The GSP Plus status has had an extremely positive impact on Pakistan's exports to the EU, which has increased by 20 per cent in the last year. If Pakistan’s exporters were provided uninterrupted power supply their exports to the EU can increase further. Power outages are a challenge for Pakistani exporters because they make their products a little more expensive and if they could get more electricity their margin of profit would increase.
Energy restrictions are limiting the capacity of textile exporters. After GSP Plus lowered tariff on Pakistani exports, exports of Pakistani goods and textiles and leather garments had registered a significant increase since 2014.
Pakistani exporters are smart at circumventing many difficulties they face which is not easy. They are very good at finding solutions where they can work at any time. If the energy crisis were to be resolved their capacity to export more would be increased. Pakistani textile businessmen are known for their expertise. The real challenge for them is to meet commitments on time and in business, precision is important and companies are good at doing that. Pakistani exports to the European Union have earned it $1.3 billion in foreign exchange.
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