SOL-391-15-000017.pdf

SOL-391-15-000017

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 111

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) depository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ______________ calendar days (60 calendar days unless a different period is inserted

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-391-15-00004503/06/2015

X

PAKISTAN

USAID/Pakistan Office of Acquisition & Assistance US Embassy Diplomatic Enclave, Ramna 5 Islamabad 44000 Pakistan

See Item 7 until TBD local time TBD

Faisal Jawad +92 93 fjawad@usaid.gov

512-0814

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X

X

X

X

X

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X

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PAGE(S)

William Sedlak

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

8-9

10-22 25-32 33-37 38-52

53-75

77-90

91-106

107-111

Pakistan Regional Economic Integration Activity (PREIA)

TABLE OF CONTENTS

SECTION B—SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Purpose

B.2 Contract Type

B.3 Total Estimated Cost and Obligated Amount

B.4 Budget

B.5 Indirect Costs

B.6 Reimbursable Costs

B.7 Payment of Fixed Fee

SECTION C—STATEMENT OF WORK

C.1 Purpose

C.2 Background

C.3 Project Operating Approach

C.4 Project Components and Deliverables

C.5 Expected Results

C.6 Activity Monitoring and Evaluation Plan (AMEP)

C.7 Activity Fund (Grants under Contract)

C.8 Key Personnel

SECTION D—PACKAGING AND MARKING

D.1 AIDAR 752.7009 Marking (JAN 1993)

D.2 Branding

D.3 Branding Implementation and Marking Plan

SECTION E—INSPECTION AND ACCEPTANCE

E.1 Notice Listing Contract Clauses Incorporated by Reference

E.2 Inspection and Acceptance

E.3 Performance Standards

SECTION F—DELIVERIES OR PERFORMANCE

F.1 Notice Listing Contract Clauses Incorporated By Reference

F.2 Period of Performance

F.3 Place of Performance

F.4 Workdays Ordered

F.5 Key Personnel

F.6 Authorized Work Day/Week

F.7 Reports

F.8 Reports Submission Schedule

SECTION G—CONTRACT ADMINISTRATION DATA

G.1 Administrative Contracting Office

G.2 Contracting Officer’s Authority

G.3 Contracting Officer’s Representative

G.4 Technical Direction

G.5 Payment & Paying Office

G.6 AIDAR 752.7003 Documentation of Payment (Nov 1998)

G.7 Accounting and Appropriation Data

SECTION H—SPECIAL CONTRACT REQUIREMENTS

H.1 Language Requirements

H.2 Authorized Geographic Code

H.3 Defense Base Act Insurance and Services

H.4 ADS 302.3.5.5 Reporting of Foreign Taxes (July 2007)

H.5 Reporting on Local General Sales Tax (GST)

H.6 ADS 302.3.5.9 Nondiscrimination (June 2012)

H.7 ADS 302.3.5.13 Access to USAID Facilities and USAID’s Information Systems (August 2013)

H.8 ADS 302.3.5.14(a) USAID Disability Policy - Acquisition (December 2004)

H.9 ADS 302.3.5.19 USAID-Financed Third-party Web Sites (August 2013)

H.10 ADS 302.3.5.20 Conference Planning and Required Approvals (August 2013)

H.11 ADS 302.3.5.21 USAID Implementing Partner Notices (IPN) Portal for Acquisition (July 2014) 43

H.12 302.3.5.22 Submission of Datasets to the Development Data Library (DDL) (October 2014)

H.13 Electronic Payments System

H.14 Anti-Fraud Hotline

H.15 Ammonium Nitrate and Calcium Ammonium Nitrate Restriction (Sep 2011) (Class Deviation OAA-DEV-11-03c, expiration date, September 8, 2016)

H.16 Security Conditions and Reporting

H.17 Consent to Subcontract

H.18 Environmental Compliance

H.19 Foreign Government Delegation to International Conferences

H.20 Logistic Support

H.21 Managing Information Technology Resources

H.22 Prohibition of Assistance to Drug Traffickers

H.23 American Citizens Services Registration

H.24 Grants Under Contract:

SECTION I—CONTRACT CLAUSES

SECTION J - LIST OF ATTACHMENTS

SECTION K—REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF

OFFERORS

K.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE

K.2 52.204-3 TAXPAYER IDENTIFICATION (OCT 1998)

K.3 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2014)

K.4. 52.209-7 – INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.5 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (APR 2010)

K.6 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATIONS (MAY

2012) 85

K.7 52.230-7 PROPOSAL DISCLOSURE—COST ACCOUNTING PRACTICE CHANGES (APR

2005) 88

K.8 AUTHORIZED NEGOTIATORS

K.9 AGREEMENT ON, OR EXCEPTIONS TO, TERMS AND CONDITIONS

K.10 SIGNATURE

K.11 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.12 KEY INDIVIDUAL CERTIFICATION

