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Pakistan: Trade and Competitiveness Program (Subprogram 1)

Sovereign (Public) Project | 52049-001 Status: Active

The program will help Pakistan reduce its current account deficit, promote macroeconomic stability, and foster sustained high growth by improving trade competitiveness and exports. The program will (i) introduce important tariff and tax-related policy reforms to support Pakistan's export industries and increase their competitiveness internationally; and (ii) strengthen key trade-facilitating institutions such as accreditation bodies, the EXIM Bank of Pakistan (EXIMBP), and the National Single Window (NSW).

Project Details

Project Officer
Hiranya Mukhopadhyay Central and West Asia Department Request for information
Country
  • Pakistan
Sector
  • Industry and trade
 
Project Name Trade and Competitiveness Program (Subprogram 1)
Project Number 52049-001
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3804-PAK: Trade and Competitiveness Program (Subprogram 1)
concessional ordinary capital resources lending / Asian Development Fund US$ 500.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development

Gender Equity and Mainstreaming Some gender elements
Description The program will help Pakistan reduce its current account deficit, promote macroeconomic stability, and foster sustained high growth by improving trade competitiveness and exports. The program will (i) introduce important tariff and tax-related policy reforms to support Pakistan's export industries and increase their competitiveness internationally; and (ii) strengthen key trade-facilitating institutions such as accreditation bodies, the EXIM Bank of Pakistan (EXIMBP), and the National Single Window (NSW).
Project Rationale and Linkage to Country/Regional Strategy The vision of the strategic trade policy framework (STPF), 2019 2023 is for Pakistan to become a dynamic and efficient domestic market and a globally competitive, export-driven economy. Vision 2025 articulates the government's aim to encourage trade, increase exports, and improve the competitiveness of domestic industries in Pakistan as a means to reduce the current account deficit and foster macroeconomic stability and sustained high growth. The STPF objective is to make exports a driver of economic growth, reduce the relative disincentive for export industries by removing structural anomalies, and improve the trade ecosystem by increasing institutional efficiencies and reducing the cost of doing business. The STPF's main goals are to (i) increase exports at a minimum compound annual growth rate of 15% per year until FY2023; (ii) improve the competitiveness and efficiency of industry, especially the export industry, by restoring average mean tariffs to FY2011 levels; (iii) step up regional integration by raising regional trade's share of total trade by 20%; and (iv) promote sustainable, socially compliant, inclusive, and gender-sensitive export development. The program will help define and implement key reforms to tackle Pakistan's development challenges including (i) constraints on export performance, (ii) high raw material costs hurting exports, (iii) overvalued exchange rate, and (iv) weak institutional capacity; as well as to improve Pakistan's export performance.
Impact Economic benefits from trade enhanced (Vision 2025)
Project Outcome
Description of Outcome Improved competitiveness and increased exports
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Tax and tariff rationalization

Institutional strengthening

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Hiranya Mukhopadhyay
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance, Revenue and Economic Affairs
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
Timetable
Concept Clearance 05 Sep 2018
Fact Finding 10 Jun 2019 to 15 Jun 2019
MRM 04 Jul 2019
Approval 07 Aug 2019
Last Review Mission -
Last PDS Update 07 Aug 2019

Loan 3804-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Aug 2019 07 Aug 2019 08 Aug 2019 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 500.00 Cumulative Contract Awards
ADB 500.00 07 Aug 2019 500.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Aug 2019 500.00 0.00 100%

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Tenders

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Procurement Plan

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