Despite excellent potential the value added sector is unable to achieve desired exports to international market especially European Union. Industrialist and investors are worried on increasing cost of doing business. Competitive advantages should be given to industrial sector to get maximum of EU GSP plus status.

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(20 July, 2018)

President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of and former provincial of Mian Zahid Hussain on Friday said despite achieving GSP plus status by Pakistan in 2014, desired exports results could not attained, making this a missed opportunity. Pakistan has agreed and signed 27 different UN conventions on human rights, good governance and environment. With GSP plus status Pakistan’s exports have reached to $ 8.1 billion in 2016 which were around $ 6.9 billion in 2013.

The veteran business leader while talking to the business community said that in top ten EU’s imports Pakistan’s share is minimal. In $ 72.9 billion textile imports of EU, Pakistan’s share is $ 2.1 billion which is only 2.88 percent, out of $ 56.7 billion leather and footwear imports only 0.18 percent of $ 0.1 billion is Pakistan’s share. China has 36.2 percent share in the total EU imports which is the maximum, while Turkey has 13 percent, Bangladesh has 19.9 percent, India has 7.1 percent and Pakistan has only 4.2 percent, he added.

The former minister said that it is evident in trade with European Union that only GSP plus status cannot helps Pakistan in increasing exports though Country’s exports have largely increased post GSP plus status however, Pakistan’s share is far below with respect to regional competitors. EU imports 79.32 of Pakistan ‘textile but Pakistan’s share in total leather imports is less than 5 percent. Similarly, leather products of Pakistan make only 0.2 percent, agro products 2.47 percent and plastic & rubber products make 37.85 percent of total imports of respective products to European Union.

Mian Zahid Hussain said Pakistan is not taking the due advantage of GSP plus status and far behind the regional competitors in increasing its share in EU’s vital import sectors of leather, agriculture and textile. Since GSP plus status will continue till 2023, Government should focus the development of value added sector of the Country; competitive advantages in term of raw material and value addition tools should be given to this sector so that this sector can further grow.

He said that according to an international report, Pakistan is far behind in technological advancement which has restricted Pakistani products to attain the desired status in international market. Cost of doing business in the Country is very high as compare to regional competitors and getting higher day by day due to currency devaluation on which industrialists and investors are worried.

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