Brief Project Description
The project aims to provide support to the Government of Pakistan and other stakeholders including private sector in ensuring that the country can strategically seize the opportunities of global economic and trade integration for advancing national progress in human development and poverty eradication.
Amid growing recognition that the incidence of poverty was increasing in Pakistan, the Government of Pakistan adopted a comprehensive strategy in November 2001 to reduce poverty, articulated in the Interim Poverty Reduction Strategy Paper (I-PRSP). The strategy aimed to provide an integrated focus on diverse set of factors that impact poverty, and to meet the twin challenges of reviving broad based equitable growth and reducing poverty.
The PRSP endorses the view in the I-PRSP that poverty has many dimensions in Pakistan. The poor in Pakistan have not only low incomes but they also lack access to basic needs such as education, health, clean drinking water and proper sanitation. The latter undermines their capabilities, limits their opportunities to secure employment, results in their social exclusion and exposes them to exogenous shocks.
The IPRSP also provided a basis for the development of a full Poverty Reduction Strategy Paper (PRPS) through participatory process involving stakeholders, civil society, and all three tiers of government in Pakistan, federal, provincial and local. The objective of the participatory process was to engage stakeholders, civil society, and development partners in policy formulation and to build ownership for the reform program.
Government’s contribution to enhance export base:
The government is committed to liberalize and de-regulate Pakistan’s trade regime to reduce cost of doing business in Pakistan and widen the export base through revival of industrial activity and strong institutional supply side measures. The trade policy endeavours to continue focusing on value addition for sustainable growth in export earnings. The policy is guided by demand led strategy to secure higher world market share for traditional and non-traditional export items. Simultaneously, continued efforts are afoot to increase market access for Pakistani products. The policy measures already taken to liberalize trade in conformity with the WTO agreements.
To enhance exports profitability, the Government policy aims for the enforcement of Duty and Tax Remission for Export Rules, revival of the Common Bonded Warehouse scheme and monetary awards for exporters showing better performance. In addition, the policy aims to rationalize the export finance scheme, shifting its focus towards pre-shipment financing, value-added exports and targeting SMEs. A new ‘hand-holding’ scheme has been introduced to induct a large number of new and emerging exporters that includes:
Capacity building of identified SMEs for covering product development, quality up-gradation, cost reduction measures and sale promotional efforts through private sector professionals. For this purpose, the Export Development Fund has been specifically used.
Sponsoring of SMEs delegations to explore market prospects and trade fairs
Export Development Surcharge (EDS) has been abolished on all exports
Launching a scheme of “Warehousing Pakistani Products Abroad’ to counter buyer perception about unreliability of Pakistan supplier in terms of ‘quality’ and ‘in-time delivery’
Launching a scheme to be funded from Export Development Fund to help exporters to acquire SA 8000 certification to ensure higher social, environmental and labor standards.
Main Characteristics of the study should include:
This particular study should have the following characteristics:
1. Adopting the participatory methodology in the project, the study will bring together the findings and recommendations of all other work in the current project. The idea is to make the other policy action studies compatible with the current PRSP context.
2. The study will incorporate the findings in a comprehensive manner into the ongoing work on the Pakistan PRSP. There is a need for expanding the focus of the I-PRSP to include more sectors that are of interest to poor people.
3. While some of those sectors can be identified as the fisheries, fruits and vegetables etc., determination of a more comprehensive list of sectors is necessary. For this purpose the study will start by identifying these sectors and incorporating them into the PRSP discussion and following policy action.
4. Finally, with the help of the above analysis, the study will come up with a comprehensive consideration of the impact of contribution that exports can make to improve employment and reduce poverty in Pakistan and measures to ensure the poor can derive benefit from selected sectors. The focus on the employee side will be on employment generation and skill building and upgrading. On the employer side the focus will be placed on SMEs (as it has been done so far); more specifically value added up gradation in the export sector, and marketing efficiency development for SMEs.
A Comprehensive Study / Analysis Report
Four to Six Weeks
He / She will report to National Project Director (NPD)
As per UNDP rules for National Consultants specified in PCOM Version 3.0