Pakistan is on track to save $500 million per year as a result of port and shipping industry reforms.
According to official reports, the time required for cargo clearance would be shortened from days to hours as a result of these reforms.
Additionally, sources stated that these changes have already been implemented following the passage of the Pakistan Single Window Act 2021.
Prime Minister Imran Khan announced in a tweet yesterday that the PTI-led government has introduced another landmark reform to the Pakistan Single Window (PSW) Act 2021, paving the way for increased import and export facilitation.
Additionally, the Prime Minister said that Pakistan Single Window would save $500 million annually and reduce cargo clearance time from days to hours by integrating 75 regulatory agencies, including customs, banks, port authorities, shipping firms, and brokers.
The Prime Minister stated that an independent authority will manage the Pakistan Single Window, which will be critical in realizing Pakistan’s potential as a transit and trade hub.
The Federal Board of Revenue (FBR) inaugurated the PSW Company in Islamabad last week in accordance with the World Trade Organization’s Trade Facilitation Agreement (TFA) (WTO).
The PSW is a condition of the TFA, which Pakistan ratified in October 2015.
The PSW was implemented nearly a year ahead of schedule, in June 2022, at a cost of $67 million from indigenous development efforts.
Prime Minister Imran Khan tasked Customs with completing this game-changing project aimed at reducing time, expense, and complexity while improving compliance with cross-border trade regulations.
The PSW Company has been operationalized in such a way that it retains full control of all cross-border transport, transportation, and financial transactions.
Meanwhile, Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood said on Tuesday that the Pakistan Single Window (PSW) would assist in boosting foreign trade and assisting authorities in combating cross-border smuggling.
He commended the Federal Board of Revenue and Pakistan Customs on the establishment of the Pakistan Single Window (PSW). The advisor said in his Tweet that it was a historic reform by the government that would minimise business costs, approval times, and merge 75 regularity departments.
Earlier on Monday, Prime Minister Imran Khan said that the introduction of PSW would result in annual savings of $500 million and a reduction in cargo clearance time from days to hours through the integration of over 75 regulatory departments. “Another historic reform implemented by the PTI government is the Pakistan Single Window (PSW) Act 2021. It paves the way for simplified import and export procedures. PSW will save $500 million annually and slash cargo clearance times from days to hours by merging 75 regulatory departments, including customs, banks, port authorities, shipping firms, and brokers. The PSW will be managed by an authority, which will be critical in realizing Pakistan’s potential as a centre for international transit and trade, Prime Minister Khan said on Twitter.
Pakistan Customs recently launched the Pakistan Single Window (PSW) System, nearly a year ahead of the June 2022 deadline stipulated by the World Trade Organization’s Trade Facilitation Agreement. Via indigenous development efforts, Customs lowered the project’s cost from an initial estimate of USD 163 million to USD 67 million.
Customs was tasked by the Prime Minister with completing this game-changing initiative aimed at reducing time, expense, and complexity while ensuring greater compliance with cross-border trade regulations. FBR has operationalized the PSW Company to ensure that this new framework is introduced on schedule and sustainably.
The PSW Company now enables the Pakistani government to retain full control of this mission-critical infrastructure of critical national significance, as it can manage all cross-border trade, logistics, and financial transactions.
PSW is critical for Pakistan to establish itself as a preferred transit and transshipment path, as well as for the integration of upcoming national, regional, and global single window systems. PSW will increase exports, draw foreign direct investment, and facilitate penetration into global value chains. It will also act as Pakistan’s trade information portal.