Developments related to GSP+ facility: EU envoy, APTMA team hold talks

LAHORE: The Ambassador of European Union Raimundas Karoblis has discussed in detail the progress on the external sector developments related to GSP+ facility with the All Pakistan Textile Mills Association (APTMA) leadership.

He visited APTMA House on Friday along with Piotr Buszta, Head of Political, Trade, and Communications where he was received by APTMA office bearers, including Kamran Arshad, Chairman, Asad Shafi, Chairman North, Haroon Elahi, and Secretary General. Raza Baqir along with other senior members of the Association.

The visiting envoy said Pakistan would have to show progress on implementation and legislation of various laws and conventions necessary for availing GSP Plus status.

READ MORE: Pakistan committed to closer EU ties, trade expansion under GSP+: PM

He asked business community in general and the exporters in particular to not only adopt immediate measures for implementation of the requisite conventions but also to engage with the government with reference to the provisions relating to human and labour rights to facilitate the path for future extension of GSP Plus for the next ten years.

Ambassador appreciated the textile industry for complying with the sustainability issues, saying that it was high on the list of the EU against applications for revival of the facility.

Speaking on the occasion, APTMA Chairman Kamran Arshad said EU is Pakistan’s largest trading partner and the facility of GSP Plus has enabled Pakistan’s textile industry to compete in the region. It has also enabled Pakistan to export 78 percent of its four products duty free in EU and eventually enhancing its share by 65 percent from 2013 to 2019, which led to more employment, investment and technology upgrading besides encouraging foreign investment.

He said the facility has played a huge role in Pakistan’s targeting to a Green Future and Zero Carbon emission, as several textile companies expected to achieve zero net carbon emission by 2050.

While stressing on continuation of the GSP plus facility until the economic stability of Pakistan, APTMA Chairman said the country’s exports can reap further benefits from the facility through further diversification.

He apprehended that withdrawal of the GSP Plus will negatively affect Pakistan’s exports besides removing edge over its competitors.

The industry will suffer a loss of not less than one trillion rupees per annum and will also be exposed to massive unemployment, large scale closure of mills and increase in poverty.

Furthermore, he said, it will have dominos effect collapsing banking sector as more than 40 percent of bank loans are obtained by textile sector.

Real estate, goods transport and allied industries will suffer adversely causing massive unrest and severe setback to a series of initiatives relating to environment, human/ labour/ gender rights, anti-corruption, and narcotics control, etc.

Asad Shafi Chairman North told the visiting EU ambassador that the textile industry has imported textile machinery from the EU member countries under its expansion plan worth billions of dollars.

He hoped that GSP Plus facility will be extended in future to help Pakistan in poverty alleviation and improvement of take home salaries of workers due to enhancement of their skill.

He thanked the Ambassador for sparing his time to discuss the exporters’ concerns especially with reference to GSP Plus. He also urged the ambassador to facilitate in early finalization of FTA between Pakistan and EU on the pattern of India EU FTA to replace GSP Plus.

Copyright Business Recorder, 2026