Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced concerns regarding the potential impact of the newly concluded European Union-India Free Trade Agreement (FTA) on Pakistan's export competitiveness. Atif Ikram Sheikh, the President of FPCCI, announced that a meeting of the Pakistan-EU Business Forum of FPCCI was convened to discuss the implications of the FTA and to strategize future trade efforts within the European Union.
According to Federation of Pakistan Chambers of Commerce and Industry, the European Union remains a crucial market for Pakistan, with bilateral trade amounting to over $12.6 billion annually. Mr. Sheikh emphasized the necessity for timely policy reforms, export facilitation, and improved ease of doing business in order to maintain and enhance Pakistan's trade position. He highlighted the importance of preparing for the renewal of the Generalized Scheme of Preferences Plus (GSP+) and ensuring compliance with new EU regulatory standards.
The meeting, chaired by Zubair Baweja, Head of the Pakistan-EU Business Forum of FPCCI, underscored the Forum's role in bolstering trade and economic relations with the EU. The Forum aims to foster business connections across Europe and provide a platform for interaction with European institutions and missions both in Europe and Pakistan.
Omer Hameed, Economic Minister of Pakistan's Mission to the European Union, addressed participants from Brussels, noting the potential challenges posed by the EU-India FTA on Pakistan's exports. He urged the country to leverage the GSP+ scheme, valid until 2027, to boost industrial competitiveness and diversify exports in compliance with EU sustainability regulations.
Junaid Ahmed, Chief of Research at the Pakistan Institute of Development Economics (PIDE), presented an analysis highlighting the gradual reduction of Pakistan's tariff advantage over India due to the FTA. He stressed the need to enhance structural competitiveness through reduced energy costs, improved logistics, and technological advancements. He recommended expanding beyond traditional textile exports into higher-value manufacturing and knowledge-based sectors.
Zubair Baweja affirmed the unanimous agreement among participants on the proactive role of the Pakistan-EU Business Forum of FPCCI. The Forum aims to engage regularly with stakeholders to identify opportunities and challenges, and to develop policy recommendations to boost Pakistan's exports to the EU.
The meeting concluded with a commitment to ongoing consultations and the development of comprehensive recommendations for submission to the Government of Pakistan, aiming to safeguard and enhance Pakistan's trade interests in the European market.