em report final

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The Trade Development Authority of Pakistan(TDAP)

The Trade Development Authority of Pakistan (TDAP), which was established on November 8, 2006, under a Presidential Ordinance, shall have Ministry of Commerce asits administrative ministry. TDAP is the successor organization to the Export PromotionBureau (EPB) and is mandated to have a holistic view of global trade development rather than only the export promotion perspective of its predecessor. Designated as the

premier trade organization of the country, TDAP shall be a dedicated, effective, and anempowered organization, which shall be professionally managed.

What activities does TDAP regularly undertake?

Participates in 40 to 60 international trade exhibitions annually..Sends 20 to 40 trade delegations abroad every year.Organizes the EXPO PAKISTAN annually in Pakistan, which is well-attended byforeign buyers.Runs the Expo Centre, Karachi providing a permanent exhibition space for holding trade events.Implements various Trade Policy Initiatives announced by the Commerce

Ministry.Undertakes various sector-development projects from the Export DevelopmentFund.

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The Export Promotion Bureau, in Retrospect

The Export Promotion Bureau (EPB) facilitated exporters across the country, helpingthem overcome challenges by leveraging opportunities on the supply and demand side. It

funded initiatives, and assisted in establishing common facilities with stakeholders. For 43 years, the erstwhile organization was the primary agency of the Government of Pakistan that played a vital role in promoting Pakistans goods and servicesinternationally.

Over the 43 year period EPB played a critical role in helping exporters to participate in30 to 80 exhibitions abroad each year. Regularly sent and received between 20 and 40

business delegations each year to and from export destinations to explore new marketsand enhance market share through sustainable growth and diversification. Over the yearsEPB has supported the development of equal number of trade policies, implementing theconsequential initiatives it was assigned. Its role in Textile Quota management isespecially significant. It has issued millions of GSP Certificates and management of goldand jewelry export regulations. More than 20,000 exporters have been facilitated and

part-funded to exhibit and grow their exports; over 2,000 delegates have been sent or hosted in Pakistan.

TDAP is a body corporate established on 8 November, 2006, under a PresidentialOrdinance. The Ordinance will be tabled in the Parliament as an Act for approval. TheTDAP is the successor organization to the Export Promotion Bureau (EPB) and ismandated to become a dedicated, effective and empowered organization that is

professionally managed. TDAP, as part of its trade development mandate, as opposed toexport promotion only, will be dedicated to the holistic development and promotion of goods and services for exports globally. TDAP in this enhanced responsibility and rolewill create direct linkages with stakeholders, local and abroad, aiming for a QuantumLeap in exports. The administrative ministry of the TDAP will be the Ministry of Commerce.

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Keeping in view the importance and impacts of CND in other countries of the World,TDAP become the one of the major partners of this programme in Pakistan in mid 2001.In 2003 the Government of Pakistan announced its decision to adopt SME cluster development as a principal element of its trade policy, and in the following months theEPB declared its willingness to provide substantial sums to use UNIDOs services for the

development of export-oriented SME clusters throughout Pakistan. Subsequentdiscussions with senior officials of the EPB have led to the formulation of the following

phased approach for EPBs support to the UNIDO cluster development programme inPakistan:

The EPB will contribute US$ 211,000 in cash towards the implementation of the follow-up sub-projects in the five pilot clusters covered by the ongoing

project US/PAK/01/099 as identified by the action plans drawn up for thoseclusters, and towards the establishment of a national training programme for CDAs to expand the cluster development programme beyond the existing five

pilot clusters. These funds have already been authorized by the EPB and their transfer to UNIDO is awaiting the approval of the present project documentand related trust fund agreement.The EPB will make a further contribution, in cash or in kind, the further modalities of which are to be decided, to finance the medium-term costs of maintaining the CDAs in, and recruiting one or more POs for, the existing five

pilot clusters selected under project no. US/PAK/01/099, as well as any further clusters to which the programme may subsequently be expanded in partnershipwith the EPB.Subject to the satisfactory implementation of this project, the EPB willconsider a further contribution towards the expansion of the programme toseveral new clusters.The total funding was divided in to three tranches out of which two tranches have

been transferred to UNIDO and spent on joint activities defined in projectdocument singed between the two agencies.

