Pakistan Textile Exporters Association (PTEA) has welcomed the European Parliament’s International Trade Committee decision that voted to approve continuity of preferential duties on exports for the next two years under Generalized System of Preferences Plus (GSP+) scheme for Pakistan.
In a statement here on Wednesday, Chairman Pakistan Textile Exporters Association Shaiq Jawed termed the approval from EU’s committee for International Trade as a good sign for textile exporters and the economy as well. He appreciated the Government’s progress in promoting good governance and sustainable development that helped to bring positive results of the second review of EU’s preferential duties facility.
GSP plus incentives helped Pakistan to build up its capacity to become more effective and competitive partner in international economics by opening new avenues of opportunities. With this facility, not only Pakistan’s market share has increased but exports to EU have also jumped from 4.54 billion Euro in 2013 to 6.29 billion Euro.
GSP plus status had provided the Pakistan an opportunity to improve its relations with EU in terms of not only trade but also economic and political relations. This had contributed to reduction of poverty and promotion of sustainable development and good governance by giving a boost to the trading industry.
Terming textile export sector as major beneficiary of duty waiver facility, Shaiq Jawed said that overall textile exports surged to 4.87 billion euro in 2016 from 3.14 billion Euro in 2013, which represent an increase of 54.8 percent. Of these exports of textile apparel and knitwear have grown from 1.4 billion euro to 2.47 billion euros in 2016, indicating an increase of 76.4 percent.
The second biggest share went to home textiles which surged to 1.56 billion euros from 980 million euros, representing an almost growth of 60 %. The export of cotton, fabric and yarn also increased from 739 million euros to 805 million euros increasing by 9 percent.
Vice Chairman Ammar Saeed was of the view that country desperately needs concessional markets to narrow its ballooning trade deficit, which has surged 24.18 percent to USD 21.54 billion in first seven months of current fiscal year. EU is Pakistan’s single largest trade partner with bilateral trade exceeding 7.5 billion euros; however there is a need to work out a methodology to further increase this trade activity. He was optimistic about the endorsement of the approval of International Trade Committee, by the EU parliament. He urged to evolve comprehensive industrial policies to further utilize the benefits of GSP plus.
Article First Appeared in The Business Recorder.