Bangladesh may be the potential threat for Pakistan, in case Islamabad has to pay 12 percent duty by staying out of Generalised System of Preferences (GSP) plus regime with the European Union (EU) operative from April 2005. In case Bangladesh invested in categories where Pakistan has narrow comparative advantage, Islamabad will start losing the market, said Federal Minister of Textile Mushtaq Ahmad Cheema at a seminar here on Thursday.
The Institute of Policy Studies (IPS) organised the seminar on "WTO and Pakistan", which was attended by the leading figures attached with textile industry and other stakeholders.
Bangladesh being a least-developed country (LDC) and having less than one- percent share of EU imports enjoy GSP benefits.
Currently Pakistan's share is 1.7 percent of the EU imports, resulting in 12 percent extra duty on our exports. Besides, among 27 conventions related to human rights, labour laws, illegal immigrants and governance principles, Pakistan has ratified about 18 conventions and has to ratify the remaining ones.
Addressing the participants of the seminar, Mushtaq Cheema said that the government was in contact with the EU to settle the issue and convince them to consider Pakistan in its GSP plus regime.
He said that the EU is reviving anti-dumping duty and the high official's visit in December was to level ground for more share in next GSP plus regime.
Talking about the importance of the textile sector, the minister said that during last year textile accounted for 67 percent share in overall country exports, 48 percent in industry and 36 percent in employment.
According to economists, textile sector in Pakistan is expected to expand further under the WTO regime. It has also the capacity to compete and earn a sizeable share in world market to grease the wheel of economy.
Former federal secretary and chairman of the National Tariffs Commission Masud Daher also reviewed "five trendy textile technologies", and use of information technology. He called for quality and skill-oriented education, and making use of latest technology.
Daher observed that "Pakistan's investment of $4-5 billion in procuring textile machinery is a healthy sign, but just a beginning" as other countries like China and India have invested much more hefty amounts in spite of already having a large number of mills, looms and spinners.
All the participants were of the opinion that the fast-changing scenario in the textile industry not only signifies large investment outlays, which will boost employment, production and exports, but it would also likely to turn Pakistan into one of the leading suppliers of superior textile products in the world.