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PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA) ANNUAL REPORT October 01, 2017 – September 30, 2018 USAID/Pakistan Office of Economic Growth & Agriculture Contract Number: AID-391-C-15-00012 Disclaimer: This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the sole responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government.

PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

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Page 1: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

PAKISTAN REGIONAL ECONOMIC INTEGRATION

ACTIVITY (PREIA)

ANNUAL REPORT October 01, 2017 – September 30, 2018

USAID/Pakistan

Office of Economic Growth & Agriculture

Contract Number: AID-391-C-15-00012

Disclaimer:

This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents are the

sole responsibility of DAI and do not necessarily reflect the views of USAID or the United States Government.

Page 2: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

USAID Pakistan Regional Economic Integration Activity – Annual Report

October 01, 2017 – September 30, 2018

PREPARED BY:

Hussan-Bano Burki

Chief of Party | USAID Pakistan Regional Economic Integration Activity

[email protected]

Miraal Khan

Senior Officer M&E | USAID Pakistan Regional Economic Integration Activity

[email protected]

Page 3: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

USAID Pakistan Regional Economic Integration Activity – Annual Report

October 01, 2017 – September 30, 2018

TABLE OF CONTENTS

Executive Summary .............................................................................................................................................. 1

Introduction ........................................................................................................................................................... 1

Notable Achievements.......................................................................................................................................... 2

Component 1: Improved Business Enabling Environment .............................................................................. 4

Component 2: Improved Capacity to Access Regional Markets ................................................................... 10

Milestones in Year 3 ............................................................................................................................................ 15

Deliverables Completed in Y3 ............................................................................................................................ 22

Review of Indicators ............................................................................................................................................ 25

List of Acronyms.................................................................................................................................................. 27

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Annual Report October 01, 2017 – September 30, 2018

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 1

Executive Summary This report provides an overview of the technical assistance extended by USAID PREIA during Year 3 of its implementation, with a

view to revisit the purpose behind continuing on-going activities and initiating new ones, and evaluating the value of the investment

in terms of improving the trade environment of Pakistan. The year in review - October 1, 2017 to October 30, 2018 – has shown

significant results as compared to the previous two years, primarily due to the strengthening of relationships with counterparts,

greater clarity and commitment from focal points within government departments, and the traction gained from political and/or

bureaucratic approvals which should have ideally been attained much earlier. The progress was also, in large part, expedited due to

the Project identifying that the delay in implementation during the first two years had resulted from the lack of necessary

partnerships, capacity issues among public and private sectors, and the fact that extending direct technical or contractual assistance

could play a pivotal role in accelerating results. The lessons learned were actively incorporated into the Project’s strategy for Year

3.

PREIA designed and delivered a diverse range of results under its two components; “Improved Business Enabling Environment” and

“Improved Regional Trade and Transit Facilitation”. Support under the first component included the development of trade dispute

legislations, drafting of the strategic trade policy for 2015-2028, engaging the public and private sectors on existing trade and

investment policy dialogues, facilitating advocacy campaigns for provincial and gender rights, leading institutional reforms for the

improved performance of government officers and delivering trainings to the public and private sectors so that they become adept

at performing their duties. While policy and legislation related assistance will culminate in Year 4, PREIA did manage to produce and

disseminate Pakistan’s first women-centric business agenda, and was crucial in the inclusion of the National Commission for the

Status of Women (NCSW) being made a regular feature of the Government’s policy formulation process. Under the second

component, the Project created momentum within governmental and political institutions for bringing reform in streamlining

customs’ goods clearance processes. Such activities included efforts for introducing a globally recognized Single Window system for

trade, eliminating outdated manual systems of payment receipts, facilitating the acceptance of internationally accepted transit

protocols, and revamping service delivery standards at customs stations. Within the same component, PREIA promoted regular

dialogue on trade and transit issues between Pakistan and Afghanistan, and aided the Sarhad Chamber’s campaign to advocate for

the “Charter of Economy for Khyber Pakhtunkhwa”. The Charter’s objective of resolving the region’s trade challenges and securing

its constitutional rights has been endorsed by 7 of Pakistan’s leading political parties.

While the aforementioned results are reflective of an effective program design and execution strategy, PREIA has and is expected

to continue facing obstacles that pose significant risk to the ultimate achievement of the Project’s mid-long term results. These range

from vetting and approval timelines within USAID to the often unexpected and drastic changes in the political as well as bureaucratic

priorities which lie at the heart of any country’s sustainable development.

Introduction On September 01, 2015, Development Alternatives, Inc. (DAI) was awarded the five-year, USD 14.4 million, Pakistan Regional

Economic Integration Activity (PREIA). The overarching focus of PREIA is to further the development of Pakistan’s trade sector by

improving the country’s competitiveness in regional markets. This activity is a key component of USAID Pakistan’s overall economic

development program and it supports the achievement of USAID/Pakistan’s Mission Strategy Development Objective #2: -Improving

Economic Status of Focus Populations and Sectors. PREIA interventions facilitate increased access to international and, in particular,

regional markets in order to enhance Pakistan’s regional economic integration with its neighbours - Afghanistan and the Central

Asian Republics. Focusing primarily on trade promotion and facilitation, PREIA will endeavour to improve the international trade

environment, resulting in increased trade and transit volumes.

Components and Principles

PREIA consists of two key components:

1) Improved Business Enabling Environment (Component one /C1); and

2) Improved Capacity to Access Regional Markets (Component two /C2).

The Activity will also apply three cross cutting principles, which are integrated into the activities under each component:

• Increased Technology Adoption;

• Increased Participation of Women; and

• Increased Public-Private Collaboration.

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Annual Report October 01, 2017 – September 30, 2018

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 2

Notable Achievements Component One (C1) - Improved Business Enabling Environment

• Revised Pakistan’s existing law on on trade disputes vis-à-vis internationally accepted Alternate Dispute Resolution (ADR)

mechanisms and developed Organizational and Service Rules for the Trade Dispute Resolution Organization (TDRO);

• Assessed the current process of Performance Monitoring and Evaluation (M&E) for the Ministry of Commerce’s Trade Officers

Abroad Program and proposed recommendations for the introduction of an objective and transparent performance review

system;

• Through Sustainable Development Policy Institute (SDPI), developed and disseminated two Quarterly Bulletins to map

Pakistan’s trade performance, highlight key trends and analyse the economic impact of the Government’s policy measures;

• Supported five (05) public-private consultation sessions for the finalization of the Strategic Trade Policy Framework (STPF)

2018-2023. The sessions promoted an inclusive policy formulation process in Pakistan and generated recommendations from

many of Pakistan’s leading export sectors including leather, textile, sports, surgical equipment, pharmaceutical, agriculture,

engineering and tourism;

• Awarded the Project’s first grant allocation to Leadership for Environment and Development (LEAD). The grantee will deliver

a research study on “Harnessing Pakistan-Afghanistan Trade to Meet the Sustainable Development Goals (SDGs) of Pakistan”

and conduct stakeholder dialogues on how Pak-Afghan trade can spur Pakistan’s achievement of SDGs;

• Concluded Cycle I of Women Leadership in Trade Policy (WLTP) Program by training 29 individuals on "Gender Dimensions

of Trade". The training informed participants on Pakistan's role in the world trading system, linkages between increased women

economic engagement and productivity, and how policies can be made responsive to gender issues;

• Launched Cycle II of WLTP, delivering four (04) trainings to over seventy (70) business owners and potential advocates on

the trade policy formulation process, gender dimensions of trade and their effects on income/employment, gender-specific

policy measures, and advocacy and proposal writing skills required to lead effective reform campaigns;

• Established an all-inclusive public-private dialogue forum on “Gender and Trade Policy”, organizing two workshops to promote

the analysis of Pakistan’s trade policies from a gender perspective. As a result of the initiative, the Ministry of Commerce

agreed to conduct a gender analysis of the upcoming STPF 2018-2023 through the National Commission for the Status of

Women (NCSW)

• Aided WLTP Cycle I participant and member of Multan Chamber of Commerce and Industry, Ms. Masooma Sibtain, in her

efforts to finalize a comprehensive “Women National Business Agenda” (WNBA). The WNBA advocated for women-focused

policy reforms that can help promote gender equity in trade policy. PREIA provided technical support for the document’s

finalization, organized two stakeholder consultations for its refinement, and arranged a “WNBA Dissemination Seminar”

through which the WNBA was formally presented to political party representatives, chambers of commerce, international

organizations including UN Women, media groups, and female business owners;

• Built the capacity of 32 MoC officers on the World Trade Organization’s (WTO) dispute settlement system, Non-

Discrimination in International Trade, Border Management: Tariffs & Quantitative restrictions, and various WTO Conventions.

The trainings were delivered at World Trade Institute (WTI) and the Advisory Centre on WTO Law (ACWL) in Switzerland.

Notable Achievements

Component Two (C2) - Improved Capacity to Access Regional Markets

• Led support efforts for the implementation of a WTO recommended “National Singe Window” (NSW) environment for trade.