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EPB thus contributed in a significant manner, as Pakistans exports - reported at justunder quarter of a billion dollars in 1963 - increased by over 70 times to touch nearly US$ 16.5 billion in 2005/06. However, professional human resources were lacking at thetimes of EPB, and so in order to improve this deficiency, and to change the image of EPBas a Bureaucratic Organization, need was felt for EPBs metamorphosis into a moredynamic, professionally well-equipped organization, which was to be the TDAP.

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Mandate (Functions) of TDAP

To recommend to the TDAP Board, a national policy for maximizing exports of goods and services from Pakistan and after approval of the Federal Government todevelop strategy and plans within the policy framework given by the Board.

To develop a consistent, sustainable and result oriented, holistic exportdevelopment plan, outlining vision, objectives, strategies and plan as approved bythe Board.

To achieve synergy in development of exports at a national level by forgingeffective liaison with private and public stakeholders and avoiding duplication of efforts;

To encourage and promote research in trade and policy related studies that mayfacilitate in formulating an effective export policy and plans;

To plan, organize exhibitions, delegations to and from Pakistan;

To plan and organize local, international and inter-provincial export promotionalconferences, workshops, seminars etc;To plan and organize foreign trade promotion through advertising in local, andinternational print electronic and other appropriate media;

To liaise with trade bodies abroad;

To promote export sectors where separate sectoral boards / bodies currently exist or will be formed in the future, notwithstanding anything contained in any other law for the time being in force;

To examine supply chains of strategic export sectors and develop plans andinitiatives for strengthening supply base including exporters capabilities andcapacities;

To monitor progress against these plans for information of the Board;

To coordinate through Ministry of Commerce, with the Federal and ProvincialGovernments and related organizations for a concerted supply chain initiative; to

provide visa assistance to outgoing or incoming businessmen whether Pakistani or foreign nationals, in co-ordination with the Ministry of Foreign Affairs andforeign Missions in Pakistan; to encourage, establish and manage whereappropriate export development centers, business support units, display centersand facilities, and information centers, and exporters training institutes etc;

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To promote exporters and stakeholders education and training of intermediariesof export related supply chain;

To encourage the organized development of the export business and the relatedcorporate and commercial sectors in Pakistan.

To facilitate the availability of finance to exporters, export oriented small andmedium enterprises, risk management of exporters and international buyers,energy and infrastructure needs of exporters and related industrial areas andzones, quality management, social, environmental and security needs andgenerally all aspects of export facilitation etc;

To encourage and promote human resource development in the export sectors;

To encourage and promote and train new exporters;

To provide advisory support to stakeholders;

To be responsible for all matters related to trade development and promotion byCommercial Officers posted in Pakistani Missions abroad. This shall include thetraining, trade targets, monitoring, and performance evaluation against these tradetargets. The Chief Executive of the Authority shall be a member of the committeefor selection of the Commercial Officers to be posted abroad;

To manage funds available to the Authority in accordance with rules andregulations approved by the Board; to make rules for the conduct of the Authoritywith approval of the Board.

To have the administrative control of warehouses and other trade developmententities owned by the Authority in Pakistan and abroad;

To set up National, Provincial and Sectoral trade committees;

To implement directives of the Federal Government and the Board relating toexport development and promotion;

To prepare Annual Report of the Authority;

To include a quality assured ethic in exporters while encouraging value additionof exports;

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To take, initiatives for maintaining facilities etc. to improve the performance of exporters in the interest of generating economic activity, reducing cost of doing

business and enhancing supply chain efficiency;

To maintain the confidence of exporters by appropriate communications;

To promote the establishment and development of professional, educational andtraining organizations connected with exports with a view to improving themanagement of export business; and

To promote awareness among exporters and buyers and all relevant stakeholderswith respect to the benefits of exports and services of the Authority and general

policies of the Federal Government.

