Pakistan says ‘confident’ will meet requirements for next GSP+ scheme

A pedestrian walks under waving flags of the European Union in front of the headquarters of the European Commission in Brussels on March 11, 2021. (AFP)
Short Url
Updated 06 October 2021
Follow

Pakistan says ‘confident’ will meet requirements for next GSP+ scheme

  • Islamabad will have to demonstrate tangible progress on meeting international conventions on rights, governance  
  • European Parliament has an immediate sought review of Pakistan’s eligibility for GSP+ status over rights record  

ISLAMABAD/ KARACHI: Pakistan has submitted its response to the European Union's list of issues and follow-up questions for the renewal of its Generalized System of Preferences Plus (GSP+) status, with the country’s commerce chief saying he is “confident” that Islamabad would be successful in the fourth biennial review of the special trade incentive.  

This April, the European Parliament moved a resolution against Pakistan, seeking an immediate review of its eligibility for GSP+ status over what it called violence and discrimination against religious minorities and other vulnerable groups.  

The development took place after the Tehreek-e-Labbaik Pakistan (TLP) religious party resorted to violent protests, demanding the expulsion of the French ambassador to Islamabad over anti-Islam cartoons published in France.  

The GSP+ is a special trade arrangement offered to developing economies by European nations in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. Institutionalized in 1971, the framework removes or reduces import duties on products exported to Europe from low-income countries.  

Pakistan, which is part of a current GSP+ scheme set to end in December 2023, submitted its responses to the EU's list of issues and follow-up questions on September 15.  

"EU is our biggest export partner and we have excellent relations with all EU member states. If you see our exports country-wise, EU member countries will be in the top ten export destinations. As the 4th Biennial Review of GSP Plus incentive is currently underway, I am confident that due to the positive initiatives by the government it will be successfully completed," Pakistani prime minister’s aide on commerce Abdul Razak Dawood said in a statement.  

"The five new international conventions in the new GSP scheme are in line with government’s priorities and we are already taking steps to ensure labour rights, child rights and rights of the persons with disabilities. I can assure that the Government of Pakistan is already committed to the cause."   

The legislative proposal for the new GSP scheme will now be presented to the European Council and Parliament for detailed deliberations before adoption. Once the European Council and Parliament adopt the new scheme, Pakistan, like any other beneficiary country of the GSP scheme, will have to file a new application for the new GSP scheme and ratify and implement 32 International Conventions.  

Speaking to Arab News earlier, Dawood said Pakistan would have to file a fresh application for the new scheme like other beneficiary countries of the GSP scheme.  

“Pakistani products … have duty free access in all 27 member states of the European Union since January 1, 2014, until December 31, 2023,” he said, adding that the EU periodically reviewed the commitment of all beneficiary nations with GSP+ status to the signed international conventions.  

Dawood said all nations, including Pakistan, would be required to ratify and implement the five new international conventions, in addition to the previous 27 international covenants, to benefit from a new program to be adopted by the EU from 2024 to 2036.  

The EU office in Islamabad said in a statement Pakistan was the largest beneficiary of the current GSP+ program but the European Commission was continuously monitoring progress made by beneficiary nations like Pakistan in implementing international conventions.  

“In the last monitoring reports, some progress has been positively highlighted, while concerns have been raised regarding child labor, torture, media freedom and access to justice, among others,” the statement maintained.  

European Union Ambassador to Pakistan Androulla Kaminara said in a statement last month that Pakistan’s exports to Europe had increased by 60 percent since it was granted GSP+ status in 2014 but “in order to maintain the trade preferences under GSP Plus beyond 2023, Pakistan will have to redouble its efforts to turn the international conventions it signed into reality on the ground.”  

“To make the case to be eligible under the new GSP Plus system, Pakistan, like any other potential beneficiary countries,” Kaminara said, “will have to demonstrate tangible progress to convince EU parliamentarians and member state governments.”  


Journeyman Sikandar Raza blasts Lahore Qalandars to Pakistan Super League title

Updated 25 May 2025
Follow

Journeyman Sikandar Raza blasts Lahore Qalandars to Pakistan Super League title

  • Needing 13 in last over to complete 202-run chase set by Quetta, Raza completed task during his seven-ball 22 not out 
  • Sri Lankan Kusal Perera led the chase with an undefeated 31-ball 62 studded with five boundaries and four sixes

LAHORE: Lahore Qalandars won the Pakistan Super League with a six-wicket win against Quetta Gladiators on Sunday, with Sikandar Raza hitting the winning runs after only landing back in Lahore minutes prior to the start of the final.

The 39-year old Zimbabwean landed in Lahore just ten minutes before the toss, after scoring a half century in his country’s innings defeat in the Nottingham Test against England a day before.

