EU envoy suggests product diversification

Says it will help Pakistan to enhance exports to the bloc

LAHORE:

Pakistan needs to introduce new products to enhance its exports to the European Union, said Ambassador of European Union to Pakistan Androulla Kaminara.

Speaking to businessmen at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday, she said that Pakistani products were best in terms of quality and they could easily make their way to EU markets. She was of the view that introduction of new products and joint ventures could play a vital role in this regard.

Talking about the GSP Plus status for Pakistan, the envoy said that a two-year performance report on the country would be reviewed soon and decision would then be taken for extension of the scheme.

“The European Commission has tabled the next generation of GSP Plus and five new conventions have been added,” she revealed. “It is a good omen that Pakistan is also a signatory.” Kaminara announced that Pakistan was the most successful country in using the GSP Plus status.

 She extended support for expansion of Pakistan’s exports to the EU and expressed the desire to be a partner in this regard. The ambassador stated that the EU would continue to engage with its partners, including Pakistan, to address the common challenge of climate change.

She revealed that the EU was particularly focusing on the small and medium enterprise (SME) sector of Pakistan. Speaking on the occasion, LCCI President Mian Nauman Kabir appreciated the European parliament for extending the GSP Plus status for Pakistan till December 31, 2023.

 He pointed out that the EU was the second most important trading partner of Pakistan. Citing figures of the ITC World Trade Map, he stated that Pakistan’s exports to the EU stood at $7.96 billion in 2020 while imports from the bloc amounted to $4.1 billion.

“These trade figures reflect that the EU accounts for about 14% of Pakistan’s total trade volume and around 31% of Pakistan’s total exports,” he mentioned. “In this context, the extension of GSP Plus status till December 31, 2023 holds great significance for Pakistan’s economy.”

 The LCCI president said that Pakistan’s exports to the EU were heavily dominated by textile products, which accounted for more than 75% of shipments from Islamabad to the trade bloc.

 On the other hand, major imports of Pakistan from the EU comprised machinery, transport equipment and chemicals, he noted.

 He stressed the need for product diversification in exports to the EU and was of the view that Pakistan could enhance exports of leather products, furniture, carpets, plastics, sports goods and rice.

“Almost 71% of our total exports to the EU go to just five countries, namely the United Kingdom, Germany, the Netherlands, Spain and Italy,” the LCCI president said. “We are looking forward to exploring more opportunities in markets of other countries such as Greece, Slovenia, Bulgaria, Finland and Ireland where exports from Pakistan are relatively lower.”

Kabir called for exploiting the trade potential by exporting agriculture-based processed food to the EU in collaboration with European companies through joint ventures and transfer of technology.

He said that to enhance exports to the EU, it was imperative for Pakistan to apprise the SMEs of latest trends in textile, fashion and other potential sectors like leather, furniture and carpets. He requested the envoy to invite famous brands, specialising in these sectors, to Pakistan for the training of local SMEs.