Pakistan’s exports to the European Union (EU) rose by 37% during the last three years on the back of the Generalised Scheme of Preferences (GSP) Plus status, the commerce minister has revealed.
“The GSP status offers huge potential for enhancing mutual trade between Pakistan and EU,” Federal Commerce Minister Khurram Dastgir said in a statement received from Brussels here on Saturday.
Dastgir, in a meeting with Member of the European Parliament’s Committee on International Trade Jan Zahradil, said that the export of machinery, chemicals and dyes from Europe to Pakistan also rose by 14%.
In December 2013, the EU awarded GSP Plus status to Pakistan, providing zero tariffs to 20% and preferential rates to 70% of the country’s exports to the region. The status is valid till 2017.
Annual bilateral trade between Pakistan and the EU is more than $7 billion, with the balance of trade being nearly equal.
Pakistan’s main exports to the EU consist of textile, leather products, and medical equipment. The GSP Plus status was expected to boost Pakistan’s exports to two billion dollars, besides creating job opportunities.
The biggest beneficiaries of the tax concessions are the textile and clothing industries, which constitute over 60% of Pakistan’s exports. The country’s rivals Bangladesh and Sri Lanka are also enjoying duty-free access to the 28-member European bloc.
Under the GSP Plus, Pakistan has to comply with all 27 United Nations conventions on human rights, as well as labour and environmental laws. Dastgir apprised Zahradil about the various steps being taken by Pakistan to improve working conditions in the manufacturing sector, law and order, and human rights.
“The focus of Pakistan has shifted towards strengthening its economy through trade rather than aid,” he said. He accentuated the correlation of economic progress with the peace and stability of any country.”Economic and social indicators are on the rise in Pakistan,” he added.
Meanwhile, Pakistan has agreed to share its experience and provide technical assistance to Kyrgyzstan, which is also keen to make inroads into the European Union market under the Generalised Scheme of Preferences (GSP) Plus.
Pakistan’s response came after Kyrgyzstan sought help in that regard in a meeting of the Joint Ministerial Commission (JMC) of the two countries held on January 11 and 12, an official said.
The JMC huddle came after a long gap of 10 years.”Kyrgyzstan, a Central Asian nation, expressed interest in learning from Pakistan’s experience in making exports to the 28-nation EU market,” the official said.
