Pakistan economy in the Frame of WTO

Economy:
Definitions
Activities related to the production and distribution of goods and services in a particular geographic region. Economy is a field that is related to every day human activities which include, production, distribution, exchange and consumption of goods and services. All the professions and occupations apart from the economic agents, economic activities contribute to the economy Economy is basically a social system which is responsible for production, exchange, distribution, and consumption of goods and services or a nation

Pakistan Economy:
The economy of Pakistan is the 27th largest economy in the world in terms of purchasing power, and the 48th largest in absolute dollar terms. Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. The economy has suffered from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. Since the beginning of 2008, Pakistan's economic outlook has taken stagnation. Security concerns stemming from the nation's role in the War on Terror have created great instability and led to a decline in FDI from a height of approximately $8 bn to $3.5bn for the current fiscal year.

WTO:
Definition:
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and approved in their parliaments.

Mission Statement of WTO:

The World Trade Organization WTO is the international organization whose primary purpose is to open trade for the benefit of all.
Director General (Mr. Pascal Lamy)

Goal of WTO:
The ultimate goal is to help producers of goods and services, exporters, and importers conduct their business.

Explanation:
The World Trade Organization (WTO) is the successor to the General Agreement on Tariffs and Trade (GATT) established in 1948. WTO was founded in 1995, though WTO is one of the youngest of the international organizations, the multilateral trading system that was originally set up under GATT is already 50 years old. The last half century has witnessed an exceptional growth in world trade; goods exports grew on average by 6% per annum. Global trade in 1997 increased 14-fold as compared to 1950. GATT, and its predecessor the WTO, take credit to help create 'a strong and prosperous trading system contributing to unprecedented growth.' The creation of WTO came in phases through a series of trade negotiations, or rounds, held under GATT. The first rounds dealt mainly with tariff reductions but later negotiations included other areas such as anti-dumping and non-tariff measures. The latest round the 1986-94 Uruguay Round ,led to the WTO's creation. The negotiations continued after the end of the Uruguay Round. In February 1997 agreement was reached on telecommunications services, with 69 governments agreeing to wide-ranging liberalization measures that went beyond those agreed in the Uruguay Round. In the same year 40 governments successfully concluded negotiations for tariff-free trade in information technology products, and 70 members concluded a financial services deal covering more than 95% of trade in banking, insurance, securities and financial information. Banks, insurance firms, telecommunications companies, tour operators, hotel chains and transport companies looking to do business abroad can now enjoy the same principles of freer and fairer trade that originally only applied to trade in goods.

Objectives:
The WTOs overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does this by: Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies Assisting developing countries in trade policy Solving Issues, through technical assistance Training programs Cooperating with other international organizations Raising standards of living, Ensuring full employment and a large and steadily growing volume of real income and effect demand Developing the full sense of the resources of the world and expanding the production and exchange of goods

Major Activities of WTO:

Negotiating the reduction or elimination of obstacles to trade (import tariffs, other barriers to trade) and agreeing on rules governing the conduct of international trade (e.g. antidumping, subsidies, product standards, etc.) administering and monitoring the application of the WTO's agreed rules for trade in goods, trade in services, and trade-related intellectual property rights monitoring and reviewing the trade policies of the members, as well as ensuring transparency of regional and bilateral trade agreements

 settling disputes among members regarding the interpretation and application of the agreements building capacity of developing country government officials in international trade matters assisting the process of accession of some 30 countries who are not yet members of the organization conducting economic research and collecting and disseminating trade data in support of the WTO's other main activities Explaining to and educating the public about the WTO, its mission and its activities. The WTO provides the forum for negotiations among its members concerning their multilateral trade relations in matters dealt with under the agreements and a framework for the implementation of the results of such negotiations, as may be decided by the Ministerial Conference.

What WTO means for Pakistan??

