The European Parliament has decided to extend the existing GSP (Generalized System of Preferences) for another four years (till 2027), whereas, European Council is expected to give its final approval for the extension of the current scheme soon.
“I am pleased to share that the EU MEPs have decided to roll over the rules on the GSP till 2027,” Caretaker Commerce Minister Gohar Ijaz stated this week.
While extending the GSP for 4 years the political, constitutional and economic issues confronting Pakistan have not gone unnoticed in the European Union (EU) review as it has identified the following: “political turmoil, constitutional challenges, economic crisis, high inflation and serious shortage of foreign reserves are continuously affecting Pakistan”.
Pakistan is a major beneficiary of the trading opportunities offered by the EU GSP. Since 2014, Pakistan benefited from generous tariff preferences (mostly zero duties on two-thirds of all product categories) under…