Business

GSP Plus status granted for Pakistan textile sector

The European Union (EU) Parliament has granted Generalised System Preferences (GSP) Plus status for Pakistan textile sector effective from January 1, 2014. A spokesman of Ministry of Commerce said with the approval of GSP Plus status, Pakistan's textile export would likely enhance by $500 million to $1 billion annually and the domestic textile industry would become capable to use maximum capacity utilization.

Pakistan-specific EU trade package (Autonomous Trade Preferences) would allow tariff-free export of 75 Pakistani products to EU markets. However, the main items of the textile sector like bedware, readymade garments and cotton fabrics, which hold 38 %, 20 % and 12 %, respective share in textile exports to the EU are not included in the concession package.

Knitted and woven apparel export is expected to grow by $280 million annually after GSP Plus status implementation. GSP Plus status is significant for Pakistan in order to enhance its textile exports.

The GSP Plus status will provide Pakistan duty free or preferential duty rate access on 3,500 products to EU markets where currently Pak textile exports to the EU draw an 11 % duty.