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Aptma terms EU resolution `disastrous`

By Khalid Hasnain 2021-05-02
LAHORE: Large-scale export manufacturing industry, especially textile, has expressed grave concern over review of the GSP plus status for Pakistan through adoption of a resolution by the European parliament and termed it a disaster for the country that is already passing through an economic crisis.

`Our exports to Europe wit-nessed increase by three times because of low frequency of Covid infections and inability of India and Bangladesh to fulbl huge export orders due to high transmission of infections,` says All Pakistan Textile Mills Association (Aptma) Chairman Adil Bashir.

`But the adoption of a resolution by the European Union parliament to review our country`s GSP plus status is really shocking. And if the EU parliament reviews, reportedly next week, and finally withdraws this status, it is not less than a disaster for the economy that is already in trouble,` Bashir said while talking to Dawn on Saturday.

The EU parliament on Friday reportedly adopted a resolutionseeking a review of the GSP plus status granted to Pakistan in view of an increase in blasphemy accusations in the country as well as the rising number of online and offline attacks on journalists and civil society organisations.

Expressingconcerns atthe prevailing anti-French sentiment in Pakistan, the resolution wants the government to unambiguously condemn provocation to aggression and discrimination against religious minorities in the country. It also desires a review of Pakistan`s eligibility for GSP+ status in the light of current events with a view that whether or not there is sufficient reason to initiate a procedure for the temporary withdrawal of this status and the benefits to Pakistan.`When you prefer focusing on NA-249 and other constituencies (regarding elections), you will receive such bad news (GSP plus review). Therefore, the government must take up this issue seriously instead of focusing on other matters,` Aptma chief said.

The EU is Pakistan`s largest trading partner after the United States, as its GSP plus status allows Pakistani exports to enter the 28 member countries and market 500 million consumers for Pakistani exports. According to Pakistan Textile Exporters Association, Pakistan`s exports to EU countries may stay in a danger zone in the time to come as the EU parliament adopted a resolution urging the EU authorities to review GSP plus status as blas-phemy cases are on the rise in Pakistan.

According to the resolution, the situation in Pakistan `continued to deteriorate in 2020 as the government systematically enforced blasphemy laws and failed to protect religious minorities from abuses by non-state actors, with a sharp rise in targeted killings, blasphemy cases, forced conversions, and hate speech against religious minorities.

Pakistan has benefited from trade preferences under the GSP programme since 2014, however, it is subject to the fulfillment of the obligations to ratify and implement 27 international conventions including commitments to guarantee human rights and religious freedom, said Aziz Aullah Goheer, PTEA`s secretary.

He said there would be serious implications of GSP plus status (if withdrawn) as it would severely hit the country`s export profile since the EU is Pakistan`s most important trading partner. As a result of GSP+, he said, more than 78 per cent of Pakistan`s exports enter the EU at preferential rates. Around 80pc of the textiles and clothing articles imported to the EU from Pakistan at a preferential tariff rate. Around a quarter of these imports are bed linen, table linen and toilet and kitchen linen.

`Pakistan`s exports to the EU in 2018-19 stayed at $7.936 billion while the imports stood at $5.478bn.

However, in 2019-20, the country`s exports to the EU were valued at $7.477 million and the imports stood at $4.167m. If this facility is withdrawn, major dent in exports will take place and in return the industrial activities will plummet in the country which may trigger a new surge in unemployment,` he warned, demanding that the government preempt the situation and come up with effective diplomatic endeavours to avert any EU action against the GSP plus f acility.