Sustainable Economic Development in Pakistan

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Sustainable Development Policy Institute

Sustainable Economic Development in Pakistan Book: Pakistan's Security Problems & Challenges

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This report sheds light on the significance of digital trade integration for Pakistan and selected Central Asian countries including Afghanistan, Kazakhstan, Tajikistan, and Uzbekistan. Digital trade integration involves regulatory structures/policy designs, digital technologies, and business processes along the entire global/regional digital value chain. Digital trade integration requires free cross-border movement of not only digital products, services, and technologies but also other manufactured goods, data, capital, talent, and ideas along with the availability of integrated physical and virtual infrastructure. Hence, digital trade integration requires the removal of digital trade barriers as well as extensive technology, and legal and policy coordination between member states. Countries around the world have actively engaged in establishing new and progressive bilateral and regional trade agreements to boost trade and economic growth. The significance of digital trade has increased considerably after the COVID-19 pandemic. Improvement in digital connectivity, ease in regulations, and skilled workers are key factors to facilitate trade integration and promote the growth of the e-commerce sector. The report examines the regional trade agreements of Pakistan and selected Central Asian countries and their relevance for digital trade integration. It also scrutinizes the challenges faced by the public institutions of Pakistan in the implementation of digital trade policy. Besides this, the report also observes the challenges faced by SMEs dealing with digital trade-related products. The findings show that Pakistan and selected Central Asian countries are at different levels of digital adoption, including mobile connectivity index and download speed of mobile and broadband. Kazakhstan and Pakistan have a higher export and import volume compared with other countries. However, neither country has any major trading partner from the countries selected in this study, which demonstrates the lack of regional cooperation and the need for regional trade agreements to boost bilateral and regional trade. The report discusses the e-commerce laws of Pakistan and selected Central Asian countries, whereas domestic policies and measures to increase digital trade are also reviewed. The countries are at a different level in terms of implementing digital trade facilitation measures. Lack of effective enforcement of intellectual property rights, non-tariff measures, foreign investment restrictions in digital space, data and information costs, cyber security, and tax policy and administration are all key policy issues that influence digital trade integration. The study offers a way forward in which action points are provided for governments, the nongovernmental sector (notably, business associations and networks), academia and think tanks, and development partners. #DigitalTradeIntegration #RegionalTradeAgreements #EconomicGrowth #DigitalConnectivity #EcommerceLaws

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The policy brief by the Sustainable Development Policy Institute (SDPI) outlines the urgent need to address the high consumption of Industrially Produced Trans Fatty Acids (iTFA) in Pakistan, which poses significant health risks, particularly in contributing to cardiovascular diseases. Despite being the second-highest per capita consumer of iTFA in the WHO-Eastern Mediterranean Region, Pakistan lacks comprehensive regulations and enforcement mechanisms to mitigate iTFA consumption effectively. The brief recommends a multi-faceted approach involving uniform standards, transparent enforcement, public awareness campaigns, capacity building for regulatory authorities, and collaboration with the food industry to promote healthier alternatives. It highlights the importance of political commitment, intersectoral collaboration, and public-private dialogue to successfully eliminate iTFA from the food supply chain and improve public health outcomes in Pakistan.

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In his comprehensive analysis, Vaqar Ahmed highlights the challenges and impediments faced by Pakistan's trade and industrial policies, particularly concerning macroeconomic stability, energy shortages, rising costs, and regulatory constraints. The recent decline in the value of the Pakistani Rupee has further intensified issues for the manufacturing sector. The adverse macroeconomic conditions, including high inflation and a policy rate exceeding 20 percent, have hampered the sector's ability to secure working capital. Large firms' reluctance to operate in special economic zones due to supply-side gaps, coupled with global economic uncertainties, has delayed the next phase of the China Pakistan Economic Corridor (CPEC). Ends with some policy recommendations.

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Highlights the country's large and young labor force, with a 1.94% population growth rate and 65.5 million individuals actively seeking work according to the 2017-18 Labor Force Survey. However, the unemployment rate currently stands at 5.8%, with the highest rate (11.56%) among youth aged 20-24. In response, the government launched the Prime Minister's Kamyab Jawan Programme, allocating Rs 100 billion to support entrepreneurship and create employment opportunities for youth. This program encompasses six key initiatives, including the Youth Entrepreneurship Scheme, Hunermand Pakistan Programme, Green Youth Movement, Startup Pakistan, National Internship, and Jawan Markaz. By focusing on skills development, entrepreneurship, and youth empowerment, the government aims to address unemployment challenges and foster a more vibrant economy.

