KARACHI: Pakistan can qualify for GSP-plus (generalised system of preferences) in a couple of years once all key international conventions are ratified, such as human rights, environments, etc.
This was stated by the European Union (EU) head of South Asia David Tirr during a meeting with business leaders here on Saturday at the Federation House.
The European Union is currently working on a proposal for widening its scope by easing economic criterion, and it may help Pakistan upgrade itself from GSP to GSP-plus, but not before ratifying all the key international conventions.
Mr Tirr said that up to last year Pakistan was lagging behind and lot many key international conventions were not ratified.
However, once they are ratified by Pakistan, it could qualify for GSP-plus by the year 2014.
He said even Friends of Democratic Pakistan (FDP) during meeting in Brussels last year came out with a strategy message of fiscal, economic and tax reforms.
Similarly, a lot more is needed to be done on the energy sector reforms, he added.
He further said that the GSP-plus is not an international convention but a bilateral arrangement which could be also said to be a gift of the European Union to poor and needy nations.
The EU director of South Asia further said that Pakistan does need assistance but the question is how to go about it at a time when EU members are also faced with cash flow problem.
The government of Pakistan, he said, is saying it does not need IMF assistance this year but what about next year or thereafter.
Bilateral arrangements, like GSP and GSP-plus, are based on political factors and once Pakistan moves forward it could ultimately enter free trade agreement with the EU, he added.
He said Pakistan is an important economic and political partner of the EU but ranks at 52nd trading partners despite being 6th largest nation of the world.
Therefore, David Tirr said a lot of potential is still untapped from both the sides.
The EU is currently engaged with the government of Pakistan over a five-year plan and holding meetings with different ministries, including ministry of foreign affairs, interior ministry etc.
The dialogues are being held on politics, security, proliferation, human rights, trade and investment and hopefully complete it by the first half of next year.
Acting President of FPCCI Mohammad Akbar Khan said that the EU had always been friendly with Pakistan and even given duty concessions on a number of occasions.
He said unfortunately Pakistan suffered heavily on account of earthquake and unprecedented rains and floods for two consecutive years. The EU gave market access on 72 items but initially India opposed it at WTO and now Bangladesh hasraised an objection. Mohammad Akber Khan said the war against terrorism has had its toll over economy and Pakistan cannot alone face the situation because it has to provide job opportunities to unemployed youth.
Mohammed Waseem Vohra, chairman, FPCCI committee on foreign investment, informed the participants of the meeting that International Investors Conference is being held in Islamabad on Dec 9 to 11 and prime minister is expected to inaugurate.
He said that second day’s two sessions would be separately presided over by chief ministers of Punjab and Sindh, while third day’s three sessions will be chaired by chief ministers of Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Balochistan.
Referring to a point raised by David Tirr with regard to MFN status to India, Vohra said that Pakistan had always remained open to Indian products and even now trade balance is highly in favour of India.
He said Pakistan exports only $400 million worth of goods against $1.5 billion imports from India through official channels and over $2.5 billion through third country.
He further said even upon not giving MFN status to India our imports from India are much higher whereas India which uses non-tariff barriers keeps on hindering our meager exports.
Therefore, Mr Vohra said MFN status in Pakistan-Indian case is misnomer.