The assistance included:

o Conducting a Situational Analysis of the current processes, policies and institutional capabilities of Federal Board of

Revenue (FBR)/Pakistan Customs and 29 trade regulatory authorities, and devising a strategy prioritizing the phased

integration of each partner;

o Developing a comprehensive design and implementation Strategy Document for the introduction of NSW, including a

Blueprint and Implementation Framework/Roadmap. The Strategy Document received approval from the Prime

Minister’s Office on May 03, 3018;

o Formulating structural designs and Terms of Reference (ToRs) for the implementation and management of NSW,

particularly for the establishment of a Program Management Office (PMO), Steering Committee and Working Groups;

o Charting Workplans and Scopes of Work for technical areas under the NSW implementation plan, including but not

limited to Business Processing Mapping (BPM)/data standardization, Legal Gap Analysis, Port Community Systems (PCS),

and Integrated Risk Assessment: o Increasing stakeholder awareness on NSW, its benefits and advantages for the trading community;

o Building trust among all public and private sector stakeholders, garnering national support and encouraging an inclusive

approach to the change management process;

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Annual Report October 01, 2017 – September 30, 2018

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 3

o Garnering technical and funding support from international donor agencies, and promoting the complementarity of efforts

across various donors. To date, the World Bank has agreed to draft the PC-1 document for NSW and conduct a feasibility

assessment for the PCS;

• Facilitated the participation of 07 (seven) FBR/Pakistan Customs officials in a Study Tour to Turkey and Geneva, where subject

experts from the International Road Transport Union (IRU) and local customs officers trained Pakistani officials on the

Transports Internationaux Routiers (TIR) Convention. The training produced “Master Trainers”, who returned to Pakistan

and delivered sessions on the Convention’s benefits and implementation to the public and private sector;

• Delivered a series of “Hands on Trainings” and “Awareness and Training Seminars” on TIR across Karachi, Islamabad, Peshawar

and Quetta. The sessions acquainted Government officials and private sector operators on the benefits of TIR, its application,

and clearance/filing procedures;

• Supported Customs House Karachi in the attainment of an ISO 9001:2015 certification by facilitating a gap analysis and audit

exercise, and providing technical assistance for achievement of the globally recognized ISO certification;

• Drafted 44 Chapters of the Customs Manuals. The Manuals compile all Statutory Regulatory Orders (SROs), laws, regulations

and Standard Operating Procedures (SOPs) of Pakistan Customs so as to facilitate customs officials and stakeholders/end-

users on trade related policies;

• Partnered with Sarhad Chamber of Commerce and Industry (SCCI) and Pakistan Afghanistan Joint Chamber of Commerce

and Industry to promote public-private dialogue on Pakistan Afghanistan Trade. The discussions resulted in the identification

of policy and operational impediments hampering transit and bilateral trade, and devised a way forward for the effective

resolution of each issue;

• Assisted SCCI to develop and advocate for an economic agenda for the Khyber Pakhtunkhwa (KP) province. The agenda,

entitled “Charter of Economy for KP” sensitized Members of Parliament (MPs) on the importance of provincial rights –

particularly as they relate to KP’s role in recommending amendments to laws which can potentially transform its business

environment. SCCI has since presented the Charter to various government authorities and raised awareness on the need to

remove obstacles to trade.

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Component 1:

Improved Business Enabling Environment

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 4

Component 1: Improved Business Enabling Environment The objective of Component 1 is to assist the Government of Pakistan (GoP) in developing and implementing policies, regulations

and trade reform measures; and augmenting the capacity of private sector stakeholders to effectively engage in policy-making. In

doing so, activities implemented within the component seek to augment the capacity of stakeholders for the effective analysis of

policy issues, negotiation of trade agreements and improvement of trade regulations. Component 1 counterparts and stakeholders

include the Ministry of Commerce (MoC), Trade Dispute Resolution Organization (TDRO) and Chambers of Commerce, among

others.

Trade Dispute Legislation

Background

TDRO was established - as part of the Government of

Pakistan’s Strategic Trade Policy Framework (STPF) 2015-2018

– to aid Pakistani importers/exporters in managing fraud in

international trade and to help improve the reputation of

Pakistan as a global trading partner using internationally

recognized Alternate Dispute Resolution (ADR) mechanisms.

However, TDRO’s existing law did not sufficiently allow for the

efficient resolution of disputes. To help TDRO perform and

execute its functions effectively, PREIA contracted a law firm

namely RIAA Barker Gillette (RIAABG) in FY2017 to extend

technical assistance in redrafting the Trade Dispute Resolution

Act 2016 vis-à-vis international best practices and develop

rules/by-laws that complement the Act.

Year 3 Results

In Year 3, PREIA, TDRO, RIAABG and the MoC’s World Trade

Organization (WTO) Wing established consensus on the legal

amendments required to be made to the existing TDRO Act

2016, the recommended restructuring of TDRO, and dispute

settlement procedures to be followed by the organization. It

was also decided that the draft TDRO Act would include a

mechanism for the resolution of E-Commerce disputes, for

which PREIA helped TDRO organize a multi-stakeholder

session in October 2017, ensuring that the revised Act

sufficiently addresses matters pertaining to E-Commerce

dispute resolution, consumer protection and Intellectual

Property Rights (IPR) protection. Through July 2018, the draft

TDRC Act was continuously revised to incorporate feedback

from Chambers of Commerce, MoC Wings, TDRO and the

Standing Committee on Commerce and Textile at the National

Assembly. Parallel to these efforts, RIAABG also drafted the

accompanying Organizational/Procedural and Service Rules for

TDRO. The deliverables - which provide an all-encompassing

legal, strategic and operational framework for the resolution of

trade disputes, were presented to the Secretary Commerce in

October 2018 and are undergoing final revisions before they

can be submitted for onward parliamentary approval/

implementation.

Conclusion and Challenges/Lessons Learned

The objective was to transform TDRO from an attached

department of MoC to a fully autonomous organization that

could inspire confidence of international buyers and foreign

governments. For that to happen PREIA had to work with

RIAABG, MoC and TDRO and attain the confidence of all

parties. The exercise entailed challenging discussions

particularly in reform that called for curtailing the administrative

and functional influence of MoC over TDRO and the loss of

seats for promotion/appointment of the MoC’s administrative

cadre. Through constant engagement with all the stakeholders,

PREIA was able to demonstrate that an autonomous Trade

Dispute Resolution body was only possible if its regulations

were based on international best practices and if it had

complete authority over its specialized HR, independent of

Government controls.

Reform to the Commercial Diplomatic Services of

Pakistan

Background

Trade Officers have a crucial role in developing and

strengthening trade relations with other countries by leveraging

relationships with exporters and importers, and providing in-

depth analysis on market opportunities and trading

environment. In FY2017, the MoC’s Foreign Trade (FT) Wing

requested PREIA to extend technical support in reforming the

performance appraisal system for Pakistan’s Trade Officers

posted abroad, to render the Trade Officers more effective in

terms of commercial diplomacy and trade promotion. The

contours of this support included an assessment of the existing

performance appraisal system and reporting templates, the

Business Process Mapping (BPM) of all relevant workflows,

defining the Ministry’s approved Key Performance Indicator

(KPI), and designing M&E tools that could aid the TOs’ service

delivery by introducing objective performance monitoring

methodologies.

Year 3 Results

PREIA undertook a review of the existing Monitoring and

Evaluation (M&E) practices of the TO Abroad Program,

including the workflows, templates, communication channels

and performance scoring tools followed by the MoC and its

Trade Officers. The findings and recommendations from the

review were first presented to the FT Wings, World Trade

Organization (WTO) Wing and Trade Development Authority

of Pakistan (TDAP) for feedback. Upon the conclusion of

extensive consultation sessions, PREIA finalized and submitted

its report to the Secretary Commerce in September 2018. The

document presented a case for the revamping of the M&E

system at MoC in alignment with international standards, and

provided appraisal tools that form a crucial part of a potent

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Component 1:

Improved Business Enabling Environment

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 5

performance evaluation structure, such as a task delivery

dashboard/ tracker, KPI definitions, KPI reference sheets,

standard templates for Monthly/Quarterly/Annual Report and

Annual Target setting, and guidance on how a KPI based system

can be introduced. During the activity’s presentation to

Secretary Commerce in October 2018, MoC officials

appreciated the recommendations put forth in the report for

the introduction of a fair and transparent performance

assessment system and assured that the report would be a

starting point for designing an M&E system for the TOs at the

MoC.

Conclusion and Challenges/Lessons Learned

The report prepared by PREIA was well received by Secretary

Commerce and his team. However, owing to a very

complicated administrative structure of MoC it attracts officers

from varied backgrounds for posting as Trade/ Economic

Ministers, Consul Generals, Commercial Counsellors and

Commercial Secretaries. Furthermore, there is a huge

disconnect between policy making and its implementation

through Trade Officers in international markets. The MoC had

set the parameters for PREIA that it had to take the selection

and promotion processes as prescribed in the Establishment

code and KPIs approved by the Prime Minister as given. After

undertaking extensive consultations PREIA was able to bring

officers involved in M&E at MoC and TDAP on the same page

over an objective and quantifiable method for evaluating the

performance of the trade officers.

Public Private Dialogue Forum (PPDF)

Background

To encourage discussion on trade policy issues among public

and private sector stakeholders, PREIA will support Pakistan’s

academic/research institutions in the development of a Public

Private Dialogue Forum (PPDF) as part of its Grants under

Contracts (GUC)/Activity Fund Component. The PPDF will be

instituted at one of Pakistan’s academic or research institutions

and will comprise of representatives from various public and

private sector organizations. The function of the members will

primarily include the review of policy proposals and design of

strategies for the resolution of policy-related issues as identified

by the PPDF. Through the facilitation of regular discussions, the

Forum will also serve as a hub for the generation of

recommendations for the improvement of Pakistan’s business

enabling environment. A sub-set of PPDF, PREIA has also

recruited Sustainable Development Policy Institute (SDPI) to

develop Quarterly Trade Bulletins (QTB) which will serve to

inform the decisions and discussions of the PPDF, once

established.

Year 3 Results

In Year 3 PREIA initiated discussions with various educational

and research institutions to introduce the concept behind PPDF

and gauge the capacity of the institutions to establish the forum

as envisaged. After a proposal solicitation and review process,

PREIA conducted on-site due diligence reviews at four (04)

shortlisted organizations. The first grant approval application

was submitted to USAID in September 2018. PREIA aims to

issue all 4 PPDF grants in Year 4 of Project implementation.

Apropos of the QTB, SDPI developed the first two issues of the

QTB for January-March and April-June 2018, respectively. The

QTBs help map Pakistan’s overall trade performance, highlight

key trading trends and analyze various economic policy

measures affecting Pakistan’s key industries during the months.

While sections on “The Quarter’s news in Brief”,

“Macroeconomic Outlook”, “Analyses of Pakistan’s Imports

and Exports”, and a “Regional Trade Update” remain constant

features of the digest, special sections are also dedicated to an

in-depth analyses of a particular trade-related focus area and

interviews featuring prominent members of MoC and/or

Business Community.

Conclusion and Challenges/Lessons Learned

Due to the deficient capacity of academia and research

institutes, there is a huge disconnect between research being

produced and policy being framed by Government

departments. The QTB has provided an opportunity for PREIA

to build the capacity of SDPI on how to produce credible trade

bulletins, by supporting tripartite consultations between

businesses, government institutions and the research institute.

