GSP Plus status: PRGMEA underscores need for starting lobbying for renewal

LAHOERE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Thursday while felicitating newly-elected Prime Minister Shehbaz Sharif and Minister for Commerce & Textile Naveed Qamar, suggested the new government to initiate lobbying for continuity of GSP Plus status, besides implementing new Textile and Apparel Policy in its true spirit through revival of Pakistan Export Promotion Board.

PRGMEA chief coordinator Ijaz Khokhar and regional chairman Sheikh Luqman Amin observed that the largest value-added textile exporters’ body, representing the majority of SMEs in the country, welcomes the new PM and appreciates his selection of Naveed Qamar to assign him the vital Ministry of Commerce & Textile.

Sheikh Luqman Amin observed that Naveed Qamar’s appointment would help boost country’s exports, especially of the value-added textile, while all the macro and micro issues of the trade and commerce would be addressed. Ijaz Khokhar suggested the new government to initiate work on lobbying for the renewal of Generalized Scheme of Preferences (GSP) Plus status for Pakistan from the European Union well before time to sustain exports growth, as the end of duty-free facility would damage the exports growth volume by at least US three billion dollars annually.

He made an appeal to the Prime Minister Shehbaz Sharif and Commerce Minister Naveed Qamar to get personally involved in this issue of national importance, giving directives to all stakeholders, including foreign, finance, commerce and industries ministries at federal level while environment, human rights, women development and labour departments at provincial level, besides taking the value-added apparel sector exporters onboard to devise a strategy to influence the EU countries for renewal of the GSP Plus status for Pakistan.

“Though the present status will expire in December 2023, but Pakistan can face its destructive effects from next year because the international buyers will start searching for other regional suppliers for placing new orders, leading to export loss of around $ 3 billion for Pakistan”, he warned.

Ijaz Khokhar observed that extension in the European Union’s status has played a great role in enhancing Pakistan’s exports. With a view to sustain the employment opportunities in the country as well as boosting foreign exchange reserves further the government will have to act immediately to push the EU countries for extension of GSP Plus facility to Pakistan for another 10 years, from Jan 2024 to Dec 2033.

Interaction and communication with ambassadors of the EU bloc and other European countries should have to be initiated in this regard, he said, underlining the need for direct advocacy and lobbying through visits to the EU headquarters in Brussels.

PRGMEA regional chairman stressed that the government should use its diplomatic relations to win extension in the GSP Plus status, as it is impossible for Pakistan to compete the regional countries especially Bangladesh, India and Vietnam, as the earlier countries’ cost of production is comparatively low while the latter has preferential trade agreement with the EU.

Regarding Textile & Apparel Policy 2020-25, Ijaz Khokhar added that the apparel policy has already approved in 2022 after a long time which now needs implementation in its true spirit, as we have already lost one year.

Copyright Business Recorder, 2022