The EU and Pakistan re-emphasised the importance of a strong trading relationship and the impetus it can give to restore and enhance economic stability and prosperity. This is particularly relevant for Pakistan whose economy faces immense challenges as a result of the fight against terrorism. In particular the cost of doing business in Pakistan has increased considerably thereby adversely affecting export performance and poverty levels. Pakistan reiterated its intention to pursue export diversification and build additional capacity to trade more effectively, however it stated that its ability to do this speedily was being hampered by the major diversion of resources to security related expenditure.
The two sides agreed that it is essential to create the administrative and security conditions which would allow investment to develop and reverse the declining trends rapidly. Accordingly both sides will continue their discussions in the context of the Dedicated Dialogue on Trade and the Group of Friends of Democratic Pakistan (FoDP). The two sides agreed to enhance economic and trade cooperation. This should feature in the 5 year engagement plan.
The EU and Pakistan have started to work jointly towards further liberalisation of trade in goods and services with the aim to mutually enhance market access, in accordance with WTO rules and obligations. A dedicated dialogue is already under way aimed at discussing ways to enhance the bilateral trade relationship, including, through a possible free trade agreement.
The EU has started exploring how aspects of the EU’s preferential tariff regime (GSP+) might be looked at in the context of the preparation of the next GSP Regulation, thereby allowing new beneficiaries, including possibly Pakistan, to take advantage of this scheme. The EU is assisting Pakistan to resume its exports of fishery products and will as a priority carry out the necessary inspection.
The EU and Pakistan are stepping up their cooperation in the field of trade-related capacity building. To this end, the EU will increase the funding for trade related technical assistance
Energy
Both sides recognized the need to work towards achieving safe, secure, affordable and sustainable energy supplies. Both sides agree to cooperate closely in the areas of: promoting energy efficiency and energy conservations; development of affordable clean energy technologies; identification of new, renewable, conventional and non-conventional energy sources; technology and expertise.