Mina Anjum Nisar President of the Federation of Pakistan Chambers of Commerce and Industry highly appreciated and acknowledged the efforts of Mr. Abdul Razzak Dawood, Advisor to the Prime Minister of Pakistan on Commerce and Textile for playing an instrumental role in the extension of GSP Plus Status for Pakistan. Extension in the GSP Plus will further boost the exports of Pakistan.
President FPCCI also proposed for a comprehensive strategy for proper utilization of GSP Plus by ensuring uplift of export-oriented sector through removal of all impediments.
He informed that Pakistan’s export to EU is mainly dominated by textiles and clothing which accounts for 82 percent of total exports and facing strict competition, hence all issues such as refunds claim, energy at the lowest rate and priorities to the export-oriented sector should be ensured.
He further stated that our exports and imports gap has widened that could only be reduced through promotion of exports which require government support to produce exportable surplus at the competitive price to attract the global markets particularly European Union.
Pakistan is the major beneficiary of GSP Plus from EU which is the second largest trading partner of Pakistan after USA and has positive trade balance with the bloc; however, we need to produce more exportable goods to capture the EU market and their demand as presently Pakistan’s export goes to six members of the EU in significant volume while in other members the exports from Pakistan are insignificant.
He informed that the GSP Plus allows 20 percent of Pakistani exports to enter EU market at zero tariffs and 70 percent at preferential rates and it is expected that Pakistan’s exports to the EU would increase after extension in GSP Plus. EU GSP Plus granted in 2013 and since then our export has increased to US $ 7.9 billion from US $ 6.2 billion but this increase is only in textile and clothing while the exports of others products like carpet, pharmaceutical, iron & steel, edible fruit, oil seed, copper, plastic, sugar etc. have low penetration.
President FPCCI emphasized that the need to diversify and value addition in Pakistan’s exports including carpets, leather, furniture, plastics, sports goods and agriculture products to exploit the full potential of GSP Plus.
Mian Anjum Nisar President FPCCI also suggested for lobbying for Investment inflow in Pakistan from EU as Pakistan has improved its ease of doing business and has brought several reforms in business.