Pakistan has reinforced its position as the largest beneficiary of the European Union’s GSP+ trade scheme, with exports worth €7.115 billion benefiting from preferential tariffs in 2024. The latest EU GSP+ Report highlighted Pakistan’s 95.1% utilisation rate, reflecting the country’s effective use of the trade facility. The report also recognised continued progress in governance, labour rights, environmental protection, and institutional reforms.
According to the report, Pakistan remained the EU’s largest GSP+ beneficiary, with €7.482 billion of exports eligible for tariff preferences. The European Union accounted for 28% of Pakistan’s total exports, underlining the strategic importance of bilateral trade. Pakistani exporters also secured an estimated €732 million in tariff exemptions, providing significant support to export competitiveness and labour-intensive industries, including textiles, clothing, leather, and food products.
The report acknowledged Pakistan’s commitment to implementing all 27 international conventions linked to the GSP+ framework. It noted progress in human rights, judicial reforms, prison reforms, anti-torture measures, and the reduction of the Supreme Court’s appeals backlog. The EU also recognised improvements in women’s and children’s rights, including domestic violence legislation, child marriage reforms, and the country’s continued engagement with international monitoring mechanisms.
Pakistan’s labour and environmental reforms also received positive recognition. The report highlighted the ratification of the ILO Protocol on Forced Labour, implementation of child labour action plans, wage reform initiatives, and measures to formalise workers and small businesses. It further acknowledged Pakistan’s progress in climate governance, biodiversity protection, hazardous waste management, and its upgrade to CITES Category 1, confirming compliance with international environmental standards.
The European Union reaffirmed its long-term partnership with Pakistan by allocating €400 million for cooperation between 2021 and 2027. The funding will support green growth, governance, education, climate resilience, skills development, and women’s empowerment. The report concluded that while Pakistan has achieved strong economic and institutional progress under GSP+, continued reforms will remain essential to securing future trade benefits under the EU’s updated framework.