Drafting of the Strategic Trade Policy Framework

(STPF) 2018-2023

Year 3 Results

In January 2018 PREIA supported five (05) public-private

consultation sessions to solicit stakeholder recommendations

for the upcoming Strategic Trade Policy Framework (STPF

2018-2023). The sessions, held in prominent trading/export

hubs of Pakistan including Karachi, Peshawar, Sialkot, Faisalabad

and Lahore provided a shared platform for the MoC’s Trade

Policy Wing and private sector businesses to examine the

strategic priorities of the Government of Pakistan (GoP),

identify gaps previous policies, and devise industry-specific

strategies that help Pakistan enhance its economic growth.

Effectively, stakeholders from the leather, textile, sports,

surgical equipment, pharmaceutical, chemicals, readymade

garments, agriculture, engineering and tourism sectors

developed policy proposals for reducing Pakistan’s widening

trade gap and removing impediments that restrict industries

from reaching their potential. Following the sponsorship of the

consultations, PREIA extended technical advisory services to aid

the Ministry’s efforts of drafting the STPF 2018-2023, which has

been finalized and is expected for legislative approval/

implementation in Year 4 of Project implementation.

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Component 1:

Improved Business Enabling Environment

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 6

Conclusion and Challenges/Lessons Learned

The GoP requires immense research as well as administrative

support from development partners for conducting

consultations with stakeholders for giving strategic direction to

discussions. It is generally also required in a very short span of

time, which puts development partners in a challenging

situation.

Above left: Secretary, Commerce Division (MoC), Mr. Younus Dagha addresses participants at the welcome address. Above Right: Introductory Presentation being delivered by Director General Trade Policy (MoC), Mr. Nauman Aslam.

Above left: PREIA WLTP participant and member of Multan Chamber of Commerce and Industry, Ms. Masooma Sibtain, presents the Women National Business Agenda to DG Trade Policy, Mr. Nauman Aslam, at the STPF consultation session in Lahore.

Above right: Some of the participants at the Pre-STPF 2018-2023 consultation session pose for a group photo.

Activity Fund/Grants Under Contract (GUC)

Background

PREIA is mandated to administer GUC to be

awarded to at least 5 grantees over the life of the program. The

GUC Fund seeks to strategically help local organizations build

the human and institutional capabilities required to support

trade sector reform and modernization, and for such

capabilities to ultimately help achieve high-impact goals of local

stakeholders as well as PREIA.

Year 3 Results

PREIA was granted USAID approval to engage Leadership for

Environment and Development (LEAD) Pakistan as its first

grantee in November 2017 and an eligibility notice from USAID

Vetting Support Unit (VSU) was received in March 2018. LEAD

was subsequently engaged for implementing its project

“Harnessing Pakistan-Afghanistan Trade to Meet the

Development Goals (SDGs) of Pakistan”. Through this initiative,

LEAD will undertake a research study to examine how sector-

specific trade with Afghanistan can help Pakistan achieve specific

SDG targets. The organization will also conduct Public-Private

Dialogues (PPDs) on how the enhancement of Pak-Afghan trade

can spur Pakistan’s achievement of SDGs. LEAD has initiated its

efforts for the research study and is expected to deliver the

grant through Q3 of FY2019.

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Component 1:

Improved Business Enabling Environment

USAID Pakistan Regional Economic Integration Activity

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 7

Delivery of Training to Ministry of Commerce (MoC)

on Trade Data Analysis

Background

PREIA plans to augment the capacity of MoC officers to

perform their functions of analyzing trade and economic data -

a skill essential for trade policy development and trade

negotiation. To address this gap, PREIA initiated the

recruitment of a service provider that could train 20 officers of

MoC on trade data analysis, and to develop and institutionalize

an Electronic-Training module within the MoC as a permanent

resource.

Year 3 Results

After availing requisite approvals from USAID to Subcontract

M/s InterAnalysis Ltd, United Kingdom, in August 2018 PREIA

completed its negotiations and finalized the contract terms with

InterAnalysis. It is expected that the contract will be awarded

in October 2018 and implementation will remain ongoing from

December 2018 through May 2019.

Conclusion and Challenges/Lessons Learned

USAID Vetting Support Unit’s procedural delays and the time

taken for PREIA to receive a Geographic Code waiver from

USAID to subcontract Interanalysis has been a major challenge

through Year 3.

Women Leadership in Trade Policy (WLTP) Program

Background

Promoting gender inclusion in the trade policy process requires

that individuals have an understanding of the impact that trade-

related policies have on men and women, and the ability to

determine how such policies can be formulated with a gender

perspective so that their redistributive effects on women are

ultimately rewarding. PREIA’s WLTP Program was initiated to

address such knowledge gaps, with an aim to train a cohort of

“WLTP Champions” about trade policy, advocacy and proposal

formulation. Candidates who complete the phased trainings

would then be provided exposure to PPDs on trade policy and

encouraged to develop reform proposals for GoP

consideration.

Year 3 Results

In Year 3, PREIA concluded WLTP Cycle I with a final training

delivery to 29 individuals on "Gender Dimensions of Trade".

The final training increased the cohort’s knowledge on

Pakistan's participation in the world trading system, linkages

between increased women economic engagement and

economic productivity, and how trade and investment policies

can be made responsive to gender specific issues. Cycle II was

subsequently launched with a slightly altered approach, whereby

in addition to training gender advocates, PREIA would

strengthen the engagement of these advocates with public

sector/policy makers and sensitize policy makers on the

significance and impacts of gender mainstreaming in trade

policy. To this end, partnerships were established with the

Women Entrepreneurs Network for Trade (WE-NET),

Chambers of Commerce, incubation centers, academic/

research institutes, MoC and Pakistan Institute of Trade and

Development (PITAD). In August 2018, four (04) trainings were

delivered to over 70 business owners and potential advocates

on:

• The trade policy formulation process;

• Advocacy and proposal writing skills;

• Gender dimensions of trade and their effects on

income/employment;

• Gender-specific policy measures in the STPF 2018-

2023

• The role of governments in facilitating or hampering

trade for women

• Establishing effective communication channels with

policy makers

PREIA also learned that there was an emerging interest of

Pakistan’s policy makers on the topic, as “gender

mainstreaming” had been made a fundamental pillar of the

GoP’s STPF for 2018-2023. Capitalizing on the momentum,

PREIA created an all-inclusive platform for an analysis and action

focused approach towards the topic, organizing two

PPDs/workshops on “Gender and Trade Policy”, and “Gender

Review of Draft STPF 2018-2023 Proposals”. The

recommendations that ensued were accepted by the MoC for

inclusion in the upcoming STPF, which also announced that the

National Commission for the Status of Women (NCSW) would

be made a regular feature of its policy formulation process and

a review process. The Director General for Trade Policy, MoC,

also stated that the NCSW would be delegated the

responsibility of performing a detailed review of the draft STPF

2018-2023 so that gender neutrality can be maintained in

Pakistan’s trade policy directives going forward. Such

recognition and action are a milestone for gender

mainstreaming in the country’s history.

Conclusions and Challenges/Lessons Learned

There is a lack of technical and research capacity for gender

review of policies among public institutions that are responsible

for policy development and implementation. This poses

problems in the sustainability of PREIA’s efforts for gender

mainstreaming. In Year 4, PREIA will be delivering trainings so

that the public sector is also equipped to understand and

address gender issues.

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USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 8

Above: Participants take part in group discussions at WLTP Training, October 31-November 01, 2017

Above: Participants pose for a group photo at the conclusion of WLTP Cycle 1

Women National Business Agenda (WNBA)

Background

One of the participants of WLTP Cycle I, Ms. Masooma Sibtain,

who was also Vice- President of Federation of Pakistan

Chambers of Commerce and Industry (FPCCI), and former

President of Multan Women Chambers of Commerce and

Industry (MWCCI) utilized the knowledge and skills acquired

through PREIA trainings to lead the development of a “Women

National Business Agenda” (WNBA). The document identified

major policy barriers facing Pakistani businesswomen and

presented recommendations towards developing a gender

equitable trade environment.

Year 3 Results

In December 2017, PREIA extended support to the process of

advocacy and organized two stakeholder consultations leading

to the finalization of the WNBA. The finalized document was

then discussed and distributed among representatives of

political parties, chambers of commerce, international

organizations including UN Women, media groups, and female

business owners at a “WNBA Dissemination Seminar”, held on

December 22, 2017 in Islamabad. Through its support, USAID

PREIA was able to encourage dialogue on women-focused

policy reforms, promote actionable recommendations towards

gender equity in trade policy and facilitate its WLTP Champion

in her advocacy efforts for various policy reforms including

greater geographic coverage of the Credit Guarantee Scheme

for women, better GoP support for SMEs, recognition of

gender mainstreaming in the STPF and specialized support for

the promotion and facilitation of women-owned businesses. Ms.

Masooma’s efforts were duly recognized by prominent

members of the trading community as she was later appointed

the Chairperson of FPCCI’s Standing Committee on Women

Economic Reforms. The State Bank of Pakistan also expanded

the geographic coverage of its Credit Guarantee Scheme, as

proposed by WNBA.

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Above Left: Participants pose with a copy of the Agenda, at the WNBA Dissemination Seminar in Islamabad. Above Right: CIPE Advisor, Mr. Hammad Siddiqui introducing the WNBA to participants.

Above Left: Representatives of all major political parties discuss the WNBA Agenda in a panel discussion.

Above Right: Participants pose for a photo at the conclusion of the WNBA Dissemination Seminar.

Capacity Building Support to the Ministry of

Commerce (MoC)

Year 3 Results

From January 08-26, and February 19-23, 2018 PREIA leveraged

USAID Training For Pakistan (TFP) Project to support the

delivery of globally renowned training programs to 32 officers

of the MoC. The first set of trainings, delivered to three batches

of six (06), five (05), and six (06) probationary officers of MoC

at the World Trade Institute (WTI) in Bern Switzerland,

focused on the “World Trade Organization’s (WTO) dispute

settlement systems,” “WTO Non-Discrimination in

International Trade” and “Border Management: Tariffs &

Quantitative restrictions”. The second round of trainings,

extended to fifteen (15) officers of MoC at the Advisory Centre

on WTO Law (ACWL) in Geneva, Switzerland built upon key

WTO Conventions such as Dispute Settlement, Non

Discrimination, General Agreement on Tariffs and Trade

(GATT) 1994, The Agreement On Trade-Related Intellectual

Property Rights (TRIPS), National Treatment obligations,

Agreement On Agriculture (AoA) and Agreement On

Technical Barriers To Trade (TBT), among other topics.