Pakistan is the participant of the Uruguay Round and also the WTO. As a member it has to abide by the WTO's objective of putting an end to the import duties which have been reduced from maximum over 80 per cent nine years ago to 30 per cent at present. So what does it mean for the many industries that have taken long years to take root in Pakistan? To start with, Pakistan still basically remains an agriculture-based country where cotton and textiles make up 60 per cent of export earnings and rice also plays an important part. United States is one of the top trading partners of Pakistan and offers a good test case of the relevance of the promises of fair and equitable trade the WTO assures. Critics accused the US to promote free trade only in sectors which benefit it. As far as other sectors, like textiles, are concerned it chooses to resort to protectionism. Opening up more sectors for free trade will give the developed countries more access to the resources of the developing countries. The US enjoys an immense influence in the WTO which is quite often used to further expand its markets. This well-planned and corporate-driven expansion is too self-centered because it does not give any benefits to other members. Tariff restrictions and wholesale use of anti-dumping laws is still exercised to deny access to its market by the developing countries. Pakistan has

faced many anti-dumping and quota related problems with the US for exporting its cotton and textile products. Many other developing countries have faced the same problems. While WTO claims to work only as a mediator, developed countries have found a resourceful way of interpreting the WTO agreements to protect their industries. For instance, the US has opened its market in textiles and clothing selectively, which does not benefit the developing countries. Not surprisingly, the U.S. has resorted to use the transitional safeguard measures to protect its domestic industries from sudden increases in imports by introducing its own Rules of Origin to identify where a textile or clothing product comes from, changing the conditions of competition and adding to the restrictions against the low-cost textile exports from developing countries. The US influence on the WTO agricultural policies will have a devastating effect on the developing countries, particularly those which are suffering from shortage of food crops. This is mainly due the US-led WTO policies, which promote food availability through trade thus discouraging countries to attain self-sufficiency. The situation is further worsened that many countries in the developing world have scarce foreign exchange to lift the food from the international market even if it is available at a comparatively low price. The Trade Related Intellectual Property Rights Agreement (TRIPS) is another example of inequality in a forum which claims to promote fair and equitable trade among nations. While TRIPS protects the rights of corporations it allows the shared knowledge of indigenous communities to be patented by others, particularly in medicine. Thus transnational companies are poised to earn billions in rent transfers to the rich countries which enjoy an almost total monopoly on the medical trade and at the same time will control the patents of the developing countries. For a developing country like Pakistan, which has been able to establish a range of industries to cut its dependence on imports to save foreign exchange which most of the time remains at a precariously low level, the free trade means an uneven competition. The industries producing a range of finished products in Pakistan are still heavily dependent on imported basic and raw materials. The increasing cost of utilities, it is needless to mention frequent increase in power, gas and petroleum prices during last 18 months in particular and last few years in general have pushed the production costs to an uncompetitive level. This has resulted in less demand locally due primarily to a declining purchasing power, increasing unemployment level and a spreading sense of uncertainty. It has also taken its toll on exports by rendering products uncompetitive against such traditional rivals as India, China, Bangladesh, etc. The local industries also fear that free trade would weaken their very base as it would give way to an uneven competition. They say that allowing imports at zero duty, as and when it is done, would mean a fatal blow to the local industries already reeling from high production costs.

Secondly, and as important, they say that with a national psyche which prefers anything foreign the local industries would have a hard time to compete with imported counterparts imported at zero duty and offered at a competitive price. In short, there are fears that free trade would turn the country entirely into an import dominated market.

Free Trade:
Definition:
Free trade is a system of trade policy that allows traders to act and transact without interference from government. According to the law of comparative advantage the policy permits trading partners mutual gains from trade of goods and services. Under a free trade policy, prices are a reflection of true supply and demand, and are the sole determinant of resource allocation. Free trade differs from other forms of trade policy where the allocation of goods and services amongst trading countries are determined by artificial prices that may or may not reflect the true nature of supply and demand. These artificial prices are the result of protectionist trade policies, whereby governments intervene in the market through price adjustments and supply restrictions. Such government interventions can increase as well as decrease the cost of goods and services to both consumers and producers.

Features of Free Trade:

Free trade implies the following features: trade in services without taxes or other trade barriers The absence of "trade-distorting" policies (such as taxes, subsidies, regulations, or laws) that give some firms, households, or factors of production an advantage over others Free access to markets Free access to market information Inability of firms to distort markets through government-imposed monopoly or oligopoly power

 The free movement of labor between and within countries The free movement of capital between and within countries

Trade Policy:

Definition:
A policy affecting international trade, including tariff and nontariff barriers OR a government's policy controlling the foreign trade.

Trade Policy 2009-12 aims to set the country on the path of sustainable high economic growth through exports. The policy is geared towards contributing towards poverty alleviation, achieving export led growth and providing relief to the common man through the provision of jobs and services, focusing strongly on development and facilitation.

