ISLAMABAD, Sept 2: The government is stepping up its 'economic diplomacy' to seek special trade concessions from major partners, particularly the European Union and the United States, to cope with threats of rising poverty and economic instability as the country confronts grave challenges because of the devastating floods.

Sources told Dawn on Thursday that Foreign Minister Shah Mehmood Qureshi and Commerce Secretary Zafar Mahmood would leave on a five-day trip to Europe on Sept 9 to lobby for greater market access for its exports through the Generalised System of Preference (GPS) plus — a concessionary trading arrangement especially for vulnerable countries with special development needs.

Under the scheme, exports are allowed into EU countries without duty, unlike in normal trading system envisaging 13 to 20 per cent import duties.

After four days of bilateral interactions with several EU countries, the team will have a joint sitting with foreign ministers of all the members on Sept 12 in Brussels.

Authorities estimate an increase of over $2 billion per annum in Pakistan's trade with the 27-member economic bloc if its request for the GSP plus arrangement is accepted. The combined gross domestic product of the world's largest single market stands at around $20 trillion.The delegation will also apprise the powerful economic group of the devastation caused by floods and seek grants for early relief.

It will seek funds for reconstruction, rehabilitation and development when Pakistan formally holds donor conferences next month on the basis of a damage and need assessment report being prepared by the Asian Development Bank and World Bank.

The sources said the government planned to call its diplomats posted in world capitals later this month to prepare a strategy for improved trading arrangements through free trade agreements and an aggressive marketing approach for higher exports.

They said the country's economic team, currently in the US for review talks with the International Monetary Fund, had also held consultations with the Obama administration for greater market access for Pakistan's exports. The interactions will be followed up by the foreign and trade ministers.

A request for the GSP plus treatment was submitted to the EU before the floods when a humanitarian crisis erupted because of the war on terror and in view of falling exports to the region. Pakistan wants GSP plus for its exports for 10 years.

The EU had provided GSP plus to Sri Lanka after the 2004 tsunami and to Pakistan for two years after the 2005 earthquake. Now the devastation caused by the floods is more widespread.

The sources said several European countries had expressed willingness to support Pakistan for immediate access to the GSP scheme under which mainly textile exports would get a boost.

Pakistan has ratified all the conventions required for admission to GSP plus, including commitment to human rights, good governance and sustainable development.

The exclusion of Pakistan from the GSP plus scheme placed it in a difficult position in the context of the South Asian Association for Regional Cooperation because Sri Lanka, Afghanistan, Bhutan, Nepal, Bangladesh and Maldives, being least developed countries, have duty-free access to the EU market.

An EU-India free trade Agreement (FTA), when concluded, would provide duty-free access to India, leaving Pakistan in isolation among competitors in the region, the officials said.