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USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 10

Component 2: Improved Capacity to Access Regional Markets Component 2 aims to improve the capacity of Pakistan to access regional markets. The component is divided into two (2) sub-

components. The first sub-component relates to providing support on enhancing regional trade and transit facilitation,

simplifying/harmonizing customs procedures and addressing barriers to trade. The second sub-component focuses towards working

with the private sector to enhance business-2-business (B2B) linkages and increase Pakistan’s exposure to regional and international

markets through participation in trade promotion events and networking events. Key stakeholders within Component 2 include

the Federal Board of Revenue (FBR)/Pakistan Customs, the Pakistan National Committee of the International Chamber of

Commerce (PNC-ICC), border control agencies, Chambers of Commerce and Industries, trade associations, and women

entrepreneurs, among others.

Implementation of a National Single Window (NSW)

Environment for Trade

Background

The implementation of an effective NSW simplifies customs

clearance and process formalities for traders, negating the need

for manual dealings with multiple government authorities when

obtaining relevant clearances and permits for the movement of

cargo across national borders.

Year 3 Results

• Technical Assistance (Crimson Logic): Crimson Logic

was contracted in Year 3 to deliver two key strategy

documents for the NSW initiative:

❖ Situational Analysis: From November 2017-March 2018

the firm studied the current processes, policies and

institutional capabilities of FBR/Pakistan Customs and 29

other trade regulatory authorities in Pakistan to deliver a

Situational Analysis Report as it relates to NSW readiness.

The Report also made recommendations - based on

certain pre-determined criteria – on the

inclusion/exclusion of each regulatory agency from the

phased implementation of the NSW environment.

❖ Strategy Document: A comprehensive design and

implementation Strategy Document, comprising of an

NSW Blueprint and Implementation Framework/

Roadmap, was submitted after the incorporation of

stakeholder feedback in April 2018. On May 03, the Prime

Minister (PM) of Pakistan provided his approval to the

Strategy Document for the implementation of a NSW

environment in Pakistan.

• Technical Assistance (STTA): PREIA technical advisory

support to FBR was initiated in Year 2 and garnered political

support with the official notification of the establishment of a

Project Management Office (PMO) for the design,

implementation, and management of the NSW on October 19,

2017. Since then, PREIA advisor on NSW has assisted FBR in

designing the organizational structure, job descriptions and

functions/mandate of the PMO. The STTA also aided FBR’s

efforts to develop Terms of References (ToRs), design and

composition of the National Steering Committee (NSC) for

NSW, which was also officially approved by the Prime

Minister’s Office and notified by FBR on May 07, 2018.

Following the approvals, PREIA advisor facilitated FBR to

develop a way forward on NSW implementation. The planning

phase comprised of a series of discussions, and the following

tasks were marked as priority items:

❖ Development of a Position Paper: PREIA reviewed and

refined the position paper, which articulates the vision,

mission, and scope of National Single Window. The

document, which will be shared to obtain buy-in from

stakeholders in future, provides information on the way

forward for NSW and each stakeholder’s role in the

project’s implementation/operation.

❖ Collaboration with the private sector: The PM’s directives

to FBR/Pakistan Customs included the establishment of

partnerships with the private sector under the Corporate

Social Responsibility initiative. PREIA helped the PMO

identify activities where such partnerships could add value

to or expedite NSW efforts;

❖ Governance and operationalization of NSW: PREIA

provided support to the NSW PMO in its meeting with

the Chairman of National Database and Registration

Authority (NADRA), to exchange views on the

governance and operationalization of the NSW

environment, and NADRA’s existing governance model.

NADRA offered to build the complete NSW system for

FBR/Pakistan Customs on a turnkey basis as the Authority

is working on providing similar solutions to other similar

projects, both nationally and internationally.

❖ Business Processing Mapping (BPM)/data standardization:

PREIA plans to recruit a firm for conducting a back-end

business processes review of 19 (nineteen) Other

Government Authorities (OGAs) involved in the goods

clearance process. The bidding, proposal review and

selection of M/s InfoTech Private Limited was completed

and vetting information submitted to USAID on August

01, 2018. The activity is pending eligibility determination

by USAID and will initiate in Year 4.

❖ Legal Gap Analysis and Port Community Systems (PCS):

PREIA’s consultant developed ToRs for two NSW

consultancies on the legal barriers and recommended

legislation for the implementation and operation of the

NSW environment and the establishment of a PCS for

NSW. Both the consultancies will be supported by the

World Bank.

❖ Integrated Risk Assessment: To realize the full potential

of the NSW, it is imperative that an integrated risk

assessment and management system be adopted by all

participating agencies in the NSW. PREIA developed the

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USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 11

draft ToRs for the activity, which will be undertaken by

the Asian Development Bank (ADB) in US FY2019/20.

• Awareness Raising Sessions/Trainings: PREIA technical

advisor delivered 08 “Awareness and Outreach Sessions on

NSW Implementation,”, to representatives of Chambers,

Associations and Customs in Peshawar, Karachi, Islamabad and

Lahore. The sessions introduced the trading community on the

NSW Concept and communicated how its implementation

could notably accelerate trade operations in future. The

outreach effort conceived by PREIA gathered widespread

support from stakeholders on the initiative and served to not

only clarify the apprehensions of the private sector but also to

build trust among institutions that are tied into the NSW

implementation process, a change management endeavour

which is often key to the success of reform plans such as NSW.

• Coordination with the Private Sector and Regulators:

PREIA extended advisory, planning and organizational support

for several meetings among key regulatory actors and private

sector organizations. These included a coordination meeting

among 18 public sector regulators/Ministries in December

2017, an all-inclusive public-private stakeholders conference in

March 2018, a NSW focal persons’ meeting between GoP

ministries and enforcement divisions in May 2018, and an

inaugural Working Group coordination meeting in September

2018. All events were successful in achieving their intended

results of increasing nationwide awareness on the features and

benefits of NSW, facilitating the networking and exchange of

ideas among the public and private sectors, soliciting feedback

on the NSW Strategy, securing political and institutional

ownership of the NSW initiative, attaining national consensus

on the implementation strategy and devising an actionable path

for the smooth implementation of NSW in Pakistan.

Discussions to identify synergies and develop public-private

partnerships were also organized with Pakistan Software

Houses Association for Information Technology (P@sha),

Grant Thornton/ Webb Fontaine.

• Coordination with Donors: Recognizing USAID PREIA’s

continuous commitment to expedite NSW implementation in

Pakistan, on June 06, 2018 FBR/Pakistan Customs officially

appointed PREIA as the designated focal organization for

forming donor collaborations and securing funding for the

various technical elements that interlink under the larger NSW

umbrella. Through Year 3, the Project initiated strategic

dialogue with Department for International Development

(DFID), World Bank – International Finance Corporation

(IFC), Asian Development Bank (ADB), Japan International

Cooperation Agency (JICA) and the European Union (EU).

Unrelenting efforts to convince donors of bringing reform in

trade clearance procedures through NSW has been a fruitful

in that the World Bank-IFC has agreed to:

❖ Developing the PC-1 document, which is a core project

design document and forms the basis of the allocation of

funding by the GoP/federal authorities;

❖ Developing the feasibility for PCS starting from the sea

ports in Karachi. PCS is an electronic platform that

enables intelligent and secure exchange of information

between public and private stakeholders forming part of

the port community and is considered a gateway to NSW;

and

❖ Continuing coordination and ensuring complementarity of

efforts especially on BPM and data harmonization

exercise, and on meetings of the NSW steering

committee and working groups.

Above: Participants attend the Training/Awareness Session on National Single Window implementation.

Implementation of the Transports Internationaux

Routiers (TIR) Convention

Background

The Transports Internationaux Routiers or International Road

Transport (TIR) is a United Nations (UN) sponsored

Convention signed in 1975 under the auspices of the United

Nations Economic Commission for Europe (UNECE). The

Convention provides for a transit facility that exempts goods

and transport units from import duties/taxes while transiting

through the territories of the contracting parties. In July 2015,

Pakistan acceded to the TIR Convention and deposited the

instrument of accession to the UN, thereby committing to

implement the TIR Convention. By April 2018 Pakistan had

finalized its TIR Rules, completed its compliances on TIR and

was officially declared as a TIR compliant country by

International Road Transport Union (IRU).

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Year 3 Results

Given the developments, PREIA built the capacity of

FBR/Pakistan Customs, Pakistan National Committee of the

International Chamber of Commerce (PNC-ICC) – the

designated TIR Carnet issuing authority, and private transport

operators on TIR stipulations through Year 3. To this end, a

“'Hands-on Training on TIR Procedures” was delivered to over

150 stakeholders in Karachi, followed by an international “Study

Tour” for 07 (seven) FBR/Pakistan Customs officers to Turkey

and Geneva in February/March 2018. Both sets of the trainings

were delivered by subject experts from IRU and acquainted

GoP officials and private sector operators on the benefits of

TIR, its application and clearance procedures, and how the TIR-

Electronic Pre-Declaration (EPD) and Carnets are filed.

Practical demonstrations of vehicle inspection and handling

procedures were also delivered by the Turkish Customs

authorities. The Study Tour effectively produced “Master

Trainers” from within FBR/Pakistan Customs, who would

return to Pakistan and impart the knowledge to stakeholders

and customs colleagues nationwide.

In April 2018, USAID PREIA partnered with Mott MacDonald

and FBR/Pakistan Customs for the delivery of “Awareness and

Training” sessions on TIR. The sessions, led by five “Master

Trainers” were delivered across Islamabad, Karachi, Peshawar

and Quetta between May to September 2018, and informed

over 80 Customs field officers, traders, transporters, clearing

agents, logistics service providers and freight forwarders on the

stipulations, roles, responsibilities, procedures, implications and

benefits of implementing TIR compliances.

