The GSP Plus status granted by the European Union has helped Pakistan increase exports of value-added textile goods by up to 90 per cent, leading to an export growth of 13 per cent during the last eight months. The package given to exporters in the shape of duty drawback on taxes has also helped the growth of textile exports.

Currently, the garment sector has a limited product line for the export market. But buyers demand new garments based on G3, G4 and technical fabric materials. So, Pakistan has to offer more diversified products to take benefits from GSP Plus. Under GSP Plus Pakistan goods have duty free access to 28 EU member states. The GSP (Generalised System of Preference) Plus facility allows almost 20 per cent of Pakistan exports to enter the EU market at zero tariff and 70 per cent at preferential rates. Duty free access helps Pakistan products to compete with products originating from Bangladesh, Vietnam and Turkey and many other countries.