As far as the enhancement of the export competitiveness is concerned, the government aims to: First, overcome the most pressing supply-side constraints such as the shortage of energy, cost of capital and difficulties linked with adverse travel advisories. Second, enhance competitiveness of textile and clothing, with the help of Textile Policy due to be announced shortly which focuses on new investments, modernization of machinery and increasing total factor productivity. Third, deepen and diversify export markets particularly our major trading partners US and EU as well as countries with which Pakistan has signed a free trade agreement such as China, Malaysia and Sri Lanka. Fourth, promote trade in services which globally have a more stable demand pattern and are less prone to detrimental external shocks seen for the case of commodity trading. Fifth, embark on domestic commerce reform and development where key areas such as wholesale and retail trade, storage and warehousing, transport, regulatory environment, promotion of modern business and taxation practices require immediate attention. To launch a comprehensive plan for the promotion of export of Services

 Engage with the larger trading partners like US and EU for greater market access and utilize the Reconstruction Opportunity Zones for providing zero duty facility for exports to US. Strengthen and utilize the trade officers better for the protection and promotion of Pakistans commercial interest abroad.

The trade policy aims to create a special fund of Rs 2.5 billion for product development and marketing in order to increase the sophistication level of the sector and realize true potential of this sector. Devise a medium term strategy to boost exports of gems and jewellery.

To launch comprehensive Leather and leather products export Plan in consultation with the major players of leather sector. In order to address our strategic objective of product diversification for Pakistans exports the government aims to: Provide a clear policy framework on the development of chemical sector. Continue the successful initiatives provided to the Pharmaceuticals sector in the previous trade policy and help introduce necessary regulatory and initiate new development programs. Address the supply side constraints in the meat and meat products industry facilitate the foreign direct investment and export potential of mineral sector.

Major Export Opportunities in Pakistan:

Based on its geographical location Pakistan has close political and economic relations with the Middle East, Central and South Asia. It is the main gateway to Central Asia and supplier to the Emirates. Economic integration with South Asia has been less effective in the past due to the strained relations with India on the Kashmir issue. However, recently notable steps have been taken by the South Asian Association for Regional Co-operation (SAARC), of which Pakistan is a member, to establish a South Asian Free Trade Area (SAFTA), including India. The main consequence of these macro economic successes has been an increased liquidity in the country and the subsequent lowering of interest rates to a single digit for prime borrowers, from

rates as high as 17% to 18% a few years ago. This has enabled higher profits for most businesses, followed by an exceptional boom on the stock market. Also, banks have aggressively marketed consumer finance to the emerging middle class, allowing for a consumption boom (more than a 7-month waiting list for certain car models) as well as a construction bonanza. The Central bank has carefully managed the incoming "hot money" so that inflation remains under control at less than 3% per annum. Pakistan's economy is still very dependent on agriculture. The sector contributes 25% to GNP but employs nearly 50% of the labor force. Industry contributes approximately 18% to GNP and services about 50%, of which wholesale and retail trade account for 15%, and transport and communication for 10%. As a result of the importance of the agricultural sector, climatic conditions and water resources have a significant impact on the yearly economic performance.

List of Exports:
Textile & Garments Raw Cotton Rice Leather Carpets Food Processing and Packaging Sports Goods Sugar Raw material Light engineering and automotive parts Surgical instruments Marble production Gems and Jewellery

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Textile & Garments:

In the textile and garment sector Pakistan has a definite competitive advantage, further enhanced by the disappearance of the Multi- Fibre Agreement by the end of 2004. Despite its successes and its recent spate of investment in state of the art machinery, the industry still needs know-how and processes to improve the quality of its products, as well as design, fashion and marketing development. This sector has been divided into the different stages of production, such as spinning, weaving, knitting and finishing, dyeing, etc. while the major groups usually cover all stages of the product cycle. Most products are cotton based with emphasis on the first stages of production like yarn, cloth and fabrics. Only recently has the country entered into the more added value production of garments. The particular emphasis on bed linen and towels is worth noting, given that it is the subject of an anti dumping review by the European Union. Textile could be termed as the backbone of Pakistan's economy. it is not only the largest industry in the country but it is the greatest source of foreign exchange earnings in Pakistan. it provides employment to 38 percent of overall labor force of the country and accounts for 27 percent of value addition in the manufacturing sector The Textile sector critically depends on the supply of raw material from agriculture sector and therefore, whatever happens to cotton crop is likely to affect the performance of textile sector. The size of the cotton crop is not only higher (10.7 million bales), but it exceeded the current year's target (9.7 million bales). The low market prices prevalent throughout last year have created environment, which is conducive for reinvestment in BMR of the existing units and expansion of the capacity. The profile of various components of the textile industry are given below: Performance of Ancillary Textile Industry.