SECTION L—INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB

1998) 91

L.2 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE .. 91

L.3 FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

L.4 FAR 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.5 ACQUISITION SCHEDULE

L.6 GENERAL INSTRUCTIONS TO OFFERORS

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

L.8 INSTRUCTIONS FOR THE PREPARATION OF COST PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 Award without Discussions

M.2 Source Selection

M.3 Determination of Competitive Range

M.4 Technical Proposal Evaluation Factors

M.5 Evaluation of Cost Proposals

M.6 Contracting with Small Business Concerns and Disadvantaged Enterprises

ACRONYMS LIST

ACO Administrative Contracting Officer ADB Asian Development Bank ADS USAID’s Automated Directives System AIDAR USAID Acquisition Regulation AMEP Activity Monitoring and Evaluation Plan APTTA Afghanistan Pakistan Transit Trade Agreement ATAR USAID’s Afghanistan Trade and Revenue Project ATP International Carriage of Perishable Foodstuffs and on the special

Equipment to be used for such Carriage B2B Business to Business BIP Branding Implementation Plan CAREC Central Asian Regional Economic Cooperation CBTA Cross-Border Transport Agreement CCN Cooperating Country Nationals CFR Code of Federal Regulations CISO USAID Chief Information Security Officer CLDP Commercial Law Development Program CO Contracting Officer COP Chief of Party COR Contracting Officer’s Representative CPFF Cost plus Fixed Fee DCA Development Credit Authority DEC USAID’s Development Experience Clearinghouse DO Development Objective DQA Data Quality Assessment DUNS Data Universal Numbering System EC European Commission ECOTA Economic Cooperation Organization Trade Agreement EDI Electronic Data Interchange EFF Extended Fund Facility EGA USAID’s Economic Growth and Agriculture Office EMMP Environmental Mitigation and Monitoring Plan ESP USAID’s Economic Stabilization Project EU European Union EXO/SSO USAID’s Executive Office/Security & Security Office FAR Federal Acquisition Regulation FATA Federally Administrated Tribal Areas FBR Federal Board of Revenue FDI Foreign Direct Investment FMD USAID’s Financial Markets Development Project GAO Government Accountability Office GDP Gross Domestic Product GOP Government of Pakistan ICT Information and Communications Technology IEE Initial Environmental Examination IFC International Finance Corporation IMF International Monetary Fund IR Intermediate Results

ITA International Trade Administration ITTMS Integrated Transit Trade Management System KP Khyber Pakhtunkhwa Province LFA Logical Framework Analysis LOE Level-of-Effort LPA USAID’s Bureau for Legislative and Public Affairs MOC Ministry of Commerce, Government of Pakistan MOF Ministry of Finance, Government of Pakistan MOU Memoranda of Understanding MSF Mission Strategic Framework NICRA Negotiated Indirect Cost Rate Agreement OAA USAID’s Office of Acquisition and Assistance OPM Office of Program Management PII Personally Identifiable Information PPII USAID’s Pakistan Private Investment Initiative PREIA USAID’s Pakistan Regional Economic Integration Activity PTP USAID’s Pakistan Trade Project REC USAID’s Regional Economic Cooperation Project RFP Request for Proposal SAARC South Asian Association for Regional Cooperation SAFTA South Asian Free Trade Agreement SARS Semi-Annual Performance Reviews SME Small and Medium Enterprise SMEA USAID’s Small and Medium Enterprise Activity SOW Scope of Work STPF Strategic Trade Policy Framework STTA Short-Term Technical Assistance TA Technical Assistance TCN Third Country Nationals TFA Trade Facilitation Agreement TIFA Trade and Investment Framework Agreement TIR Transports Internationaux Routiers TRTA Trade Related Technical Assistance USAID United States Agency for International Development USAID CST USAID Contractor Salary Threshold USDOC United States Department of Commerce USG United States Government USTR United States Trade Representative VAT Value Added Tax WB World Bank WCO World Customs Organization WeBOC Web Based One Customs WTO World Trade Organization

SECTION B—SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Purpose

The United States Agency for International Development’s (“USAID” or the “Agency”) mission to the Islamic Republic of Pakistan (“Pakistan,” and, together, “USAID/Pakistan” or the “Mission”) requires technical services to implement the Pakistan Regional Economic Integration Activity (“PREIA”) as described in Section C.

B.2 Contract Type

This is a Cost-Plus-Fixed-Fee (CPFF) term contract. For the consideration set forth below the Contractor shall provide the level of effort set forth in F.4 to perform the services further described in Section C and deliver the outputs described in Section F.

B.3 Total Estimated Cost and Obligated Amount

(a) The total estimated cost for the performance of the work required for the contract, exclusive of fixed fee, if any, is $TBD. The fixed fee, if any, is $TBD. The total estimated cost plus fixed fee, if any, is $TBD. USAID will not pay the Contractor any sum in excess of the total estimated cost.

