ISLAMABAD, Dec 12: The European Parliament approved on Thursday the ‘GSP-Plus’ status for Pakistan which will allow duty-free access of its products to European markets.

The parliament approved the ‘Single Delegated Act’ under which Pakistan and nine other countries will be entitled to the Generalised System of Preferences Plus Scheme.

The act will come into force on January 1 next year and will be effective till 2017.The law secured support of 406 members of the parliament, while 186 votes were cast against it.

The International Trade Committee of the European Parliament had voted for the move on Nov 5 on an application submitted to the European Commission in March.

Pakistan earlier enjoyed duty-free access to the EU market between 2002 and 2004 under the Drug Related Arrangement of the GSP Scheme, but it was ended when it was challenged at the World Trade Organistaion.

Prime Minister Nawaz Sharif congratulated the nation on the award of the status. “Award of the status shows confidence of international markets in the excellent quality of Pakistani products,” he said in a statement.

Mr Sharif said the resultant increase in exports would boost economic growth and generate millions of jobs. The textile industry alone, he said, would earn annual profits of over Rs1 trillion.

President Mamnoon Hussain also welcomed the approval of the GSP-Plus status.

He said the facility would significantly strengthen “our economy through greater trade, generation of economic opportunities and creation of more jobs for our people”.

The ministry of commerce said that as a result of the grant of GSP-Plus status the country’s exports to the EU might increase by around $1 billion in 2014. Last year, Pakistan exports to the EU stood at $6bn.

The sectors that are likely to benefit from the status include textile fabrics, yarn, textile garments including hosiery, bed, kitchen and toilet linen, footwear, protective leather gloves and sports gloves, ethanol and plastics.

It is expected that the enhanced access to the EU market will create about 100,000 more jobs in the manufacturing sector in one year.

Many Pakistani products like footballs, mangoes and other fruits, pine nuts, animal products, cutlery products, surgical instruments, basmati rice already have zero duty in the EU.

Finance Minister Ishaq Dar said that a number of measures taken to fix the economy and gain the trust of international community were beginning to bear fruits. He said the facility would increase the country’s exports by $2bn.

The Foreign Office said in a statement that Pakistani embassies in the European capitals, the commerce ministry and the governor of Punjab had worked hard to make about the passage of the act.

“We are grateful to the European Commission and member countries of the European Union for their unstinting support at every step of the process and to the European Parliament for the adoption of the Single Delegated Act,” the FO said.