The federal government has approached the Law Ministry to determine whether the powers of the Special Investment Facilitation Council (SIFC) override the Public Procurement Rules in the hiring of a consulting firm for the renewal of Pakistan’s Generalised Scheme of Preferences (GSP) Plus status with the European Union (EU), Business Recorder reported.
According to the news report, this move follows a request from the Ministry of Commerce to hire M/s Haider Global BVBA, a lobbying firm, to assist in securing the extension of Pakistan’s GSP Plus status, which is crucial for the country’s exports.
The Ministry of Commerce had earlier sought an exemption from the Public Procurement Regulatory Authority (PPRA) rules to engage the firm through direct contracting.
This request was backed by the SIFC, which acknowledged the urgency of securing the GSP Plus status renewal for Pakistan’s economy.
However, the Ministry of Commerce’s request has raised legal questions regarding whether the PPRA Board needs to approve the exemption or if the SIFC’s recommendation is sufficient. The issue is expected to be clarified with input from the Law Ministry.
In a meeting with the PPRA Board, Commerce Secretary Jawad Paul and other senior officials argued for the immediate hiring of the firm, citing the time-sensitive nature of the GSP Plus review process.
The PPRA Board, however, called for further clarification on the legal aspects of the exemption and decided to seek the Law Ministry’s opinion on whether the SIFC’s powers under the Board of Investment Act are enough to grant the exemption or if additional approval from the PPRA Board is required.
The decision to hire the lobbying firm and move forward with the GSP Plus renewal remains pending, with further discussions expected in the coming weeks.
Pakistan’s GSP Plus status is undergoing a routine review, with a Monitoring Mission from the European Commission expected to visit Pakistan in the coming months. However, the mission’s visit has been delayed due to logistical issues.
The EU’s GSP scheme, which grants preferential trade terms for developing countries, was initially set to expire in December 2023. However, it was extended until December 2027 following amendments approved by the European Parliament. Pakistan, having benefited significantly from the scheme, has seen its exports to the EU grow substantially, particularly in textiles and agriculture.
Given the importance of the GSP Plus status to Pakistan’s export sector, the Ministry of Commerce has emphasised the need for hiring a lobbying firm with expertise in EU law and regulations to support the renewal process.
