The European Union (EU) will decide about extending the Generalised Scheme of Preferences Plus (GSP+) status for 2024 to Pakistan after reviewing the country’s two-year performance report on exports for the years 2020 and 2021, EU Ambassador to Pakistan Androulla Kaminara said on Thursday.
“The last two-year report (2018-19) was issued in February 2020. Pakistan’s performance report (for the years 2020 and 2021) is under compilation these days. Therefore, further decision for the extension of this status to Pakistan, with effect from Jan 1, 2024, will be made after reviewing this report,” Ambassador Kaminara said while speaking to the business community here at the Lahore Chamber of Commerce & Industry (LCCI).
GSP is an entrenched trade and development policy instrument, in place since 1971. Pakistan is the major recipient of the GSP+ scheme for the last seven years. Under this status – set to expire on Dec 31, 2023 – there is zero per cent duty on several products. Under the current GSP+ system, the EU continues monitoring the progress made by the beneficiary countries towards the implementation of 27 international conventions.
According to Ambassador Kaminara, the EU is willing to support Pakistan in growing its exports to the union and would like to work with it in this area. She promised, “We will keep working with partners, including Pakistan, to address the shared challenge of climate change.” The EU, she continued, was paying close attention to Pakistan’s SME sector.
The EU is one of Pakistan’s main commercial partners, according to LCCI President Mian Nauman Kabir, who spoke at the event.
According to data, the European Union contributes approximately 14% of Pakistan’s overall trade volume and 31% of its total exports. Accordingly, the extension of Pakistan’s GSP+ status through December 31, 2023, is extremely important for our economy, according to Mr. Kabir.