(b) The total obligated amount available for reimbursement of allowable costs incurred by the

Contractor (and payment of fixed fee, if any) for performance under the contract is $TBD. The Contractor must not exceed the aforesaid obligated amount in accordance with Federal Acquisition Regulation (“FAR”) § 52.232.22, “Limitation of Funds.”

B.4 Budget

TBD

(a) The inclusion of any costs in the above budget does not obviate the requirement for prior approval by the Contracting Officer of cost items designated as requiring prior approval by any of the terms and conditions of this contract, including the applicable cost principles (see FAR § 52.216-7, “Allowable Cost and Payment”); nor, does it constitute a determination of allowability by the Contracting Officer of any item of cost, unless specifically stated elsewhere in this contract. Also, the Contractor must not adjust these amounts without a written modification signed by the Contracting Officer. The Contractor must not bill any amounts against this contract in excess of the amounts specified for each line item.

(b) The Contractor agrees to furnish data that the Contracting Officer may request on costs expended or accrued under this contract.

(c) Without the prior written approval of the Contracting Officer, the Contractor must not exceed the total estimated cost set forth in the budget or the total obligated amount, whichever is less.

B.5 Indirect Costs

(a) Pending establishment of revised provisional or final indirect cost rates, USAID/Pakistan will reimburse allowable indirect costs on the basis of the following negotiated provisional or predetermined rates and the appropriate bases pursuant to the contractor’s current executed Negotiated Indirect Cost Rate Agreement (“NICRA”):

Description Rate Base Type Period

% 1/ 1/ 1/

1/ Base of Application:

Type of Rate:

Period:

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the Contracting Officer.

B.6 Reimbursable Costs

(a) The U.S. dollar costs allowable will be limited to reasonable, allocable, and necessary costs determined in accordance with FAR 31 (Contract Cost Principles), FAR § 52.216-7, “Allowable Cost and Payment,” FAR § 52.216-8, “Fixed Fee,” FAR § 52.232-20, “Limitation of Cost,” and FAR § 52-232-22, “Limitation of Funds,” if applicable, and AIDAR 752.7003, “Documentation for Payment.”

B.7 Payment of Fixed Fee

(a) USAID/Pakistan will pay a proportion of the contractor’s fixed fee each month pursuant to FAR § 52.216-8, “Fixed Fee,” upon the receipt of an invoice deemed proper by the Office of Financial Management in USAID/Pakistan.

(b) In the event the Contractor does not provide the required level of effort at the conclusion of the period of performance, the Contracting Officer will adjust the fixed fee proportionately.

END OF SECTION B

SECTION C—STATEMENT OF WORK

C.1 Purpose

Through the ‘Pakistan Regional Economic Integration Activity’ (PREIA), USAID/Pakistan intends to further the development of the country’s trade sector by improving Pakistan’s competitiveness in international markets.

This Activity is a key component of USAID Pakistan’s overall economic development program and supports achievement of Development Objective # 2 from USAID/Pakistan’s Mission Strategy:

“Improving Economic Status of Focus Populations.” The purpose of the Activity is to increase access to international and in particular regional markets in order to enhance Pakistan’s regional economic integration with its neighbors. Focusing primarily on trade promotion and facilitation, PREIA will improve the international trade environment, resulting in increased trade and transit volumes.

C.2 Background

C.2.1 Country Context

It is an opportune time to promote improved trade capacity in Pakistan. The economic priorities of the Sharif government, recent signing of the WTO Trade Facilitation Agreement (TFA), balance of payments challenges, rising social and economic inequities, and the growing ability of Iran to provide competing trade and transport services are putting pressure on the Government of Pakistan (GoP) to reform the country’s complex political economy. Furthermore, Pakistan’s neighbors to the north and south are all enthusiastic about increasing intra-regional trade. To do so, countries in the region must reform their trade systems and overhaul their business enabling environments.

Pakistan’s economy faces many challenges. Macro-economic challenges include an underperforming export sector, high inflation, an unstable Rupee, dramatic decrease in Foreign Direct Investment (FDI), and a general perception among domestic and foreign investors that the country presents a high risk premium, which acts to decrease new investment. Pakistan ranks 133rd out of 148 economies in the World Economic Forum’s 2013-2014 Global Competitiveness Index. The World Bank Doing Business 2014 report lists Pakistan at 110th place out of 189 ranked countries,1 just below Paraguay and just above Lebanon. These rankings at best suggest a difficult business enabling environment in Pakistan but, even worse, the recent trend has been negative. The 2010 ranking was 75 with a slip to 83 in 2011 and a further slide to 106 in 2012.

