KARACHI: Ambassa­dor of the European Union Raina Kionka has said that the GSP+ status for Pakistan has been rolled over without any changes to the rules of framework so everything was going to stay the same up to 2027.

“We also have elections in June 2024, which means there will be a political changeover in the parliament and the EU’s Commission. Once everything settles, we expect that the new parliament and the Council of EU member states will once again take up negotiations on a new directive for GSP+ with Pakistan which couldn’t happen last year,” she said while addr­essing the members of the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday.

Although it’s a four-year rollover for GSP+, if they come up with a new regulation, it will become effective before 2027, she added.

According to KCCI’s press release, the EU ambassador said that rather than staying confined to exporting textiles only, the business community of Karachi should broaden and diversify their exports to the EU to take maximum advantage of GSP+.

“GSP+ is tremendously important for Pakistan’s economy whose overwhelming beneficiaries are not just textile producers but also workers in textile factories,” she said, adding that GSP+ has been extremely positive and useful in economic terms during the last 10 years as it helped in increasing Pakistan’s exports to EU by 108pc while EU imports also ascended by 40pc since the start of this scheme.

While identifying gems and jewellery, tourism, handcrafts and auto parts as potential sectors under GSP+, she said that the EU’s delegation in Islamabad would also like to set up a platform to promote EU-Pakistan business-to-business relations which could also help the SMEs in making good connections with businesses in EU and ultimately help the SMEs in Pakistan to also benefit from GSP+.

Earlier, KCCI President Iftikhar Ahmed Sheikh said that the EU has been the largest export destination for Pakistan, which stood at $8.4 billion, followed by the US at $5.93bn and China at $2.02bn in FY23.

Pakistan’s exports to the EU are dominated by the textiles sector and last year, Pakistan’s total textile exports remained at $16.50bn which is almost 60pc of the total exports.

He said Pakistan and the EU need to discuss ways to improve Pakistani products’ access to the EU market, address trade barriers, foster collaboration, focus on export diversification, and ensure smoother trade practices and compliance with international standards.

Published in Dawn, January 10th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Palestine MPC
Updated 09 Oct, 2024

Palestine MPC

It's a matter of concern that PTI did not attend the Palestine MPC. Political differences should be put aside when showing solidarity with Palestine.
A welcome reform
09 Oct, 2024

A welcome reform

THE Punjab government’s decision to abolish the corruption-ridden and inefficient food department, and replace it...
Water paradox
09 Oct, 2024

Water paradox

A FULLY fledged water crisis is unfolding across the world, with 2023 recorded as the driest year for rivers in over...
Terrorism upsurge
Updated 08 Oct, 2024

Terrorism upsurge

The state cannot afford major security lapses. It may well be that the Chinese nationals were targeted to sabotage SCO event.
Ban hammer
08 Oct, 2024

Ban hammer

THE decision to ban the PTM under the Anti-Terrorism Act is yet another ill-advised move by the state. Although the...
Water tensions
08 Oct, 2024

Water tensions

THE unresolved tensions over Indus water distribution under the 1991 Water Apportionment Accord demand a revision of...