Cotton Spinning Sector Weaving & Made-ups Sector Filament Yarn Manufacturing industry Art Silk and Synthetic Weaving Industry

Raw Cotton:
Cotton is the main cash crop and contributes significantly to the national economy. It accounts for 11.5 percent of value added in agriculture and about 2.8 percent of GDP. In addition to providing raw material is a major export item.

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Rice:
Rice is the second largest staple food crop in Pakistan and is also a major export item. It accounts for 6.6 percent in value added in agriculture and 1.6 percent in GDP.

Leather:
Pakistan is the leading producers and exporter of leather and leather products of various types. During the last 20 years, the industry has flourished by using trained and skilled operations. The industry has a potential to increase exports to 1 billion dollars in a span of ten years by promotion of leather footwear. The propaganda of use of child labour is now adversely effecting this industry.

Carpets:
Carpets and rug industry occupies an important place in the economy of Pakistan. It is a labour intensive industry. Due to its fine quality, Pakistan carpets are known and demanded all over the world. However, the main buyers of carpets and rugs are Germany and USA. Pakistan's carpet and rug industry is facing stiff competition in recent years. China, India and Iran have devalued their currencies considerably and are giving us stiff competition.

Food Processing and Packaging:

Vegetables: The production of pulses has shown a mixed trend. Production of Mung and Mash have increased by 10.2 percent and 8.0 percent, respectively while the production of Masoor declined by 5.9 percent. Production or potato and onion are estimated to have decreased by 7.6 and 9.2 percent, respectively while production of chillies is estimated to increase by 42.0 percent. Fruits: Pakistan's exports of fruits have been marginal in the context of both the national processing, grading and marketing facilities. Fruits is one of Pakistan's major export. There are many units working in the Fruits fields. They are producing good Fruits. Pakistan Fruits is famous around the world. Many Fruits shows are arranged in Expo center Karachi to show the quality Fruits of Pakistan

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Fish: Fishery plays an important role in Pakistan's economy and is considered to be an important source of livelihood for the coastal inhabitants. Apart from marine fisheries, inland fisheries (comprising of rivers, lakes, ponds, dams etc.) are also very important source of animal protein. Fisheries' share in GDP, although very little, contributes substantially to the national income through export earnings. The Government is taking a number of steps to improve fisheries sector. Further, number of initiatives are being taken by the Federal and provincial fisheries departments which, inter-alia, include strengthening of extension services, introduction of aquaculture techniques, diversification of fishing efforts, improvement in post harvest techniques, development of value added products, enhancement of per capita consumption and up-gradation of socio-economic condition of the fishermen's community. Obvious export markets are the Middle East, South and Central Asia as well as Europe and the USA if the present phyto-sanitary constraints can be resolved. The local emerging middle class should also provide an outlet for well processed and packaged food in the medium term. The impression from the authors is that investment in this sector should definitely be long-term, in view of the necessity to organize the supply chain as well as the distribution network in a rather primitive environment, be it in the fruit, vegetable, dairy or fishing sectors.

Also, a major part of the sector depends on the packaging industry, including carton boxes, tin can, or freezing processes, which are still underdeveloped.

Sports Goods:
Sports Goods is one of Pakistan's major export. There are many units working in the Sports Goods industry. They are producing good Sports Goods. Pakistan Sports Goods is famous around the world. Many Sports Goods shows are arranged in Expo Center Karachi to show the quality Sports Goods of Pakistan.

Sugar:
Sugarcane crop is a cash crop and serves as a major raw material for production of white sugar and gur. Sugarcane was cultivated on an area of 961 thousand hectares during the current fiscal year, showing a decline of 4.9 percent over the last estimated at 43608 thousand tonn3es which is

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lower by almost 5.9 percent, as compared with last year. The yield per hectare has also declined by 1.1 percent. Sugarcane, being the water intensive crop, suffered mainly due to the shortage of irrigation water in Punjab and Sindh but delay in payments by the sugar mills also discouraged farmers to grow more sugarcane.

