Development of trade and commerce is essentially linked to the survival, growth, and progress of a nation, particularly by concise means of imports and exports. The policies or regulations that essentially govern and deal with defining the international trade between countries are known as the Foreign Trade Policy or International Trade Policy. These policies include, but are not restricted to, the tax brackets, import duties on various equipments (goods and services), items for trading, non-allowable items, quotas and tariffs, and so on. Inclusive of this data, there are also the incentives for foreign investment that encourages foreign investors to invest in the country along with incentives for local producers to export, and so on . Thus, the policy defines the terms and regulations for trading i.e. imports and exports.
The Asian region has been prospering of late with a good speed, and amongst the many nations, Pakistan has been one of the prime examples of prospering nations particularly under the current military regime. The name of this nation has been in the headlines since a while now, thus, it would be very informative to analyze their trade policy structure. Particularly considering the fact that the foreign direct investment has been growing in the region of late, it would be very interesting to see the structure that is enhancing this figure in recent times.
Since October 1999 to date, Pakistan has moved towards being a much more stabilized nation than it has ever been since its existence in 1947. Under the military regime of General Pervaiz Musharraf, the nation has moved towards economic stability and growth to the current day, with economic development prospering in particular. This stability in the economic and political environment has led to tremendous growth in the net trade figure, inviting foreign investors and trades to contribute and interact with the local ones and have a good prospectus for the future outlook.
This report highlights the trade policy for the year 2006-07 so that judgements can be made on fair grounds that whether this policy has been a success or otherwise. The following paragraphs highlight the main aims and objectives of the international trade policy relating to the export of goods and services [7, 9].
Pakistan's exports have been on the lower side in the past many years but there are improvements. A lot of expectations are from the textile sector. In the similar regard, there have been a lot of machinery imports in the previous fiscal years and the supply is, therefore, expected to boost in terms of units produced. To enhance the quality and marketing of textile products (another core industry of Pakistani exports), Pakistan School of Fashion Design was given a huge grant to ensure its growth in terms of providing better quality to the students, and thus, giving the nation a further enhanced human resource. The grant also included Rs.475 million for construction of another campus.
Another point of focus for the government of late has been the cotton production and exports. In this regard as well, the government plans to setup plants and laboratories to enhance the quality of cotton produced in the nation.
Skill development has been another focus because there is some tremendously capable human resource available in the nation