Speakers at a seminar on Generalised System Preferences (GSP) here on Thursday expressed the fear that Pakistan would assume a role of raw material suppliers if the European Union (EU) did not extend the duty-free access to the Pakistani exports beyond December 31.
The seminar was organised by Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), which was presided over by Export Promotion Bureau (EPB) Director Nusrat Jamshed, in lieu of Tariq Ikram, who did not turn up due to his engagements in Islamabad.
Prgmea Chairman Tahir Aziz made a detailed presentation on the existing situation and export prospects of apparel to Europe after the expiry of the GSP scheme.
He said that the USA has signed free trade agreements with countries, like Jordan, Bahrain and Morocco, which would purchase raw material from Pakistan and export at zero duty to the USA.
He said that exports to the EU increased by 55 percent due to the duty-free access last year. The exports rose to 462 million dollars against 296 dollars in 1998-99. Pakistan has 2.4 percent share in the global apparel trade.
He said that with the expiry of GSP apparel exporters have to pay 12 percent duty on exports to the EU, which would totally eliminate exports, as the European buyers were not ready to accept the new price.
He feared that a number of garment factories would be closed resulting in mass-scale unemployment.
The participants of the seminar suggested that equally important factor for export prospects is image of the country, which is not good abroad. Efforts should be made to improve the country image, which would overcome other irritants.
The participants also referred to the cumbersome customs procedures, which delay the import of good quality fabrics from abroad. They stressed the need of fast clearance of imports of raw material.
The EPB director Nusrat Jamshed told the seminar that exporters could import duty-free raw material under SRO 410 and for any delay in clearance they should contact Wasif Memon, additional collector of Exports.
The seminar was attended by leading exporters, and representatives of buying agents. Prominent Prgmea members, including Rashid Soorti, Masood Naqi, Zubair Parekh, Abdul Wahid Bandukda, Atiq Cochra, Amin Banduka also attended the seminar.