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Geo-Politik report calls GSP plus a failed incentive for Pakistan

  

Pakistan's readmission to the Generalised Scheme of Preferences Plus (GSP+) benefits post-2023 has been called into question by Geo-Politik.

The GSP+ scheme, which granted duty-free access to most of Pakistan's goods in the European Union (EU) in return for compliance with international standards, has failed to achieve its objectives. Despite benefiting immensely from increased exports, the Pakistani government has been slow to implement necessary reforms, particularly in the areas of human and labour rights, women's working conditions, and environmental protection, according to the report,

While Pakistan's exports to the EU have increased substantially under the GSP+ scheme, the report argues that the quality of life for workers, particularly women, has not improved. Despite warnings from the international community, the Pakistani government has been slow to address these issues, and the situation remains dire for many workers in the country.

It is worth noting that Pakistan's textile and apparel exports have played a significant role in the country's increased exports to the EU under the GSP+ scheme. The textile and clothing industry accounts for approximately 60% of the country's exports, and the GSP+ scheme has been a major contributor to the growth of this industry. In 2020, Pakistan's textile and clothing exports to the EU increased by 13.5%, reaching a total of €7.48 billion, according to the Pakistan Bureau of Statistics. This was largely due to the GSP+ scheme, which provided duty-free access to EU markets for Pakistani textile and clothing products.

Geo-Politik report suggests that the GSP+ scheme has been a failed incentive for Pakistan, which has neither maintained EU values nor reciprocated in economic cooperation proportionately.

The EU must now consider whether to continue the scheme post-2023, or whether to seek alternative ways of promoting compliance with international standards in Pakistan.

 
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