Export Strategy

The new strategy is based on a two-pronged approach, namely:- Products/Services.- Markets.

Achieving value-addition through

- Investment + R&D + Technology + Skill Development.

Assist SMEs to cross over the threshold.

Prioritize and provide opportunities for better use of resources.

Create opportunities for increased market share through incoming/outgoingdelegations focusing on bringing buyers to Pakistan.

Broaden the present narrow export base.

Moving on thirteen (13) new product development projects, i.e, Marble, Mango,Agro Food, Dates, Carpets, Leather, Gem & Jewellery, etc.

Research & Development activities pertaining to market & product development.

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New products & services with greatest export potential identified; Besides these,TDAP will continue the efforts to increase the traditional exports of Pakistan e.g.Textile, Clothing, Carpets, Surgical goods, Sports Goods, etc.

New Markets:

There is slow growth in demand in traditional markets of US & EU. Hence, TDAPsincreased focus on increasing market share of Pakistan exports in new Asian Marketsespecially Russia, China, India, and in Africa.

To carry forward this mission successfully, implementation of the New Export Strategy

was imperative. The first agenda item was thus the re-organization of TDAP, whose principle features are:

Product divisions: to develop export potential of Pakistani products through four divisions, namely:

1. Agro Food2. Textile & Clothing3. Minerals & Metals4. Engineering & Manufacturing .

Services Division: To develop exports of Services Sector.:

Marketing Divisions: To develop strategy for increasing market share for better understanding of major markets, through market analysis, competitor analysis,and seeking best business practices, the following divisions were created:

1. Asia Pacific Division.2. Europe Division,3. America Division,4. Africa Division,

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Facilitation & Services:

Facilitation Division

Primarily responsible for trade policy implementation, with specific emphasis onsimplification and harmonization of procedures with the objective of achieving acompetitive edge in the context of emerging business realities, Facilitation Division isdevoted towards helping exporters in availing the opportunities as well as in the removalof obstacles in expansion of the country exports. It also collects processes and,disseminates information to different stakeholders. The Division is also responsible for organizing Expo Pakistan, the mega event to showcase Pakistani products to foreign

buyers, held annually at Karachi Expo Center.

Trade Policy:

This section is deputed to formulate and implement various trade policy initiativesannounced annually by the Ministry of Commerce. Proposals are developed after consultation with various stakeholders for consideration by Ministry of Commerce. TheInitiatives announced in the Trade Policy are then implemented and business proceduresof schemes are worked out. In order to devise a proper implementation mechanism and toinstall an effective evaluation system, a close coordination and liaison with PakistaniMissions/Consulates/Embassies abroad, is established that not only enables the smoothflow of the processes involved but also ensures transparency of the schemes.

Trade Dispute Settlement

In the course of the business of international trade, disputes often lead to conflicts between parties involved. These conflicts/disputes are forwarded via our CommercialSections abroad to TDAP. The trade dispute section of Facilitation Division is taskedwith investigating and if possible, bringing both the parties to common point andresolving the issue through amicable agreement. In extreme cases where the matter requires specialized investigations, the complaints are referred to concerned regulatory

authorities for further processing.

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Expo Center

Expo Centre, having an area of more than 15,000 sqm including 6,000 sqm of exhibitionarea, is the only place of its kind in the city which offers state of the art facilities for thelarge scale events like Expo Pakistan, Ideas etc. Besides Expo Pakistan, Expo Centre alsohosts more than 35 local and international exhibitions throughout the year.

Expo Pakistan

Expo Pakistan, the largest trade show of Pakistan, organized annually with an objectiveto display the entire range of quality products under one roof for the assessment of international buyers. The products include textile apparels, food, leather and leather

products, chemicals, sports goods, carpets, surgical and engineering goods. More than4000 international buyers from 70 countries have established business contacts throughthis annual exhibition in the last Five years. The commencement of this event has notonly contributed immensely to reposition the countrys image but has also beeninstrumental in generating economic activity in the country in general, and within theexport community in particular.

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