Problem overview:

     Policies and measures: To encourage cleaner production, the government had a policy to reduce import tax on anti-pollution machinery. In the end, the policy could not be enforced because they could not distinguish which machine is anti-pollution.

Background in summary:

     National Environmental Quality Standards: The Government of Pakistan notified National Environmental Quality Standards relating to Municipal and liquid effluents, Industrial emissions, and Motor vehicle exhaust and noise to come into force on 24 August, 1993 with immediate effect. Except in the case of industrial units to which the following schedule applied:

     Lower import tax on anti-pollution equipment: To encourage industry to ensure compliance of National Environmental Quality Standards, Government started round table consultations with the owners of the industry, through the Federal of Pakistan Chambers of Commerce and Industry (FPCCI). On the recommendations of FPCCI, the Government of Pakistan agreed to charge the lowest slab of custom duty (10 percent ad-valorem) on the imported "equipment and machinery" used as anti-pollution equipment.

     The customs department demanded for a list of anti-pollution equipment and machinery: Necessary notification to this effect was issued by the Central Board of Revenues of the Ministry of Finance vide SRO.221(I)/97 dated 28 March, 1997. The customs authorities, however, demanded a list of machinery and equipment which could be used as anti-pollution equipment for the enforcement of most preferred custom tariff structure, as the existing custom code did not provide such a category.

     The Federation of Pakistan Chambers of Commerce and Industry was unable to provide the list: The Federation of Pakistan Chambers of Commerce and Industry was, therefore, requested to draw up such a list for use by the custom authorities. They were, however, unable to compile such an exclusive list because most of the machinery and equipment intended for use as anti-pollution equipment had multiple uses in the industry and the production systems.

     Despite good intentions, the policy could not be carried out: No other viable alternative acceptable to the Pakistan customs Department therefore emerged. As a result, the enforcement of this tariff concession on import of anti-pollution equipment and machinery, as a measure for sustainable development could not be realized, despite good intentions of the Government.

Peer Review Committee Good practice rating: (1 for the best, 5 for the lowest score)
Sustainability		Efficiency
1	Improvement in either the environment of economic condition with no harm to the other.	1	Cost efficient.
1	Sustainable over time (not one-off)	Process
Adaptability		-	Participation of the community
2	Location adaptability (can the project be done in other places?)	1	Participation of resource owners/users
2	Socio-cultural adaptability.	2	Partnerships between various actors (Governments, NGO, Academia, Private)
4	Level of development adaptability.	3	Degree of coordination and cooperation between government departments.
2	Style of government adaptability.	2	Ability to attract political interest/support
3	Degree of decentralization adaptability.	3	Procedures for feedback and review.
Comments on this example:       Setting pollution standards on the industrial sector has always been a controversial and costly matter. Problems apparent are that in many countries, pollution charges are not set high enough to provoke the industries to install pollution abatement equipment instead of regularly paying small fees for polluting.       Promoting voluntary compliance, is one mechanism that is efficient and inexpensive to regulate and monitor. Assistance from the government, example in this case, setting low tax on pollution abatement machinery, will be more encouraging for industries to cooperating.       However, problems of pollution abatement machinery, apart from its integrated purpose for production and abatement, is the uncertainty of whether this machine is the best available technology for cleaner production, or are there other machines available. Sustainability of the project:   Adaptability of the project to other situations:       Process of decision making and implementation:      Policies and measures: Pollution from the industrial sector, such as toxic waste and greenhouse gases is a growing concern for the environment. To control effluents from industrial processing, pollution charges could be put into action. However, this method is only to limit the level of emission, not to exceed a certain point. In the long run, the manufacturing process should be able to reduce the level of pollution to reach a very low or even zero level pollution. In order to do so, state-of-the-art environmental technological equipment and machinery for better industrial technologies and pollution control procedures need to be invented, developed and put into use. Cost efficiency: