Pakistan seeking greater access: Exports to EU, US
By Khaleeq Kiani
ISLAMABAD, Nov 23: Pakistan has sought greater market access from the European Union, the United States and other major Western countries for its exports to offset negative impact of the October 8 earthquake on its overall economy and growth momentum, Dawn has learnt.
Informed sources told Dawn on Wednesday that President Gen Pervez Musharraf and Prime Minister Shaukat Aziz have personally taken up this issue with a number of countries as part of their recent campaign for securing maximum economic concessions and financial help for reconstruction and rehabilitation effort.
Most of the EU members, said these sources, have shown willingness to treat Pakistan on a par with Sri Lanka. Pakistan had requested the EU to provide those special concessions under the new generalized system of preferences to be effective from January 1, 2006 which they have committed to Sri Lanka in the aftermath of tsunami.
The prime minister, said these sources, asked many world leaders to consider ‘as a special case’ to allow special treatment to Pakistan’s exports in view of the estimates by some multilateral agencies that the earthquake could impact GDP growth rate by upto 0.4 per cent during the current year.
“When AJK’s estimated GDP is added to Pakistan’s overall output and to GDP losses, the impact of the earthquake rises to 0.7 per cent”, the World Bank and the Asian Development Bank said recently.
They estimated that additional impact of the earthquake is likely to bring output growth further down to around 6.2 per cent due to a projected reduction in NWFP output for fiscal year 2006 against a budgetary target of seven per cent.
The sources said the prime minister informed these leaders that while their financial support would help Pakistan meet its reconstruction and rehabilitation requirements, special treatment for its exports would contribute towards maintaining macroeconomic stability and overall growth momentum achieved through six years of hard work and reforms.
The prime minister, said these sources, has also directed the ministry of commerce to follow up the case with major trading partners particularly the EU and the US for a medium to longer term recovery of losses the industrial and manufacturing sectors in the AJK and NWFP might have on overall economy.
The proposed concession for exports “on a special case basis” will be apart from Pakistan’s ongoing negotiations on bilateral level and as a member of the G-20 bloc of the developing countries in the WTO.
Pakistan is already availing normal concession under the new GSP scheme but that is not going to have any significant impact on Pakistan’s exports to EU member countries.
As part of G-20 bloc, Pakistan is seeking greater market access through reduction in customs duties and elimination of export subsidies on agricultural products. It also seeks more cushion for developing countries in reduction of customs duties on industrial goods to less than 10 per cent.
