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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.
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
Miraal Khan
Senior Officer M&E | USAID Pakistan Regional Economic Integration Activity
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
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.
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;
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.
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
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.
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.
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.
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 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.
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 9
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.
Component 2:
Improved Capacity to Access Regional Markets
USAID Pakistan Regional Economic Integration Activity
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
Component 2:
Improved Capacity to Access Regional Markets
USAID Pakistan Regional Economic Integration Activity
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).
Component 2:
Improved Capacity to Access Regional Markets
USAID Pakistan Regional Economic Integration Activity
USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 12
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
Component 2:
Improved Capacity to Access Regional Markets
USAID Pakistan Regional Economic Integration Activity
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
Component 2:
Improved Capacity to Access Regional Markets
USAID Pakistan Regional Economic Integration Activity
USAID Pakistan Regional Economic Integration Activity – Annual Report October 01, 2017 – September 30, 2018 14
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.
USAID Pakistan Regional Economic Integration Activity – Annual Report
October 01, 2017 – September 30, 2018 15
Milestones in Year 3
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.
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.
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
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.
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.
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.
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
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
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
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.
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.
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
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.