ISLAMABAD: Prime Minister (PM) Shahid Khaqan Abbasi chaired a high-level meeting at PM Office on Friday which reviewed the efforts for the continuation of Generalized System of Preferences (GSP) Plus status for Pakistan beyond 2018.
Commerce Division briefed the meeting in detail regarding Pakistan’s compliance with the requirements of GSP Plus. The meeting was informed that periodical review report by the Government of Pakistan has already been submitted and has been examined by the European Union (EU).
The Commerce Division further informed that positive outcome is expected after the examination of the periodical review and the GSP Plus status will obtain a roll-over for another three years term. The meeting was also informed that over the past five years Pakistan’s exports to the EU registered 45 per cent increase while value-added textile products registered 88 per cent increase.
Prime Minister Shahid Khaqan Abbasi directed Commerce Division and relevant foreign missions abroad to maintain a focused approach towards ensuring the continuation of GSP Plus status and take all necessary measures to maintain the growth-oriented trend.
The meeting was attended by Commerce Minister Pervaiz Malik, Advisor to PM on Finance Miftah Ismail and senior officials from Commerce, Foreign Affairs, Economic Affairs, Human Rights and Religious Affairs Divisions.
Earlier on Friday Commerce Minister Pervaiz Malik stated that the EU will surely extend the GSP Plus status to Pakistan in the next month as Pakistan fulfilled most of its points.
He stated that Indonesia has granted a unilateral concession to Pakistan on 20 tariff lines under Preferential Trade Agreement (PTA). “It’s a major breakthrough achieved by Ministry of Commerce (MoC) that no other government could achieve in the last few years,” he added.
According to information Pakistan got zero per cent duty on mangoes, broken rice used for animal feed, ethyl alcohol of 80 per cent strength, denatured ethyl alcohol and other spirits of any strength, tobacco, articles of apparel and clothing accessories of leather and single yarn woven fabric of cotton containing more than 85 per cent weight of cotton.
Moreover woven fabric of cotton containing more than 85 per cent weight of cotton, t-shirts, vests knitted t-shirts and vests, jerseys, pullovers, trousers, bed linen and toilet towelling have also been zero-rated.
Commerce secretary informed that trade between the two countries was recorded at $ 2.44 billion in 2016-17. The growth in bilateral trade is due to increase in Indonesia’s exports to Pakistan, whereas Pakistan’s export to Indonesia showed negative growth after the implementation of PTA.
Pakistan exports to Indonesia have declined from $ 196 million in 2012-13 to $ 138 million in 2016-17.
The minister stated that Pakistan exports have increased after Prime Minister’s Rs 180 billion export package. During the last six months, exports have been increased to $ 1.1 billion and we are expecting that it will increase to $ 2.5 billion by June 30, 2018.
