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Home Editorial

Pakistan’s GSP-Plus Status: A Perilous Gamble

by Web Desk
February 1, 2025
in Editorial
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"Unveiling Discord: The Manipulative Machinations Behind the AAC Protests in AJK"
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At some point, those currently responsible for governing this nation of 240 million souls will have to answer a critical question: what have their policies truly achieved? What lasting benefits have resulted from disrupting Pakistan’s democratic foundations and imposing a new political contract on an unwilling populace?
For three years, Pakistan has endured relentless political upheaval, plunging its economy into crisis. In their quest to maintain control, the ruling elite has imposed severe costs on citizens, yet the situation continues to deteriorate. The latest concerns regarding the amendments to the Prevention of Electronic Crimes Act (Peca), the disruption of Pakistan’s digital economy, and the judiciary’s ongoing crisis exemplify the growing instability. The question remains: how much longer before corrective measures are taken?
If our policymakers only respond to direct and tangible consequences, the recent warning regarding Pakistan’s GSP-Plus status from a European Union envoy should serve as an alarming wake-up call. Since 2014, Pakistan has benefitted from preferential access to the EU market, particularly in textiles, through tariff exemptions and reductions. However, these trade privileges are contingent upon Pakistan’s adherence to commitments related to human rights, labor protections, and good governance.
One would expect the government to prioritize protecting such critical trade agreements, given the economy’s fragile state and reliance on exports. Instead, the EU’s Special Representative for Human Rights, Olof Skoog, was greeted with new amendments to the Peca law—changes that human rights activists strongly believe will further curtail Pakistanis’ already limited freedom of expression. These regressive measures have now drawn international scrutiny, leading Mr. Skoog to caution that Pakistan’s GSP-Plus status should not be taken for granted.
This is not the first time the government has been warned about the consequences of its actions. Last year, it accused the opposition of lobbying to have the GSP-Plus revoked. This year, however, it has only itself to blame for weakening Pakistan’s position on the global stage. The EU’s concerns have been conveyed to key figures, including the chief justice, the army chief, the law and commerce ministers, and the deputy prime minister. It is imperative that these warnings are taken seriously.
While Pakistan’s internal affairs may generally be considered sovereign matters, international trade agreements operate under different principles. Islamabad cannot expect to violate its commitments to foreign partners without facing repercussions. If corrective steps are not taken swiftly, the loss of GSP-Plus status will deliver yet another devastating blow to Pakistan’s struggling economy. Those in power must recognize the gravity of their decisions and act before irreparable damage is done
Web Desk

Web Desk

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