WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/TPR/M/95/Add.2
17 May 2002
(02-2748)
Trade Policy Review Body
23 and 25 January 2002Original: English/
               anglais/
               inglés
TRADE POLICY REVIEW
PAKISTAN
Minutes of Meeting
Addendum
Chairperson:  H.E. Mr. Pekka Huhtaniemi (Finland)
This document contains replies provided by the delegation of Pakistan to outstanding
questions.1
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Organe d'examen des politiques commerciales
23 et 25 janvier 2002
EXAMEN DES POLITIQUES COMMERCIALES
PAKISTAN
Compte rendu de la réunion
Addendum
Président:  S.E.  M. Pekka Huhtaniemi (Finlande)
Le présent document contient les réponses fournies par la délégation pakistanaise aux
questions en suspens.
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Órgano de Examen de las Políticas Comerciales
23 y 25 de enero de 2002
EXAMEN DE LAS POLÍTICAS COMERCIALES
PAKISTÁN
Acta de la reunión
Addendum
Presidente:  Excmo. Sr. Pekka Huhtaniemi (Finlandia)
El presente documento contiene respuestas facilitadas por la delegación del Pakistán a las
preguntas pendientes.
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/TPR/M/95/Add.2
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REPLIES PROVIDED BY THE DELEGATION OF PAKISTAN TO
OUTSTANDING QUESTIONS
CANADA
III. Trade Policies and Practices by Measure; (2) Measures Affecting Imports; (viii)
Government Procurement; paragraph 56:
Paragraph 56 states that the National Regulat ory Authority (“Authority”) was established to
eradicate corruption in the procurement process.  Please describe what progress if any the Authority
has made in eradicating corruption in the procurement process.
The Public Procurement Regulatory Authority (PPRA) is in the process of being established
as a statutory body to eradicate corruption and bring transparency in the government procurement
process.  The Ordinance has been drawn up and is under submission for promulgation by thePresident of Pakistan.  It is therefore too early to describe the achievements of this Authority.
HONG KONG, CHINA
Financial Services
(WT/TPR/S/95, pp. 101-102, para. 71)
It is noted that Pakistan maintains MFN exemptions  for financial services with a view to, among
others, preserving reciprocity requirements, as well as for telecommunication services in favour of
countries/operators signatories of bilateral agreements on accounting rates with the Pakistan
Telecommunication Company Limited (PTCL).  We would like to know whether Pakistan has any
plans to withdraw the exemptions and to bind its commitments on an MFN basis.  We would like to
know whether Pakistan has any plans to withdraw  the exemptions and to bind its commitments on an
MFN basis, especially in view that PTCL's monopoly  rights will only remain until end 2002 and that
full competition will come into place after.
The matter regarding withdrawal of MFN exemptions and subsequent binding of
commitments of MFN basis in the relevant GATS schedule on telecommunications is under
consideration.  However, a decision in this regard is likely to take place towards the end of PTCLexclusivity period (i.e. end 2002).
Telecommunications
(WT/TPR/S/95, pp. 106-107, para. 88)
It is noted that in accordance with the relevant legislation, the PTCL monopoly rights will remain in
place until end 2002 and there will be full competition afterwards.  We would like Pakistan to
elaborate the ways foreign investors could participate in the progressive privatization of the PTCL, as
well as how to obtain additional new licences.
Pakistan Telecommunication Company Limited (PTCL) has exclusive monopoly in basic
telephone services including voice telephony unt il 31 December 2002.  The Privatization Commission
of Pakistan intends to divest up to 26% shareholding (possibly even greater shareholding) to a
qualified strategic investor who would assume management control.  Expression of Interest (EOI) has
been invited from reputed parties with relevant experience.  Privatization process of PTCL providesWT/TPR/M/95/Add.2
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an attractive opportunity for foreign investors to in vest in fast growing telecom and IT sectors in
Pakistan on a competitive basis.
Following the expiry of exclusive rights of PTCL, the Government proposes to encourage full
competition and will grant licences to applicant who meet objective criteria specified in the provisions
of the licensing rules issued pursuant to the Act.  To obtain additional licences applications can bemade to Pakistan Telecommunications Authority (P TA) in response to an invitation issued by the
Authority as provided for in the PTA regulations 2000.
EUROPEAN UNION
III. TRADE POLICIES AND PRACTICES BY MEASURE
(3) M EASURES DIRECTLY AFFECTING EXPORTS
(v) Duty and tax concessions, (vi) Export-performance and value-added requirements, (vii)
Export-processing zones
(para 95, 97, 101) The report states in these paragraphs that various measures, which appear to
constitute specific subsidies, have not been notified to the Committee on Subsidies and Countervailing
Measures.  Could Pakistan please indicate when it will fulfil its obligations to make these
notifications which are required under Article 25 of the WTO Agreement on Subsidies and
Countervailing Measures.
Pakistan is in the process of preparing requisite notifications as per Article 25 of the WTO
Agreement on Subsidies and Countervailing Measures and they are expected to be submitted to the
WTO shortly.
THAILAND
III. TRADE POLICIES AND PRACTICES BY MEASURE
WT/TPR/S/95 (Para. 101, p. 65)
Under Pakistan's EPZ regime, certain tax exemptio ns available for industries are classified as
prohibited export subsidies.  And, as a developing country, Pakistan is required in the context of the
Agreement on Subsidies and Countervailing Measures, to notify in 2001 if she so wishes to continue
to utilize such subsidies under the regime.  Otherwise, the granting of tax exemptions shall have to beabandoned within 2002.  As we understood Pakistan had not notified in 2001, it would therefore be
grateful if Pakistan could elaborate on the use of this measure, and whether she may deem to do away
with such measure so as to bring her legislation into line with WTO provisions by the end of 2002.
The Government of Pakistan is currently examining the package of facilities being offered in
its EPZ regime.  After this examination is comple te Pakistan will take all necessary measures to
ensure compliance with relevant WTO provis ions within the stipulated time periods.
UNITED STATES
TBT COMMENTS
Paragraph 122 references the process of how the PSQA develops and adopts standards.  Can
Pakistan please elaborate on this process?  Are mandatory technical regulations, mandating specific
standards or testing subject to a public notification and comment period?WT/TPR/M/95/Add.2
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In reference to paragraph 127, the United States welcomes Pakistan’s notification of its TBT enquiry
point and acceptance of the code of good practice on voluntary standards.  These are two good steps
in full implementation by Pakistan of TBT obligations.
As part of the TBT Committee’s Second Triennial Review of the TBT Agreement, the TBT Committee
is actively developing a demand driven technical assistance programme in 2002.  The programmerequires LDCs to identify specific needs for implementing TBT obligations.  Based on the information
provided in paragraph 127, areas that Pakistan may want to consider for technical assistance are
consultation and notification procedures for technical regulations.  We encourage Pakistan to identify
specific needs that would allow GOP to bring its laws into compliance with its WTO TBT obligations,
which are notified under Article 15.7, and send a proposal for technical assistance to the WTO TBT
Committee.
Pakistan is a member of the International Standardization Organization (ISO) that provides
the details of all the standards developed by it.  In the light of these standards Pakistan Standards and
Quality Control Authority (PSQCA), with the help of  research entities in Pakistan, develops its own
national standards.  These standards are then ex amined by the Divisional Council of PSQCA, which
are subsequently advertised in national/local newspapers for views/comments of stakeholders.  The
PSQCA reviews these standards in the light of these comments and adopts them thereafter.
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