PRIME (Policy Research Institute of Market Economy) organized the 8th Islamabad Policy Exchange on 12th of Oct 2023. The event was attended by policy practitioners from the government, chambers, researchers and field experts. The Islamabad Policy Exchange is a forum for candid discussions for policy stakeholders, held under Chatham House rules The discussion explored a groundbreaking stride towards elevating trade efficiency - the Pakistan Single Window (PSW).
Pakistan's trade environment faced significant challenges curtailing from a complex and fragmented regulatory system. With more than 50 government agencies overseeing trade, each with its own set of rules, compliance became a cumbersome task for businesses. Furthermore, outdated, manual, paper-based processes led to delays,errors, and even corruption, hindering the efficiency of trade operations. The absence of transparency and effective coordination among these agencies compounded the problem, making it arduous for businesses to monitor their shipments' progress and address any emerging issues promptly.
PSW has revolutionized trade in Pakistan. By consolidating multiple agencies into a single platform, it simplifies trade processes. Automation and digitization have brought about greater efficiency and transparency, reducing errors and expediting procedures. Businesses can now track shipments in real-time, facilitating prompt issue resolution. Additionally, the PSW encourages collaboration among government agencies, eliminating duplication and enhancing the overall trade experience. This transformative initiative is poised to escort in a new era of trade facilitation, reshaping the very essence of how trade functions in Pakistan.
The scope of the PSW encompasses the entirety of cross-border trade, including B2G, B2B, and G2B processes, with the potential to save $430 million annually. Services provided include Online Evidence of Identity, FBR, PMD, NADRA, Banks, SECP, and have engaged 71,000 users. The platform integrates 29 commercial banks and facilitates E-Trade across various government departments and agencies. Upcoming endeavors involve implementing an AI/MLP-based Integrated Risk Management System, supporting Government Agencies (GAs) in automation, establishing a PSW Trade Lab, fostering public and private sector partnerships, and leveraging Big Data and Data Analytics.
Pakistan PSW has re-engineered 111 processes, replaced 83 documents with electronic verification, transitioned 145 documents to electronic submission, and eliminated a total of 46 documents. In Pakistan, regulations are applied to 67% of all import goods declarations (GDs) and 12% of all exports. The PSW is addressing these challenges head-on by simplifying trade processes and implementation digital solutions.
The PSW has made significant progress, but further expansion to include more government agencies is crucial to address remaining regulatory complexities.
The establishment of a PSW Trade Lab can serve as a center for innovation, research, and continuous improvement. This would provide a platform for developing and testing new solutions, technologies, and strategies that can further enhance trade facilitation. Leveraging Big Data and Data Analytics is vital for identifying trends, streamlining processes, and making informed decisions to optimize trade.
The PSW must adapt to evolving business needs and the global trade landscape. By expanding agency participation, improving risk management, promoting collaboration, fostering innovation, and using data insights, it can enhance trade efficiency and transparency, benefiting both businesses and the economy. This ongoing commitment ensures the PSW remains pivotal in reshaping trade in Pakistan for greatereffectiveness and receptiveness.
For inquiries, please contact farhan@primeinstitute.org or call at +92 (51) 8 31 43 38
