LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Thursday suggesting the new government to initiate lobbying for continuity of GSP Plus, besides implementing new Textile and Apparel Policy in its true spirit through revival of Pakistan Export Promotion Board.
PRGMEA Chief Coordinator Ijaz Khokhar suggested the new government to initiate work on lobbying for the renewal of Generalized Scheme of Preferences (GSP) plus status for Pakistan from the European Union well before time to sustain exports growth, as the end of duty-free facility would damage the exports growth volume by at least $3 billion annually.
He made an appeal to the Prime Minister Shehbaz Sharif and Commerce Minister Naveed Qamar to get personally involved in this issue of national importance, giving directives to all stakeholders, including foreign, finance, commerce and industries ministries at federal level while environment, human rights, women development and labour departments at provincial level, besides taking the value-added apparel sector exporters onboard to devise a strategy to influence the EU countries for renewal of the GSP Plus status for Pakistan.
“Though the present status will expire in Dec 2023, but Pakistan can face its destructive effects from next year because the international buyers will start searching for other regional suppliers for placing new orders, leading to export loss of around $3 billion for Pakistan,” he warned.
Khokhar observed that extension in the European Union’s status has played a great role in enhancing Pakistan’s exports. With a view to sustain the employment opportunities in the country as well as boosting foreign exchange reserves further the government will have to act immediately to push the EU countries for extension of GSP Plus facility to Pakistan for another 10 years, from Jan 2024 to Dec 2033.
Interaction and communication with ambassadors of the EU bloc and other European countries should have to be initiated in this regard, he said, underlining the need for direct advocacy and lobbying through visits to the EU headquarters in Brussels.
PRGMEA Regional Chairman Sheikh Luqman Amin stressed that the government should use its diplomatic relations to win extension in the GSP Plus status, as it is impossible for Pakistan to compete the regional countries especially Bangladesh, India and Vietnam, as the earlier countries’ cost of production is comparatively low while the latter has preferential trade agreement with the EU.
Regarding Textile & Apparel Policy 2020-25, Khokhar added that the apparel policy has already approved in 2022 after a long time which now needs implementation in its true spirit, as we have already lost one year. “By taking all the stakeholders onboard and ideally the quarterly implementation review must be carried on with the Prime Minister himself in the chair,” he demanded.
He also called for the revival of Pakistan Export Promotion Board for the speedy implementation of this Policy, requesting the Prime Minister to chair the meetings of PEPB to increase Pakistan’s export competitiveness. “We expect that the PM is energetic and efficient to take quick and positive decision and we are confident that this board would work efficiently and on regular basis,”.
Amin expressed the hope that the $42 billion export target fixed for the next five-year Textile Policy will be achieved, as the timely implementation of the long-term policies would not only bring new investments in the country but would also enable the industry achieve the target of exports in the next five years.
He said that ad-hoc policies cannot prove beneficial for the country’s exports and time has come to implement the long-term textile policy in letter and spirit.
Ijaz Khokhar lamented that the previous Textile Policy has failed to achieve its targets, including enhancing textile exports from $13 billion to $26 billion, doubling value-addition from $1 billion per million cotton bales to $2 billion per million cotton bales as well as creation of 3 million jobs in five years.
