1. 1 Commitment, Responsibility, Due Diligence Promoting Responsible Trade in Contemporary Security Environment Strategic Export Control Division (SECDIV) Ministry of Foreign Affairs, Islamabad

2. Overview of Presentation 2 Introduction The Basis of Current Strategic Export Controls The Potential for Hi Tech Industrial Development Counter Pressures on Export Control Regimes Confronting the Challenge New Initiatives and ICP Conclusion

3. 3 During the Cold War, export control centered on COCOM (Coordinating Committee for Multilateral Strategic Export Control) Under COCOM, exports of strategic items were controlled to ensure superiority of the Western bloc in armament, high technology and economy Introduction Towards the end of Cold War COCOM was abolished Under COCOM, control based on end-user - under the new regimes, control is on commodities as well as destinations

4. The Basis of Current Strategic Export Controls 4 The objective has changed from protection against broad military attack to denying WMDs and conventional weapons Post 9/11 - more focus on the supply side of the trade chain, in addition to the destination and end use The basis of current “strategic export controls” – controls on items designed for military use, including dual use items with potential commercial application, such as electronics, avionics, metals and telecommunications

5. Potential for Hi Tech Industrial Development 5 Pakistan's growing defense industry is going high tech Burgeoning IT sector Eager to boost its capabilities for high-tech aerial warfare A number of public and private sector companies are engaged in research, development and manufacturing of unmanned aerial vehicles Objectives of National Industrial Policy – 2011

6. Industrial Policy 2011 - Objectives 6 NIP 2011 envisions Pakistan as a factory for the world rather than a shop Sustained manufacturing growth target of at least 8% per annum leading to doubling manufacturing output in the next ten years Increase manufacturing value addition (MVA) by more than 100 percent, a sharp increase in exports of medium and high technology manufactures Through value-addition and diversification the policy aims to increase the manufacturing share in GDP to at least 20% in the next twenty years Expand Pakistan’s manufacturing base and impart focused skill-based training Spur development across the country for a sustainable and balanced industrial development

7. Counter Pressures on Export Controls (The Challenge) 7 Today’s proliferation threats are more diverse and increasingly difficult to counter Defence industry has the potential to produce more than the military can absorb. It must find new markets Conflicting pressures due to economic competition Expansion of the private sector, decentralisation of political and administrative powers, and growing integration in the global economy would bring new challenges

8. 8 Our interest in maximizing legitimate exports and realizing full trade potential of the national industry The need to provide clear and efficient trade policies which minimize uncertainties for exporters The necessity to consult to the maximum extent practicable, the public and affected industries with respect to the implementation of export control policies

9. Confronting the Challenge 9 Globalization and diffusion of technology pose enormous challenge to effective regulatory environments Efforts are in hand to cover the grey areas through:- o Coopting all relevant departments and agencies for an efficient and effective export control mechanism o Promoting internal compliance inter alia intangible transfer, high- risk property management etc o Capacity Building (Government & Private entities) o Sensitizing the stakeholders - Creating Awareness

10. 10 Export controls should extend only as far as absolutely necessary and should be clearly stated In recent years, our measures on export control of sensitive technologies have undergone a transformation Key measures include:- o Promulgation of National Command Authority Act, Pakistan Nuclear Regulatory Authority Act, Cyber Crimes Ordnance o Export Control on Goods, Technologies, Material and Equipment related to Nuclear and Biological Weapons and their Delivery Systems Act-2004 o Establishment of SECDIV, OSB and promulgation of CLs and Licensing Rules Confronting the Challenge

11. Confronting the Challenge – New Initiatives (The Supply Side) 11 For the supply side controls it is essential to sensitize the stakeholders Export controls on sensitive goods should be continuously evaluated and adapted in order to remain ahead of rogue elements ICP essential but not legally binding Record keeping

12. 12 ICP – an important segment. Major public sector organizations have set up export control wings and have developed ICP The need for an ICP to avoid law violations has increased exponentially An effective ICP provides two significant benefits:- It prevents law violations May mitigate penalties in those instances where a not so severe violation goes undetected Confronting the Challenge – New Initiatives (The Supply Side)

13. 13 International export control arrangements, while preventing proliferation of WMDs should not hamper international cooperation in the peaceful uses of goods & technology Export control regimes should be more inclusive and should not create any exceptions Conclusion

14. Thank You For further Information www.mofa.gov.pk/secdiv/ 14