Lahore: The recently signed free trade agreement (FTA) between India and the European Union, hailed as the ‘mother of all deals,’ has sparked excitement across the 27 EU countries as well as concern in Pakistan. Pakistani media, citing former Federal Commerce Minister Gauhar Ejaz, have highlighted the potential impact of this deal on Pakistan’s economy.
Ejaz expressed serious apprehensions about the India-EU trade agreement, warning that it could jeopardise the livelihoods of over 10 million people in Pakistan. Speaking at an event in Lahore, the former minister emphasised that Pakistan’s industrial sector, especially the textile industry, faces a significant threat from this deal. The textile sector is a backbone of Pakistan’s exports, generating nearly 9 billion dollars annually.
He explained that Pakistan had previously benefited from preferential trade access to the EU, but these special concessions have now ended. The new arrangement extends zero-tariff access to all regional countries, increasing competition and eroding Pakistan’s earlier advantages.
Ejaz also pointed out that rising production costs, energy shortages, and higher taxes have already weakened Pakistan’s industrial competitiveness. Without urgent policy interventions, factories and industries may be forced to shut down, leading to massive job losses nationwide.
While the deal has raised concerns in Pakistan, it has also increased tensions in Bangladesh. For India, the India-EU FTA, signed on Tuesday, offers a major boost to labour-intensive sectors like leather and footwear, gems and jewellery, and textiles, allowing these industries to export to 27 European countries with zero duty.
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