Karachi: Mian Zahid Hussain, a prominent business leader and former provincial minister, has emphasized the critical importance of Pakistan's Generalised Scheme of Preferences Plus (GSP+) status with the European Union, highlighting its role in supporting the nation's exports, employment, industrial production, and foreign exchange earnings. He warned against complacency in addressing the EU's recent assessment, which pointed out deficiencies in Pakistan's compliance with certain obligations, stressing the need for effective diplomacy and timely domestic reforms.

According to Pakistan Businessmen and Intellectuals Forum, Pakistan's economic ties with the European Union are substantial, with exports to the EU reaching approximately €8.7 billion in 2025 and total bilateral trade amounting to €12.2 billion. The EU remains a vital market for Pakistan, accounting for 14.1 percent of its total trade. Mian Zahid Hussain pointed out that over 85 percent of Pakistan's exports to the EU, particularly textiles and clothing, benefit from duty and quota-free access, underscoring the scheme's significance for the country's textile industry.

Hussain expressed concern that any decline in preferential access could negatively impact Pakistan's competitiveness, affecting production, investment, employment, and foreign-exchange earnings. Although Pakistan's GSP+ benefits are not immediately at risk, the new EU GSP regulation set to take effect on January 1, 2027, will require current beneficiaries to requalify under an expanded framework of 32 international conventions. Hussain urged the government to utilize the transition period wisely, advocating for a coordinated effort involving various ministries and business representatives to ensure compliance.

Highlighting Pakistan's progress since obtaining GSP+ status in 2014, Hussain called for effective communication of these achievements to European policymakers. He stressed that the additional conventions demanded by the EU could benefit Pakistan's society and economy beyond just trade, emphasizing that GSP+ is a crucial economic asset for the nation.