In pursuance of the Trade Policy 2003-04, the Export Promotion Bureau (EPB) announced a promotional scheme for acquiring/ franchising established foreign brand names. The scheme known as Brand Name Acquisition/ Franchising (PNAF) would be operative with immediate effect.
The scheme envisages that EPB will hire international consultants at its own cost to help identify foreign brand names available for acquiring/ franchising and will assist exporters in obtaining bank finance at economical mark up rates to meet the cost of acquisition/ franchising of foreign brands.
The EPB is the primary agency of the Government of Pakistan engaged in promoting and boosting of country's exports. Since its inception in 1963 as an affiliate department of the Ministry of Commerce, EPB continues to assist the exporters in overcoming difficulties they face on the supply and demand side.
The objectives to be achieved through the scheme are to achieve incremental exports by increasing market share and market penetration, help the country achieve higher value for its products, assist the country in achieving export of a wider range of value added products, achieve more sustainable exports, and provide access to existing marketing network of established brands.
According to the EPB, “brand” is defined as a foreign brand for a given product registered outside Pakistan and owned by a company registered abroad. It may be registered in Pakistan as well.
Meanwhile, the term “Acquisition” means acquiring a foreign brand name by a Pakistani company through purchase from the registered owner of the brand name.
As for “Franchising”, it means acquiring, under a registered user agreement, the use of a foreign brand name for Pakistani products for export to all or some foreign countries as may be negotiated with the foreign registered owner of the brand.
For acquisition / franchising of foreign brand names, the following criteria would be applied:
(i) The Pakistani company should have an export performance of a minimum $5 million average annual export in the last three years.
(ii) The exporters should have their own manufacturing facilities of international standard, preferably those already certified for ISO-9000,
ISO-14000 and SA-8000.
(iii) The product quality should be of international standard.
For more details on this scheme, please visit the following website: www.epb.gov.pk