Islamabad, November 20, 2024: The Friedrich Naumann Foundation for Freedom (FNF) Pakistan hosted a pivotal conference titled “Promoting Good Governance through Trade: Leveraging GSP+” to explore how Pakistan can maximize the benefits of the Generalized Scheme of Preferences Plus (GSP+) to enhance governance, economic growth, and sustainable development.
The event brought together key stakeholders, including government officials, policymakers, international representatives, and civil society leaders, to discuss the strategic potential of the GSP+ arrangement in bolstering Pakistan’s exports and attracting foreign investment.
Keynote Speakers and Discussions
The conference featured prominent speakers, including:
- H.E. Dr. Riina Kionka, European Union Ambassador to Pakistan
- Dr. Ahsan Iqbal, Federal Minister for Planning, Development, and Special Initiatives
- Senator Mohsin Leghari, Former Finance Minister Punjab
- Mr. Mukhtar Ahmad Ali, Executive Director, CPDI
- Dr. Aadil Nakhoda, Assistant Professor, IBA Karachi
- Muhammad Iqbal Tabish, Member, National Tariff Commission of Pakistan
- Mr. Adnan Younis Lodhi, Policy Advisor, United Nations International Trade Center
- Dr. Manzoor Ahmed, Former Ambassador of Pakistan to the WTO
The discussions revolved around strengthening regulatory frameworks, enhancing export competitiveness, and ensuring compliance with the 27 conventions mandated by the GSP+ framework.
Ahsan Iqbal Announces National Compliance Force
Federal Minister Dr. Ahsan Iqbal unveiled the government’s plan to establish a National Compliance Force dedicated to monitoring GSP+ implementation. This task force will conduct quarterly reviews to address governance gaps and ensure Pakistan upholds its commitments under the GSP+ framework.
Iqbal emphasized the scheme’s significance in driving export-led growth, particularly in the textile and apparel sectors, which account for 75% of Pakistan’s trade with the European Union. He also highlighted Pakistan’s success in doubling its exports to the EU, reaching $10 billion in 2023, since joining the program in 2014.
“GSP+ is not just a trade arrangement but a partnership grounded in shared global values such as human rights, labor standards, environmental sustainability, and good governance,” said Iqbal. He outlined key strategies for maximizing GSP+ benefits, including:
- Establishing Export Diversification Zones with incentives for green technologies.
- Creating a National Compliance Task Force to address governance gaps.
- Strengthening Public-Private Partnerships to modernize industries.
- Investing in Export-Oriented Energy Projects to ensure affordable power for exporters.
- Leveraging Digitization to enhance transparency and reduce inefficiencies in trade practices.
EU Ambassador Highlights Governance Linkages
H.E. Dr. Riina Kionka underscored the governance dimensions of GSP+, stressing that maintaining the status requires Pakistan to demonstrate its commitment to the rule of law, human rights, and anti-corruption efforts.
“GSP+ is fundamentally about governance. It is a tool not only for economic growth but for building a just, fair, and prosperous society,” stated Dr. Kionka.
Strategic Insights from FNF Leadership
Birgit Lamm, Head of FNF Pakistan, highlighted the importance of aligning trade with global values. “GSP+ is an incentive for countries to adopt international frameworks on human rights, labor, and environmental protection while enhancing their market access,” she noted.
Conference Outcomes
The conference concluded with actionable recommendations to ensure Pakistan remains a competitive and responsible global trade partner. Discussions emphasized:
- Strengthening Pakistan’s regulatory frameworks.
- Promoting export diversification beyond textiles and apparel.
- Enhancing collaboration between public and private sectors for innovation and skills development.
About GSP+
The Generalized Scheme of Preferences Plus (GSP+) is a preferential trade arrangement offered by the European Union to developing nations. It provides duty-free access to the EU market in exchange for adherence to international conventions on human rights, labor, environment, and governance. Pakistan has benefited from GSP+ since 2014, with significant gains in exports and trade relationships.
A Vision for Sustainable Growth
As the conference concluded, it left participants optimistic about Pakistan’s potential to leverage GSP+ as a tool for sustainable development, governance reforms, and economic prosperity. The Friedrich Naumann Foundation reaffirmed its commitment to supporting initiatives that promote liberal democracy, market economy, and social justice in Pakistan.