Karachi, Dr. Riina Kionka, the European Union Ambassador to Pakistan, has called on Pakistani exporters to expand their product range beyond textiles in order to fully leverage the benefits of the EU’s Generalized Scheme of Preferences (GSP) Plus status. Emphasizing the potential in non-textile sectors such as leather, surgical, and sports goods, the Ambassador highlighted the need for these industries to increase their exports to EU countries.

According to Employers’ Federation of Pakistan, Dr. Kionka addressed these points during a luncheon meeting hosted by the Federation in her honor. The event was attended by prominent figures including Husnain Iftakhar, EU Senior Economist and Trade Advisor, Muhammad Feroz Alam, Vice President of EFP, Majyd Aziz, former President of EFP, and leaders from various textile associations. The Ambassador stressed the importance of extending GSP Plus benefits to small and medium-sized enterprises (SMEs) and women-led businesses, which are crucial for the economy.

Dr. Kionka disclosed that the current GSP Plus status for eight countries, including Pakistan, has been technically rolled over for an additional four years, until 2027. However, she cautioned that this extension could be reconsidered if the reasons for the rollover are resolved earlier, potentially requiring countries to reapply for the next decade-long GSP Plus status. She advised exporters and the government to maintain full compliance with the GSP Plus conditions and to be vigilant during this four-year period.

The EU Monitoring and Evaluation team’s visit to Pakistan in the summer of 2022 was also mentioned. Their report, released in October 2023, gave positive reviews on environment and governance but mixed reviews on human rights and labor-related issues. The next team visit is scheduled for June 2024.

Husnain Iftakhar highlighted the completion of the UNICEF-sponsored Child Labor Survey in Punjab and Gilgit-Baltistan, with results still pending in other provinces including Sindh. He emphasized the necessity for Pakistan to submit a work plan and targets for addressing the gender wage gap and other labor issues before applying for the next GSP Plus status.

Representatives from the textile industry expressed concerns about high compliance costs, the impact of new measures introduced by the EU, and challenges faced due to frequent regulatory inspections. They also called for government support in promoting exports of non-traditional products and the creation of a comprehensive digital marketplace to showcase Pakistani exports.