Raw material:
There are 24 cement units in the country with total installed capacity of 16300 thousand tonnes. Out of these 24 units, 4 units with installed capacity of 1831 thousand tonnes are in public sector and 20 units having capacity of 14,440 thousand tonnes are in the private sector.

Light engineering and automotive parts:

The light engineering and automotive parts industry should also provide opportunities, as far as they are backed up by export markets. Based on an infant automobile industry still protected by high tariffs and dominated by Japanese assemblers, the existing automotive supply industry is in dire need of technology improvements. Similarly, there is a great demand for machinery and equipment linked to the textile and garment sector, such as industrial dryers, cooling fans, spinning needles, etc.

Surgical instruments
This sector exports 95% of its production, mostly to the USA and the EU. It represents a turnover of about USD 150 million per annum and consists mostly of metal instruments. This industry is concentrated in Sialkot, north of Lahore, making it one of the significant clusters for such production worldwide. The technique is mostly based on forging and metal finishing for which cooperation with European firm with the proper know how might be required.

Marble production
Marble is used extensively by the domestic construction industry, and part of the production is exported, mostly to the Middle East. Mining and production sites are spread more or less over the North and East of the country. The production represents about USD 25 million per annum. The main drawback of this industry is the absence of sophisticated techniques: mining through explosives which do not allow the production of large slabs of marble and implies important wastage.

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Gems and Jewellery:

This sector, based on vast resources of rough semi precious stones is still in the infant stages. The official export of rough stones represents about USD 5 million per annum, while no stones are cut locally yet. The government is trying to develop a stone cutting industry and has created three training institutes.

Imports:
List of Imports:
Textile Machinery Fiber Silk yarn Insecticides Plastics Medical Products

Iron, Steel, Aluminum

Rubber

Palm Oil Petroleum

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Textile Machinery:
Pakistan's textile industry to use the most advanced technology in a right way. The Textiles manufacturers are of the opinion that Pakistan would play an important role as a major textile exporter. Pakistan ranked third in Asia after China and India as far as the textile sector was concerned. There is great potential for the country to enhance its exports for which it needs latest state-of-the-art machinery. Pakistan was too important in the textile sector and the best way for textile export promotion for Pakistan was to use latest machinery for a better place in the global market.

Fiber:
Pakistan imports fibers of Animal (hair, wool), mineral (asbestos), synthetic (nylon, Dacron), polyester staple fiber, nylon fiber.

Silk yarn:
All kinds of silk yarns are sent to many countries including Italy, Turkey, Japan, Korea, India, Pakistan and Bangladesh for over 30 years. The imports, of Silk Yarn remained at $524 million as against the imports of $406 million in the previous year. The country imported $97.9 million construction and mining machinery, imported at the cost of $118 million. Pakistan imported Silk Yarn worth $211 million. Wild silk worms live naturally in tropical or semi-tropical forests. Their silk is gathered after the moth emerges. As the caterpillars eat all kinds of different trees, all rich in tannin, the silk is beige to brownish toned. Pakistan's are many varieties and shades of wild silk. Tussah is generally stronger and more resilient than cultivated "white" silk.

Insecticides:
Five reference laboratories were established in Pakistan for monitoring cholinesterase (ChE) activities of workers exposed to organophosphorus compounds. ChE activities were determined by the Michel and tintometric method. Observations of ChE activities were made during two malaria seasons. The first season showed that although a significant depression of cholinesterase occurred among some of the workers, the ChE activities of workers were within the normal range during the following season.

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Plastics:
The provincial government is said to have ordered purchase of 20 million woven polypropylene (WPP) bags for storage of wheat this year. The sources claimed that the government was buying 20,000 bales of 1,000 bags each. "The decision to purchase plastic bags for wheat storage has been taken in spite of its opposition by the health and environment experts and cloth and jute bag producers," the sources said.

Medical Products:
The government has reduced the customs duty from 10pc to 5 per cent on import of medical equipment and apparatus based on the use of X-rays or other radiation which were used for diagnostic purposes in the hospitals and medical institutions. Pakistans worldwide organizational structure, coupled with an integrated product distribution network, ensures that Medical Products are available wherever needed. Highly trained representatives are located in a majority of countries around the world. Pakistan utilizes independent distributors in many international markets. These distributors have met Associates qualifications to distribute Medical Products. United States implantable products are shipped on the day ordered, via our overnight carrier. For shipping outside the United States other shipping arrangements are available, but may incur additional charges.

