GSP Plus: Pakistan exports to EU up 86% during 2013-2021

Pakistan exports to the European Union (EU) have increased by 86% from 2013 to 2021 due to EU GSP Plus mutually beneficial agreement leading to exports increase for both Pakistan and EU.

According to highlights of GSP Booklet,  EU GSP Plus is a mutually beneficial arrangement leading to exports increase for both Pakistan and the EU.

Pakistan’s exports to the EU have increased from 3.56 billion Euros in 2013 to 6.64 billion Euros in 2021. This represents an increase of 86%. Pakistan’s imports from the EU member states have also increased from 3.31 billion Euros in 2013 to 5.59 billion Euros in 2021, which represents an increase of 69%.

Increased bilateral trade means more jobs have been created, better working conditions for workers have prevailed. Sustainable policies for the business sector have been considered and promoted by the government and overall improvement of macroeconomic indicators for Pakistan.

EU’s exports to Pakistan, since 2013, have increased substantially in many sectors including machinery ( 49% increase) Iron & Steel (114% Inc.) Pharmaceuticals (143% inc)Plastics (79 % Inc) and medical measuring instruments (45%)

In terms of country-wise exports to EU member states, there are 12 EU Member states in which Pakistan’s exports have increased by more than 100% including Poland, Hungary, Bulgaria, Denmark, Ireland, Cyprus, Spain, Netherlands etc.

Pakistan Textile Exports up by 25% to $11b

GSP Plus played a key role in Pakistan’s trajectory to a greener future. It led to devising legislative instruments and taking policy actions for a greener and cleaner Pakistan. Pakistan has achieved SDG 13 ‘ Climate Action’ target 10 years ahead of time.  Recharge Pakistan has been launched to enhance climate resilience and water security. Environment protection bill has been passed.

20 textile and apparel companies are leading Pakistan’s first ever net-zero coalition to reach zero net carbon emissions by 2050. Ten Billion Trees Tsunami launched and working in full swing.

Regarding Interfaith harmony, National Commission on minorities has been constituted and Mr. Chela Ran Kewlani appointed as chairman. Federal and Provincial governments have been regularly arranging celebrations of religious festivals of minorities to promote interfaith culture.

GSP Plus has strengthened Pakistan’s commitment to further improve decent work standards and labour rights. Pakistan has taken some legislative and policy actions to ensure the aforementioned e,g. 10% increase in minimum wage by Government of Punjab in 2021. 20% increase in minimum wage by Government of KP. Furthermore, Pakistan is all set to launch better work Program soon. Government of Pakistan in co funding ILO BWP through Export Development Fund.

Regarding Child Rights and Child Labour, it is worth mentioning that around 92000 children have been enrolled in schools in Punjab who were previously working in Brick Kilns. Ministry of OP&HRD has developed National Framework to address Child Labour and Bonded Labour.

Significant efforts have been made by Pakistan in improving the gender equality and women empowerment  through legislative measures and policy actions. Naming a few, Enforcement of women’s property Rights act, Anti rape Ordinance, Enforcement of Transgender Persons Act, Ehsas Kafalat Programme ( Financial inclusion of 7 million women : one women one bank account policy). The apparel sector supported by GSP Plus employs more than 33% women workers with many on key managerial positions.