GSP+ loss may cost$9b exports

FPCCI warns EU trade status underpins jobs, competitiveness, access to key export market

LAHORE:

Business leaders have warned that the possible withdrawal of Pakistan's GSP+ status could result in annual export losses of up to $9 billion and severely impact the country's competitiveness in European markets.

Addressing a press conference at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office Lahore, Regional Chairman and Vice President Zaki Aijaz, along with Patron-in-Chief of United Business Group (UBG) SM Tanveer and other leaders, said the facility remains central to Pakistan's export performance.

According to a statement issued on Friday, they said that under this status, more than 66% of Pakistan's products, including textiles, leather and surgical goods, are exported to European markets at zero duty. They described the arrangement as 'oxygen' for the country's exports.

They further stated that the European Union is Pakistan's largest export market, accounting for approximately 25% to 30% of the country's total global exports. In the event of withdrawal, Pakistani products would face duties of 10% to 12%, potentially causing a direct annual loss of $8 to $9 billion, increasing prices and eroding competitiveness in international markets.

The business leaders said the impact would extend beyond large industries, affecting employment across the export sector. They noted that textiles and leather industries provide jobs to millions of workers, including women, with around 3 million families directly linked to these exports.