Facing two-way pressure from the European Union (EU) and domestic export lobby, Pakistan seems to be in the midst of an image makeover exercise to save its GSP plus status. Pakistan immensely gains from zero import duty on 66% of the tariff lines which has boosted its textile, leather, sports and surgical goods sectors. Owing to the scheme, Pak exports to EU increased substantially from €3.56 billion in 2013 to €6.64 billion in 2021. However, the benefits accruing to Pakistan since 2014 in the form of concessions for exports are subjected to biennial reviews by EU on various parameters.
The main emphasis of these reviews is to check the progress of Pakistan’s institutions including businesses in the areas of human rights, labor rights and climate change. Till now, three such reviews have completed in 2016, 2018 and 2020 and the country is presently undergoing the fourth exercise which will determine the continuation of GSP Plus beyond 2023. To continue further with GSP Plus, Pakistan is required to ensure implementation of 27 UN conventions in the targeted areas. However, EU’s plans for raising the number of conventions under the scheme are making the Pakistani government and policymakers nervous. The additional conventions will pertain to rights of persons with disabilities, involvement of children in armed conflict, labor inspection, trans-national organized crimes, etc.
Notwithstanding the maneuvering efforts of the Pak government for projecting an improvement in human and labor rights in the country, the Pak export lobby is impatient with its demands. Corporate bodies like Federation of Pakistan Chamber of Commerce and Industry (FPCCI) keep on reminding the government of potential pitfalls for the economy in case the latter is unable to secure another extension of GSP Plus. The restlessness arises from clear lack of progress in adhering to the conventions. Despite EU’s constant encouragement, Pakistan has so far not been able to show any meaningful progress in human rights. Marginalized sections of Pakistani population continue to suffer from abysmal state of labor & women rights, education and health facilities.
With the deadline of 2023 looming large, Islamabad is making frantic efforts to exhibit some seriousness and progress in the matter. However, a part of it appears to be just procedural and even namesake. A monitoring mission from EU had visited the country in June 2022 to taking a stock of the situation. Later, the Directorate General of European Commission shared a list of priorities and asked for information on actions by the Pak government on them. Though Pakistan submitted its response in October 2022, the inadequateness is visible on the part of responsible institutions in the country.
On the legislation front, things are moving in a sluggish manner. The major expectations of the EU are around reducing the scope of death penalty, policy on NGOs, child labor, misuse of blasphemy laws and climate change issues. While the anti-torture bill has been passed after considerable delay, other important bills remain stuck at different levels. The delayed bills lying at different ends include the Domestic violence bill, the Enforced Disappearances bill, control of Narcotics bill, the Inter-faith harmony policy and National Hazardous Waste Management Policy. Ironically, some of the bills are yet to see the light of the day despite significant dilutions over time and across levels.
Witnessing Pakistan’s ongoing struggle in fulfilling the key requirements, analysts expect Islamabad to fall back upon its tried and tested policy. It would involve putting its European missions in overdrive, seeking support of sympathetic Members of European Parliament and topping up the efforts with hiring some PR firms. The actors will then attempt to portray the Pakistan as an earnest but vulnerable nation to ensure another extension.