• EU ambassador calls on prime minister to discuss mutual ties.
• Prime minister hails positive momentum in Pakistan-EU trade.
• Welcomes first-ever Pakistan-EU business forum set for May.

Prime Minister Shehbaz Sharif on Friday reaffirmed Pakistan’s commitment to strengthening ties with the EU, underscoring the continued benefits of the Generalized Scheme of Preferences Plus (GSP+) facility for both sides.

Hailing the positive momentum in mutual relations, the prime minister highlighted this during a meeting with the Ambassador of the EU Dr Riina Kionka, who called on him at the Prime Minister’s House.

The EU ambassador briefed the premier about the recent visits by EU delegations to Pakistan as well as the upcoming Pakistan-EU engagements.

The prime minister welcomed the convening of the first-ever Pakistan-EU High-Level Business Forum in Islamabad, set to take place in May, and assured full support in making the event successful.

At the start of the meeting, the prime minister thanked the EU ambassador for extending condolences over the recent terrorist attack on the Jaffar Express train in Balochistan. 

On Tuesday, dozens of militants, affiliated with the Balochistan Liberation Army (BLA), blew up a railway track and assaulted the Jaffar Express, carrying hundreds of passengers, from Balochistan’s Bolan district.

The terrorists martyred 21 passengers, while the rest of them were rescued by Pakistan security forces upon completion of hostage-rescue operation later on Wednesday.

The prime minister reaffirmed Pakistan’s firm resolve to eradicate terrorism from the country during the meeting, which also covered various facets of Pakistan-EU ties, including discussions on human rights, trade, and investment.

Pakistan was awarded GSP+ status on 1st January 2014 after the country had ratified 27 international conventions and committed to implement them. 

The EU GSP+ serves as a special incentive arrangement to promote good governance and sustainable development by facilitating trade. 

The incentive grants Pakistan zero-rated or preferential tariffs on nearly 66% of tariff lines, enhancing the country’s ability to export to the EU market.

GSP+ has proven to be pivotal for EU-Pakistan bilateral trade ties. From 2014 to 2022, Pakistan’s exports to the EU increased by 108% whereas imports from the EU increased by 65% and the total trade volume increased from 8.3 billion euros in 2013 to 14.85 billion eurors. 

The country’s garments, bedlinen, terry towels, hosiery, leather, sports and surgical goods and similar products enter the EU market availing the GSP+ concessions.

FinMin says GSP+ critical for exports-led growth 

Earlier in the day, the EU ambassador met Finance Minister Senator Muhammad Aurangzeb at the Finance Division to discuss the future of the GSP+ trade facility, among other matters.

The detailed interaction zeroed in on a range of matters of mutual interest, particularly on strengthening business and investment ties between the two sides, according to an official statement. 

Aurangzeb highlighted that GSP+ had been a critical enabler of Pakistan’s efforts to drive export-led growth.

Both officials deliberated on the opportunities for European businesses in Pakistan, urging for the creation of an enabling investment climate to harness the growing appetite for expansion.

Dr Kionka informed the finance minister that the EU had already mapped over 300 European companies operating in Pakistan, with the belief that many more are present.

She underlined that European companies were increasingly viewing Pakistan as a hub for potential business opportunities, especially in light of the upcoming forum.

The minister also stressed the need for a more proactive approach in reaching out to European capitals for constructive engagement on key issues, including the continuation of the GSP+ facility, which is vital for Pakistan’s trade relations with the EU in the coming years.