Pakistan exports to Europe decline amid GSP+ status concerns

Pakistan’s exports to Europe fell by 1.84 percent to $2.35 billion during the first quarter of fiscal year 2026-27, according to data from the State Bank of Pakistan. While exports to northern and southern Europe saw growth, shipments to western and eastern Europe contracted.

Beyond trade volume fluctuations, Pakistan faces potential risks regarding its Generalized Scheme of Preferences Plus (GSP+) status. Syed Naveed Qamar, Chairman of the National Assembly Standing Committee on Finance, noted that the country may lose duty-free access to the European Union due to concerns over the human rights situation, including issues related to freedom of expression and enforced disappearances.

The GSP+ scheme, which provides preferential market access, is currently set to run until December 2028. A government committee is reportedly preparing an application to qualify for a new scheme starting in January 2029. Analysts suggest that competition from India and economic pressures in Europe, such as rising energy costs, may further impact Pakistani trade performance.