Conclusion and Challenges/Lessons Learned

Due to funding constrains and limited interest in TIR shown by

the private transport sector, PREIA has postponed plans to

conduct an implementation conference on TIR which was

earlier planned to be held during October-November 2018 in

collaboration with PNC-ICC. The future course of action will

be decided once the currently underway assessment study on

challenges in implementation of TIR is completed.

Above left: Ms. Zeba Ahmed, Director (Transit Trade), FBR delivers a presentation to participants of the Training/Awareness session Above right: Ms. Samar Ihsan, Joint Secretary WTO Wing, Ministry of Commerce and Mr. Wajid Ali, Director General (Reforms and Automation), Pakistan Customs listen in to the roles/responsibilities of GoP entities in administering TIR controls

International Standards Organization (ISO) 9001:2015

Certification of Customs House Karachi

Background

International Standards Organization (ISO) 9001:2015 is a

globally recognized management system that assists

organizations in complying with quality management principles

prioritizing customer focus, motivation, process approach and

continual organizational improvement. On the request of the

FBR/Pakistan Customs, PREIA is aiding Customs House in

Karachi in the attainment of an ISO 9001:2015 certification.

Year 3 Results

Between December 2017 and August 2018, PREIA contracted

the firm, Bureau Veritas (BV) to conduct a preliminary

assessment of the existing practices of 12 departments

stationed within Customs House Karachi. A thorough

examination of the Customs House’s policies and Standard

Operating Guidelines was also conducted and later

documented in a Gap analysis report by January 2018.

Subsequently, a Stage 1 ISO certification audit of Customs

House Karachi was conducted in July, with an audit findings

report submitted by BV in August 2018. Customs House

Karachi is currently making efforts to meet all compliances

specified under the ISO 9001:2015 and may successfully furnish

international standards of service delivery within Year 4 of

PREIA implementation.

Conclusion and Challenges/Lessons Learned

Transfers and postings of Pakistan Customs’ Focal Persons

nominated to coordinate the ISO Certification process

significantly hindered the process, since the newly appointed

officers required to be updated on the requirements and

commitments of the activity. PREIA had requested FBR/Pakistan

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USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 13

Customs to nominate a focal person from each of the twelve

Customs departments that are housed within Karachi Customs

House. In October 2017, when the certification process was

gaining momentum, six of the focal persons were transferred,

delaying the audit to be conducted by the certifying agency.

Development of Customs Manuals

Background

With an aim to inculcate transparency in customs procedures,

PREIA is assisting FBR/Pakistan Customs with the development

of its Manuals. The manuals will compile existing policy

documents of Pakistan Customs including Statutory Regulatory

Orders (SROs), laws, regulations and Standard Operating

Procedures (SOPs) to collate all customs related information in

a single resource document.

Year 3 Results

PREIA’s consultant completed the process mapping and

documentation of customs operations, which were

documented in 44 Chapters of the Customs Manuals Volume I

(Imports), Volume II (Exports) and Volume III (General). PREIA

is currently in the process of authenticating the information,

alongside a committee of five customs officials who will jointly

review the contents of the draft Manuals and validate the

authenticity of the Manuals. The formal acceptability of the

document would conclude PREIA’s assistance efforts.

Pakistan Afghanistan Transit and Trade

Background

Economic relations between Pakistan and Afghanistan have

been strained over the past 2-3 years. While Afghanistan claims

that Pakistan has not removed impediments to trade, Pakistan

claims that illegal trade under the cover of Afghan trade hurts

Pakistani business interests and cause losses in government

revenue. While attempts had been made to reconcile the

differences, a dearth of frequent dialogue among public and

private stakeholders and the lack of categorical hurdles specific

to each policy and operational area was lacking.

Year 3 Results

Public-Private Dialogue Fora

PREIA organized a public private dialogue forum and a special

working group meeting on the Pakistan-Afghanistan Transit and

Trade environment in January and May 2018. The events

provided a platform for key stakeholders, chambers of

commerce and public sector policy makers/regulators to review

the trends in the trade environment and identify specific

impediments that hamper trade, such as issues of trade

facilitation, transit and transport, en route security, customs

procedures, illegal trade, tariffs, banking and payments, and

infrastructure. Due to PREIA support, the forums resulted in

the identification of recommendations to resolve the issues in

each policy and operational area, brought forward a plan of

action to address issues that deter trade, and launched a wider

advocacy campaign led by Sarhad Chamber of Commerce and

Industry (SCCI) to revive Pak-Afghan trade relations.

Advocacy Support to Sarhad Chamber of Commerce and

Industry (SCCI)

Complementing the PREIA-SCCI partnership to initiate

stakeholder dialogue on trade and transit issues, PREIA also

supported SCCI for convening a stakeholder conference on the

economic agenda for the Khyber Pakhtunkhwa (KP) province.

The alliance was formed with a two-fold purpose of encouraging

the private sector in leading trade policy dialogues and

formulating a unified “Charter of Economy for KP” that would

orient and sensitize the participating Members of Parliament

(MPs) on the importance of provincial rights – particularly as

they relate to province’s role in recommending amendments to

laws which can potentially transform its business environment.

The stakeholder conference was held in March 2018, with

representation from all key political parties as well as presidents

from numerous Chambers of Commerce, private sector

stakeholders and media representatives. Discussions held

included the key production sectors of KP, their status and

potential for growth, and Pakistan-Afghanistan trade issues that

impact KP. Capitalizing on the traction gained from PREIA

support, SCCI established a committee on the Charter of

Economy for KP, which finalized a Joint Declaration on the

action items/priorities of the KP business community. The

Charter received unanimous buy-in from representatives of all

political parties and boosted SCCIs advocacy campaign on the

resolution of issues for the KP Province. The Chamber has since

raised awareness among authorities on industrial issues and

opportunities within the China Pakistan Economic Corridor

(CPEC), built the capacity of local trading community on trade

procedures, and successfully streamlining procedures for

obtaining quarantine and plant protection certification.

Advocacy Support to Pakistan Afghanistan Joint Commerce of

Commerce and Industry (PAJCCI)

PREIA collaborated with PAJCCI to support a roundtable

meeting on “Stakeholders’ perspectives for reinforcing

Afghanistan-Pakistan Economic Connectivity” in Islamabad. The

discussions were organized under PAJCCI’s declaration to

segregate economic aspirations from political and security

imperatives, and assembled approximately 40 stakeholders

including the Deputy Head of Mission of Afghanistan in Pakistan,

officials from FBR, National Logistics Cell (NLC), Pakistan

Railways and members of Chambers of Commerce.

Stakeholders collectively revisited numerous Pakistan-

Afghanistan trade and transit related issues including prevailing

security concerns, confidence building measures, segregating

business from political tensions, trends in Pak-Afghan bilateral

trade, implications of Iran’s facilitation of Afghan businessmen,

fiscal reforms and tariff rationalization, impact of border

closures, and regulatory bottlenecks, among others. Upon

concluding discussions, all stakeholders developed joint

proposals for addressing trade related issues and proposed

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solutions which will be submitted by PAJCCI to the Ambassador

of Afghanistan (in Pakistan), the President of Afghanistan, the

Prime Minister of Pakistan and the Chief of Army Staff, for

review, consideration and necessary action.

Afghanistan - Pakistan Bilateral Trade

In late PY3, PREIA worked alongside SCCI to organize a focus

group discussion on Pakistan Afghanistan Bilateral Trade. The

aim of the event was to gain insight into the existing

environment as well as to document the perspectives of the

private sector regarding issues that impede trade with

Afghanistan, such as policy concerns, operational bottlenecks

and their potential socio-economic impact. The event was

attended by representatives from across many sectors including

Flour and Wheat, Fresh Fruit and Dry Fruit, Pharmaceuticals,

Tourism and Travel, and other Perishables, Matches, Cement,

Sugar, Ghee, Polythene Bags and Honey. Discussions centered

around i) Reasons for the deteriorating Bilateral Trade between

Pakistan and Afghanistan, ii) Understanding the difference

between Operational and Policy issues, and iii) Key issues being

faced by businessmen/traders in Afghanistan.

Above: Participants of the PATT Dialogue Forum pose for a group photo.

Above left: Participants engage in discussion on Pakistan-Afghanistan Trade and Transit issues in Islamabad Above right: USAID Assistant Administrator, Mr. Greg Huger, addresses participants during the Working Group session

Made in Pakistan (MIP) - Almaty, Kazakhstan

Background

As part of its efforts to promote regional trade, PREIA has

organized one Made in Pakistan trade exhibition in Almaty,

Kazakhstan. The expo reported exports

since November 2016, signalling a positive return of

investment for both USAID PREIA and businesses from

Pakistan. PREIA now plans to deliver a second Made in Pakistan

Exhibition in Almaty during 2019.

Year 3 Results

The 2nd MIP was planned for delivery in late Year 3, which was

later extended Year 4 due to delayed receipt of approvals from

USAID on engaging the selected event management company.

Most arrangements had been completed through the course of

the year, including exhibition design, stakeholder outreach,

advertisement, marketing collateral and logistics. The event will

now be held in March 2019.

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October 01, 2017 – September 30, 2018 15

Milestones in Year 3

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SUCCESS STORY: Pakistan Makes Unprecedented Progress in Harmonizing Goods

Clearance Procedures

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 16

Panellists present on the importance of introducing a Single Window for trade,

at the NSW Conference.

Working Group members devise a joint action plan and way forward for NSW components.

Participants of the NSW donor coordination

meeting exchange views on the initiative.

In Pakistan, entities involved in international trade are required to regularly

prepare information and documents for submission to government authorities

before their goods can be cleared and released at the border. This effort of

complying with regulations often involves a large volume of information being

submitted to numerous regulators, each prescribing their own manual paper

forms and filing procedures. In addition, it is not uncommon for multiple

regulators to seek the same information in different formats. The extensive

nature of such requirements, coupled with the overlap of efforts and lack of

information exchange, constitute an undue burden on the trading community

and government in terms of the time and financial costs that are exhausted in

the process.

