THE European Union has extended the Generalized Sys tem of Preferences-Plus (GSP-Plus) status for Pakistan, enabling the country to continue to enjoy preferential duties on exports for the next two years. Making the announcement in this regard, Advisor to Prime Minister on Commerce Abdul Razak Daud thanked the EU institutions for allowing the country to avail itself of the status and also applauded federal and provincial authorities and Ministry of Commerce’s treaty implementation cell for striving hard to meet the GSP plus obligations. The decision has deeper meaning and significance for Pakistan because of its economic and political benefits and the message that it sends to all concerned. Pakistan had lobbied hard to win the GSP-Plus status that is contributing to the cherished objective of poverty reduction and good governance. Since the grant of GSP-Plus in 2014, Pakistan’s exports to the European Union have enhanced from 4.538 billion euros in 2013 to 7.492 billion euros in 2019, registering an increase of 65 per cent. The main sectors that benefited from GSP-Plus have been textile and garments, which besides earning foreign exchange for the country, provided employment opportunities, especially for females. Pakistan is passing through a difficult economic phase and by extending the application of the scheme, the European Union has adopted a sympathetic approach to help overcome the crisis. It is also a vote of confidence in the policies being pursued by the country especially the progress made by it in implementation of the relevant conventions. The latest assessment report of the EU has appreciated Pakistan in taking positive steps in the areas of climate change, forestation under billion tree tsunami project, improved vigilance to combat illicit narcotics and wildlife trade, political and administrative reforms to integrate erstwhile Federally Administered Tribal Areas, social protection initiatives like Ehasas Programnme, promotion of Inter-Faith Harmony including opening of Kartarpur Corridor and legislation to ensure the rights of women, children and transgender community. The decision also indicated Pakistan’s ability to meet EU consumers’ demand, both in terms of reliable export volumes and quality, increase in its production efficiency and investment in technologies and skilled manpower. However, there is also a viewpoint that Pakistan has not benefitted fully from the facility because of inability of its industry to produce sufficient surplus, invest meaningfully in technology and go for value-addition. It is hoped that the Government would focus on addressing problems of the industry like chronic energy shortage and its high tariff, closure of units, volatile prices of raw material, difficulty in achieving the required market standards and higher costs of certification.