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The Khyber Pakhtunkhwa Urban Policy aims to transform KP's urban centers into engines of social, economic, and cultural growth by promoting vibrant communities, sustainable practices, and economic opportunities. It focuses on inclusive development, infrastructure improvement, efficient governance, environmental protection, and cultural preservation, aiming to make cities globally competitive and provide a high quality of life for all citizens. This policy, reviewed every five years, provides a roadmap for urban development in KP, seeking to create a brighter future for its residents.

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This study aims to explain the macroeconomic and welfare impacts of changes in indirect taxes brought about in response to COVID-19. We study whether the tax relief provided for in the federal budget for fiscal year 2020-21 was effective in providing relief to private enterprises and the trade sector. We also study whether production subsidies granted during the first wave of COVID-19 were effectively able to support firms in the agricultural sector. This assessment allows us to draw lessons that may be useful for designing tax benefit policies amid future waves of the pandemic or during other emergency times.

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The Government of Pakistan has offered export facilitation schemes to exporters with the objectives to lower trade costs and expand output. Currently, nearly one dozen export facilitation schemes are active. They also include those which are run by the Federal Board of Revenue (FBR). The question of ‘effectiveness’ of such schemes in boosting Pakistan’s exports has remained a consistent theme of interest among policymakers, international development partners and private sector. This policy brief builds on a firm-level survey, conducted by the Sustainable Development Policy Institute (SDPI), and is an attempt to understand the effectiveness, overall gains, and shortcomings of four major export facilitation schemes offered by the FBR, including Duty and Tax Remission for Exports (DTRE), Manufacturing Bond (MB), Export Oriented Unit (EOU) and Export Facilitation Scheme (EFS). The study aims to provide insights on how best to improve design of Export Facilitation Scheme 2021, which will absorb all other schemes by the end of 2023.

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The Ministry of Commerce in Pakistan unveiled the National Tariff Policy 2019-24 (NTP 2019- 24) in November 2019. The core aims of the policy were to: i) remove tariff-related anomalies in the short-term to lower businesses’ cost of inputs and increase their turnover, ii) increase employment generation in the medium-term, and iii) gain competitiveness and exports in the long-term. After its announcement, there remains a need to analyze the effectiveness and impact of the policy. SDPI team conducted primary research to assess the impact of tariff policy on Small and Medium Enterprises (SMEs) with the help of a firm-level survey. This specific survey aims to bridge the evidence gap by providing an in-depth analysis on the NTP-2019-24 impact in terms of its three prime objectives. Besides, the study also attempts to understand the business community’s challenges and expectations vis-à-vis tariff-related matters.

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Digital trade is increasing rapidly throughout the world whereas digital platforms and Coronavirus have further enhanced the importance of the digital economy and digital trade. Countries are focusing on promoting digital trade and integration through various measures including free trade agreements and bilateral negotiations. This study examined digital trade as defined by WTO E-commerce work and USITC. The study included the items that come under the definition of digital trade and examined the digital trade volume of Pakistan from 2010-2020 through three-step methodology. This includes the identification of digital trade items based on Harmonized System at a six-digit level, examining trade volume for digital goods, and identification of top ten export and import items along with top ten markets for digital trade. Favorable government policies and measures have helped Pakistan in promoting digital trade flows. However, there is a need to develop information and communication technology infrastructure in Pakistan to flourish trading activities. Furthermore, Pakistan has to reduce the fiscal and trade barriers such as rules and regulations for foreign investment in digital space, data and information costs, and ensure online security and data protection to promote digital trade integration. by Asif Javed & Vaqar Ahmed

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This study presents a pathway for fostering regional digital trade integration through South-South and Triangular cooperation. Our main study goals include answering the following questions: » What are the challenges faced in the digital trade sector of Afghanistan, Pakistan and Sri Lanka? How can these be overcome through various cooperative models? » How can inclusive regional and free trade agreements help to overcome barriers and enable digital trade integration? » What can Small and Medium Enterprises (SMEs) dealing with digital trade-related products learn from literature on South-South and Triangular cooperation? Suggested citation: Ahmed, V. and Javed, M. Digital Trade Integration: South-South and Triangular Cooperation in South Asia (unpublished). South-South Idea Paper Series, United Nations Office for South-South Cooperation (UNOSSC),Washington D.C.New York, 2022.

