Razak Hails EU Role In Pakistan's Socio-economic Development

Adviser to the Prime Minister on Commerce, Textile, Industries and Investment Abdul Razak Dawood on Wednesday appreciated the role of European Union (EU) in the economic and social development of Pakistan by providing market access through Generalized Scheme of Preferences (GSP-Plus)

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Jul, 2019 ) :Adviser to the Prime Minister on Commerce, Textile, Industries and Investment Abdul Razak Dawood on Wednesday appreciated the role of European Union (EU) in the economic and social development of Pakistan by providing market access through Generalized Scheme of Preferences (GSP-Plus).

He was talking to European Union (EU) Ambassador in Pakistan, Jean Francois Cautain, who called on here, a commerce ministry press release said.

During the meeting, the two sides deliberated on issues pertaining to bilateral trade and investment between the EU and Pakistan. The adviser informed the ambassador that the incumbent government had taken a strategic decision to ease out the business regulations to attract the foreign direct investment in the country, especially in export-oriented sectors.

He urged the EU companies to invest in Pakistan to get the higher returns on their capital owing to business-friendly policies.

Both the sides also discussed the impact of Generalized Scheme of Preferences (GSP-Plus) on bilateral trade, especially Pakistan's exports to the EU. The EU ambassador said the GSP+ status had provided a window of opportunity for Pakistani exporters in the EU market which could be exploited though product diversification, value addition and improved connectivity with the business community on both sides.

Moreover, he said, the EU companies were very keen to enhance investment in Pakistan owing to improved business environment.

Pakistani products have duty free access in all 28-member states of the European Union (EU) since 1st January 2014.

This duty-free access is available under the EU's 'Special Incentive Arrangement for Good Governance and Sustainable Development', which is also popularly known as GSP+. On the other hand, Pakistan has to ensure implementation of 27-UN to enjoy preferential market access under GSP+. These conventions pertain to human rights, labour rights, environment protection and good governance.As a result of this arrangement, Pakistan's exports to EU have increased from 4.54 billion Euros in 2013 to 6.88 billion euros in 2018. This represents an increase of 51.62%.

This arrangement has helped Pakistani products to compete successfully with similar products originating from other competing countries such as China, India, Bangladesh.