European Union, which has been an important trading bloc for Pakistan, has given Generalised Scheme of Preferences (GSP) Plus status to the country till 2023. This will allow Pakistan to boost its exports to the region.
The EU accounted for 12.8 per cent of Pakistan’s total trade in 2015 and absorbed 23.7 per cent of Pakistan’s exports. More than 80 per cent of Pakistan’s exports to the EU consist of textile and clothing. Pakistan’s imports from the bloc mainly consist of machinery and transport equipment as well as chemicals.
“Almost 72 per cent of Pakistan’s exports to the EU go to the UK, Germany, Spain, the Netherlands and Italy,” informed Lahore Chamber of Commerce and Industry (LCCI) President Abdul Basit.
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Pakistan is mulling to opportunities of market penetration in other countries like Greece, Slovenia and Ireland. The enhanced trade preferences under GSP Plus are of particular importance to Pakistan’s textile and clothing industry.