Trade Policies
Pakistan’s Export Regulations & Trade Policies (2024)
Pakistan’s export regulations are governed by various government bodies, including the Ministry of Commerce, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), and Trade Development Authority of Pakistan (TDAP). Below is a detailed overview of key export policies, regulations, and compliance requirements:
1. Key Government Authorities
- Ministry of Commerce – Formulates trade policies.
- Trade Development Authority of Pakistan (TDAP) – Facilitates exports.
- Federal Board of Revenue (FBR) – Oversees customs and taxation.
- State Bank of Pakistan (SBP) – Regulates export financing & foreign exchange.
- Pakistan Customs (WeBOC System) – Manages customs clearances.
2. Pakistan’s Export Trade Policy (2023-2026)
- The government has introduced various initiatives to boost exports, focusing on value-added goods, regional trade, and ease of doing business. Key aspects include:
- Reduced regulatory barriers for exporters.
- Tax incentives for export-oriented industries.
- Focus on IT, textiles, food processing, and pharmaceuticals.
- Promotion of Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).
3. Registration & Licensing Requirements
- a) Export Registration
- Exporters must register with:
- TDAP (Trade Development Authority of Pakistan) – Mandatory for export businesses.
- Chamber of Commerce & Industry – Required for a Certificate of Origin.
- b) Export Licensing & Permits
- Some industries require special export permits, including pharmaceuticals, agricultural products, and arms.
- Food & Beverages require certification from Pakistan Standards and Quality Control Authority (PSQCA) and Halal Certification.
4. Restricted & Banned Export Items
- Certain items are banned or restricted under the Export Policy Order:
- Banned Items: Antique items, precious metals, hazardous chemicals, narcotics.
- Restricted Items (Need Special Permission): Live animals, sugar, wheat, medicines, and arms/ammunition.
- Strategic Export Control Division (SECDIV): Controls exports of dual-use goods (civilian/military use).
5. Customs & Clearance Procedures
- a) Filing Goods Declaration (GD)
- Exporters must file a Goods Declaration (GD) form via WeBOC (Web-Based One Customs).
- Pakistan Single Window (PSW) is also used for trade facilitation.
- b) Required Export Documents
- Commercial Invoice
- Packing List
- Certificate of Origin (Issued by the Chamber of Commerce)
- Bill of Lading / Airway Bill
- Export Contract / Letter of Credit (LC)
- Customs Clearance Certificate
- Inspection Certificate (For food, pharma, textiles)
6. Export Payment & Banking Regulations
- Foreign Exchange Regulations – Payments must be received in USD, Euro, or other convertible currencies through SBP-approved channels.
- Letter of Credit (LC) – A secure method for payments.
- Advance Payments – Allowed for certain exports, but monitored by SBP.
- E-Form Requirement – Exporters must submit an E-Form to banks for foreign exchange documentation.
7. Export Incentives & Tax Policies
- Duty Drawback Scheme – Refund of import duties on raw materials used for export goods.
- Export Development Fund (EDF) – Provides financial support for exporters.
- Zero-Rated Tax for Exporters – No GST (General Sales Tax) on exports.
- Temporary Importation Scheme – Allows duty-free import of raw materials for re-export.
8. Trade Agreements & Market Access
- Pakistan has trade agreements with multiple countries, improving export access:
- Generalized System of Preferences (GSP+) – Preferential EU market access.
- Free Trade Agreements (FTAs) – With China, Malaysia, Sri Lanka.
- Preferential Trade Agreements (PTAs) – With Indonesia, Iran, Turkey.
- SAFTA (South Asian Free Trade Area) – Trade with South Asian countries.
9. Compliance with International Standards
- To enter global markets, exporters must meet international quality and safety standards:
- ISO Certifications – Industry-specific quality compliance.
- HACCP (Food Safety Standard) – Required for food exports.
- Halal Certification – Mandatory for meat and food exports.
- CE Marking – Required for exports to the European Union (EU).