The recent lynching in Sialkot of a Sri Lankan manager, Priyantha Kumara, by a mob consisting of factory workers has created uncertainty regarding the future of Pakistan’s GSP+ status and the government’s efforts to have the country removed from the FATF grey list.

The optimists among the stakeholders hope that the incident will not affect the GSP+ status, which they say is secure until 2022-2023, or the FATF listing, on account of terror financing and allied concerns. But they are worried that the incident has cast a harrowing image that could impact decisions by international buyers.

Asked how the incident might affect the government efforts to get the country off the FATF list, Maleeha Lodhi, a former permanent representative to the United Nations, said it will not affect the FATF. “The FATF has nothing to do with the Sialkot incident.”

Imran Akbar, the Sialkot Chamber of Commerce and Industry president, also believes that the incident will not impact the country’s GSP+ status or the FATF proceedings for removing Pakistan from the grey list. He sees the crime as an “individual act” of a few people. He says angry mobs can and do act violently the world over and cites example from New Zealand, the United States, Russia and some other developed countries.

“The fact is that once a mob becomes violent, it cannot be controlled easily,” he says. But efficient and transparent investigations into the incident and provision of justice will have a positive impact, he says. The most important thing now is how the culprits are punished, he says, adding that this will send a definite message to the world.

Akbar is satisfied with the current pace of the investigation, and believes that punishment will be meted out justly.

However, he is concerned about the “well-wishers” of Pakistan, who he says are always waiting for an opportunity to tarnish its image. He fears that this incident may just have provided them an opportunity to launch a negative campaign against Pakistan and Pakistani businesses.

Akbar suggests that the government should make necessary laws relating to labour and workplace protection. “The government should impose a ban on posting stickers and banners of a religious nature to protect all minorities, and steer the workplaces clear of issues that may endanger the lives of minorities,” he says. He adds that there have been several instances of posting of religious stickers and posters leading to communal problems. In some situations, even the owners have been unable to remove such material once it was put up.

“The people and businessmen of Sialkot have been known as dynamic and enterprising, having established their own airport and an airline, but after this one incident all that [goodwill] has gone down the drain,” says Ijaz A Khokhar, a founding member of Asian Apparel Federation (AAF).

Chaudhry Muhammad Sarwar, the Punjab governor, who claims a major role in acquiring the GSP+ status for Pakistan for export of goods to Europe, and who is currently in the UK, says that every violation of human rights will impact the GSP+ retention and extension and the FATF. For both the GSP+ and the FATF listing, he says, safeguarding the rights of religious minorities is a key covenant. However, he says, Pakistan has the GSP+ status till 2022-2023. “We need to carefully monitor the impact of the recent incident,” he adds.

He says whenever the European Union (EU) passes a specific resolution against Pakistan on account of an incident it has an impact. “So far, we have not heard of a resolution by the EU related to the Sialkot incident,” he adds. He suggests that the matter is a subject for the Ministry of Commerce.

Advisor to Prime Minister on Commerce and Trade, Abdul Razzak Dawood, says that the ministry is closely monitoring the situation on FATF after the Sialkot incident. However, he says, so far there has been no development in this regard on the FATF front. He adds that he is still studying the situation and is unable to say whether it will affect the government’s efforts to remove the country from the FATF grey list or not.

Ijaz A Khokhar, a founding member of Asian Apparel Federation (AAF), which includes garments manufacturers from China, India, Bangladesh, Sri Lanka, Korea, Cambodia, Vietnam, Hong Kong, Macau and Pakistan, says that the “Sialkot incident has washed out all the efforts businesses in the district had made for decades. The people and businessmen of Sialkot have been known as dynamic and enterprising, having established their own airport and an airline, but after this one incident all that [goodwill] has gone down the drain.”

Khokhar, who managed to bring the world-famous Hugo Boss brand to Rajco – the factory where the Sri Lankan manager had worked, says that it is a state-of-the-art factory. “The machinery and equipment installed in the factory are far better than many factories in Europe. High street brands have been working with the company,” he says. He worries about the fate of the factory that employs around 3,000 labourers. He says its future will depend on the buyers’ decision. The factory has been sealed following the murder.

Khokhar sees tough time ahead for Pakistani exports. He says the damage can be contained by bringing together all stakeholders. The government, he says, must ensure that justice is done and show the world that such incidents are not tolerated.

On GSP+ status, Khokhar says that the EU has added five more conventions and linked the special status to compliance with the conventions. These five conventions are related to labour unions, blasphemy law, human rights violations, freedom of speech and environment. He says it is clear that the Sialkot incident will have an impact on Pakistan’s exports. It remains to be seen, he says, what strategy is adopted to bring the country out of its shadow as early as possible.

Khokhar says that like the Baldiya factory fire in Karachi and the Rana Plaza incident in Dhaka, this incident will tarnish the image of the textile industry in the region. Overall, he says, both the Pakistan and Sri Lankan governments have so far dealt with the situation responsibly. He says that the Sri Lankan government has shown trust in the steps taken by the government of Pakistan and sought to restrain the sentiments of Sri Lankan people.

Khokhar says a Sri Lankan diplomat has responded to his condolence message saying: “the strong bond between our two countries will remain solid. We should not allow anybody to distrust or destroy the loyalty, brotherhood and friendship built over thousands of years of historical engagement”.

While this message is encouraging, many Sri Lankan technicians working in the Pakistani apparel sector have returned to their country, and it is unclear when they will return, if at all. This could adversely affect the apparel and textile sector in Pakistan.

The writer works for The News. He tweets @Jawwadrizvi and can be reached at jawwadar@gmail.com