Needing 13 in the last over to complete a 202-run chase set by Quetta, Raza completed the task during his seven-ball 22 not out with two sixes and as many boundaries.

He hit a maximum and a four in the last over to seal the victory with one ball remaining.

Sri Lankan Kusal Perera led the chase with an undefeated 31-ball 62 studded with five boundaries and four sixes, adding 59 runs during the unbroken fifth wicket stand.

Opener Mohammad Naeem scored 46, with half a dozen sixes and one boundary, and Abdullah Shafique hit 41 to set Lahore on course for the highest-ever chase in a PSL final.

Lahore sealed their third title following triumphs in 2022 and 2023.

Raza said it was unbelievable to reach Lahore and achieve success.

“It is unbelievable, batted for 40-odd overs in the Test, flew to Dubai where I had breakfast and then lunch in Abu Dhabi and arrived minutes from the toss, so it’s incredible,” he said.

Hasan Nawaz scored a brilliant 76 to lift Quetta to 201-9 after they won the toss and batted.

Coming in at 21-2, Nawaz added 67 for the fourth wicket with Avishka Fernando (29) and another 46 with Dinesh Chandimal (22) to steady the ship.

Lahore skipper Shaheen Shah Afridi was the pick of Lahore’s bowlers with 3-24.

It was Faheem Ashraf (28) who lifted Quetta past 200, taking 23 off the last Salman Mirza over.

The six-team PSL was suspended on May 9 following the conflict between Pakistan and India.

However, the league resumed on May 17 after a ceasefire between the two countries.


Pakistan to hike defense spending in FY26 budget to counter India’s ‘hegemonistic designs’ — minister

Updated 25 May 2025
Follow

Pakistan to hike defense spending in FY26 budget to counter India’s ‘hegemonistic designs’ — minister

  • Ahsan Iqbal says military would “certainly require more financial resources” to defend the country against India
  • Analysts say an over 40 percent hike in the current defense budget of $7.53 billion expected in budget for FY26

Planning and Development Minister Ahsan Iqbal said on Sunday Pakistan’s defense spending would be hiked in the budget for the next fiscal year as the military would “certainly require” more financial resources to defend the country against India.

Pakistan and India attacked each other with missiles, drones and artillery earlier this month in the worst military confrontation in decades between the two nuclear-armed neighbors. The conflict erupted after an attack in April on tourists in Indian-administered Kashmir that New Delhi blamed on Pakistan. Islamabad has denied the charge.

The tensions erupted into a military confrontation on May 7 after India first hit what it said was “terrorism infrastructure” in Pakistan and Azad Kashmir with missiles, and Pakistan retaliated, saying it had downed six Indian fighter jets. 

Fighting between the two nations continued for four days until a ceasefire was reached on May 10.

“Obviously, Pakistan will do anything within its reach to make its defense impregnable,” Ahsan told Arab News in a telephone interview when asked if there were plans to increase defense spending in the budget for fiscal year 2025-26, which will be unveiled on June 10. 

“Our military would certainly require more financial resources to defend the country against the hegemonistic designs of Modi.”

Ahsan declined to disclose the new figures for the defense allocation. 

Beijing is Pakistan’s primary supplier of military equipment. This includes more than half its 400-odd fighters, primarily the JF-17 but also the J-10C.

According to the Stockholm International Peace Research Institute (SIPRI), China has sold Pakistan $8.2 billion in arms since 2015. China was the world’s fourth-largest arms exporter from 2020-24, and Pakistan was China’s top customer. Islamabad consumed 63 percent – nearly two thirds – of Chinese weapon sales in that period.

In response to a question about media reports China was fast-tracking delivery of its advanced J-35A fifth-generation stealth fighters to Pakistan, with the first batch expected by early 2026, planning minister Ahsan said:

“Pakistan’s fighter jets have already done well against India and the country will do anything it can to make it’s defenses stronger.”

The finance ministry declined to comment on a planned hike in defense spending but an official privy to budget talks within the government and with the International Monetary Fund (IMF) said:

“We are discussing all the issues including Pakistan’s revenues and defense with the IMF but nothing has been finalized yet.”

An IMF official said the lender did not comment on any country’s defense budget.

An IMF mission led by Nathan Porter visited Pakistan last week to discuss the country’s new fiscal plan but returned without reaching an agreement.
 
“We will continue discussions toward agreeing over the authorities’ FY26 budget over the coming days,” the Washington-based lender said in a statement on May 24. 

The media wing of the Pakistan army declined to comment on the issue immediately.

“WAR-LIKE SITUATION”

Two days after the ceasefire, Indian Prime Minister Narendra Modi warned Pakistan New Delhi would target “terrorist hideouts” across the border again if there were new attacks on India and would not be deterred by what he called Islamabad’s “nuclear blackmail.”

