EU considers extending Pakistan’s GSP+ status for another four years — envoy

European Union flags fly outside the European Commission building in Brussel on June 16, 2022. (AFP/File)
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Updated 09 July 2023
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EU considers extending Pakistan’s GSP+ status for another four years — envoy

  • EU’s envoy to Pakistan says the proposed extension of GSP+ means no change for Pakistan at the moment 
  • EU will continue monitoring progress in backsliding, report it to European Parliament and members, she adds

ISLAMABAD: The European Union (EU) has proposed extending Pakistan’s Generalized Scheme of Preferences Plus (GSP+) status by another four years, the EU envoy to Pakistan said, which would enable the South Asian country to enjoy the same trade preferences and access to the European market.
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. The current GSP framework will come to an end in December 2023.
To maintain the benefits of GSP+, Pakistan and other beneficiary countries have to re-apply and submit a work plan, outlining their commitment to implementing the relevant international conventions.
“The proposed extension of the current regulation for the GSP+ in effect means no change for Pakistan at the moment,” Dr. Riina Kionka, the EU ambassador to Pakistan, said in a video message shared by the EU Pakistan mission on Sunday.
She said the proposed extension meant that Pakistan would enjoy the same trade preferences while also having the same obligations as before in terms of implementing effectively the 27 international human rights, labor rights, environment and governance conventions laid forth by the EU for the GSP+ status.
“It also means that the EU will continue to monitor progress in backsliding, and we will continue to report to the European Parliament and the member states,” she said, adding that the proposed continuation of the extension did not only apply to Pakistan, but to all eight GSP+ beneficiaries.

Kionka stressed the main issue was to avoid reaching a “cliff” at the end of the year as it would mean a sudden stop to the trade preferences, which would affect Pakistani exporters, factory workers and their families, European businesses that rely on Pakistani suppliers and the European consumers.
“The latest report on the GSP+ monitoring mission that came last summer will come out soon, so I don’t want to prejudice any thoughts on what it might exactly say,” she said.
“But from earlier missions, the earlier monitoring, I can tell you that there are certain areas where the EU would like to see more improvement, for instance, on freedom of expression, on the freedom of the media, certainly on freedom of religion and beliefs, the situation of minorities, the rights of women and gender equality, and also labor rights.”
Last month, Dr. Ewa Synowiec, the principal adviser at the Directorate General for Trade of the European Commission, said while Pakistan had taken steps to “effectively” implement its international commitments regarding GSP+, there still were some “deficiencies.”
“Over the last ten years, Pakistan has taken steps to effectively implement its international commitments on the 27 conventions and all of which we are scrupulously noting,” Dr. Synowiec said.
“However, deficiencies remained in many areas. The performance on international agreements and conventions is the basis of the GSP+ commitments and also the basis for the future of the program for all beneficiaries including Pakistan.”
Her comments came as Pakistan saw mass arrests of leaders from former prime minister Imran Khan’s party and the move to try them in military courts, following violent protests in May. Local and international human rights bodies raised alarm about the crackdown against Khan and his party and said military courts infringe on due legal process. 
Leading journalists were also picked up, with rights groups pointing fingers at Pakistan’s powerful intelligence services often suspected of intimidating critics in this way. Their involvement has rarely been proven.


Pakistan to sell excess gas in international markets from Jan.1— petroleum minister

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Pakistan to sell excess gas in international markets from Jan.1— petroleum minister

  • Pakistan was reportedly exploring ways to reduce $378 million in annual losses from supply glut caused by excess fuel imports 
  • Move to sell excess LNG in international markets will limit $3.56 billion losses caused since 2018-19, says petroleum minister

ISLAMABAD: Pakistan will sell its excess liquefied natural gas (LNG) in international markets from Jan. 1, Petroleum Minister Ali Pervaiz Malik said, revealing the move would limit losses caused from a years-long supply gut. 

Local and international media outlets had reported in July that Pakistan was exploring ways to sell excess LNG cargoes amid a gas supply glut that government officials said was costing domestic producers $378 million in annual losses. News reports had said Pakistan had at least three LNG cargoes in excess that it imported from Qatar and has no immediate use for.

Speaking to reporters during a press conference on Sunday, Malik said there was an excess of imported gas in Pakistan as the use of this fuel for power generation had reduced in the country during the past few months. He said Islamabad had been forced to sell the gas to local consumers, due to which the circular debt in the gas sector from 2018 till now had ballooned to around Rs1,000 billion [$3.56 billion]. 

“From Jan. 1 we will sell this excess fuel in international markets to reduce our burden and limit our losses of this Rs1,000 billion [$3.56 billion],” Malik said. 

He said this move would also allow Pakistan’s state-owned enterprises in the sector to operate on their full capacity and generate profits and employment. 

Malik also spoke of foreign oil companies that were ready to invest millions in the country in the near future. 

The minister cited the recent visit of Turkish energy minister to Pakistan which had resulted in the state-owned Turkish Petroleum signing deals to carry out onshore and offshore drilling activities in Pakistan. 

“Turkish Petroleum will also open its office in Islamabad, where 10 to 15 Turkish nationals will be working,” Malik said. 

He also said that a delegation of the State Oil Company of Azerbaijan Republic (SOCAR) visit Pakistan this week, adding that it was also expected to collaborate with local companies for oil and gas exploration.

The minister said SOCAR was also opening its office in Pakistan. 

“It will also invest millions of dollars in the construction of an oil pipeline from Machike to Thalian in collaboration with the PSO (Pakistan State Oil) and FWO (Frontier Works Organization),” Malik said.