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.


Pakistani stocks lose over 6,000 points due to heavy selling, regional tensions 

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Pakistani stocks lose over 6,000 points due to heavy selling, regional tensions 

  • KSE-100 index fell 6042.26 points or by 3.21 percent to close at 182,338.12 points, Pakistan Stock Exchange data states
  • Analysts say heavy selling triggered by Fauji Fertilizer Company’s earnings announcement, which fell short of expectations

KARACHI/ISLAMABAD: The Pakistan Stock Exchange (PSX) saw a massive drop of over 6,000 points on Thursday, which financial analysts attributed to heavy selling in the market and geopolitical tensions between Iran and the US. 

The KSE-100 index fell by 6042.26 points or 3.21 percent to close at 182,338.12 on Thursday evening, the PSX data showed, down from the previous close of 188,380.38 points.

The development took place as US President Donald Trump warned Iran this week that “time is running out” for the nation to negotiate a deal on its nuclear program, following the steady build-up of US military forces in the Gulf.

Meanwhile, Pakistani brokerage firm Topline Securities said equities witnessed a sharp sell-off in the stock market on Thursday, causing Pakistani stocks to plunge into a “severe downturn.”

“The steep decline was largely driven by Fauji Fertilizer Company’s (FFC) earnings announcement, which fell short of market expectations due to weaker-than-anticipated gross margins,” Topline Security’s Senior Equity Trader Naveed Nadeem said. 

Nadeem noted that the FFC, United Bank Limited (UBL), Engro Corporation (ENGROH), Oil & Gas Development Company (OGDC), and Hub Power Company (HUBC) collectively shaved 3,155 points off the benchmark index during the session.

Najeed Warsi, chief business officer at Al Habib Capital Markets, agreed. 

 “FFC’s [Fauji Fertilizer Company] below-expectation results didn’t help, triggering a sell-off,” he added. 

Ahsan Mehanti, CEO of Arif Habib Commodities, said geopolitical tensions between Washington and Tehran triggered the selling activity as well as the central bank’s recent decision to keep policy rate unchanged.

“Geopolitical uncertainty and SBP [State Bank of Pakistan] status quo in the policy rates projecting high inflation played a catalyst role in selling activity at PSX,” he said. 

Pakistan’s central bank held its key policy rate unchanged ​at 10.50 percent on Monday, defying market expectations for further easing.