FPCCI Calls for Immediate Measures to Safeguard Pakistan’s Export Competitiveness in the Wake of EU–India FTA Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of
Commerce and Industry (FPCCI), has apprised that FPCCI has organized a meeting of
the Pakistan–EU Business Forum of FPCCI to deliberate on the implications of the
recently concluded EU–India Free Trade Agreement (FTA) for Pakistan’s exports and
future trade prospects in the European Union.

Mr. Atif Ikram Sheikh observed that the European Union remains one of Pakistan’s most
important export destinations – with bilateral trade exceeding US$ 12.6 billion annually.
He stressed that the evolving global trade environment requires Pakistan to pursue
timely policy reforms, facilitate exporters, improve the ease of doing business, and
accelerate preparations for GSP+ renewal and compliance with new EU regulatory
requirements.

The meeting was chaired by Mr. Zubair Baweja, Head of the Pakistan–EU Business
Forum of FPCCI – who emphasized that the Forum was established by FPCCI to
strengthen Pakistan’s trade and economic relations with the European Union; promote
business linkages with both Western and Eastern European countries, and serve as an
effective platform for interaction with European institutions, Pakistan’s Missions in
Europe, and EU Missions in Pakistan.

Addressing the participants virtually from Brussels, Mr. Omer Hameed, Economic
Minister, Pakistan Mission to the European Union, highlighted the likely impact of the
EU–India FTA on Pakistan’s exports. While noting that Pakistan will continue to benefit
from the GSP+ scheme until the end of 2027, he stressed that the country must utilize
this period to enhance industrial competitiveness, improve product quality, diversify
exports, comply with emerging EU sustainability regulations, and strengthen its position
in the European market.

Dr. Junaid Ahmed, Chief of Research, Pakistan Institute of Development Economics
(PIDE), presented a comprehensive analysis of the agreement and observed that
although the FTA would gradually reduce Pakistan’s tariff advantage over India, the
greater challenge lies in improving structural competitiveness through lower energy
costs, better logistics, easier access to finance, export diversification, technological
upgradation, and greater value addition. He emphasized that Pakistan must move
beyond dependence on traditional textile exports and expand into higher-value
manufacturing and knowledge-based sectors.

Mr. Zubair Baweja highlighted that the participants unanimously agreed that the
Pakistan–EU Business Forum of FPCCI should play a proactive role by maintaining
regular engagement with Pakistan’s Commercial Counsellors in Europe, the EU
Delegation in Pakistan, trade institutions, and the business community to identify
emerging opportunities, address market challenges, and formulate policy
recommendations for enhancing Pakistan’s exports to the European Union.

The meeting concluded with a resolve to continue regular consultations with all
stakeholders and to formulate a comprehensive set of recommendations for submission
to the Government of Pakistan to safeguard and enhance Pakistan’s trade and
economic interests in the European market.

Brig Iftikhar Opel, SI (M), Retd.

Secretary General