A trade related “Single Window” aims to resolve the complexities involved in

manual operations by establishing a single access point that fulfills all import,

export, and transit related regulatory requirements. By doing so, the facility

offers advantages to both the government and the trading community in the

following ways:

• Enables traders to electronically submit all required information in a

standardized format only once

• Creates efficient information flows among government agencies and

regulatory departments

• Strengthens interagency coordination

• Promotes transparency, security and predictability of operations

• Reduces inefficiencies in the utilization of human and financial resources

• Increases revenue yields through better trader compliance

• Reduces the time and cost of trade

As a signatory to the WTO’s Trade Facilitation Agreement (2015), Pakistan

notified the establishment of a “National Single Window” (NSW) with an

implementation timeline of five years starting February 2017. USAID, through

the Pakistan Regional Economic Integration Activity (PREIA), has been extending

support to the Federal Board of Revenue (FBR)/Pakistan Customs for the

initiative since 2015. As a first step in Year 3, the Project facilitated a “Situational

Analysis” of FBR/Pakistan Customs and 29 other trade regulatory authorities in

Pakistan, mapping the existing processes, policies and institutional capabilities of

each, and prescribing how or when the authorities should be integrated into the

NSW platform to achieve optimal results. The Analysis was followed by the

drafting of a “Strategy Document”, comprising of an NSW Blueprint and

Implementation Framework/Roadmap. The document built a strong case of how

Pakistan plans to replace current clearance practices with the automated Single

Window Facility and explicated every aspect of the reform procedure, including

the pre-implementation phase, governance models, business models, funding

options, resource requirements, phased implementation guidelines and case

studies on how other countries have managed to successfully transition to NSW.

The document was submitted to the Prime Minister’s (PM) office, who approved

the proposed NSW Strategy in May 2018.

PREIA also aided FBR/Pakistan Customs in designing the managerial structure,

functions, responsibilities and workplans for the NSW Steering Committee and

Working Groups, which were subsequently accepted and notified by

FBR/Pakistan Customs in May and September 2018, respectively. Technical

assistance on designing Terms of Reference (ToR) and selecting suitable

contracting parties for various NSW sub-components, such as legal studies, risk

management and business process harmonization remain on-going.

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SUCCESS STORY: Pakistan Makes Unprecedented Progress in Harmonizing Goods

Clearance Procedures

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 17

Participants attend the Awareness Session on

National Single Window implementation

On the sidelines of these efforts, the Project initiated a nationwide awareness,

training and outreach campaign on NSW. The purpose of the campaign was to

educate Customs Officials, Chambers of Commerce, Trade Associations, and

transport sector operators on the NSW concept, its advantages, progress made

to date and, most importantly, to gather feedback on how the process could be

improved from the perspective of key stakeholders. The sessions paved a path

for an inclusive approach to the NSW initiative, whereby the concept of public-

private partnership and inclusion can be utilized to provide impetus to the

Government’s efforts. Private sector stakeholders were also consulted before

the finalization of the NSW Strategy Documents and nominated to attend the

NSW Working Group meetings, which strengthened the often-strained

relationship between the public and private stakeholders and created an

atmosphere of national trust, ownership and collaboration.

USAID PREIA has continually facilitated donor coordination efforts with

FBR/Pakistan Customs and identified areas where support from donors could

be beneficial for the Project’s smooth implementation. As a result of PREIA-

sponsored donor coordination meetings, the World Bank-IFC as agreed to

extend its assistance for developing the PC-1 document, conducting a feasibility

study for the Port Community System (PCS), a Time Release Study (TRS), and

a legal gap analysis for Pakistan’s NSW. The Asian Development Bank (ADB) has

also committed to undertaking a consultancy on Risk Management Systems

(RMS) under NSW.

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SUCCESS STORY: Bringing Women to the Table – Gender Mainstreaming in Trade Policy

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 18

Participants discuss options for gender

mainstreaming in trade policy

Director General, Trade Policy, at the

Ministry of Commerce sheds light on the discussion topic

Women business owners and We-NET

members take part in the consultative

workshop on the gender review of STPF proposals

Group Photo from Workshop on Gender

Review of Draft STPF 2018-2023

Through its efforts towards public-private sector collaboration, and by

training/mentoring women leaders on gender mainstreaming in Pakistan’s trade

policy, United States Agency for International Development (USAID)|Pakistan

Regional Economic Integration Activity (PREIA) has been instrumental in including

gender mainstreaming in Pakistan’s future trade policy and establishing linkages

between the Ministry of Commerce (MoC), Government of Pakistan, and the

National Commission on Status of Women (NCSW) to sustain and monitor the

efforts.

During the solicitation phase of the Strategic Trade Policy Framework (STPF), in

early 2018, the MoC received several proposals from trainees of PREIA’s Women

Leadership in Trade Policy (WLTP) program. The WLTP program, launched in

January 2017, was a year-long training and mentorship program to educate women

and men on trade policy and its impact on gender, and equip them with skills for

effective advocacy and proposal development. Both the number of proposals

received and the quality (in in terms of relevance and applicability) was

unprecedented.

“From USAID/PREIA’s platform, I became part of the consultative sessions for the STPF 2018-2023 and rose the issue of absence of HS [Harmonized System] codes for machine embroidered and hand embroidered apparel.” Mahwish Afridi, a business owner Executive Member at Rawalpindi Chamber of Commerce and Industry (RCCI)

In July and August 2018, USAID/PREIA facilitated two important meetings for the

MoC, on the upcoming STPF 2018-2023. The STPF is the Government of Pakistan’s

policy document that aims to enhance Pakistan’s export competitiveness and

create a more inclusive trade/business environment. On July 10, 2018,

USAID/PREIA and MoC jointly hosted a Public Private Sector Consultation in

Islamabad to discuss specific policy goals for gender equity in trade and to

encourage more women participation in trade. This was followed by a workshop

on Gender Review of draft STPF Proposals on August 4-5, 2018, in Murree.

The meetings gathered multiple stakeholders, such as the government, female

entrepreneurs, women business owners and traders, civil society and

academia/think tanks, to discuss and draft concrete recommendations for gender

mainstreaming in Pakistan’s future trade policy. The participation of the NCSW

and the Punjab Commission on Status of Women (PCSW) in the deliberations was

particularly significant, because a gender review of all government programs,

policies and interventions is one of the institution’s core objectives. The impact

assessment of trade reforms will enable NCSW to identify sectors where risk for

women can be mitigated and sectors where growth opportunities can be

actualized.

One of the most substantial recommendations discussed and included in the draft

STPF 2018-2023 was the institutionalization of gender mainstreaming of trade

policy instruments (including the STPF and trade agreements) and inclusion of

NCSW in the Trade Policy Advisory Committee (TPAC). Institutionalizing gender

mainstreaming will help address the absence of gender focused policies for women

as consumers, producers, entrepreneurs, traders and/or workers, and allow for

greater gains in Pakistan’s long term economic development. Other substantial

recommendations for the upcoming STPF included the need for policy provisions

Page 22: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

SUCCESS STORY: Bringing Women to the Table – Gender Mainstreaming in Trade Policy

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 19

on gender segregated data and research analysis, gender sensitive communication

and women-owned enterprise development.

While the ultimate goal of ensuring that the recommendations are duly included in

the upcoming STPF 2018-2023 remains to be seen after the MoC’s finalization of

the policy, USAID/PREIA’s objective of bringing women to the table and enabling

them to understand and advocate for gender mainstreaming has been a meritorious

feat in the policy formulation and reform environment of Pakistan.

Page 23: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

SUCCESS STORY: Introducing Electronic Payments for Goods Clearance Reduces the

Cost and Transaction Time for Traders

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 20

By law, taxpayers (importers/exporters) are required to

declare their cargo through the submission of an online “Goods

Declaration” (GD) document that is associated with each

consignment entering or exiting the port. In the absence of

electronic options being made available to traders, tax liabilities

against each GD would be auto generated and sent to cashiers

available at the National Bank of Pakistan (NBP). The taxpayer,

or his/her representing agent, would then visit the designated

branch assigned to the respective Customs House, wait in long

queues at the venue, submit complete payment in the form of

cash, demand draft or pay order, and finally obtain physically

stamped receipts denoting provisional acknowledgement of the

payment before goods could be cleared.

The arrangement would present a myriad of inconveniences to

all stakeholders involved in the process, including time wasted

for an importer/exporter to wait in long queues and fill out

requisite forms, the burden of securing (sometimes sizeable)

amounts of cash required to pay duties and taxes, the obsolete

paper based reconciliation measures to be adopted by auditors,

the need for taxpayers or their agents to be physically present

at banks operated in the port-city, the extra cost borne by

importers/exporters to maintain staff that is responsible for

processing bank payments, and government revenue leakages

arising from face-to-face interactions, corruption, collusion or

bribery.

In 2017, USAID - through the Pakistan Regional Economic

Integration Activity (PREIA) - worked alongside FBR/Pakistan

Customs to replace the existing manual payment procedure

with a modern “Electronic (E) – Payments System”, as

mandated by the World Trade Organization’s (WTO) Trade

Facilitation Agreement (TFA). The system would allow for the

settlement of import/export duties, taxes, and fees through

electronic payment methods such as fund transfers, credit/debit

cards or online payments. PREIA’s efforts for the introduction

of e-payments initiated with bringing together all stakeholders

– FBR/Pakistan Customs, NBP, State Bank of Pakistan (SBP),

online interbank network “1-link Pakistan” and scheduled

banks- on a shared consultative platform. Through this

platform, a “Technical Review Committee” was constituted to

encourage regular discussion on identifying proposed solutions

and attaining mutual agreement on an IT based solution module.

On October 02, 2017, FBR, State Bank of Pakistan (SBP) and 1-

Link Pakistan signed a Memorandum of Understanding (MoU)

allowing users to pay customs duties/taxes using interbank fund

transfers. USAID|PREIA then defined the business requirements

and technical interface specifications (such as data formats,

timelines and mechanisms) required for the unification of the

multiple existing IT platforms involved in the payments process.

Following eight months of technical IT advisory assistance, on

March 21, 2018 FBR/Pakistan Customs launched a round-the-

clock digital facility that enables the trading community to

remotely pay all duties and taxes instantaneously, in real time,

using bank accounts, ATMs or online/phone banking services of

eighteen local banks. The E-Payments System, which is entirely

online-based and fully automated, is envisaged to be

advantageous to both Pakistani taxpayers and the Government

of Pakistan (GoP), in that it ensures the immediate collection of

taxes by revenue authorities, significantly reduces the

transaction time and costs of doing business, reduces

corruption arising from face-to-face interactions, and expedites

the processing of goods clearance operations considerably.

