EU overjoyed with Pakistan’s exit from FATF grey list: Envoy

LAHORE: The European Union (EU) is overjoyed with exclusion of Pakistan from the Financial Action Task Force (FATF) grey list, which added to overall positive narrative of the country, EU ambassador Riina Kionka said on Monday.

“EU-Pakistan relations have a strategic engagement, which covers all the areas including counter terrorism, trade, climate change, GSP Plus status and various others,” she said during a meeting with Lahore Chamber of Commerce and Industry.

She stated that after completion of 10-year period of GSP Plus to Pakistan in December 2023, the mission would send 4th and final report of the last tenure to be discussed in Brussels and EU Parliament, to decide on eligibility of the country for next term.

“Pakistan will have to reapply for the GSP Plus status and the EU will inform them within the next 4 to 5 months. During this period of application, the country will be enjoying all facilities under GSP+ status.”

She was of the view that Pakistan’s hadn’t utilised the scope under the status, and confined it to the textile sector. Its influence should also be spread to other sectors, the envoy said. During the day, Kionka also met members of All Pakistan Textile Mills Association (APTMA), where she revealed that some new conventions relating to human and labour rights would be added to already existing list of conventions to qualify for GSP Plus facility.

“Pakistan must show progress on implementation and legislation of various laws and conventions necessary for availing extension of GSP Plus status,” she said. The envoy asked the business community in general and the exporters to adopt immediate measures for implementation of the requisite conventions. She also asked them to engage with the government with reference to provisions relating to human and labour rights to facilitate the path for future extension of GSP+ for next ten years beyond December 2023.

Kionka appreciated the textile industry for complying with the sustainability issues, saying it was high on the list of the EU against applications for revival of the facility. Speaking on the occasion, senior vice chairman APTMA said, “EU is Pakistan’s largest trading partner and the facility of GSP Plus has enabled the country’s textile industry to compete in the region.”

The status has enabled Pakistan to export 78 percent of its four-products duty free in the EU and enhance its share by 65 percent from 2013 to 2019, which has led to more employment, investment and technology upgrading besides encouraging foreign investment, according to APTMA.

Regarding recent floods in the country, the EU ambassador said, “The floods played havoc, and it is a difficult time for Pakistan.” The EU member countries had extended assistance in that regard and the commissioners were distributing aid in Sindh and other flood-affected areas, she said, adding that the assistance would be upgraded with the passage of time.

The envoy also urged the government to develop infrastructure to curtail the loss if a catastrophe-like situation arises in future. LCCI president Kashif Anwar appreciated the EU’s commitment to address the climate change related challenges jointly.