A relentless gossip about the
GSP plus status awarded to Pakistan is on the frame in media know a days. GSP
stands for generalized system of preferences. It is also known as generalized
scheme of preferences. GSP has been classified into three sub groups; GSP, GSP
plus and EBA (Everything but arms). Normally, GSP status is given by developed
countries to less developed countries so that LDC’s economies may escalate their
economic progress by promoting primary industrial realm. Occasionally, GSP works
under the rule of MFN (Most Favorite Nations). WTO (World Trade Organization)
sets the rules to trade internationally while it’s member countries use to award
status of MFN to each other in order to soften up trade frictions by tapping
duties and tariffs on inter boarder trade. The GSP plus awarded countries use to
permit to export in donor countries at lesser tariffs. GSP plus status is given
to the countries that follow the 27 International conventions laid down by
international trade regulators concerning with different dimensions of business;
human rights, good governance, labour standards and environment protection. In
case of strict adherence to these 27 international conventions GSP plus status
is granted and after every 2 years interval it is monitored while violator may
withheld the status. Pakistan applied for GSP plus status in March 2013 and got
this status in December 2013 by getting 406 votes. The status has been
functional now and will boost exports up to 20% at preferential rates (Source:
The Dawn, Dec 12, 2013). By tapping textile and ethanol demand in Europe will
escalate it 29% and add $ 1.17 in national exchequer (Source: The Express
Tribune).Mostly, primary and secondary products will be exported to EU and
additionally, Immediate products can also be exported to EU markets that would
be imported from Bangladesh, India, Bhutan, Maldives, Nepal and Sri Lanka. The
beneficiary country will have to ensure the match of actual and granted limit of
trade alike; Pakistan will not export more than 2% the total imports of EU,
current year’s export should not be 13.5% more than previous year and a specific
product’s export should not be more than 6% of total EU import of that product
otherwise the concession will be withdrawn. Public and private market players
were waiting for this move and were establishing platform to channelize it
properly like; squeezing child labour, equal employment opportunities for male
and female and strict adherence to corporate labour and environmental laws and
much more to make compliance with 27 conventions (Source: Staff Reporter,
November 8, 2013). The hindrance of terrorism was softened up by Dr. M. Sarwar
when he met with hundreds of EU parliamentarians and told them that 98% of total
causalities in terrorism war and attacks in Pakistan were Muslims. More
importantly the major reservations of EU parliamentarians were regarding state
labour, minorities and human rights and he successfully satisfied them by
highlighting the Government policies about minorities and speech made by Prime
Minister Nawaz Sharif on Christmas Eve. Dr. M. Sarwar himself organized a lot of
functions and parties for minorities in Governor House as well. (Source: Tribune
The Express, December 31, 2013).
The spokesman of ministry of commerce and industry Ghulam Dastgir has expressed
his views regarding 27 conventions compliance as; “The major challenge lays in
tracking progress on conventions in coordination with provinces, as most of the
matters are related to the federating units. “Full compliance was not possible
even by the developed nations but Pakistan will assure that there is significant
progress.” (Source: Tribune The Express December 31, 2013).
Prime Minister of Pakistan Nawaz Sharif himself and Ghulam Dastgir (Minister of
State for commerce, Textile & Industry) visited Eastern Europe in which France
Germany Norway etc countries lie to take them in trust for GSP plus but these
countries didn’t support Pakistan to gain this status while France opposed
Pakistan open heartedly. Pakistan’s ambassador in France was accused for
opposition for GSP plus as he didn’t actively participate in satisfying them.
But behind this, there may be India’ considerable part from her lobby not to
grant Pakistan GSP plus. (Source: Business Recorder, December 04, 2013)
In Asian region, Bangladesh and Sri Lanka have already gained the status of GSP
plus and China and India have been listed out from GSP plus status. Pakistan is
the strong contestant for gaining this status and makes it possible with the
untiring efforts made by Governor Punjab Dr. M. Sarwar by meeting the all
requirements laid down by UNCTAD. He organized meeting with EU parliamentarians
and moreover he met Danish ambassador Jesper Moller Sorensen in Pakistan and
told that over 2,00,000 are Muslims in Denmark and if Halal Food is exported
then it would capture a huge part of export and will satisfy the Muslim
Community over there. (Source Business Recorder September 07, 2013). After
getting the status of GSP plus Prime Minister of Pakistan Nawaz Sahrif expressed
his views as: “Gaining access to European markets was the top most priority of
the government as part of economic development agenda, which has been achieved
due to continuous hard work of the ministers and officials from the ministries
of finance, commerce and foreign affairs and friends of Pakistan in Europe (The
Dawn, December 12, 2013)”.
The prime ministry of Pakistan has related” friends of Pakistan in Europe” with
Dr. M. Sarwar’s participation because he is a businessman and holds strong
business concerns in Europe. The discussion concludes that the focal part of
attaining the GSP plus status played by Governor Punjab Dr. M. Sarwar.
Government appointed him as Governor to get benefit from his relations in
foreign countries. Finally Government succeeded in its aim and Pakistan got a
huge opportunity for economic boost … GSP plus status.