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Business Pakistan

EU trade deal boosts exports by $1bn for Pakistan: Khurram Dastagir

ISLAMABAD: Pakistani exports to the European Union increased by more than a billion dollars after a landmark trade deal last year which made its products more competitive, the Commerce Minister Engineer Minister Khurram Dastagir Khan told a foreign news agency.

The EU signed a law in late 2013 granting Pakistan so-called “GSP-plus” status, which means firms pay no tax on certain categories of goods exported to the 27-nation bloc for 10 years.
The EU makes GSP-plus conditional on implementing international conventions on human and labour rights, and there have been fears Pakistan s decision to end a moratorium on executions could affect the deal.
Pakistan’s key textile industry in particular welcomed the agreement, which came into force in January 2014, in an interview Commerce Minister Khurram Dastagir Khan hailed its impact.
“As a result of GSP-plus, Pakistan s exports to the EU have increased by $1.08 billion during the period January to October 2014 as compared to the same period in 2013,” Khan said.
Exports to the EU in January-October 2014 totalled $6.38 billion, up by just over 20 percent from the $5.3 billion recorded in the corresponding period in 2013, he said.
Before GSP-plus, textile exports faced customs tariffs of between 6.4 and 12 percent and leather goods and footwear up to six percent, he said.
The textile industry is the backbone of Pakistan s exports, making up more than 50 percent of the country s total overseas shipments.
“Now these exports have duty-free access in EU and it has helped Pakistani products to become more competitive vis-a-vis its competitors, including Bangladesh, India and Vietnam,” he said.