KARACHI: Irfan Iqbal Sheikh, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has welcomed the extension of Pakistan’s GSP Plus status by EU for a period of 4 years as it will now be valid till 2027.
Nonetheless, the catch lies in fully capitalizing on its preferential treatment provisions to enhance exports to EU and creating jobs for the countrymen, he added.
Irfan Sheikh apprised that the GSP Plus scheme has been passed by European Parliament and will apply to 16 countries; and, EU will continue to monitor the beneficiary countries on their performance during the scheme. We always have had issues with our human rights record and we need to get our house in order, he added.
FPCCI Chief explained that GSP Plus is a special trade arrangement offered to developing economies by EU and, in return, monitors their compliance to enforce 27 international conventions on human rights; environment & global warming and governance issues.
It is pertinent to note that the ongoing GSP Plus status for Pakistan was coming to an end in 2023. Therefore, we have got an extension of 4 years and it is no less than a blessing in these times of export contraction and economic volatility for Pakistan, he added.
President FPCCI highlighted that now that Pakistan is eligible for the rollover of the GSP Plus program, it needs to reapply and submit a work plan for the same. Authorities have a huge responsibility to fulfil these documentations diligently and in a timely manner, he added.
Sheikh referred to the statement of Dr Riina Kionka, ambassador of the EU in Pakistan that maintained that preferential treatment for Pakistan will remain the same as in the previous program.
We need to work for an enhanced program like GSP++ or GSP 2.0 as it was hinted at by the then EU ambassador in Pakistan, Androulla Kaminara, when she visited FPCCI Head Office in Karachi.
He reiterated his stance that industrialisation, export promotion and import substitution are the only initiatives that can make Pakistan a self-sufficient country through building foreign exchange reserves (FER), stabilising rupee value and reducing reliance on foreign loans.
He also demanded that after the reduction in international oil prices, it is high time that the government reduces the power tariff for export-oriented industries to help us utilise the existing bilateral, regional and multilateral trade agreements to the fullest.
Copyright Business Recorder, 2023