“Exports to the EU stood at $1.709 billion in 2011 and under the preference scheme, estimates show shipments can rise to $2.246 billion, a gain of $537 million,” said Zahid Aslam, President of Faisalabad Chamber of Commerce and Industry (FCCI) while talking to the media on Friday.
The EU has granted 75 items duty-free market access under its autonomous trade concessions up to December 31, 2013. Of these items, 26 are covered under tariff regulated quotas and 49 come under non-tariff regulated quotas effective from November 15.
This tariff concession would offer double gains to the exporters, he said. First, they will get quotas and be able to increase exports and second, Pakistan will qualify for further concessions in 2014 when the quota regime is reviewed.
However, Aslam pointed out that overall exports and imports of the country had contracted in recent months, mainly because of shortage of electricity and gas, which would leave its impact on employment, fiscal situation, etc.
Citing figures, he said exports fell 2.3% in the July-September quarter and imports dropped 6%, indicating sluggish economic activity, which would pile pressure on the country’s current account.
Published in The Express Tribune, November 17th, 2012.
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