Pakistan’s competitiveness is constrained by its restrictive trade policies. Pakistan's overall trade restrictiveness index is high and rising, placing the country in the 88th percentile of economies with restrictive trade policies. The index ranges from 0 (no restrictiveness) for Singapore and Hong Kong, to 16 in the Islamic Republic of Iran, with Pakistan at 9.9 in 2010, up from 9.0 in 2004. Pakistan has largely neglected potential regional trading partners, including Afghanistan, India, Central and Southeast Asia, resulting in exports that are highly concentrated in textiles and apparel (52.8% of Pakistan’s total exports) which focus on limited markets (30% of the country’s exports are to three countries – the United States of America (16%), China (5.6%) and the United Arab Emirates (7.9%). Diversification of exports and improved access to imports of intermediate goods face cumbersome customs processes, while Pakistan’s tariff structure is complex – all of which add to the cost of doing business. Further reforms are needed to address such issues as long cargo dwell times at the major ports and border crossings, limited

1 Doing Business 2014: https://openknowledge.worldbank.org/bitstream/handle/10986/16204/19984.pdf?sequence=1 implementation of transit agreements with neighboring countries, and high transaction costs for overland and maritime trade. The result has been to limit Pakistan’s competitiveness in both international and domestic markets.

Unemployed youth represent another challenge to be addressed in order to avoid turning Pakistan’s potential demographic ‘dividend’ (a large percentage of young working people) into a liability. An acceleration of economic growth, which currently averages just 3% per year, is urgently needed. Simply to absorb annual additions to the workforce, the Pakistani economy will have to grow at 6-7% per year and generate an additional 36 million jobs over the next three years. This growth rate cannot be achieved without liberalizing trade, stimulating entrepreneurship, encouraging business expansion and investment, and expanding market opportunities for businesses.

Increasing traditional sources of employment, including government and agriculture, does not represent a sustainable solution. Government employment is already high and is unlikely to grow further given the country’s chronic budget deficits. Agriculture is highly unproductive and employs over 40% of the workforce, a percentage that needs to decline as productivity increases.

For these reasons, the role for the private sector to spur economic growth via trade is clear. Goods and services, including trade and transit services, need to grow quickly in order to promote sustainable growth and more inclusive allocation of income across all demographic groups. Over the past several years, Pakistan’s export growth has declined significantly as imports have increased dramatically. The percentage share of Pakistan’s exports to GDP declined from 16% in 2005 to 11.4% in 2013.2 In FY 2014 alone, the annual trade deficit stood at USD 19.98 billion, far higher than the official and the IMF’s projection of $16.6 billion.3

Redressing Pakistan’s poor trade performance will require a more liberalized trade policy regime, a more efficient and transparent customs system to move goods more quickly across borders, and a more robust network of business links across South and Central Asia. With improved regional and bilateral trade links, Pakistan will be able to reach more markets for its exports, facilitate increased transit trade for its neighbors, and spur greater economic growth and job creation, thereby contributing to both Pakistan’s and the region’s stability.

C.2.2 Trade Challenges

Private-Public Dialogues on Business Environment Reform

Building Pakistan’s competitiveness requires formulating and adopting trade policies which support business, expand access to markets, increase the availability of inputs, facilitate transportation and border crossings, and ensure access to information. Appropriate policies can only be formulated and implemented through effective public-private cooperation. Unfortunately, an overwhelming majority of private sector actors are dissatisfied with the current trade policy consultation mechanisms. While some formal mechanisms for consultations have been established, these are underutilized, unstructured and have minimal practical impact on policy making. When consultations do occur it is often through individuals, typically high-ranking representatives of influential companies and segments of society that provide advice to trade policy decision makers. Smaller businesses argue that trade policy has been ‘captured’ by those with the greatest financial and political resources or those with the longest tradition of collaboration with the government on trade issues. Ultimately, such consultations often result in policies, regulations and practices which are poorly executed; have broad, unintended consequences for the

2 The World Bank’s Data Bank 2012: http://databank.worldbank.org 3 Pakistan Bureau of Statistics economy; and ultimately produce benefits that disproportionately accrue to a narrow segment of stakeholders. The private sector further describes the GoP, and in the particular Ministry of Commerce (MoC), as not having the technical expertise to handle trade policy formulation effectively, further impacting the quality of consultations and results. The GoP has not retained qualified international and local lawyers, economists and trade experts to underpin its policy choices with sound economic data and rigorous analysis. Consequently the wide-ranging economic impact of trade reforms is often poorly understood, even within the GoP.

Conversely, a majority of public sector representatives express strong dissatisfaction with the capacity of trade and business associations to advance their interests within a broader strategic context. Meanwhile, many academics view themselves as having research and planning capabilities which are not utilized in public policy making. When consultation does occur it is often through individuals, typically high level representatives of influential companies that provide advice (possibly self-serving) to trade policy decision makers.

Customs and Borders

Pakistan Customs suffers from a twin deficit of technological and operational capacity. This lack of capacity unquestionably has negative results on Pakistan’s competitiveness, damaging businesses and industrial sectors’ ability to service the domestic economy and drive critical growth through trade.