“In the coming days, we will measure every step of Pakistan... what kind of attitude Pakistan will adopt,” Modi said, adding that India had only “paused” strikes.

Ashfaq Tola, the chairman of Karachi-based tax and corporate advisory firm Tola Associates and an adviser to past Pakistani governments on the budget-making process, said an over 40 percent hike in the current defense budget of Rs2.122 trillion ($7.53 billion) could be expected in the new financial plan. 

“Considering the ongoing situation, the country’s defense budget should stand at as much as Rs3,000 billion ($10.6 billion),” Tola said. 

“In such a big conflict, you need a lot of ammunition, surveillance, border movement, border troops management. To finance all these requirements, they will have to allocate more money this time.”

In a report published on Saturday, Tola Associates proposed raising the defense budget to Rs2.8 trillion, a 32 percent increase compared to the last fiscal year, owing to a “war-like situation” with India.

“The budgeted defense expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighboring country, defense spending may increase by up to 50 percent in the Q4FY25,” the report said. 

“Given the current regional tensions and the need to ensure Pakistan’s defense preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.”

After debt servicing, defense is the second biggest drain on Pakistan’s revenue, which the IMF, since approving a $7 billion bailout program for Islamabad last September, wants the government to increase through taxing incomes from agriculture, real estate and retail sectors in the new budget.

Pakistan’s historically large defense budget is attributed to a complex interplay of factors, primarily driven by regional security concerns and internal challenges. These include the perceived security threat from India as well as internal instability and security threats like terrorism. Additionally, debt servicing and the allocation of resources toward military interests have also played a role in shaping the budget.

In the last five years, Pakistan has increased its defense expenditures more than 60 percent to Rs 2.12 trillion ($7.53 billion), or two percent of GDP, according to data compiled by Karachi-based research firm Arif Habib Ltd.

“An increase [in defense spending] is certainly a possibility. The recent clash with India emboldened Pakistan’s military, as it has regained public goodwill and popularity that will give it the confidence to take potentially politically risky steps,” Michael Kugelman, a South Asia specialist based in Washington, told Arab News. 

“That includes ramping up an already-sizable defense budget at a moment when the economy, despite some recent stabilization on the macro level, remains fragile.”


Turkiye’s Erdogan, Pakistan’s Sharif discuss boosting cooperation in defense, energy, infrastructure

Updated 25 May 2025
Follow

Turkiye’s Erdogan, Pakistan’s Sharif discuss boosting cooperation in defense, energy, infrastructure

  • Sharif is visiting Iran, Azerbaijan, Tajikistan and Turkiye on five-day regional diplomacy visit
  • Ankara openly supported Pakistan in recent military confrontation with archrival India

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif met Turkish President Tayyip Erdogan in Istanbul on Sunday and said the two countries would strive to boost economic cooperation, particularly in defense production, energy, IT, infrastructure development and agriculture.

Sharif reached Istanbul on Sunday as the first stop in a five-day regional diplomacy tour that will also see him visit Iran, Azerbaijan and Tajikistan.

Ankara expressed solidarity with Islamabad in a military standoff with India earlier this month when the two nuclear-armed neighbors traded missile, drone and artillery strikes for days, killing around 70 people on both sides. A ceasefire was reached on May 10. 

Ankara also maintains cordial ties with India but after Erdogan’s expression of support for Pakistan in the recent conflict, Indian grocery shops and major online fashion retailers have boycotted Turkish products. Indian travel firms have also reported drop in Turkiye bookings over Pakistan support.

A statement released by Sharif’s office after delegation-level talks with Erdogan said the PM expressed “heartfelt gratitude” to the government and people of Turkiye for its support during the conflict with India, the worst between the two nations in decades. 

“Emphasizing the need to further strengthen economic cooperation, particularly through joint ventures and enhanced bilateral investment, the prime minister highlighted key sectors including renewable energy, information technology, defense production, infrastructure development, and agriculture as areas of mutual interest and potential,” the statement said. 

The two leaders also followed up on the implementation of key decisions taken during the 7th session of the High-Level Strategic Cooperation Council held in Islamabad on Feb. 13. 

“Both sides agreed to take steps for achieving 5 billion USD annual bilateral trade target as agreed earlier by the two leaders,” the statement from Sharif’s office said. 

Erdogan’s office said he told Sharif it was in the interest of Turkiye and Pakistan to increase “solidarity” in education, intelligence sharing and technological support in the fight against terrorism.

Erdogan spoke by phone with Sharif on May 7 to convey his solidarity after India first hit Pakistan and Azad Kashmir with missiles. Leaders from the two nations had several contacts subsequently and it is widely believed that Turkiye played an important role, besides the US, UAE and Saudi Arabia, in convincing India and Pakistan to back off and agree to a ceasefire. The two nations have strong ties, both being largely Muslim countries and sharing historical links.

Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part. They both acquired nuclear weapons in 1998.


Delegation-level talks begin in Istanbul between Pakistan’s Sharif, Turkiye’s Erdogan

Updated 25 May 2025
Follow

Delegation-level talks begin in Istanbul between Pakistan’s Sharif, Turkiye’s Erdogan

  • Sharif is visiting Iran, Azerbaijan, Tajikistan and Turkiye on five-day regional diplomacy visit
  • All four nations supported Pakistan in recent military confrontation with archrival India

ISLAMABAD: Delegation-level talks between Pakistan and Turkiye began on Sunday evening in Istanbul, led by Prime Minister Shehbaz Sharif and President Tayyip Erdogan, the Pakistani premier’s office said.

Sharif reached Istanbul on Sunday as the first stop in a five-day regional diplomacy tour that will also see him visit Iran, Azerbaijan and Tajikistan. Ankara supported Islamabad in a military standoff with India earlier this month when the two nuclear-armed neighbors traded missile, drone and artillery strikes for days, killing around 70 people on both sides. A ceasefire was reached on May 10. 

The conflict, the worst between the neighbors in decades, was triggered by a militant attack on tourists in Indian-administered Kashmir on April 22 that New Delhi blamed on Pakistan. Islamabad denies involvement. 

“During the meeting, bilateral relations, regional and international issues, including the fight against terrorism, will be discussed,” Erdogan’s head of communications, Fahrettin Altun, said on X about the Turkish president’s meeting with Sharif. 

Erdogan received Sharif at the presidential palace ahead of the talks and will later also host a dinner for the visiting premier. 

The PM’s office in Islamabad said Sharif would hold wide-ranging discussions with the leaders of Turkiye, Iran, Azerbaijan and Tajikistan during the regional tour on “an entire range of issues covering bilateral relations and matters of regional and international importance.”

“He will thank friendly countries for the support they have given to Pakistan during the recent crisis with India,” the PMO statement added. 

Erdogan spoke by phone with Sharif on May 7 to convey his solidarity after India first hit Pakistan and Azad Kashmir with missiles. Leaders from the two nations had several contacts subsequently and Turkiye publicly took Islamabad’s side. It is widely believed that Turkiye played an important role, besides the US, UAE and Saudi Arabia, in convincing India and Pakistan to back off and agree to a ceasefire. The two nations have historically strong ties. 

Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part. They both acquired nuclear weapons in 1998.


Nine ‘Indian-sponsored’ militants killed in Pakistan’s northwest — army

Updated 25 May 2025
Follow

Nine ‘Indian-sponsored’ militants killed in Pakistan’s northwest — army

  • Both India and Pakistan have traded accusations of supporting militancy on each other’s soil, a charge that each denies
  • Pakistan has blamed India for being behind recent terror attacks in the country, including suicide bombing of school bus

ISLAMABAD: The Pakistan army said on Sunday it had killed nine “Indian-sponsored” militants in three separate operations in the northwestern Khyber Pakhtunkhwa province.

Tensions remain high after India and Pakistan agreed to a ceasefire on May 10 following the most dramatic escalation of hostilities between the nuclear-armed neighbors in decades earlier this month.

Since the military confrontation cooled off with the truce, Pakistan has blamed India for being behind several terror attacks in the country, including when three children were among at least five people killed when a suicide bomber struck an army school bus in Pakistan’s restive Balochistan province earlier this week. India denies it backs militancy in Pakistan.

In a statement released on Sunday evening, the army said it had carried out three operations in KP’s Dera Ismail, Tank and Khyber districts. 

“An intelligence-based operation was conducted by the security forces in Dera Ismail Khan District … and after an intense fire exchange, four Indian sponsored khwarij [militants] were sent to hell,” the statement said.

It added that two militants were separately killed in Tank and three in Khyber.

“Sanitization operations are being conducted to eliminate any other kharji found in the area, as the security forces of Pakistan are determined to wipe out the menace of Indian-sponsored terrorism from the country,” the statement added.

Both India and Pakistan have traded accusations of supporting militancy on each other’s soil, a charge that each denies. The latest escalation, in which the two countries traded missiles and drones, was sparked when India accused Pakistan of supporting a militant assault on tourists in the Indian-administered portion of the contested region of Kashmir. Islamabad denies any involvement.

Pakistan has mostly blamed India of supporting a separatist insurgency in Balochistan, a southwestern province that borders Iran and Afghanistan. It also accuses it of backing the Pakistani Taliban who regularly carry out attacks in the country’s northwestern and other regions. 

India denies the allegations.