Latest news with #GSP+)
Business Recorder
2 days ago
- Business
- Business Recorder
Import tariff cut on 300 products approved, Jam tells Senate
ISLAMABAD: Federal Minister for Commerce Jam Kamal on Friday informed the Senate that the government has approved sweeping import tariff reductions on around 300 products, aiming to spur industrial growth, cut consumer costs, and boost export competitiveness. Responding to a calling attention notice in the House, the minister said the government had authorised tariff reductions on nearly 300 items – primarily goods not produced or readily available in Pakistan – while duties on 900 other products would remain unchanged under the National Tariff Policy. Some import tariffs, he noted, previously reached as high as 40 per cent. The revised structure is designed to facilitate access to imported inputs used in value-added production and to lower costs for general consumers. Pakistan reveals National Tariff Policy draft, aims to eliminate RDs, ACDs in 5 years The reductions will be rolled out gradually, with some taking effect within a year, and others phased in over the next two to five years – an approach Kamal said would give local industries time to adapt. 'Tariff rationalisation has been undertaken for the first time,' he said, crediting Prime Minister Shehbaz Sharif and the federal cabinet for backing the reforms. The goal, he added, is to strike a balance between supporting local industry and encouraging trade by removing unnecessary barriers. The changes are part of a broader reorientation of Pakistan's trade and economic policy. Kamal revealed that governance reforms had been introduced at the Trade Development Authority of Pakistan (TDAP) and the Export Development Fund (EDF), including the appointment of technical teams and consultants to evaluate funding requests – an effort to bring greater transparency and scrutiny to EDF's Rs30 billion in pending approvals. 'In the past, large sums were approved without technical evaluation,' Kamal said. 'That's no longer the case.' Several key positions in the Ministry of Commerce, including the head of research and head of compliance, have also been filled after years of vacancy. The government, he added, is now working with renewed institutional capacity to implement trade agreements and frameworks with countries including the United Kingdom, Vietnam, Cambodia, and South Korea. Further visits to the European Union, Geneva, and Brussels are planned to advance negotiations on the Generalised Scheme of Preferences Plus (GSP+) and other trade initiatives, he added. He said that a new strategic plan for the National Export Development Board (NEDB), including sector-specific issues and timelines, has been completed and will be presented to the prime minister at the board's next meeting. The NEDB, he added, chaired by the prime minister, includes cabinet members and private sector representatives, and has expanded its sectoral councils from 13 to 19 – covering areas such as garments, leather, pharmaceuticals, surgical instruments, ICT, logistics, and tourism. Kamal also acknowledged past practices that favoured certain industries while neglecting medium-sized enterprises, calling previous tariff regimes 'arbitrary' and 'counterproductive.' Copyright Business Recorder, 2025
Business Recorder
26-07-2025
- Business
- Business Recorder
Pakistan reaffirms commitment to GSP+
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday underscored the European Union's status as one of Pakistan's foremost trading partners and reaffirmed the government's commitment to the Generalised Scheme of Preferences Plus (GSP+), describing it as a mutually beneficial arrangement. The prime minister, during a meeting with the outgoing Ambassador of the European Union to Pakistan, Dr Riina Kionka – who paid a farewell call as she concluded her diplomatic tenure – acknowledged her contributions to strengthening Pakistan-EU relations. Extending his felicitations to Ambassador Kionka on the successful completion of her assignment, Sharif appreciated her efforts in enhancing Pakistan-EU relations. GSP plus status: EU review puts Pakistan's duty-free export to the test amid reforms push He also acknowledged the European Union's timely assistance during the devastating floods of 2022, and lauded the ambassador's role in mobilising support. The prime minister conveyed his warm regards to the EU President, Ursula von der Leyen, and expressed his desire to meet her in the near future to further deepen bilateral engagement. The Interaction also included discussions on domestic political developments and the broader trajectory of Pakistan-EU relations. Ambassador Kionka expressed her gratitude to the prime minister and the government for the support extended to her during her tenure. She reaffirmed the EU's commitment to advancing its partnership with Pakistan, and stated that she would continue to advocate for strong bilateral ties in her upcoming role in Brussels. Copyright Business Recorder, 2025
Business Recorder
26-07-2025
- Business
- Business Recorder
PM reaffirms commitment to GSP+
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday underscored the European Union's status as one of Pakistan's foremost trading partners and reaffirmed the government's commitment to the Generalised Scheme of Preferences Plus (GSP+), describing it as a mutually beneficial arrangement. The prime minister, during a meeting with the outgoing Ambassador of the European Union to Pakistan, Dr Riina Kionka – who paid a farewell call as she concluded her diplomatic tenure – acknowledged her contributions to strengthening Pakistan-EU relations. Extending his felicitations to Ambassador Kionka on the successful completion of her assignment, Sharif appreciated her efforts in enhancing Pakistan-EU relations. GSP plus status: EU review puts Pakistan's duty-free export to the test amid reforms push He also acknowledged the European Union's timely assistance during the devastating floods of 2022, and lauded the ambassador's role in mobilising support. The prime minister conveyed his warm regards to the EU President, Ursula von der Leyen, and expressed his desire to meet her in the near future to further deepen bilateral engagement. The Interaction also included discussions on domestic political developments and the broader trajectory of Pakistan-EU relations. Ambassador Kionka expressed her gratitude to the prime minister and the government for the support extended to her during her tenure. She reaffirmed the EU's commitment to advancing its partnership with Pakistan, and stated that she would continue to advocate for strong bilateral ties in her upcoming role in Brussels. Copyright Business Recorder, 2025