Suboptimal customs processes, infrastructure and capacity are negatively impacting Pakistan’s ability to expand exports, while reforms are often piecemeal and insufficiently comprehensive to address the chain of required processes (declaration, valuation, examination, payment, and release). Political instability has resulted in high turnover of key staff, including in Customs, and limited resources have severely constrained the ability to implement reforms.

Against this backdrop, Pakistan Customs’ ability to serve in a coordinating capacity to bring together a ‘whole-of-government’ approach to customs, including security, health and agriculture is limited.

Furthermore, expanding the existing customs platform from electronic data interchange (EDI) to a proposed “single window system” to facilitate efficient and transparent trade, will demand significant political and monetary resources. Removing physical, administrative, and policy impediments will have a salutary effect on the ability of different sized Pakistani firms, particularly SMEs, to access regional markets.

Pakistan’s new government fully recognizes the need to promote a more liberalized trade regime.

Implementing reforms and engaging the private sector will be particularly significant in realizing trade’s full contribution to economic growth. In its “Pakistan Vision 2025” policy paper, the Sharif Government has prioritized export growth and engagement with private-sector interest groups including the chambers of commerce and industry, think tanks, consultancy firms, corporations and universities, in the reform process. The Sharif Government, perceived as pro-business, has also pledged to take bold initiatives to increase trade and investment with India. The recent visit of Afghan President Mohammad Ashraf Ghani to Pakistan has also helped strengthen bilateral economic and trade ties between the two countries.

These new initiatives could complement efforts already underway with the MoC “Strategic Trade Policy Framework (STPF).” The STPF, which is regularly revised and updated, sets the goal of increasing Pakistan’s cumulative exports to USD 95 billion by the end of the current FY 2015,4 establishing a Pakistan Land Port Authority to develop regional trade networks and transform land ports into efficient trade hubs, and setting up an export-import bank to provide export credit and guarantees with USD 51

4 The export target for 2012-2013 stood at $24.8 billion – Pakistan Economic Survey 2012-2013 million of seed money.5 In order to increase Pakistan’s market development activities in neighboring and regional markets, the MoC has also proposed promotional initiatives including market research, support to non-traditional exports and support to marketing efforts of the private sector.

Pakistan is taking a number of positive steps to improve its trade relations. For example, the GoP has expressed interest in opening trade through Central Asia Regional Economic Cooperation6 (CAREC) Corridor 5 countries7 which would place Pakistan at the hub of trade for the “New Silk Route,” a USG strategic priority for the region. Additionally, the GoP’s recent commitment to the WTO TFA is a positive step in the right direction. The treaty provides a framework for reform and outlines international expectations for streamlining customs, as well as the establishment of a National Committee for Trade Facilitation which could (in addition to the agreement itself) further facilitate intra-governmental consensus.

Further details and background information are provided in Attachment J.1

C.3 Project Operating Approach

PREIA is designed to be flexible and responsive to a highly dynamic operating context. This Activity should support and build the capacity of business enterprises, associations, chambers of commerce and industry, academia, advocacy groups and the GoP so they can collectively collect data, generate alternative options, and make legal, policy, operational, and institutional changes to the business enabling environment and in trade policy and facilitation. Throughout the processes, it will directly offer the technical assistance necessary to focus on the reforms that will have the biggest impact in trade.

C.3.1 Cross-Cutting Principles

There are three cross-cutting principles, which must be integrated in activities under each component:

Increased Technology Adoption:

PREIA will facilitate implementation and enhance the impact of all aspects of the Activity through the appropriate use of information and communication technology. Examples could include crowd sourcing comments on prospective reforms, improving customs-to-customs information sharing through common platforms, enhancing and delivering market information, sharing information on international standards, utilizing e-learning platforms or utilizing video conferencing to reduce costs and expand participation.

Mobile solutions by way of cell phone technology and mobile apps are growing as information and service delivery systems in Pakistan capable of increasing access to business information and services, reducing costs, and facilitating transactions. Mobile technology can facilitate membership in associations, can be used to expand knowledge platforms and facilitate payments.

Mobile technologies can be especially beneficial to women who face restrictions on mobility.

5 Summary for the Cabinet: Strategic Trade Policy Framework 2012-2015 6 The Central Asia Regional Economic Cooperation (CAREC) partnership consists of Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. The CAREC Secretariat is supported by the Asian Development Bank and five other multilateral institutions, as well as by USAID and other donors. CAREC aims to promote development through cooperation in four priority areas: (1) Transport; (2) Trade Facilitation; (3) Energy; and (4) Trade Policy;

leading to accelerated growth and poverty reduction. Of the numerous regional bodies, CAREC’s success lies in its ability to mobilize resources for infrastructure as well as through its cross regional approach, which attempts to overcome some of the more difficult political relationships between states in the region.

