Thanks to the “Generalised Scheme of Preferences” (GSP), Pakistan’s exports to the European Union (EU) has seen 37 per cent rise during the last three years. This was announced by the Commerce Minister Khurram Dastgir Khan. The facility gives them vital access to the EU market and contributes to their economic growth.
It may be noted that GSP allows developing countries to pay less or no duties on their exports to the EU, and Pakistan was awarded GSP Plus status in December 2013 which is valid till 2017. The biggest beneficiary of GSP Plus has been Pakistan’s textile and apparel sector, which make up for around 60 per cent of overall exports from the country to the EU.
The Minister also said that export of machinery, chemicals and dyes from Europe to Pakistan also surged 14 per cent. These products were required to meet the growing demand of Pakistani products, particularly textiles and garments, in the European market, he added.
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The textile industry, the largest manufacturing industry in Pakistan contributes 8.5 per cent to the GDP and give employment to about 45 per cent of the total labour force in the country. Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India and contributes 5 per cent to the global spinning capacity.
