The European parliament, with an overwhelming majority, accorded approval for the inclusion of Pakistan in the Generalised System Of Preferences (GSP) Programme, called GSP Plus 2014, which will allow duty-free access to Pakistani goods, especially textiles, into 27 member countries of the EU. While official circles in Pakistan hope that this will enhance our exports to EU countries by $ 1-2 billion, the EU Commission sources estimate the increase to the tune of 574 million euros annually. Whatever the ultimate impact of this measure on Pakistani exports to the EU, there is no doubt about the fact that it means a lot to Pakistan. The International Trade Committee of the EU, in its meeting held on November 5, 2013, endorsed a proposal for the grant of the GSP Plus status to 10 countries including Pakistan, subject to ratification by the European parliament. This development will provide the necessary props for the efforts of the government to revive the economy through export-led growth, which forms the pivot of its economic strategy. It is likely to spur economic activity within the country besides creating millions of new jobs. The status of the GSP Plus beneficiary granted to Pakistan by the EU, however, has not come automatically. It is the result of intensive lobbying by the Pakistani embassies in EU countries, ministry of commerce, the government of Pakistan at the highest level and, to some extent, the role played by the governor Punjab in persuading EU parliamentarians to vote for Pakistan. Prime Minister (PM) Nawaz Sharif has personally been striving hard to clinch this status for Pakistan. When British PM David Cameron visited Pakistan in the last week of June early this year, he discussed this issue with him and sought his help for the inclusion of Pakistan in the list of beneficiaries of the new initiative in pursuance of the new economic narrative ‘trade not aid’ adopted by the government. It is pertinent to mention that the UK had also been instrumental for World Trade Organisation (WTO) approved duty-free access to EU markets for Pakistani products in the past. This development not only represents the success of the well coordinated diplomatic offensive of the government but also indicates the faith of EU countries in the quality of our textile products. The EU is Pakistan’s key partner in peace and development. The approval of the GSP Plus also reflects the commitment of the EU to its relations with Pakistan. The country direly needed this preferential treatment as its textile products are still not competitive at the global level. It is like a whiff of fresh air for our strangulated economy. Through its GSP programme, launched in 1971, EU countries allow duty-free import of goods from developing countries to nudge and encourage sustainable development and good governance. It is a kind of incentives arrangement and the beneficiaries are included in the programme (for a period of three years) on the basis of having ratified and implemented 27 UN conventions regarding human rights, good governance and environment. Pakistan has already ratified those conventions and fulfilled other qualifying conditions. However, some key members of the EU, including Germany, have been insisting on the elimination of the death penalty and child labour in Pakistan to support its bid for inclusion in the GSP. The redeeming aspect of Pakistan’s inclusion in the programme is that it, in a way, is linked with the continued moratorium on the death penalty or abolition of the death penalty as a pre-condition to qualify for the concession, contrary to the impression permeating in certain circles. In the GSP Plus 2014, which comes into force from January 2014, the import vulnerability threshold has been revised upwards from one percent to two percent. The list of beneficiaries is periodically revised keeping in view the level of development attained by them. It is worth noting however that the grant of this status is not a blank cheque to the beneficiaries. The EU has put in place a mechanism to monitor progress on the issues relating to human rights and governance — a country found lacking in its endeavours in these areas is liable to be excluded from the list of beneficiaries as was the case with Sri Lanka in regards to the human rights situation. This propitious happening also coincides with the revelations made by the finance minister in his recent press conference on how there were visible signs of a turnaround in the economy. According to him, corresponding to the same quarter last year, the FBR’s revenues have registered an increase of 17 percent, GDP growth stands at 5.1 percent as against 2.2 last year, the budget deficit has come down from 2.9 percent to 2.2 percent, foreign exchange reserves have increased by 17 percent in relation to the fixed target and inflow is likely to increase due to $ 1.6 billion loans from the World Bank and Asian Development Bank, remittances have registered a seven percent increase, there was a mixed trend in the prices of commodities with some showing increase while others were experiencing decline, 1,700 MW electricity has been added to the system, the stock exchange index has increased by 25.5 percent and the exchange rate has also improved. The minister giving this future projection expressed the hope that the rate of GDP growth would rise to around seven percent, GDP investment ratio would touch 20 percent and the fiscal deficit would be brought down to four percent of GDP. Similarly, foreign exchange reserves will swell and public debt will be reduced to 57.50 percent of the GDP. The improvements in the areas mentioned by the minister are arguably the result of the prudent economic initiatives taken by the government to revive the economy. And if the minister is to be believed about the veracity of the claims made by him, and there is no ostensible reason to the contrary, the targets that he has spelled out for the future should not be difficult to achieve. It is indeed an arduous and convoluted undertaking, which depends on a variety of internal and external factors. One thing needs to be understood: there are no quick fix solutions available to the economic woes inherited by the government. Fixing economies needs time, determination and requisite resources. The government has the determination and is striving hard to generate resources through all feasible means. It only needs time to show results. It has already set the ball rolling in the right direction and must be trusted and supported in this regard. The writer is a retired diplomat, a freelance columnist and a member of the visiting faculty of the Riphah Institute of Media Sciences, Riphah International University, Islamabad. He can be reached at ashpak10@gmail.com