LAHORE:Ambassador of European Union Dr Riina Kionka discussed in detail progress on the external sector developments related to GSP Plus (Generalised System of Preferences) facility with the leadership of All Pakistan Textile Mills Association (APTMA), here on Monday.
She visited APTMA House where she was received by APTMA Senior Vice Chairman Kamran Arshad, Vice Chairman Asad Shafi and Secretary General Raza Baqir along with other members of the Association.
The EU ambassador said Pakistan would have to show progress on implementation and legislation of various laws and conventions necessary for availing GSP Plus status. She, however, informed that present scheme is going to be reviewed in December next year and some more conventions relating to human and labour rights would be added to the already existing lists of conventions.
She asked business community in general and the exporters in particular to not only adopt immediate measures for implementation of the requisite conventions but also to engage with the government with reference to the provisions relating to human and labour rights to facilitate the path for future extension of GSP Plus for the next ten years beyond December, 2023.
She appreciated the textile industry for complying with sustainability issues, saying that it was high on the list of the EU against applications for revival of the facility.
Senior Vice Chairman APTMA said the EU is Pakistan’s largest trading partner and the facility of GSP Plus had enabled Pakistan’s textile industry to compete in the region. It has also enabled Pakistan to export 78 per cent of its four products duty free in EU and eventually enhancing its share by 65 per cent from 2013 to 2019, which led to more employment, investment and technology upgrading besides encouraging foreign investment.
He said the facility has played a huge role in Pakistan’s targeting to a Green Future and Zero Carbon emission, as several textile companies expected to achieve zero net carbon emission by 2050.
While stressing the GSP Plus facility until the economic stability of Pakistan, Senior Vice Chairman APTMA said the country’s exports can reap further benefits from the facility through further diversification.
He apprehended that withdrawal of the GSP Plus will plummet Pakistan’s exports besides removing edge and competitiveness over its competitors. The industry will suffer loss of not less than one trillion rupees per annum and will also be exposed to massive unemployment, large scale closure of mills and increase in poverty.
Furthermore, he said, it will have dominos effect collapsing banking sector as more than 40 per cent of bank loans are obtained by textile sector. Real estate, goods transport and allied industries will suffer adversely causing massive unrest and severe set back to a series of initiatives relating to environment, human/ labour/gender rights, anti-corruption, narcotics control etc.
In his vote of thanks, APTMA Vice Chairman Asad Shafi told the visiting EU Ambassador that the textile industry has imported textile machinery from the EU member countries under its expansion plan worth billions of dollars. He hoped that GSP Plus facility will be extended in future to help Pakistan in poverty alleviation and improvement of take home salaries of workers due to enhancement of their skill. He thanked the Ambassador for sparing her time to discuss the exporters’ concerns especially with reference to GSP Plus.