As Pakistan seeks to strengthen its economic ties with the European Union (EU), Finance and Revenue Minister Senator Muhammad Aurangzeb met with EU Ambassador Dr Riina Kionka to discuss the future of the Generalized Scheme of Preferences Plus (GSP+) facility.
According to a statement released by the Finance Division on Friday, the two sides discussed a range of matters of mutual interest, particularly on strengthening business and investment ties between the EU and Pakistan.
During the meeting, Aurangzeb expressed appreciation for the EU’s support for Pakistan, particularly the importance of the GSP+ facility.
“He highlighted that GSP+ has been a critical enabler of Pakistan’s efforts to drive export-led growth,” read the statement.
Aurangzeb also emphasized the need for a more proactive approach in reaching out to European capitals for constructive engagement on key issues, including the continuation of the GSP+ facility, which is vital for Pakistan’s trade relations with the EU in the coming years.
The EU GSP+ serves as a special incentive arrangement to promote good governance and sustainable development by facilitating trade. The incentive grants Pakistan zero-rated or preferential tariffs on nearly 66% of tariff lines, enhancing the country’s ability to export to the EU market.
GSP+ has proven to be pivotal for EU-Pakistan bilateral trade ties. From 2014 to 2022, Pakistan’s exports to the EU increased by 108% whereas imports from the EU increased by 65% and the total trade volume increased from EUR 8.3 billion in 2013 to EUR 14.85 billion. Pakistan’s garments, bedlinen, terry towels, hosiery, leather, sports and surgical goods and similar products enter the EU market availing the GSP+ concessions, as per data available on the EU website.
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During the meeting, Aurangzeb and the EU envoy discussed opportunities for European businesses in Pakistan, emphasizing the need to create an enabling investment climate to harness the growing appetite for expansion.
Kionka shared that the EU had already mapped over 300 European companies operating in Pakistan, with the belief that many more are present.
The EU official emphasized that European companies were increasingly viewing Pakistan as a hub for potential business opportunities, especially in light of the upcoming forum.
Meanwhile, the finance minister underscored the government’s commitment to supporting EU businesses in Pakistan and facilitating their operations, including ensuring the timely repatriation of dividends and profits.
Aurangzeb also welcomed the idea of creating a proactive and unified business platform for European companies, noting his recent positive engagement with a group of French and Dutch companies operating in Pakistan.
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