Iron, Steel, Aluminum:

Iron: It can't be denied in the modern times that an overall development of a country depends to a greater extent on Iron and Steel Industry because we are passing through the 'Steel Age', where right from a sewing needle to aircraft all the goods require iron and steel to come into being. Iron and steel is indispensable to use for making machines, tools, war items and other various goods of daily life. Steel: Pakistan Steel is one of he important ventures in public sector industries, which is aimed at providing basic raw material to local high-tech industries in the country. The installed capacity of 1.1 million tonnes of raw steel is extendable up to 3 million tonnes. The main products of Pakistan Steel are coke, pig iron, billets, hot rolled coils / sheets, galvanized sheets etc. The re-

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structuring of Pakistan Steel is under active consideration of the government and a BMR project is under implementation on self-financing basis. The performance of Pakistan Steel is summarized. Pakistan Steel has established 34 downstream industries in the private sector for optimum utilization of its production capacity. Another 9 units are in various stage of completion. Pakistan Steel has created a fully developed industrial estate within its boundaries for the aspirant entrepreneurs to provide opportunity to locate downstream industry near the source of raw material. Aluminum: Aluminum is one of the Pakistan's major imports. Pakistan cannot develop the Aluminum due to the lack of technology. We hope that Pakistan will be developing Aluminum and saving the money and raise their export.

Rubber:
Rubber is produced from natural or synthetic sources. Natural rubber is obtained from the milky white fluid called latex, found in many plants; synthetic rubbers are produced from unsaturated hydrocarbons.

Palm oil:
The palm oil industry has developed into a very vital agriculture-based industry in Malaysia. Malaysia is the largest producing and exporting country of palm oil of the world. The growth of palm oil industry in Malaysia spreads over four decades. Though oil palm tree cultivation was introduced in 1870, but its commercial production started in 1960s. The Malaysian palm oil industry started growing in 1970s. There are now over 40 refineries with a total installed capacity of over 8.87 million tonnes. The number of mills has grown to 217. For many years, Pakistan has been a major importer and consumer of Malaysian palm oil.

Petroleum:
Pakistan has very limited oil resources and oil imports occupy a major portion of our overall imports. In recent years, the combination of rising oil consumption and flat oil production in Pakistan has led to rising oil imports from Middle East. In addition, the lack of refining capacity leaves Pakistan heavily dependent on petroleum product imports.

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Main commodities of imports during August, 2009 were Petroleum products (Rs.41,761 million), and crude petroleum (Rs.19,044 million).

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Conclusion:

Export-led growth has been the single most important factor in the economic success of any nation regardless of the geography, location, class or creed. The formula is simple. A single country can only have limited consumption capacity and the installed production capacity is always going to be in correspondence with the national consumption. Limiting the national income generation capacity until the country realizes potential export-markets abroad. Pakistan being an agricultural economy is still a net importer of food items. The Agreement on Agriculture (AOA) of WTO has been significant in molding agricultural policies of Pakistan. Apart from the major crops, Pakistan needs to exploit its comparative advantage in the production and exports of meat, dairy products, fruits, vegetables, horticulture. With regard to agricultural negotiations in the WTO, Pakistan along with the other developing countries, insists on a world trading system that is fair. Moreover, Pakistan has a comparative advantage in many primary commodities. But in order to fully utilize its comparative advantage, it needs to focus on and solve the problems in supply side (domestic requirements). Pertaining to the Agreement on trade related aspects of intellectual property rights (TRIPS), Pakistan needs to ensure that the industry is encouraged to provide intellectual property protection for its products and also make certain that there is effective protection of the intellectual property rights attached to imported products.

In a nutshell, at present Pakistan maintains a fairly liberal trade regime, where all quantitative restrictions on imports have either been removed or converted into tariffs. It is noteworthy that the applied tariffs in Pakistan are well below the bound tariffs under WTO, translating into market access. However, quality control is integral to competitiveness of Pakistan's exports. Low quality products fetch low price in the international market. The obvious problems of quality for Pakistan are those of technical precision, grading and specialization. The WTO Agreement on Technical Barriers to Trade is relevant in this regard. Proper support and prudent policies for the industry, along with intelligent balancing of imports and exports is vital for the sustainability and growth of Pakistan's economy and is likely to lead towards a bright future and trade enhancement under the WTO regime.

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