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Pakistan is facing numerous socioeconomic impacts of the Covid-19 pandemic, including on food security. Food insecurity, which is a long-standing issue, has become more visible since the pandemic. Covid-19 Responses for Equity (CORE) partner the Sustainable Development Policy Institute (SDPI) – a leading policy research thinktank – has been supporting the Government of Pakistan to maintain essential economic activity and protect workers and small producers during the pandemic. One notable contribution has been the development of a Food Security Portal, which is being used by the government to better manage food security in the country. It is the first track and trace system from farm to fork for essential food items. URI https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/17619 Citation Suleri, A.Q.; Ahmed, V.; Ahmad, S.M.; Shah, Q.; Zahid, J. and Gatellier, K. (2022) Strengthening Food Security in Pakistan During the Covid-19 Pandemic, Covid-19 Responses for Equity (CORE) Stories of Change, Brighton: Institute of Development Studies, DOI: 10.19088/CORE.2022.008

Strengthening Food Security in Pakistan During the Covid-19 Pandemic

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Political and socio-economic discussions in Pakistan’s popular discourse are often inward-looking and generally focus on the country itself, or on its relationships to its immediate neighbors (Afghanistan, India, and China). We suggest here that Pakistan is part of a global system, as well. It is influenced not just by its direct neighbors, but also by: international events (war in Ukraine is just one example); by global economic factors (e.g. oil prices, changing terms of trade, or the danger of a global recession); and by various other global governance arrangements (e.g. Financial Action Taskforce and its demands from Pakistan). At the same time, Pakistan is not insulated from the global systemic changes. The global pandemic has overwhelmed the policymakers with possibilities of future epidemics also not being ruled out. In the past migration of people, both incoming and outgoing, has impacted the social fabric. Likewise, the country is suffering from global warming and the resulting patterns of weather and precipitation. Pakistan is also a player at the international arena and is expected to play a responsible and proactive role at various global governance forums. The speech of the former Prime Minister of Pakistan at the UN General Assembly on September 27, 2019 has indicated regarding this responsibility and highlighted Pakistan’s role in the Cold War, or the engagement of Pakistani soldiers abroad, either in the United Nations peace keeping framework, or bilaterally. While many Pakistanis are aware of some of Pakistan’s international roles and dependencies, and of Pakistan’s image abroad, there is limited discussion about the country’s global role – what it should be? Who are the internal and external actors that shape Pakistan’s role, engagement, influence, and perception abroad? What role does the state and citizens play in deciding Pakistan’s global role? These are some of the questions that our chapter authors aimed to touch upon in this book. A conscious effort has been made to reach out to Pakistanis living and working abroad. Chapters have been invited from such resource persons who are not only Pakistanis but also study Pakistan from abroad and often through various lens external to Pakistan. Web: https://pakistan.fes.de/e/global-pakistan-pakistan%CA%BFs-role-in-the-international-system

Global Pakistan: Pakistan's Role in the International System

Sustainable Development Policy Institute

The Covid-19 pandemic and related restrictions have had profound socioeconomic impacts worldwide. Governments have been faced with responding urgently to mitigate such effects, especially for the most vulnerable. Covid-19 Responses for Equity (CORE) partner Partnership for Economic Policy (PEP) – a Southernled organisation which believes that evidence produced from an in-country perspective, by empowered and engaged local researchers and policymakers, results in better policy choices – has been working closely with policymakers in Pakistan to assess the Covid-19 impacts and the effectiveness of current and potential policies. As a result, PEP has helped introduce tax reforms for the hardest hit, agricultural subsidies for farmers, and the reduction of trade tariffs for struggling businesses.

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Digital Trade Integration in Central Asia

Reducing Industrially Produced Trans Fatty Acids in Pakistan

Institutions, Regulations, Trade, and Industry

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Do export schemes deliver for small businesses?

On knowledge systems & evidence use

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