Latest news with #GeneralisedSchemeofPreferencesPlus
Business Recorder
12-05-2025
- Business
- Business Recorder
GSP plus status: EU review puts Pakistan's duty-free export to the test amid reforms push
Pakistan's crucial trade advantage under the European Union's (EU) GSP plus (+) scheme remains under review, as the European Commission evaluates the country's compliance with international human rights and governance standards. Dr Martin Henkelmann, CEO at German Emirati Joint Council for Industry and Commerce (AHK UAE) and Florian Walther, Pakistan Representative at German Emirati Joint Council for Industry and Commerce (AHK UAE) said this in response to questions by Business Recorder. The GSP+ (Generalised Scheme of Preferences Plus) has played a pivotal role in Pakistan's export-driven economy, allowing over 76% of its exports to the EU — primarily textiles and garments — to enter duty-free. Since Pakistan joined the scheme in 2014, exports to the EU have more than doubled, reaching €8 billion in 2023, including €2.4 billion to Germany. The development has made EU the single largest export destination for Pakistan. The ongoing review began in June 2022, resulting into extending GSP+ trade incentives to Pakistan till 2027. The upcoming announcement of the outcome from the ongoing assessment on the 27 conventions would guide the EU to further extend the GSP+ status for Pakistan beyond 2027, it was learned. 'Pakistan's GSP+ status remains under systematic review by the European Commission as part of the ongoing monitoring cycle. While the Commission has not yet issued a formal conclusion, recent developments—including the visit of EU Special Representative for Human Rights Ambassador Olof Skoog in late January 2025—highlight the significance of this process,' Henkelmann and Walther informed. GSP+ monitoring mission is scheduled for June 2025, it was learnt. The two German officials said there was an ongoing and open dialogue between the EU and Pakistan on improving compliance with the 27 core international conventions related to human rights, labour rights, environmental protection, and good governance. 'In our own engagements with stakeholders across Pakistan—including chambers of commerce, export associations, and the business community itself—it is consistently highlighted that GSP+ is not just a trade preference but a vital enabler of employment, growth, and economic diversification. There is widespread awareness that continued progress regarding the GSP+ requirements is necessary and in the country's long-term interest,' they added. In response to evolving global priorities, the EU has revised the GSP+ framework. The updated scheme includes additional conventions, stricter procedural obligations, and now requires beneficiary countries to submit detailed action plans. 'Pakistan has been given a two-year transition period to meet the new standards.' The extension of the monitoring cycle from two to three years allows for more comprehensive evaluations and aligns the process with international mechanisms. Pakistan must now demonstrate measurable reforms, they said. With exports under pressure and jobs linked to the EU market access, Pakistan's path forward in retaining GSP+ will depend on its ability to adapt to the tighter framework—and reassure partners like Germany of its commitment to reforms. The EU has already updated the GSP+ framework to better reflect evolving global challenges and policy priorities. The revised scheme introduces additional international conventions and sets out stricter procedural requirements, including the obligation for candidate countries to submit a detailed action plan demonstrating how they will implement these conventions. 'For existing beneficiaries like Pakistan, a transitional period of two years has been granted to ensure compliance with the enhanced obligations. The extension of the monitoring cycle from two to three years also aligns the process more closely with international treaty mechanisms, allowing for deeper, more structured evaluations. These updates aim to preserve the integrity and effectiveness of GSP+.' For Pakistan, this means that continued access to the scheme now depends even more clearly on measurable reforms. The GSP+ status has enabled robust export growth—especially in the textile sector—and serves as a cornerstone of EU-Pakistan economic relations. The continuation of GSP+ is not only a trade priority, it is crucial for maintaining export competitiveness, creating jobs, and sustaining bilateral trade momentum.
Business Recorder
09-05-2025
- Business
- Business Recorder
EU-Pakistan Forum put on hold
ISLAMABAD: The much-talked about first-ever high-level EU-Pakistan Forum scheduled for May-14-15, 2025 in Islamabad has been put off due to conflict escalation between India and Pakistan. This was officially confirmed by the delegation of European Union to Pakistan which had made all arrangements in close collaboration with Special Investment Facilitation Council (SIFC). This landmark forum was aimed to foster new partnerships, and unlock the vast potential for trade and investment between the European Union and Pakistan. First-ever 'EU-Pak Business Forum' to be held on May 14th Both sides were set to highlight EU trade and investment policy instruments, ie, the Generalised Scheme of Preferences Plus (GSP+) and the Global Gateway strategy which is the largest EU investment programme outside of the EU, leveraging up to EUR 300 billion of investments from 2021-2027 worldwide. The SIFC hadprepared a strategy for the EU-Pakistan high-level business forum aimed at bringing improvements in economic relations between Islamabad and European capitals, well-informed sources told Business Recorder. A number of meetings were held at the Prime Minister Officer to discuss the proposed agenda of EU-Pakistan business forum and its potential impact on Pakistan's trade and investment ties with the European Union and formulation of a Task Force to finalize recommendations. The first major topic of discussion was the Global Gateway Initiative and EFSD+. The participants delved into the possibilities of EU investment in infrastructure projects in Pakistan. These initiatives would bring significant funding and expertise, potentially transforming entire sectors of Pakistan's economy. According to EU's ambassador to Pakistan, a key objective of the Forum was to facilitate high level discussions involving all key stakeholders in Pakistan's private sector-led growth. A small group discussion (not open to all) was to held with leading business representatives (about 15) mainly from EU industries keen to boost investment and trade in Pakistan. A closed door interaction wherein the participants were to highlight problems that their companies face in Pakistan and abroad to reinvest in Pakistan. The government representatives tasked to attend the forum include Federal Minister, Special Assistant to Prime Minister Haroon Akhtar Khan, Secretary SIFC, Secretary Commerce. Governor/Deputy Governor State Bank of Pakistan and the Chief Executive Officer (CEO) Trade Development Authority of Pakistan (TDAP). The session was meant to engage in a strategic dialogue highlighting Government's position to encourage European investment in Pakistan to form business partnerships and foster trade by addressing difficulties arising due to ambiguities in custom procedure, banking operations, corporate tax issues and/or trade barriers. Copyright Business Recorder, 2025
Express Tribune
14-03-2025
- Business
- Express Tribune
EU envoy calls on FinMin
Listen to article EU Ambassador Dr Riina Kionka called on Minister for Finance and Revenue Senator Muhammad Aurangzeb on Friday to discuss ways to enhance business and investment ties between the European Union and Pakistan. During the meeting, they explored opportunities for European businesses in Pakistan, emphasising the need for an enabling investment climate. Kionka noted that the EU had mapped over 300 European companies operating in Pakistan, with many more believed to be present. She invited the minister to a business and investment forum the EU Mission in Pakistan plans to host in Islamabad in mid-May 2025. The forum aims to foster collaboration and attract European business investment. She highlighted that European companies increasingly view Pakistan as a potential business hub. Senator Aurangzeb welcomed the initiative and assured his full support. He expressed his intention to attend the event, reaffirming the government's commitment to facilitating EU businesses, including ensuring the timely repatriation of dividends and profits. He also endorsed creating a proactive business platform for European companies, citing his recent engagement with French and Dutch firms in Pakistan. The minister appreciated the EU's support, particularly the Generalised Scheme of Preferences Plus (GSP Plus), crucial for Pakistan's export growth.
