The GSP Plus continues to be a mutually beneficial proposition for Pakistan and the European Union, as Pakistan’s exports to the EU have risen by 51 percent whereas EU’s exports to Pakistan have gone up by 47 percent since inception of the GSP Plus. The Ambassador of Pakistan for the European Union, Belgium and Luxembourg Mr. Zaheer A. Janjua said this while addressing the GSP Stakeholders’ Forum held at the European Commission in Brussels. He was a panelist at the Forum together with MEP Anna Cavazzini and MEP Jordi Cañas.
The Ambassador said Pakistan remains committed to fulfilling its obligations under GSP Plus and has been demonstrating consistent progress during each review cycle of the scheme, in the implementation of the 27 international conventions related to human rights, labour rights, environment and governance.
While referring to Pakistan’s commitments towards the GSP Plus, he said Pakistan has enacted requisite national legislations, developed robust policies and created structured institutional mechanisms to ensure effective implementation of the conventions and to fulfill its obligations.
Ambassador Janjua said that COVID 19 has triggered a global recession, far worse than the 2008 Global Financial Crisis, which has significantly amplified the need for enhanced international cooperation, including global trade.
He said Pakistan, like other countries, has been severely affected by the COVID-19 pandemic. However, the government’s “smart lockdown” policy, enforced through a well-coordinated implementation mechanism, has proven to be a success in containing the spread and fatalities of the pandemic at around 311,000 and 6,400, respectively.
Referring to Pakistan’s COVID response, he said despite financial constraints, the government allocated US $8 billion for health services and supporting the poorest, most vulnerable households, daily wage workers and low-income women, through direct cash payments under Ehsaas programme and subsidies to small businesses.
The Ambassador said the success in containing pandemic and deployment of well calibrated stimulus measures, along with the use of appropriate policy instruments and ease of doing business initiatives, has placed Pakistan’s economy and exports on the track for recovery.
Underscoring Pakistan’s efforts towards optimizing GSP trade benefits and economic recovery, he highlighted the significance of stimulus measures deployed by the EU economies, including in addressing demand contraction.
The Ambassador noted that while GSP can significantly contribute to the post COVID-19 economic recovery, tangible measures would be needed to fully support the post COVID-19 economic recovery in developing countries. He proposed establishment of a dedicated dialogue to address decline in exports though targeted interventions, including technical assistance and development of a coordinated response. He encouraged investments in the export sector of Pakistan and called for easing out certifications and standards requirements for imports into the EU.
The Ambassador also emphasized the need for supporting the national sustainable development goals, priorities and objectives for sustainable economic recovery.
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