EU Urges Pakistan to Expand Beyond Textiles for GSP Plus Benefits
The European Union’s ambassador to Pakistan, Riina Kionka, emphasized the need for Pakistani textile exporters to diversify their product range and explore new sectors to fully leverage the benefits of the Generalized System of Preferences Plus (GSP Plus) trade scheme. GSP Plus provides Pakistan with duty-free access to the EU market for 66% of its products, primarily textiles and garments, which constitute over half of the country’s exports.
Speaking at a meeting with the Karachi Chamber of Commerce and Industry (KCCI), Kionka encouraged the business community to broaden their exports beyond textiles. While acknowledging the significance of GSP Plus for Pakistan’s economy, she stressed the importance of diversification to maximize its advantages. The EU recently extended the preferential trade scheme for an additional four years, until 2027.
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Kionka identified sectors such as gems and jewelry, tourism, handicrafts, and auto parts as potential areas for Pakistan to expand its exports to the EU. She highlighted the need for value addition, technology adoption, and investment in these sectors. The EU remains Pakistan’s largest trading partner, receiving around 28% of the country’s exports.
In addition to the textile sector, Kionka urged Pakistan to tap into other industries, fostering economic growth and increasing the country’s competitiveness in the global market. The EU ambassador also mentioned ongoing efforts to establish a platform for business-to-business relations, particularly focusing on small and medium enterprises (SMEs).
As Pakistan looks to enhance its exports and economic ties with the EU, diversification beyond textiles becomes a strategic imperative. The EU’s GSP Plus extension provides a window of opportunity for Pakistan to explore new avenues and strengthen its position in the European market.