7 Corridor 5 is a road built by CAREC which links China to Pakistan through Central Asia (Kyrgyzstan and Tajikistan) and Afghanistan.

PREIA will, to the extent practicable, promote use of mobile solutions as a means of achieving Activity goals.

Increased Participation of Women:

PREIA will work with the GoP, the private sector and trade support institutions to bring greater economic benefit to women through increased participation in export trade. The Activity will develop approaches to influence programming and policy at the national level to address gender-based constraints to trade and will promote efforts to mainstream gender into trade-related policies, processes and activities. There should be opportunities to develop special initiatives to support giving voice to women in the discussion of trade policy and to ensure that women are well represented in business-to-business activities. The Activity will provide capacity building support to trade promotion institutions and various chambers of commerce and industry to enable them to provide better services/facilities for businesswomen and enhance their access to business networking opportunities in the region.

Furthermore, PREIA’s approach will support United States Trade Representative’s (USTR) expanding coverage of Memoranda of Understanding (MOUs) with Trade and Investment Framework Agreement (TIFA) signatories to “Enable Economic Empowerment of Women and to Promote Women’s Entrepreneurship.” The MOUs link SME and trade matters and seek to empower women entrepreneurs and expand access of women-owned SMEs to international markets.

A draft gender analysis for PREIA is provided as Attachment J.3

Increased Public-Private Collaboration:

PREIA will engage the private sector in many aspects of Activity implementation.

Businesses need to more rigorously support and advocate for reforms that can enhance competitiveness at the national level and lend their full support to initiatives that facilitate trade beyond national borders. Public-private partnerships can also lead the way in creative approaches to competitiveness.

PREIA’s approach to collaborative engagement will enable USAID to partner with the private sector when achieving joint development objectives. This approach will be applied to all relevant objectives of the Activity. For example, under the “Improved Regional Trade and Transit Facilitation by Customs” sub-component, there should be opportunities to facilitate public-private alliances to test or support new processes related to streamlining clearance procedures (risk management, internet publication of procedures, advance rulings), facilitating the consolidation of freight, establishing joint information platforms or providing logistical services (export terminals, port operations), among others. One intent is that this collaboration, currently dominated by relatively few institutions and segments of society, would be made much more inclusive and constructive.

C.4 Project Components and Deliverables

The objectives of PREIA will be accomplished through two linked components. Although progress under both components may be tracked separately, they should be seen as inter-connected and mutually dependent. This section sets forth the required anticipated actions under each component of PREIA.

The details of each component are as follows:

Component 1: Improved Business Enabling Environment:

Sub-component 1.1: Improved GoP Ability to Develop and Implement Reforms of Policies, Laws and Regulations Sub-component 1.2: Improved Private Sector and Civil Society’s Engagement in Policy-making

Component 2: Improved Capacity to Access Regional Markets:

Sub-component 2.1: Improved Regional Trade and Transit Facilitation by Customs Sub-component 2.2: Improved Regional Business to Business Linkages

C.4.1 COMPONENT 1: Improved Business Enabling Environment

Sub-component C.4.1.1: Improved GoP Ability to Develop and Implement Reforms of Policies, Laws and Regulations

It is important for policy makers to be aware of the latest developments in international trading systems.

At the same time they should be properly equipped with the requisite skills and techniques to foresee trading opportunities and threats arising from changes in the national and international trading environment. PREIA will provide technical assistance to the MoC and other departments potentially involved in trade policy formulation and implementation in order to strengthen trade related research and analytical capacity within the GoP. Support for institutional capacity building of MoC and other relevant institutions will assist policy makers to understand better the economic impact of trade-related policies and their reform; and to match policy choices more effectively with the economic reality of the country. It will also improve long-term planning by the GoP. Areas for capacity building support may include but are not be limited to trade policy analysis, export competitiveness, regional integration, trade in services and investment, and multilateral trade negotiation.

Sub-component Objectives

a) Increased human and institutional capacity of key GoP actors to better assess policy issues, negotiate agreements, improve regulations and engage with stakeholders on trade policy reform;

b) Enhanced access of GoP policy makers to rigorous trade-related research and analysis to inform official decision making;

c) Improved GoP capacity to better analyze economic and business opportunities that emerge as a result of changes in the policy and trade environment;

d) Increased knowledge and awareness of applicable policies, regulations, and compliance processes among GoP stakeholders;

e) Strengthened capacity of policy and regulatory stakeholders to conduct comprehensive data gathering and analysis.

Illustrative Activities

1. Perform analysis identifying and prioritizing policy reform areas that are most likely to contribute to the attainment of trade policy goals under PREIA, particularly in relation to the prevailing political environment;

2. Develop a training plan based on a needs assessment for institutional and personnel capacity building of key GoP actors including recommendations to carry-out post training assessment and evaluation to monitor impact;

3. Provide assistance to help the MoC and other relevant GoP institutions to reach out more effectively to the Pakistani public and, in particular, to the private sector entities, regarding trade policy issues.

