KARACHI: Raina Kionka, the Ambassador of the European Union (EU), has urged the Pakistani business community to expand and diversify their exports to the EU, maximizing the advantages offered by the EU’s Generalized System of Preferences (GSP) Plus for Pakistan.
The GSP Plus agreement has recently been extended for four more years, providing trade benefits until 2027.
During a meeting at the Karachi Chamber of Commerce & Industry (KCCI), Ambassador Kionka emphasized that the GSP Plus is not only crucial for textile producers but also has a positive trickle-down effect, benefiting all those employed in the textile industry. Over the past decade, the GSP Plus has significantly contributed to Pakistan’s economic growth, resulting in a 108 percent increase in exports to the EU and a 40 percent rise in EU imports.
Addressing the gathering, President of KCCI Iftikhar Ahmed Sheikh, Senior Vice President Altaf A. Ghaffar, and other officials welcomed Ambassador Kionka. The discussion touched upon the importance of diversifying exports and exploring sectors beyond textiles to fully capitalize on the GSP Plus privileges.
Ambassador Kionka highlighted that the GSP Plus extension until 2027 maintains the existing rules framework, providing stability for businesses. She also mentioned the upcoming elections in June 2024, signaling potential changes in the Parliament and the EU Commission. The envoy anticipated that negotiations on a new directive for GSP Plus might take place after the political transition, potentially impacting the program before 2027.
Identifying Gems and Jewelry, Tourism, Handcrafts, and Auto Parts as potential sectors under the GSP Plus, the EU Ambassador emphasized the need for Pakistan to enhance its exports by diversifying, investing in value addition, adopting new technologies, and bringing SMEs into the forefront.
Ambassador Kionka proposed the establishment of a platform to promote EU-Pakistan business-to-business relations, facilitating connections between SMEs in Pakistan and EU businesses. She specifically mentioned the Gems and Jewelry sector, urging Pakistan to add value locally and export finished products to the European Union.
President KCCI Iftikhar Ahmed Sheikh acknowledged the EU’s significant role as Pakistan’s largest export destination, with exports amounting to $8.4 billion in the last fiscal year. Textiles dominated the export landscape, accounting for nearly 60 percent of the total exports, amounting to $16.50 billion.
Emphasizing the need for sustainable policies, Sheikh stressed the importance of discussions between Pakistan and the EU to improve market access, address trade barriers, encourage collaboration, and ensure compliance with international standards. He also called for skill development initiatives, capacity building, and technology transfer to enhance the competitiveness of Pakistani businesses in the global market.
In conclusion, President Sheikh invited the EU Ambassador to arrange a business delegation for participation in KCCI’s My Karachi-Oasis of Harmony International Exhibition, scheduled for August 2024, to promote international and national exhibitors’ participation. The collaborative efforts between Pakistan and the EU aim to foster enduring partnerships for peace, development, and prosperity.