Arab News
25-07-2025
- Business
- Arab News
As political protests stir, Pakistan PM reassures EU on human rights linked to GSP+
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday held a meeting with outgoing European Union (EU) Ambassador Riina Kionka and discussed with her the EU's Generalized Scheme of Preference Plus (GSP+) framework and "domestic political developments," Sharif's office said. The scheme grants beneficiary countries' exports duty-free access to the European market in exchange for voluntarily agreeing to implement 27 international core conventions, including those on human and civil rights. Sharif's office did not elaborate on which political developments they discussed, but the development comes after the announcement of an anti-government protest movement by jailed former premier Imran Khan's Pakistan Tehreek-e-Insaf (PTI) party. The PTI recently announced the protest drive to secure the release of Khan, who has been in jail for nearly two years on a slew of charges. The party has staged several protests in recent years demanding an audit of Feb. 2024 general election along with Khan's release, saying the polls had been rigged. Pakistani authorities deny the allegations and accuse the PTI of attempting to disrupt its efforts to achieve sustainable economic growth. The EU last year raised also concerns over the sentencing of PTI activists by Pakistani military courts over attacks on government and military installations in May 2023, noting that Islamabad had agreed to effectively implement 27 core conventions, including the International Covenant on Civil and Political Rights (ICCPR), to continue benefitting from the GSP+ scheme. "The Prime Minister underscored the significance of EU as one of Pakistan's largest trading partners and reaffirmed the Government's commitment to the GSP Plus scheme, which had proved to be mutually beneficial for both sides," Sharif's office said. The EU is one of Pakistan's most important trading partners, accounting for 12.4% of Pakistan's total trade in 2024, while Pakistan was the EU's 48th largest trading partner in goods, accounting for 0.2% of EU trade, according to official EU data. Bilateral trade in goods between the EU and Pakistan represented €12 billion in 2024 (with a deficit for the EU of €4.6 billion). During the meeting, Ambassador Kionka thanked PM Sharif for the support she had received during her stay in Pakistan. "The EU was committed to strengthening its cooperation with Pakistan," she was quoted as saying. PM Sharif conveyed his good wishes for EU Commission President Ursula von der Leyen and said that he looked forward to meeting her at a convenient opportunity in the coming days.
Indian Express
11-06-2025
- Business
- Indian Express
Alarm bells in textile recycling hub Panipat over suspension of Bangladesh rags supply
Traders and manufacturers in Panipat, India's largest textile recycling hub that receives discarded clothing from multiple countries for recycling and resale, have raised concerns over the suspension of shipments from Bangladesh, the top source of rags for recycling in India, The Indian Express has learnt. 'Rags and recycled items were not part of the restriction on garments through the land border route that the government announced in May. Traders in Panipat are complaining that the shipments from Bangladesh have been halted but it is unclear why this step has been taken,' a person aware of the development said. While traders plan to raise the issue with the government, they remain unsure about the reason for the halt in exports. But the development comes amid heightened trade tensions between India and Bangladesh after Dhaka's Chief Adviser Muhammad Yunus called for the extension of the Chinese economy around the strategically important North-East India region. This assumes significance as over 200 tonnes of rags are recycled in Panipat every day, with 150-200 mills operating in the sector. Their key sources of rags include discarded clothing from Western countries, but Bangla-desh alone generates over 0.5 million metric tonnes of textile waste from its factories each year. The suspension of exports of rags and textile waste coincides with Bangladesh attempts at seeking Generalised Scheme of Preferences Plus (GSP+) status in the European Union, which would result in the removal of tariffs on over 66 per cent of EU tariff lines. The EU is one of Bangladesh's biggest export markets, but the country is set to lose concessions in 2026 after graduating from the Least Developed Country (LDC) status. To qualify for the GSP+ scheme, Bangladesh must enhance its domestic recycling capabilities and meet specific conditions related to labour rights and governance. According to news agency Reuters, increased local recycling could save Bangladesh around $700 million annually in import costs, as several countries, including India, ramp up their textile recycling capacities. India recycles or reuses approximately 4.7 million tonnes, or about 60 per cent, of its textile waste. Political and economic tensions between India and its largest trade partner in South Asia have been growing, especially as the Union government in May imposed a series of import restrictions on goods from Bangladesh, particularly on ready-made garments, the country's largest export item and a key source of foreign exchange. This followed earlier signs of deteriorating ties, including New Delhi's decision in April to terminate the five-year-old transhipment facility for Bangladesh's export cargo – a mechanism that enabled Dhaka to ship goods to several Western countries using Indian land routes and airports. Notably, Bangladesh also imposed port restrictions on Indian yarn exports via land ports, allowing such exports only through seaports. This move, an official said, was ostensibly in response to demands from Bangladeshi textile mills – despite the fact that the land route offers the quickest and most cost-effective yarn supply to the ready-made garments industry in Bangladesh. Yarn exports to Bangladesh account for 20 per cent of India's total exports to the country, which were valued at $11.38 billion in FY25. Official data showed that cotton yarn and handloom product exports to Dhaka stood at $2.39 billion during the last financial year. Meanwhile, India imports ready-made garments from Bangladesh valued at over $700 million annually. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
