Islamabad, September 14, 2012 (PPI-OT): The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has taken strong notice of the recent request made by the European Apparel and Textile Confederation (EURATEX) to the European Parliament to reject the concessions package on Pakistani textile exports to the European Union which was announced following the 2010 Floods.
The EU had announced a duty waiver on 75 dutiable products exported by Pakistan to Europe to compensate Pakistan for the setback to her economy, which faced a loss of no less than US$10 billion due to the Floods, according to estimates by the World Bank.
The following year, the country witnessed another round of devastating flooding, which dealt a further blow to the economy. Pakistan was very grateful for this favor extended by the EU, which is Pakistan’s most important trading partner after USA; contributing 27.4% in Pakistan’s exports, and 17% in Pakistan’s imports.
While the time period of this package was just two years with an extension of one year, almost nine months have passed due to objections raised by various countries such as India, Bangladesh, Brazil, Indonesia, and others, at different stages.
Pakistan was faced with the tremendous task of convincing all opposing countries to support the EU concession package, in view of the colossal damages the economy had suffered due to the floods. India was one of the major parties in the opposition, but very graciously agreed to withdraw its resistance following bilateral discussions.
At present, this package has been approved by WTO with some quota restriction. The restriction of quota has already reduced Pakistan’s textile export potential and any further delay in implementation will further affect our trade with the EU adversely. Textiles are the lifeline of the national economy, providing employment to a large number of people, and fetching precious foreign exchange for the economy.
The exports of textiles have been declining since the past two to three years due to the global financial crisis, and local factors such as energy shortages, the poor law and order condition and political instability. In these difficult circumstances, the EU concessions package would be seen as a vital shot in the arm, which would help the economy significantly.
FPCCI feels that while opposition for sake of opposition may seem to be a good political stance, but taking a position in total disregard to humanitarian factors is not humane. Every nation can promote world peace by accommodating any nation in times of distress. Pakistan is in distress and expects treatment of love from all peace loving nations.
For more information, contact:
Syed Masood Alam Rizvi
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332