KARACHI: Businessmen Panel Progressive (BMPP) Chairman and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President Saquib Fayyaz Magoon has identified the newly finalized free trade agreement between India and the European Union as a significant challenge to Pakistan's export market.
According to Federation of Pakistan Chambers of Commerce and Industry, Saquib Fayyaz Magoon stated that India has shifted its focus to economic strategies by signing trade agreements with multiple nations, including the EU, after facing setbacks on the battlefield. He warned that this agreement could undermine Pakistan's competitive position in European markets.
Despite having GSP Plus status, which facilitates duty-free access for a substantial portion of its exports to the EU, Pakistan's textile exports currently amount to $6.2 billion. This figure is only slightly higher than India's $5.6 billion, even though India faces a 12 percent tariff. Magoon cautioned that once India achieves zero-rated access under the EU deal, Pakistan's export advantage will diminish significantly.
Magoon highlighted the risk of Pakistan losing its market share in Europe if immediate corrective measures are not implemented. He urged the government to take decisive action, stating that once a market is lost, it is challenging to regain entry.
He proposed immediate measures such as reducing electricity tariffs to 9 cents per unit, simplifying the tax regime, and providing incentives to exporters. "The government must declare an export emergency and adopt industry-friendly policies to safeguard Pakistan's economic interests," he emphasized.
Drawing an analogy with military success, Magoon remarked that just as the armed forces have achieved victories on the battlefield, the business community now requires government support to succeed in this economic challenge.
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