The E-Payments system, by doing away with the steps that a tax

payer previously had to take to deposit requisite taxes, has

reduced the time required to make these payments by a

minimum of 7 – 8 hours. In addition, the system has also

brought along cost savings which

would otherwise be dedicated towards the maintenance of staff

tasked with acquiring cash/pay orders/bank drafts, depositing

them at designated branches of NBP and finally presenting the

bank’s receipt at the concerned Customs office. Between

March and July 2018, the e-payments system was used by 807

companies/entities engaged in trade, while 2,262 Good

Declarations were also cleared based on electronic payments

of duties and taxes. Customs collectorates across Pakistan,

including Islamabad, Karachi, Lahore, Peshawar and Sialkot have

been reported to utilize the e-payments system.

PREIA’s support to automate Customs payments successfully

lead to the State Bank of Pakistan (SBP) activating its mechanism

for payment transfers between various governments

departments. The Customs E-Payment System, as well as the

activation of payments between various departments within the

government, has opened dialogue within the inland and

provincial revenue departments of Pakistan to enable online tax

collection facilities through SBP.

“As the system provides end-to-end solution right from filing of the tax returns to payment of taxes to recording in government books of accounts it will bring efficiency, safety and transparency in government tax collection system.” Special Assistant to (Ex) Prime Minister on Revenue, Haroon Akhtar Khan.

Page 24: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

SUCCESS STORY: Introducing Electronic Payments for Goods Clearance Reduces the

Cost and Transaction Time for Traders

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 21

Above: (Ex) Minister for Finance, Mr. Ishaq Dar, and representatives of FBR/Pakistan Customs and State Bank of Pakistan (SBP) sign MoU on the E-payments system in Karachi.

PREIA support for the automation reform process is expected to improve Pakistan’s ranking on the World Bank’s “Doing

Business Index”. The gradual uptake of the facility will also promote unprecedented transparency and reliability in Customs

payment collection operations, ultimately improving the trade environment of Pakistan.

Page 25: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Project Deliverables

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 22

Deliverables Completed in Y3

Component 1: Improved Business Enabling Environment

Sr. # Document Title Submission

1 Terms of Reference (ToR): Hiring of Individual Consultants

For the review of Proposals and drafting of Strategic Trade Policy Framework (STPF) November 2017

2 Terms of Reference (ToR): Hiring of Individual Consultants for the Development of Statutory Regulatory

Orders (SROs) for the Ministry of Commerce November 2017

3 Scope of Work/ToRs: Hiring Services of an Institute for the Development of Quarterly Trade Bulletin (QTB) November 2017

4 Concept Note: Hiring of a Short-Term Technical Assistant (STTA) Consultant/firm to review and evaluate

stakeholder proposals for the STPF 2018-2023 December 2017

5 Assessment: Monitoring and Evaluation of Trade Officers December 2017

6 Post Event Report: Women National Business Agenda (WNBA) Consultations January 2018

7 Briefer: Inclusive Growth and Fair Trade March 2018

8 Presentation: Gender Mainstreaming in Trade Policy March 2018

9 Presentation: Trade officers Monitoring and Evaluation (M&E) April 2018

10 Post Event Report: Pre STPF-Development Stakeholder Consultation Sessions May 2018

11 [RIAA Barker Gillette Deliverable] Working Drafts: Trade Dispute Resolution Commission (TDRC) Act 2018 May 2018

12 [RIAA Barker Gillette Deliverable] Executive Summary: Trade Dispute Resolution Commission (TDRC) Act

2018 May 2018

13 Concept Note: Workshop on Gender Review of STPF Proposals June 2018

14 Presentation: Women Leadership in Trade Policy (WLTP) Outreach June 2018

15 Presentation: Public Private Sector Consultation on Gender and Trade Policy July 2018

16 Post Event Report: Public Private Sector Consultation on Gender and Trade Policy July 2018

17 Summary of proposals: Gender Review of STPF 2018-23 Proposals August 2018

18 Presentation: Workshop on Gender Review of STPF Proposals: Guidelines for Policy Analysis August 2018

19 Post Event Report: Workshop on Gender Review of STPF 2018-23 Proposals September 2018

20 1st and 2nd Issues: Quarterly Trade Bulletin (QTB) September 2018

21 [RIAA Barker Gillette Deliverable] Final Draft: Trade Dispute Resolution Commission (TDRC) Act 2018 September 2018

22 [RIAA Barker Gillette Deliverable]: Final Draft: Trade Dispute Resolution Commission (TDRC)

Organizational/Procedural Rules September 2018

23 [RIAA Barker Gillette Deliverable]: Final Draft: Trade Dispute Resolution Commission (TDRC) Service Rules September 2018

24 Report: Performance Monitoring and Evaluation (M&E) System for Trade Officers Posted Abroad September 2018

25 Presentation: Performance Monitoring and Evaluation (M&E) System for Trade Officers Posted Abroad September 2018

Component 2: Improved Capacity to Access Regional Markets

Sr. # Document Title Submission

1 [STTA Deliverable] Job Descriptions: Program Management Office (PMO) on NSW October 2017

2 [STTA Deliverable] Terms of Reference (ToRs): Program Management Office (PMO) on NSW October 2017

3 [STTA Deliverable] Organizational Structure: Program Management Office (PMO) on NSW October 2017

4 [STTA Deliverable] Terms of Reference (ToRs): National Steering Committee on NSW October 2017

5 Presentation: TIR System in Pakistan November 2017

6 [STTA Deliverable] Terms of Reference (ToRs) for hiring a Consultant (Law and Procedures) for NSW

implementation November 2017

7 [STTA Deliverable] Terms of Reference (ToRs) for hiring a Consultant (on Port Community Systems) for NSW implementation

November 2017

8 [STTA Deliverable] Presentation: An Introduction to National Single Window (Delivered to FBR/Customs

Officials and private sector stakeholders) November 2017

9 Concept Note: Made in Pakistan Trade Expo in Almaty, Kazakhstan November 2017

10 Concept Note: Collaborative Interventions on TIR - PREIA and ADB/Mott McDonald Pakistan December 2017

11 Concept Note: NSW Awareness and Outreach Plan December 2017

Page 26: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Project Deliverables

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 23

Sr. # Document Title Submission

12 [Crimson Logic Deliverable] Situation Analysis Report: National Single Window December 2017

13 [STTA Deliverable] Evaluation Report: Status of E-payments (October 2017- January 2018) October 2017 –

January 2018

14 Tasker: Estimated Authorized/Unauthorized Payments per Truck (2018) January 2018

15 Presentation: Afghanistan Pakistan Bilateral Trade January 2018

16 Presentation: Afghanistan Pakistan Transit and Trade Agreement (APTTA) 2010 – State of Implementation January 2018

17 [Bureau Veritas Deliverable] Gap Analysis Report: ISO 9001:2015 Certification of Customs House Karachi January 2018

18 Discussion Notes: Public-Private Dialogue Forum on Pakistan Afghanistan Transit and Trade January 2018

19 [STTA Deliverable]: NSW Project Management Matrix January 2018

20 Presentation: National Singe Window – Connecting Trade February 2018

21 Presentation: Electronic Payments System of Pakistan Customs-WeBOC February 2018

22 [Crimson Logic Deliverable] Pakistan’s National Single Window: Blue Print and Implementation Program – first

draft February 2018

23 [STTA Deliverable] Evaluation Report: Status of PREIA Support for NSW Implementation (January 2018) February 2018

24 [Crimson Logic Deliverable] Pakistan’s National Single Window: Blue Print and Implementation Program – final

draft March 2018

25 Post Event Report: National Single Window Stakeholders’ Conference March 2018

26 Terms of Reference: Assessment on the state of readiness/automation of Other Government Authorities

(OGAs) for National Single Window implementation April 2018

27 Terms of Reference: National Single Window Working Groups April 2018

28 Post Event Report: NSW Stakeholders Conference (March 7-8, 2018) *

*submitted by TFP April 2018

29 Concept Note: Exposure Visit on National Single Window (NSW) to Singapore April 2018

30 Terms of Reference: Integrated Risk Management Activity August 2018

31 [Bureau Veritas deliverable] Stage 1 Audit Report: Customs House Karachi August 2018

32 Post Event Report: Transports Internationaux Routiers Awareness & Training Sessions Karachi, Quetta,

Islamabad September 2018

33 [STTA deliverable] First draft: 44 Chapters of Customs Manuals September 2018

Component 0: PMO/Cross Cutting

Sr. # Document Title Submission

1 Fifty-one (51) Weekly Information Memos October 2017-

September 2018

2 Monthly Progress Report (October 2017) November 2017

3 Monthly Progress Report (November 2017) December 2017

4 Quarterly Progress Report (FY2017 Quarter 4) October 2017

5 Annual Summary Report (FY2017/Project Year 2) October 2017

6 Quarterly Performance: Review of Indicators (FY2017 Quarter 4) October 2017

7 Projected Expenditure Report Quarter 1, 2018 (October – December 2017) December 2017

8 Financial Data for Accruals Quarter 1, 2018 (October – December 2017) December 2017

9 Quarterly Progress Report (FY2018 Quarter 1) January 2018

10 Quarterly Performance: Review of Indicators (FY2018 Quarter 1) January 2018

11 Monthly Progress Report (January 2018) February 2018

12 Monthly Progress Report (February 2018) March 2018

13 Projected Expenditure Report (FY18 Q4) – July to September 2018 March 2018

14 Financial Data for Accruals (FY18 Q4) – July to September 2018 March 2018

15 Quarterly Progress Report (FY2018 Quarter 2) April 2018

16 Reporting of Host Government Taxes for USAID/Pakistan April 2018

Page 27: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Project Deliverables

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 24

Sr. # Document Title Submission

17 Quarterly Performance Review of Indicators (FY2018 Quarter 2) April 2018

18 Monthly Progress Report (April 2018) May 2018

19 Monthly Progress Report (May 2018) June 2018

20 Quarterly Financial Report (Fiscal Year 2018 – Quarter 2) for the period of performance April 1- June 30,

2018 May 2018

21 Quarterly Projected Expenditure Report - Quarter 3, 2018 (April – June 2018) June 2018

22 Quarterly Financial Data for Accruals for the quarter ended: 30/Jun/2018 June 2018

23 Quarterly Progress Report (FY2018 Quarter 3) July 2018

24 Quarterly Performance Review of Indicators (FY2018 Quarter 3) July 2018

25 Quarterly Financial Report (FY2018 Q3) July 2018

26 Monthly Progress Report (July 2018) August 2018

27 Monthly Progress Report (August 2018) September 2018

28 Projected Expenditure Report - Quarter 4, 2018 (July – Sep 2018) September 2018

29 Financial Data for Accruals - For the Quarter ended Sep 30, 2018 September 2018

30 Draft Work Plan: October 1, 2018 – August 31, 2020 September 2018

Page 28: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Review of Indicators

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 25

Review of Indicators

Indicator No. FY18

Target

FY18

Actual Notes

C-1: Number of bottlenecks to

implementation of key trade

agreements reduced as a result of

PREIA-supported input

04 25

PREIA targets for the Year had primarily included results from its support

surrounding the Afghanistan Pakistan Transit Trade Agreement (APTTA), the

waiving off of demurrage charges by Pakistani authorities, the notification of

the NSW PMO and NSC, and the pilot introduction of electronic payments.

