GSP Plus status lifeline of Pakistan’s economy: FPCCI

LAHORE, Mar 27 (APP):The GSP Plus status by the European Union (EU) is not just a trade concession but lifeline of Pakistan’s economy. Under this status, more than 66 percent of Pakistan’s products including textile, leather, and surgical goods are exported to European markets at zero duty, and this facility serves as oxygen for the country’s exports.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Chairman and Vice President Zaki Aijaz and United Business Group (UBG) Patron-in-Chief S.M. Tanveer and other leaders expressed these views while addressing a joint a press conference here at the FPCCI Regional Office on Friday.
They said, European Union is Pakistan’s largest export market, accounting for approximately 25 to 30 percent of the country’s total global exports. Without GSP Plus, they added, Pakistani products would immediately face duties of 10 to 12 percent, potentially causing a direct annual loss of USD 8 to 9 billion. Increased prices would push Pakistani products out of global competition.
The business representatives emphasized that this issue does not concern only large industrialists but directly impacts the common people of Pakistan. The country’s export industry particularly textiles and leather provides employment to millions of workers, including a significant number of women. Currently, around three million families are directly linked to these export sectors.
They feared that withdrawal of GSP Plus status would lead to factory closures and mass unemployment, triggering a serious social and economic crisis. The loss of Pakistan’s status would effectively open European markets to India. Ignoring regional realities would be a grave mistake, if Pakistan loses its GSP Plus status, India will take its place, and Pakistani products could permanently disappear from European stores. Once a market is lost, it is nearly impossible to regain, they concluded.