KARACHI: Pakistan’s exports to the European Union rose 20 per cent to $6.38 billion during the first 10 months of 2014 from $5.3bn last year, Commerce Minister Khurram Dastagir said on Thursday.

During a seminar where the ‘Business Guide for GSP+’ was also launched, the minister said the preferential tariff scheme boosted export of textile, leather goods, footwear and plastic products.

Pakistan’s exports to the 28-nation European bloc was falling before the GSP+ status, he said, particularly when the Drug Related Arrangement was terminated in 2005. As a result tariff concessions granted in certain product categories were withdrawn. It landed Pakistan in a difficult situation as it had to compete with much stronger economies like India, Brazil and China for market share.

Eventually Pakistan’s exports to the EU which had been growing by 16-17per cent annually earlier (2002-04) plummeted to the compound export growth rate of 4.5 per cent, he added.

During the same period, Bangladesh’s compound growth rate for exports to the EU was more than 13pc, India 8.5pc, Vietnam 18pc and China more than 7pc.

Elaborating the positive impact of GSP+ and the growth in exports of some products to the EU member states, the minister said that from 2005 onwards the customs tariff on various products of textiles originating from Pakistan was between 6.4 and 12pc. The duty was around 6pc on leather products, including footwear.

But after the withdrawal of these duties, he said, Pakistan’s textile exports increased by over 20pc during Jan-Oct 2014 compared to the same period of 2013. Similarly, exports of textile to the EU rose from to $4.4bn from $3.6bn. The exports of garments grew by 28pc, home textiles by 30pc and towels by 23pc.

He added that many products which were in the sensitive category for Pakistan under the General Arrangement from 2005 to 2013 became duty free under the current regime. Exports of plastic products, for instance, grew by 70pc to $66.22 million under the GSP+ scheme from $38.21m earlier.

Likewise, Pakistan’s exports of leather products increased by 9.36pc to $45m during Jan-Oct 2014 compared to the same period in 2013. Footwear exports increased from $70m to $90m.

The minister hoped that the GSP+ business guide — jointly prepared by Pakistan Institute of Trade and Development, EU’s Trade Related Technical Assistance (TRTA) Programme, International Trade Centre and the United Nations Industrial Development Organisation — will provide useful information to new exporters, especially its translated version in Urdu.

The launching ceremony and the seminar was also attended by EU envoy Lars-Gunnar Wigemark; barrister Zafarullah Khan, special assistant to the prime minister; and Trade Development Authority of Pakistan’s chief S.M. Muneer.

Published in Dawn, January 23rd, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play