Sub-component C.4.1.2: Improved Private Sector and Civil Society’s Engagement in Policy-making

PREIA will support broad private sector and civil society engagement with the GoP to inform policy making and implementation of trade policies which facilitate imports, exports, and market opportunities.

This sub-component will support private-sector engagement with the GoP to jointly formulate, adopt and implement meaningful trade liberalization policies and measures. Private sector involvement should provide government policy makers with vital sources of information, which can be a powerful asset in trade negotiations. Appropriate policies are best constructed and implemented through effective public-private cooperation. Activities under this component will build and institutionalize private sector research and advocacy capacity, particularly in key business and industry associations that represent the trade and transit needs of their constituencies. Trade-focused expertise within think tanks, academia and civil society will also be developed to provide government policymakers with technical analysis that may further their understanding of the economic and business implications and trade-offs of different trade policies.

PREIA will support the continuation and/or creation of a more structured approach to encourage regular, efficient and more effective public–private interaction regarding trade policy. The main goal of this approach will be to foster an inclusive two-way dialogue between business, civil society and government, and encourage joint analysis of business opportunities and challenges. PREIA will therefore serve a critical role in bridging an information gap by providing technical assistance and using convening power to bring these parties together.

The Contractor must design and implement innovative and practical initiative(s) for supporting establishment of a platform for consultation between the public and private sectors. The Contractor shall propose a mechanism to implement a consultative process of trade policy making which brings together all stakeholders to cooperate and participate in dialogue, decision making and implementation of solutions. To the extent possible, the Contractor will work with experienced Pakistani institutions that will fully support the aforementioned principles in facilitating such dialogues. In providing this strategy, the Contractor must also identify key public and private sector actors for inclusion in such a mechanism.

a) Local trade-related research capacity increased and institutionalized, particularly in key business and industry associations, academia and think tanks;

b) Regular and structured dialogues among the business community, academia, media, GoP policy makers and other stakeholders on trade policy issues strengthened;

c) Capacity of private sector organizations that participate in trade reform proceedings and/or engage in dialogue strengthened at all levels;

d) Capacity of the civil society to promote advocacy initiatives effectively that support trade policy reform strengthened.

1. Develop an action plan identifying key stakeholders for capacity building and outlining an approach to ensure effective private sector and civil society engagement in policy making;

2. Form a public-private dialogue Steering Committee with representation from key public and private sector stakeholders, academia and civil society to guide and review the process of inclusive dialogue and consultation on issues related to trade policy and regulatory reform;

3. Provide trade-related research, advocacy, and/or public engagement technical assistance and grants to the private sector, academia, and media;

4. Engage with private sector actors in partnerships, to leverage resources, and/or involve them in efforts to perform analyses, design policy, and implement findings in collaboration with public and private sector partners;

5. Support a credible, scalable and sustainable public-private partnership mechanism to monitor logistics performance and trade reform progress;

6. Create a system of monitoring tools that voluntarily and regularly track and publicly disseminate trade related information such as the cost of transit, time spent at borders, theft, side payments, waiting time and any other useful information to guide businesses interested in international trade;

7. Conduct media campaigns in support of outreach efforts to help business communities and stakeholders understand better the affects and implications of policy changes.

C.4.2 COMPONENT 2: Improved Capacity to Access Regional Markets

Sub-component C.4.2.1: Improved Regional Trade and Transit Facilitation by Customs

The potential benefits of liberalized trade policies cannot be fully realized without improved trade and transit facilitation that strengthens relationships among trading partners. Activities under this sub-component will provide direct assistance to the GoP’s Federal Board of Revenue (FBR), specifically its Customs Wing, as well as to other border control agencies as appropriate. Activities will also be geared towards improving the conditions for international and cross-border trade and transit by simplifying and harmonizing border clearance and other related customs procedures. Activities will provide support to public and private sector stakeholders to address constraints at Pakistan’s borders that affect trade and transit volume by decreasing the time, cost and complexity involved in the movement of goods.

PREIA will build Customs officials’ skills base and operational abilities to improving compliance, enforcement, regulation, processes, and adoption of international best practices. PREIA will provide support to build human capacity within Customs and to utilize ICT to improve efficiency and meet the requirements set forth under the WTO TFA and Revised Kyoto Convention guidelines.

Capacity building needs will also be identified through feedback from the private sector regarding Customs processes and operations. PREIA will support regular consultative meetings between Customs (senior and working level customs officials) and broad sample of beneficiaries of Customs services.

