KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Anjum Nisar has said that our exports could not be able to avail the full benefits of tax incentives of Generalized System of Preferences (GSP Plus) unless Pakistan addresses the key reservations.
He further stated that the exports of Pakistan are not increasing to achieve a desirable level. Therefore, the sustainable and continuation of GSP Plus is a dire need of Pakistan.
He said that currently, EU GSP Plus raised the five key reservations regarding human and labor rights issues which are prerequisites for the continuation of GSP Plus status to Pakistan. The Government is taking steps to address the reservations.
He stated that Pakistan is the major beneficiary of GSP Plus from the EU which is the second-largest trading partner of Pakistan after the USA and Pakistan have a positive trade balance with this bloc.
He added that GSP Plus allows 20 percent of Pakistani exports to enter the EU market at zero tariffs and 70 percent at preferential rates and it is expected that Pakistan’s exports to the EU would increase by 20 percent or more during the next few years.
He further stated that the EU GSP Plus granted from 2014 and since then our export has increased to US$ 7.9 billion from US$ 6.2 billion but this increase is only in textile and clothing while the exports of many others products like carpet, pharmaceutical, iron & steel, edible fruit, oilseed, copper, plastic, sugar, etc.
President FPCCI also appreciated the setting up of the treaty implementation cell at the Ministry of Commerce to ensure the effective implementation of the 27 UN Conventions.
Mian Anjum Nisar, underlined the need for enhancement of foreign investment in Pakistan from the EU as Pakistan has improved its ease of doing business and has brought several reforms in the business environment.
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