently needed. Private sectors and foreign direct investment should be encouraged to
enter the cellular phone market and the Internet Services Providers’ market.
Key Words: Trade Facilitation Measures, Competitiveness of Trade, Doha Development
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