Pakistan promotes GSP+ expansion to boost exports to EU

• The EU ambassador calls on the prime minister to discuss mutual ties.
• The Prime Minister greets a positive impulse in Pakistan-EU trade.
• He welcomes Pakistan-EU’s first business forum for May.

Prime Minister Shehbaz Sharif on Friday confirmed Pakistan’s commitment to boost ties with the EU, underlining the continued benefits of the generalized Preferences Plus (GSP+) program for both sides.

Welcome to positive dynamics in reciprocal relations, the prime minister stressed it during a meeting with EU ambassador Dr. Riina Kionka, who called him to the prime minister’s body.

The EU ambassador informed the Prime Minister of recent visits by EU delegations to Pakistan as well as the upcoming Pakistan-EU commitments.

The prime minister welcomed the convening of the first Pakistan-EU’s high-level business forum in Islamabad, which will take place in May and assured his full support for the success of the event.

At the beginning of the meeting, the prime minister thanked the EU ambassador for expanding the condolences for the recent terrorist attack on the Jaffar Express train at Balochistan.

On Tuesday, dozens of fighters, linked to the Balochistan (Bla) liberation army, blasted a railway route and attacked Jaffar Express, carrying hundreds of passengers from the Bolan area of ​​the province.

The terrorists testify to 21 passengers, while the rest were rescued by Pakistan’s security forces after completing the host rescue operation later on Wednesday.

The prime minister confirmed Pakistan’s operation to decide to eliminate terrorism from the country during the meeting, which also covered various aspects of Pakistan-EU links, including human rights, trade and investment discussions.

Pakistan was awarded GSP+ on January 1, 2014, after the country had ratified 27 international conventions and pledged to implement them.

The EU GSP+ serves as a special incentive regulation to promote good governance and sustainable development by facilitating trade.

Incentives subsidize Pakistan zero or preferential invoices to almost 66% of pricing lines, enhancing the country’s ability to export to the EU market.

GSP+ has proven to be vital to EU-Pakistan’s bilateral trade ties. From 2014 to 2022, Pakistani exports to the EU increased by 108%, while EU imports increased by 65% ​​and total trade volume increased from € 8.3 billion in 2013 to € 14.85 billion.

The clothing of the country, the bedrooms, the Terry towels, the socks, the skin, the sports and the surgical products and similar products enter the EU market that benefits from the concessions of the SSP+.

Finmin says GSP+ is critical for exporting growth

Earlier on the day, the EU ambassador met with Finance Minister Muhammad Aurangzeb in the Department of Finance to discuss the future of the GSP+commercial establishment, among others.

The detailed interaction resulted in a series of issues of mutual interest, in particular in the strengthening of business and investment links between the two sides, according to an official statement.

Aurangzeb stressed that GSP+ was a critical factor in Pakistan’s efforts to lead export growth.

Both officials discussed opportunities for European businesses in Pakistan, urging the creation of an investment climate to exploit the growing appetite for expansion.

Dr. Kionka informed the Minister of Finance that the EU had already mapped over 300 European companies operating in Pakistan, with the belief that many others are present.

He stressed that European companies were increasingly regarded as Pakistan as a hub for possible business opportunities, especially in the light of the upcoming forum.

The minister also emphasized the need for a more preventive approach to approach European capitals for constructive commitment to key issues, including continuing the installation of the SSP+, which is vital to Pakistan’s trade relations with the EU in the coming years.