Pakistan’s latest GSP+ assessment offers a welcome measure of economic and institutional progress at a time when the country urgently needs both. The European Commission has confirmed that Pakistan remains the scheme’s largest beneficiary, with €7.1 billion worth of imports entering the European Union under preferential arrangements in 2024 and a utilisation rate of 95.1 per cent, reflecting how effectively Pakistani exporters have used the access available to them.
Bilateral trade in goods reached €12.2 billion in 2025, while the EU accounted for 14.1 per cent of Pakistan’s total trade. Pakistani exports to the bloc have risen markedly since the country entered GSP+, helping sustain factories, jobs and foreign-exchange earnings. At a time of constrained growth and recurring pressure on the external account, this market access has provided valuable stability. It has also shown that Pakistani industry can compete when given a predictable and supportive trading framework. The benefits extend across industrial towns, export clusters and households whose livelihoods depend directly or indirectly on access to European consumers.
Equally important is the report’s recognition of legislative and institutional movement. Progress on anti-torture rules, domestic violence legislation, minority protections, forced-labour obligations and measures against technology-facilitated gender-based violence demonstrates that engagement with GSP+ has encouraged reform beyond tariffs. The scheme’s value lies precisely in this combination: it rewards trade performance while reinforcing commitments that Pakistan has already accepted under its Constitution and international conventions.
The task now is to build on that momentum. Pakistan’s exporters remain heavily concentrated in textiles and apparel, sectors that have used GSP+ exceptionally well. The next stage should be to broaden the export base through technical textiles, surgical instruments, processed food, pharmaceuticals, engineering goods and environmentally compliant manufacturing. Higher-value exports would reduce vulnerability, improve productivity and allow more regions and industries to benefit from the European market.
The revised GSP framework taking effect in 2027 should therefore be viewed as an opportunity, not a threat. Pakistan has already shown that it can meet demanding trade requirements and extract real economic value from preferential access. A permanent federal-provincial coordination mechanism, stronger labour and environmental monitoring, better supply-chain traceability and early preparation for reapplication would place the country in a strong position. *