Prime Minister Shehbaz Sharif has reaffirmed Pakistan’s commitment to deepening ties with the European Union (EU) while emphasizing the continued benefits of the Generalized Scheme of Preferences Plus (GSP+) trade facility for both sides.
During a meeting on Friday with EU Ambassador Dr. Riina Kionka at the Prime Minister’s House, the premier acknowledged the positive momentum in Pakistan-EU relations and welcomed ongoing bilateral engagements.
Dr. Kionka provided an update on recent visits by EU delegations to Pakistan and upcoming engagements between the two sides. Shehbaz Sharif expressed his support for the inaugural Pakistan-EU High-Level Business Forum, scheduled for May in Islamabad, and assured full cooperation in ensuring its success.
At the outset of the meeting, the prime minister also expressed gratitude for the EU’s condolences over the recent terrorist attack on the Jaffar Express in Balochistan. Earlier in the week, militants linked to the Balochistan Liberation Army (BLA) attacked the passenger train, resulting in the deaths of 21 individuals. Pakistani security forces later rescued the remaining passengers in a successful operation.
Reiterating Pakistan’s determination to eliminate terrorism, the premier also discussed various aspects of Pakistan-EU relations, including human rights, trade, and investment.
Pakistan secured GSP+ status on January 1, 2014, after ratifying 27 international conventions and committing to their implementation. The GSP+ framework, designed to promote good governance and sustainable development, allows Pakistan to export nearly 66% of its tariff lines to the EU at zero or preferential rates.
The preferential trade facility has been a key driver of Pakistan-EU economic ties. Between 2014 and 2022, Pakistan’s exports to the EU surged by 108%, while imports from the EU grew by 65%. The total trade volume expanded from €8.3 billion in 2013 to €14.85 billion. Sectors benefiting from GSP+ include garments, bed linens, terry towels, hosiery, leather, sports goods, and surgical instruments.
GSP+ Seen as Crucial for Export Growth
Earlier in the day, EU Ambassador Dr. Riina Kionka also met with Finance Minister Senator Muhammad Aurangzeb at the Finance Division to discuss the future of the GSP+ trade arrangement and other matters of mutual interest.
Aurangzeb underscored the critical role of GSP+ in Pakistan’s strategy for export-led growth. Both sides explored ways to enhance business and investment ties, with a particular focus on fostering a more conducive investment climate.
Dr. Kionka informed the finance minister that the EU had identified over 300 European companies currently operating in Pakistan and believed that many more were engaged in business activities in the country. She noted that European firms increasingly see Pakistan as a promising destination for investment, particularly in light of the upcoming business forum.
The finance minister emphasized the importance of proactive engagement with European capitals to secure the continuation of GSP+, which remains a vital component of Pakistan’s trade relations with the EU in the years ahead.
