EU can help Pakistan improve economy: FPCCI

Karachi: Atif Ikram Sheikh, President FPCCI, has stressed that the 27-country economic alliance of European Union – with a cumulative GDP of almost $20 trillion – can help Pakistan steer out of the chronically dilapidated state of the economy of Pakistan; and, enhancing our exports to the EU nations should be the cornerstone of broader economic relations.

Pakistan has achieved an encouraging 108 percent growth in exports to EU over a period of 10 years; however, in order to retain our GSP Plus status, we must not be complacent and be vigilantly continuing to fulfil EU criteria, he added.

It is pertinent to note that Dr Riina Kionka, Ambassador of EU in Pakistan, has paid a visit to the FPCCI along with her senior team members; aimed at offering the apex body their full support in fulfilling GSP+ opportunities and requirements.

Saquib Fayyaz Magoon, SVP FPCCI, explained that Pakistan is, indeed, a major beneficiary of GSP Plus since 2014 as it has facilitated our exports to European Union. Under this scheme, Pakistan is eligible to export around two third of products at zero tariff rate or at preferential tariff rate; and, Pakistan’s GSP+ status has been extended to 2027 as of now.

Nonetheless, Saquib Fayyaz Magoon stressed that, in order to maintain GSP+ status, Pakistan needs to perpetually implement 27 core international conventions on human & labour rights; environmental protection and good governance.

The beneficiary products of GSP+ include textiles, leather products, footwear, plastics, ethanol, agricultural products, processed foods, etc.

Asif Inam, VP FPCCI, highlighted that EU can establish industry in Pakistan to not only help us out; but, also manufacture world-class, quality goods for re-export to EU through utilizing their advanced technologies but for much lesser cost of production.

Shabbir Mansha, former VP FPCCI, specifically mentioned that Pakistan should focus on exporting skilled workforce to the EU countries in good numbers as it will bolster the economy of Pakistan through directing more foreign exchange back to the country regularly.

Additionally, IT and IT-enabled Services (ITeS) and food exports to EU should be enhanced to capitalize on the thriving economies of the EU countries.

Adeel Siddiqui, President of Hyderabad Chambers of Commerce & Industry (HCCI), proposed that Pakistan should actively and effectively look forward to attracting FDI and JVs from EU on top of exports as Pakistan has a lot to offer to EU investors and entrepreneurs; i.e. cheap and abundant human resources and, comparatively lesser, cost of doing business to EU. Political instability is our only Achilles heel; otherwise, we should be able to become one of the top destinations for the EU businessmen, he added.

Dr Riina Kionka, Ambassador of EU in Pakistan, apprised the gathering that there will be a new EU parliament and EU Commission in June 2024; and, there might be some review or policy changes in rules framework for Pakistan’s GSP+ status.

Therefore, she advised that “Pakistan should remain on course on EU requirements on human rights; labour rights; environmental standards and good governance.” These are principally the four areas where Pakistan’s performance comes under review, she added.

Dr Riina Kionka also informed that the monitoring report on Pakistan vis-à-vis the above-mentioned four areas are expected to be released in November 2024. She also called upon the trade & industry representatives to fully capitalize on GSP+ status by the means of diversifying Pakistan’s exports to EU other than textiles – which happens to account for 80 percent of Pakistan total exports under GSP+ status.