Minister for Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, has proposed a comprehensive strategy to align the Generalized Scheme of Preferences Plus (GSP-Plus) program with Pakistan’s 5Es framework, aiming to secure export-led economic growth and a prosperous future for the country.
Speaking at a conference titled “Promoting Good Governance through Trade – Leveraging through GSP+,” organized by the Fredrick Naumann Foundation, the minister emphasized the program’s potential beyond trade preferences, highlighting its role in sustainable development and good governance.
Ahsan Iqbal urged the nation to seize the opportunity to strengthen governance, build resilience, and position Pakistan as a globally competitive economy. He stressed that trade should not only drive economic prosperity but also act as a catalyst for equity, transparency, and sustainability.
Despite the successes of the GSP-Plus program, challenges remain, including weak enforcement of laws, low diversification of exports, and environmental vulnerabilities. These issues require immediate attention to maximize the benefits of the GSP-Plus and align with the 5Es framework, which focuses on Exports, E-Pakistan, Environment and Climate Change, Energy and Infrastructure, and Equity and Empowerment.
The minister proposed establishing export diversification centers with incentives for green technologies and high-value products. He also suggested setting up a National Compliance Task Force to oversee GSP-Plus implementation and address governance gaps on a permanent or quarterly basis. Strengthening public-private partnerships to modernize industries, enhance skills, and adopt innovation was also highlighted as a priority.
Iqbal advocated for investing in export-oriented energy projects to ensure affordable and reliable energy for exporters and leveraging digitization to enhance transparency in trade practices and reduce inefficiencies. He emphasized the interconnectedness of trade and governance, stating that deliberate efforts could harness this relationship to drive sustainable development and uplift the lives of millions of Pakistanis.
Since its introduction in 2014, the GSP-Plus program has been a cornerstone of Pakistan’s export strategy, enabling duty-free or reduced tariff access to the European Union, a market of over 500 million consumers. Over the past decade, Pakistan’s exports to the EU have grown by more than 100 percent, reaching nearly $10 billion, particularly in the textile and apparel sectors.
The minister highlighted that the GSP-Plus program is crucial for mitigating Pakistan’s climate change vulnerabilities, as it reflects a partnership based on shared values, human rights, labor standards, environmental protection, and good governance. By committing to the 27 international conventions under the GSP-Plus framework, Pakistan has positioned itself as a responsible and competitive global partner.
Iqbal underscored the importance of export-led growth as a top priority within the 5Es framework, with the GSP-Plus schemes serving as vital drivers of this strategy. He noted that exports to the EU accounted for nearly 33% of Pakistan’s total exports in 2023, directly creating millions of jobs, particularly in the textile, leather, and agro-industries.
Looking ahead, the minister expressed optimism about achieving the export-led growth target of $60 billion by 2030. He emphasized the need to capitalize on GSP-Plus by moving up the value chains and producing high-end garments, sustainable goods, and technology-driven products. The GSP-Plus aligns with Pakistan’s digital vision, where smart supply chains, e-commerce platforms, and digital compliance mechanisms enable faster, transparent, and more competitive exports.
Environmental sustainability remains a core focus of the GSP-Plus conventions, from reducing industrial emissions to investing in green technologies. Compliance with these standards enhances Pakistan’s global reputation and aligns with the broader commitment to combat climate change under the future Pakistan Vision 2047, which is currently under development.
