Pakistan says ‘confident’ will meet requirements for next GSP+ scheme

A pedestrian walks under waving flags of the European Union in front of the headquarters of the European Commission in Brussels on March 11, 2021. (AFP)
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Updated 06 October 2021
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Pakistan says ‘confident’ will meet requirements for next GSP+ scheme

  • Islamabad will have to demonstrate tangible progress on meeting international conventions on rights, governance  
  • European Parliament has an immediate sought review of Pakistan’s eligibility for GSP+ status over rights record  

ISLAMABAD/ KARACHI: Pakistan has submitted its response to the European Union's list of issues and follow-up questions for the renewal of its Generalized System of Preferences Plus (GSP+) status, with the country’s commerce chief saying he is “confident” that Islamabad would be successful in the fourth biennial review of the special trade incentive.  

This April, the European Parliament moved a resolution against Pakistan, seeking an immediate review of its eligibility for GSP+ status over what it called violence and discrimination against religious minorities and other vulnerable groups.  

The development took place after the Tehreek-e-Labbaik Pakistan (TLP) religious party resorted to violent protests, demanding the expulsion of the French ambassador to Islamabad over anti-Islam cartoons published in France.  

The GSP+ is a special trade arrangement offered to developing economies by European nations in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. Institutionalized in 1971, the framework removes or reduces import duties on products exported to Europe from low-income countries.  

Pakistan, which is part of a current GSP+ scheme set to end in December 2023, submitted its responses to the EU's list of issues and follow-up questions on September 15.  

"EU is our biggest export partner and we have excellent relations with all EU member states. If you see our exports country-wise, EU member countries will be in the top ten export destinations. As the 4th Biennial Review of GSP Plus incentive is currently underway, I am confident that due to the positive initiatives by the government it will be successfully completed," Pakistani prime minister’s aide on commerce Abdul Razak Dawood said in a statement.  

"The five new international conventions in the new GSP scheme are in line with government’s priorities and we are already taking steps to ensure labour rights, child rights and rights of the persons with disabilities. I can assure that the Government of Pakistan is already committed to the cause."   

The legislative proposal for the new GSP scheme will now be presented to the European Council and Parliament for detailed deliberations before adoption. Once the European Council and Parliament adopt the new scheme, Pakistan, like any other beneficiary country of the GSP scheme, will have to file a new application for the new GSP scheme and ratify and implement 32 International Conventions.  

Speaking to Arab News earlier, Dawood said Pakistan would have to file a fresh application for the new scheme like other beneficiary countries of the GSP scheme.  

“Pakistani products … have duty free access in all 27 member states of the European Union since January 1, 2014, until December 31, 2023,” he said, adding that the EU periodically reviewed the commitment of all beneficiary nations with GSP+ status to the signed international conventions.  

Dawood said all nations, including Pakistan, would be required to ratify and implement the five new international conventions, in addition to the previous 27 international covenants, to benefit from a new program to be adopted by the EU from 2024 to 2036.  

The EU office in Islamabad said in a statement Pakistan was the largest beneficiary of the current GSP+ program but the European Commission was continuously monitoring progress made by beneficiary nations like Pakistan in implementing international conventions.  

“In the last monitoring reports, some progress has been positively highlighted, while concerns have been raised regarding child labor, torture, media freedom and access to justice, among others,” the statement maintained.  

European Union Ambassador to Pakistan Androulla Kaminara said in a statement last month that Pakistan’s exports to Europe had increased by 60 percent since it was granted GSP+ status in 2014 but “in order to maintain the trade preferences under GSP Plus beyond 2023, Pakistan will have to redouble its efforts to turn the international conventions it signed into reality on the ground.”  

“To make the case to be eligible under the new GSP Plus system, Pakistan, like any other potential beneficiary countries,” Kaminara said, “will have to demonstrate tangible progress to convince EU parliamentarians and member state governments.”  


Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

Updated 25 December 2025
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Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

  • Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
  • Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone

KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.

The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said. 

The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim. 

“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said. 

Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.

The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs. 

Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said. 

“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said. 

The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital. 

To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.