https://arab.news/bcman
- Growth driven largely due to GSP Plus status, rising demand for Pakistani textiles and garments, says state media
- European Union is Pakistan’s second-most important trading partner, accounting for over 14 percent of its total trade
ISLAMABAD: Pakistan’s exports to Europe grew by 9.41 percent during the first eight months of the current fiscal year, state-run media reported on Saturday, attributing the surge to rising demand for the country’s textile, garments and its GSP Plus status.
The European Union (EU) is Pakistan’s second most important trading partner, accounting for over 14 percent of the country’s total trade and absorbing 28 percent of Pakistan’s total exports as per official data. Pakistani exports to the EU are dominated mostly by textiles and clothes.
Pakistan avails the Generalized Scheme of Preferences (GSP)+ status, a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance.
“The demand for Pakistani products in Europe has seen a significant rise, leading to a 9.4 percent increase in exports due to the efforts of the Special Investment Facilitation Council,” state broadcaster Radio Pakistan said in a report.
It was referring to the SIFC, a hybrid civil-military government body formed in 2023 to fast-track decisions related to international investment in Pakistan’s vital economic sectors.
The SIFC aims to attract investment from Gulf countries, Central Asian states and regional allies in tourism, agriculture, mining and minerals, livestock and other priority sectors.
The state media said Pakistan’s exports to Western Europe grew by 11.6 percent and while those to Northern Europe saw a “remarkable” 17.7 percent increase during the first eight months of the current fiscal year.
“The primary reasons behind this growth are Pakistan’s GSP+ Status and the rising demand for Pakistani textiles and garments,” it added.
The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan.
Finance Minister Muhammad Aurangzeb has repeatedly stressed the importance of shifting Pakistan’s economy from an import-dependent one toward an export-led one, saying that without it sustainable economic growth is difficult to achieve.
In recent months, Pakistan has vigorously pursued economic and investment deals with Gulf countries such as Saudi Arabia, the United Arab Emirates and bilateral trade cooperation with Central Asian states, Russia and others.