Dr. Riina Kionka, European Union Ambassador to Pakistan, has urged the Pakistani exporters not to just depend on textiles to take advantage of the EU GSP Plus status but should endeavor to export non-textile products too. Pakistan has a strong industrial base in leather, surgical and sports goods for example, and therefore, these sectors must also focus on exports to EU countries.
Moreover, Pakistani SMEs are also not benefitting from GSP Plus in real time and it is imperative that efforts must be made to extend GSP Plus to SMEs that are the backbone of the economy, as well as women-led enterprises. European Union Ambassador was addressing the Board of Directors of Employers Federation of Pakistan as well as leaders of various Textile Associations at a luncheon meeting hosted in her honor by EFP. The meeting was also attended by Husnain Iftakhar, EU Senior Economist and Trade Advisor, Muhammad Feroz Alam, EFP Vice President, Majyd Aziz, EFP Former President, Syed Nazar Ali, EFP Secretary General, Pietr Buszta, EU Counsellor and Head of Trade, EFP Directors Humayun Nazir, Hasnain Mazher, Sadaf Hatif, and Mustafa Diwan, and Masood Naqi, Yasin Siddik, Shaikh Shafiq and Muzzamil Hussain, etc. from the Textile Associations.
The European diplomat disclosed that due to certain reasons, it was decided to technically rollover the current GSP Plus status for all eight countries for up to four more years till 2027. She, however, cautioned that if the reasons for this rollover are resolved before the four-year timeline, then the EU Parliament may ask the eligible exporting countries to re-apply for the next decade long GSP Plus status. She advised the exporters as well as the government to maintain vigilance and ensure full compliance of the conditionalities of GSP Plus and must take into account the fact that despite the continuation of the benefits, there would be no free rides during the next four years. Dr. Kionka also informed that the EU Monitoring and Evaluation team had visited Pakistan in summer 2022 and its report was issued in October 2023. The good news for Pakistan is that the team gave positive reviews of environment and governance but mixed reviews on Human Rights, Freedom of Association, Blasphemy Laws, Rights of Minorities, Labor Inspection, Child Labor, and Trade Unions formation. She added that the next visit of the team would be in June 2024. Husnain Iftakhar, EU Senior Economist and Trade Advisor, informed that the UNICEF sponsored Child Labor Survey has been completed by the Punjab and Gilgit-Baltistan Labor Departments, but for other provinces including Sindh, the Survey results are still pending. He advised that before applying for the next GSP Plus status, it is mandatory upon the Pakistan government to submit a work plan and give a timeline on targets at Federal and Provincial levels. Moreover, the burning issue of gender gap in salary and wages needs to be addressed on a fast track. Muhammad Feroz Alam, EFP Vice President, in his welcome remarks, informed the legal aspects, composition, and mandate of EFP and stated that EFP is the only Pakistani member of International Organization of Employers and the sole employer constituent of ILO. Majyd Aziz, EFP Former President, informed that EFP has the honor to host the current and previous EU Ambassador and that it is imperative that EFP be properly introduced to diplomats. He said that in 2022, EFP formed a GSP Plus Committee to monitor and create awareness of the progress of the status.
He added that GSP Plus has served to stimulate the exports of manufactured products in the long-term, but despite limitations, it has had borderline utility for Pakistan. The envisioned target of $15 billion exports to the EU has not been achieved and it has only reached less than $9 billion. However, it has given impetus to social and human rights impacts, and it is imperative that exporters fully comply with conditionalities.