Given the course that the activities took, a number of existing plans for

activities expanded into the development of policies/rules, signing on MoUs, and the removal of other unforeseen impediments related to e-payments.

The degree by which the Actuals exceeded the Targets was further amplified

by the increased frequency of efforts for NSW related coordination such as

focal person coordination, development of donor and public-private

partnerships, steering committee meetings. On the results front, the

notification of Pakistan Customs as the “Lead Agency” and PM approval for

NSW implementation were realized sooner than expected. The removal of

APTTA related bottlenecks, such as numerous dialogue forums being

instituted by PREIA through Year 3, the signing of a joint declaration, and

advocacy efforts undertaken by PAJCCI and SCCI also contributed to the

increased achievements. Most of the activities supported around Pak-Afghan

trade had not specifically been identified in early PY3.

DO 2.2.1 b: Number of persons

receiving USG supported training

on policy development, analysis,

and implementation

516 604

PREIA successfully delivered most trainings that were planned to be

delivered during the year. Trainings that lead to an excess of Actuals included

the expanded scope of TIR trainings (initially planned to be delivered to 40

individuals in two cities) and requests from the private sector to replicate

WLTP trainings.

C-3: Average score on Institutional

Capacity assessment tool N/A N/A

The indicator was not reported on in Year 3 and is recommended for

removal. Upon formal approval from USAID, the indicator will be retired.

DO 2.2.2 a: Number of USG-

assisted organizations that

participate in legislative

proceedings and/or engage in

advocacy at all levels

92 479

Keeping in view the lack of traction received in Year 2 and its resulting

impact on the delivery of results, PREIA adopted a prudent approach in Year

3 target setting. The Project also decided to organize smaller, more focused

workshops and discussion forums as opposed to large scale events, with

some exceptions for conferences. However, the scale of outreach/geographic

coverage for multiple activities expanded during the course of the year.

These included STPF consultations, WNBA discussions, NSW Steering

Committee and Working Group Coordination meetings, and dialogue

around APTTA issues. Organizations attending meetings on gender and trade

policy matters, and for the finalization of the TDRC Act were also an

additional occurrence as the events were not in PREIA’s implementation plan when targets were set.

DO 2.2.2 b: Number of events for

public/stakeholders’ consultation

to enhance sector governance or

facilitate private sector

engagement in policy making as a

result of USG assistance

16 25

All events planned for stakeholder consultation and policy dialogue were

met, with the exception of PPDF events. However, as mentioned against

indicator DO 2.2.2 a, the number of events for the finalization of the STPF

and WNBA, NSW and TIR implementation and dialogue surrounding gender

mainstreaming in trade policy, APTTA and TDRC increased during PY3.

DO 2.1.3 b: Number of farmers or

others who have applied new

technologies or management

practices as a result of USG

assistance

54 809

The target had estimated that the number of traders/freight

forwarders/logistics service providers expected to utilize the electronic

payments system in its pilot stages would hover around 50-70. However, in

its first round of feedback in July 2018 the FBR/Pakistan Customs’ WeBOC

system reported that 807 trading entities had been recorded to have

processed customs duty payments through the new system. The adoption of

e-payments by the trading community was beyond what PREIA had

anticipated.

DO 2.2 a: Number of enabling

environment policies analyzed,

consulted on, drafted or revised,

approved, and implemented with

USG assistance (EG 3.1-12 mod)

15 23

Targets against policies planned for review, analysis, consultation, drafting,

revision or approval during FY2018 were exceeded by recurring

consultations, revisions and drafting around the TDRC Act, E-payments,

NSW and TIR. The Project also undertook additional policy amendments and

discussions which were considered instrumental in realizing activity

objectives such as the E-payments policy amendment, Gender review of

STPF, and Pak-Afghan policy analyses.

Page 29: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Review of Indicators

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 26

Indicator No. FY18

Target

FY18

Actual Notes

DO 2.2.1 a: Person hours of USG

supported training completed in trade and investment (EG 2-1)

5,160 5,925 As documented for indicator DO 2.2.1 b above.

DO 2.1.2 b: Number of persons

receiving training on skill

development

47 56

In the draft Year 3 Workplan proposal, PREIA had only included one Training

on the “Policy Formulation Process and Role of Gender” – a non-skill

development area – against the WLTP Cycle II. In reality, PREIA could

accommodate the delivery of multiple WLTP trainings within the same

budget. These trainings which were later added to the implementation plan

also included a skill-development training on “Advocacy and Proposal

Development” delivered to 39 individuals in Islamabad and Karachi. While

PREIA could not deliver its targeted training to 30 MoC officers on Trade

Data Analysis, the Actuals still exceeded targets due to the WLTP training mentioned above.

DO 2.1 b: Value of targeted

commodities exported with USG

assistance (EG.3.2-23 mod)

USD

120,000

USD

118,618

Exports that were generated as a result of PREIA-sponsored Made in

Pakistan Exhibition 2016 came close to the mark anticipated by

PREIA.

C-7: Number of PREIA-supported

businesses entering into trade

deals with

Pakistani/regional/international

entities

6 5

The number of businesses entering into trade deals as a direct result of the

Made in Pakistan exhibition 2016 has been encouraging for the Project, and

may continue through PY5.

C-8: Number of follow up visits

made to pursue trade partnerships

as a result of PREIA assistance

6 5

The number of businesses visiting Central Asian countries to follow up on

potential partnerships post Made in Pakistan exhibition 2016 has been

encouraging for the Project, and may continue through PY5.

C-9: Number of businesses

participating in regional trade

promotion activities, as a result of

PREIA support

35 0

The target was derived from PREIA’s planned execution of the Made in

Pakistan exhibition, which was to be held in Almaty, Kazakhstan during late

PY3. Although the applications received for participation from businesses

suggests that PREIA can claim to support the participation of at least 40

Pakistani businesses, the implementation timelines have been severely

impacted by delayed approvals from USAID. PREIA will now organize the

event in PY4.

C-10: Number of trade deals

signed between Pakistani, regional

and international entities as a

result of PREIA support

6 5 As documented for indicator C-7 above.

C-11: Value of imports/ exports/

Foreign direct investments (FDI)

attributable to PREIA assistance

USD

150,000

USD

144,018

Imports/Exports/FDIs that were generated as a result of PREIA-sponsored

Made in Pakistan Exhibition 2016 came close to the mark

anticipated by PREIA.

Page 30: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

Acronyms

USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 27

List of Acronyms

ACWL Advisory Centre on WTO Law

ADR Alternate Dispute Resolution

BPM Business Processing Mapping

CPEC China Pakistan Economic Corridor

DAI Development Alternatives Incorporation

EPD Electronic Pre-Declaration

FBR Federal Board of Revenue (FBR)/Pakistan Customs

FT Foreign Trade Wing

GoP Government of Pakistan

GUC Grants Under Contract (GUC)/Activity Fund

IRU International Road Transport Union

KP Khyber Pakhtunkhwa

KPI Key Performance Indicators

LEAD Leadership for Environment and Development

M&E Monitoring and Evaluation

MoC Ministry of Commerce

MP Members of Parliament

NADRA National Database and Registration Authority

NCSW National Commission for the Status of Women

NLC National Logistics Cell

NSW National Singe Window

P@SHA Pakistan Software Houses Association

PAJCCI Pakistan Afghanistan Joint Chamber of Commerce and Industry

PCS Port Community System

PMO Program Management Office

PNC-ICC Pakistan National Committee of the International Chamber of Commerce

PPDF Public Private Dialogue Forum

PREIA Pakistan Regional Economic Integration Activity

QTB Quarterly Trade Bulletin

RIAABG RIAA Berker Gillette

SCCI Sarhad Chamber of Commerce and Industry

SDG Sustainable Development Goals

SDPI Sustainable Development Policy Institute

SoPs Standard Operating Procedures

SRO Statutory Regulatory Order

STPF Strategic Trade Policy Framework

STTA Short Term Technical Assistant

TDAP Trade Development Authority of Pakistan

TDRO Trade Dispute Resolution Organization

TIR Transports Internationaux Routiers Convention

ToRs Terms of Reference

WLTP Women Leadership in Trade Policy

WNBA Women National Business Agenda

WTI World Trade Institute

WTO World Trade Organization

Page 31: PAKISTAN REGIONAL ECONOMIC INTEGRATION ACTIVITY (PREIA)

USAID Pakistan Regional Economic Integration Activity (PREIA)

USAID PREIA

www.usaid.gov/pakistan

Dedicated to Improving Trade

The United States Agency for International Development (USAID) is funding Pakistan Regional Economic

Integration Activity (PREIA), a five-year (September 1, 2015 – August 31, 2020), USD 14.4 Million project that

aims to further the development of Pakistan's trade sector. PREIA's focus on trade promotion and facilitation

will include collaboration with the public and private sector stakeholders in Pakistan to improve trade and

transit competitiveness that result in increased trade and transit volumes. Through technical assistance and

capacity development, PREIA will also support enhanced regional economic integration with Pakistan's

neighbors through increased access to international and regional markets.