London: The European Union has reportedly agreed to make trade concessions to Pakistan to help it overcome the impact of floods.
According to the BBC, although details of the concessions have not been yet revealed, British diplomats believe that they could potentially be worth millions of dollars and added that the deal could allow Pakistan significant reductions in duties paid on textile exports to EU countries.
Any move to grant Pakistan a waiver on textile duties would also require the consent of the World Trade Organisation (WTO) to ensure trade rules are not violated.
The details will be determined in the coming weeks, after the European Commission with the WTO finalise how the concessions could be implemented.
The International Monetary Fund (IMF) has agreed to immediately provide a USD 451 million loan to Pakistan and hoped that its decision would encourage more lending by international donors.
However, countries within the EU that have significant textile industries, such as France, Italy and Portugal, may be opposed to the move, the BBC said.
UN refugee agency head, Antonio Guterres, said that the international aid provided to the flood victims are not sufficient enough to meet their needs and urged for more funds in this regard.