KARACHI:
The Ambassador of the European Union (EU), Raina Kionka, has encouraged businesspeople to diversify their exports to the EU to maximise the benefits of the GSP Plus for Pakistan. The GSP Plus status has recently been extended for another four years, up to 2027.
Speaking during a meeting at the Karachi Chamber of Commerce and Industry (KCCI), Kionka emphasised the significant impact of the GSP Plus on Pakistan’s economy. “The significance of GSP Plus for Pakistan’s economy extends beyond textile producers, benefiting all individuals working in textile factories through a trickle-down effect. Over the last decade, GSP Plus has played a crucial role, demonstrating its positivity and economic utility. It has contributed to a remarkable 108% increase in Pakistan’s exports to the EU, with EU imports also rising by 40% since the inception of this programme.”
Kionka confirmed that the GSP Plus status for Pakistan has been extended without changes to the rules framework, maintaining the current conditions until 2027. She noted the upcoming elections in June 2024, anticipating political changes in the Parliament and the EU’s Commission. “When the dust settles, we anticipate that the new Parliament and the Council of EU member states will reinitiate negotiations on a new directive for GSP Plus with Pakistan, a process that was stalled last year. Despite the current four-year rollover for GSP Plus, the introduction of a new regulation could become effective before 2027.”
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Identifying potential sectors such as gems and jewellery, tourism, handcrafts, and auto parts under the GSP Plus, the EU Envoy emphasised that although 28% of Pakistan’s exports reach the European single market, there is room for growth. The EU Delegation in Islamabad is actively working to enhance Pakistan’s exports by utilising the GSP Plus more effectively. This includes diversifying exports, investing in value addition, adopting new technologies and IT solutions for better access to the EU market, and engaging Small and Medium-sized Enterprises (SMEs).
Kionka announced the EU’s plans to establish a platform promoting EU-Pakistan business-to-business relations. The platform aims to facilitate connections between SMEs in Pakistan and businesses in the EU, ensuring that SMEs in Pakistan can fully benefit from the GSP Plus. Earlier, KCCI President Iftikhar Ahmed Sheikh urged the ambassador of the EU to arrange a business delegation’s participation in the “KCCI’s My Karachi-Oasis of Harmony International Exhibition” scheduled for August 2024.
