PTC urges PM to mobilise ministries to retain GSP+ under new EU scheme

The Pakistan Textile Council is urging Prime Minister Shehbaz Sharif to direct all relevant ministries, divisions and provincial governments to take necessary steps to ensure Pakistan retains GSP+ status under the new European Union Generalised Scheme of Preferences. According to PTC Chairman Fawad Anwar, Pakistan will only continue to be a GSP+ beneficiary until December 31, 2028, unless it submits a request before that date, including binding commitments and a time-bound action plan.

The EU-27 remains the largest textile and apparel market for Pakistan, accounting for 39.5 percent of the country's $18.004 billion exports in FY2025-26. However, the Council warns that competitors are gaining ground, citing the impending EU-India Free Trade Agreement, EU readiness to explore an FTA with Bangladesh, and the European Free Trade Association's FTA with Vietnam.

The EU expects significant improvements in human rights and rule of law, but does not introduce new standards but rather expects effective implementation of Pakistan's existing commitments, starting with short-term improvements and a credible action plan. The PTC urges active engagement with the European Commission, timely reporting to UN and ILO monitoring bodies, prompt application submission, appointment of a senior focal point, and regular progress reviews by the Prime Minister's Special Committee on EU GSP+.