PTC urges PM to mobilise ministries to retain GSP+ under new EU scheme

The Pakistan Textile Council (PTC) has asked Prime Minister Shehbaz Sharif to direct all concerned ministries, divisions and provincial governments to take every necessary measure to secure GSP+ status for Pakistan under the European Union’s new Generalised Scheme of Preferences.

In a letter dated October 22, PTC Chairman Fawad Anwar said that under the new GSP Regulation approved by the European Parliament in April, Pakistan will remain a GSP+ beneficiary only until December 31, 2028.

To continue enjoying preferences from January 2029, it must submit a request before that date, including binding undertakings and a time-bound plan of action. As the new scheme runs until 2036, the outcome will determine Pakistan’s EU market access for the rest of that period.

The Council said the EU-27 was the textile and apparel sector’s largest market in FY2025-26 at $7.103 billion, about 39.5 percent of total exports of $18.004 billion and more than the US and UK combined. While exports to the bloc fell 2.0 percent last fiscal year, they rose 3.0 percent to $1.954 billion in July-September 2026, led by towels, men’s cotton trousers and bed covers.

The PTC warned that competitors are gaining ground, with the EU-India Free Trade Agreement expected to be signed in December and enter into force in early 2027, the EU signalling readiness to explore an FTA with Bangladesh, and the European Free Trade Association signing an FTA with Vietnam on October 18.

Citing recent meetings with EU Ambassador Raimundas Karoblis and EU Delegation officials, the letter said the EU expects substantial improvements on human rights and rule of law, as identified in its July 16 assessment. The EU is not introducing new standards but wants effective implementation of commitments Pakistan has already made, starting with demonstrable short-term improvements followed by a credible action plan.

The PTC urged active engagement by relevant ministries and provinces with the European Commission, timely reporting to UN and ILO monitoring bodies, finalisation of the application well ahead of the deadline, appointment of a senior focal point, regular progress reviews by the PM’s Special Committee on EU GSP+, and inclusion of the private sector in consultations.