Customs will have an opportunity to learn about the practical realities facing the business sector when utilizing Customs services. Regular dialogue should foster a cooperative and collaborative relationship between Customs and the private sector.

a) In coordination with other USG and other donor-financed efforts, customs regime improved by supporting FBR with development and implementation of its Customs Reform Roadmap;

b) Strengthened capacity of FBR/Customs and other border control agencies to implement global best practices and improve compliance with international conventions and agreements;

c) Reduced cost and time of exporting/importing goods by improving trade logistics and simplifying customs procedures;

d) Institutionalized regular customs-to-customs dialogue that highlights a mutually agreed to prioritized agenda between working level customs officers at border crossings.

1. Develop and implement a training program for Customs officials to facilitate more transparency and timely processing of trade goods and documents;

2. Develop and implement a joint strategic plan to prioritize and address trade facilitation opportunities with the appropriate GoP stakeholders including but not limited to FBR/Customs, MoC and Ministry of Finance;

3. Provide technical assistance to implement customs procedures, tariff and regulatory harmonization;

4. Provide exposure to best practices through study tours, exposure visits, and customs exchange working groups and shadowing;

5. Support small-scale infrastructure improvements to facilitate the flow of cross border trade and transit;

6. Form at least two (2) consultative bodies e.g. customs committees to facilitate customs-to-customs dialogue;

7. Organize at least two (2) study tours/exposure visits/custom exchange working groups annually to provide exposure to global best practices;

8. Promote and effectively utilize ICT to build efficiency and greater transparency into customs operations.

Sub-component C.4.2.2: Improved Regional Business-to-Business (B2B) linkages – Trading Across Borders:

Greater regional integration not only requires liberalizing Pakistan’s trade policy from within but also connecting to the trade policy framework of neighboring countries. To better position Pakistan to take advantage of the benefits of regional integration and trade, Pakistan will need to advance its trade policy and implementation to meet regional and international norms. The private sector can play a proactive partnership role in furthering a policy agenda giving voice to the community at large. Building greater awareness and policy cohesion can be formed in parallel through greater connectivity with and exposure to businesses abroad to enrich it.

This sub-component will provide support to the private sector to identify and capitalize on business opportunities in international and more specifically regional markets. Target groups will include private sector trade promotion organizations, chambers of commerce and industry, sector associations, and women’s business groups. The support will focus on improving access to information about regional and international trade and investment opportunities as well as create linkages among regional trading partners.

a) Strengthened networking and sharing of best practices among regional businesses through trade fairs, conferences, business to business events, economic fora and exhibitions;

b) Mechanisms developed for businesses to share contacts, improve private sector cooperation and information exchange (e.g. database);

c) Ties between business associations in the form of joint councils or regional associations strengthened;

d) Capacity of local trade promotion authority and chambers of commerce and industry strengthened to better serve member businesses through spearheading regional business promotion efforts;

e) Increased women’s participation in international trade by providing networking and information exchange opportunities, and by building capacity of trade promotion institutions to provide better services to business women.

1. Develop a strategy document with recommendations for review by USAID for organizational and human resources capacity building of national trade promotion body, and regional trade related associations including select chambers of commerce and industry for creating networks among their counterparts in the region;

2. Promote market research on trade opportunities to link the information requirements of businesses with GoP trade statistics and other relevant data;

3. Organize at least three (3) B2B activities annually to connect Pakistani exporters and importers (including women-owned/managed businesses) with trading opportunities within regional markets;

4. Facilitate signing of at least eight (8) Memorandum of Understanding (MOU) for a framework for cooperation among the select chambers of commerce, trade bodies and industry associations in the region;

5. Deliver female-focused activities such as training on trade issues.

USAID’s previous experience in promoting trade policy reform in Pakistan suggests that a number of issues including inconsistent political commitment, shifting governance structures, frequent staff turnover, as well as constraints related to implementation capacity and resources, make it difficult to ensure that policy recommendations are adopted and implemented. As part of its implementation approach PREIA will work along with key champions and stakeholders to generate buy-in and commitment to policy and reform continuity. PREIA will, to the greatest extent possible, ensure that policy recommendations are adopted and implemented and that key GoP institutions and the private sector are fully engaged and invested in the policy reform process in order to maximize the Activity’s impact.

C.5 Expected Results

Expected results and associated indicators are linked to PREIA’s draft Logical Framework Analysis (LFA) provided as Attachment J.2.

Expected results at the Activity level:

Pakistan will have improved capacity in the analysis of trade policy choices;

Normalized, structured and sustainable processes for dialogue between the business community and the government;

Private sector will be recognized as a key stakeholder in both policy making and implementation;

Pakistan will have more streamlined customs procedures that facilitate cross- border trade;

Pakistani businesses will have better business-to-business networking linkages with regional counterparts.

Through this Activity, Pakistan’s improved ability to participate in regional markets will lead to increased trade and transit flows.

The following represent changes that will be brought about with the support of PREIA activities.

Their achievement will require actions beyond the control of PREIA but it will play a major role in helping Pakistan attain the targets specified. The Annual Work Plans will be structured to support the achievement of these targets.

PREIA will…