Pakistan faces uncertainty over EU GSP+ trade status renewal

The future of Pakistan’s access to the European Union’s Generalized Scheme of Preferences Plus (GSP+) trade scheme remains uncertain. EU Ambassador to Pakistan, Raimundas Karoblis, stated that the renewal of this status in 2029 is “not certain or guaranteed,” noting that the decision will depend heavily on Pakistan’s implementation of 27 United Nations international conventions regarding human rights, labor standards, and good governance.

In 2024, Pakistan was the largest beneficiary of the GSP+ regime, with approximately €7.1 billion of the €8.3 billion in total EU imports from the country utilizing these preferences. These exemptions provide a significant economic lifeline, particularly for the textile sector, by shielding exporters from substantial tariffs.

However, reports have highlighted a contradiction between these economic benefits and the human rights situation in Pakistan. Analysis from the Italian publication La Verita suggests that while Pakistan reaped an estimated €732 million in tariff exemptions in 2024, the country continues to face issues regarding the treatment of religious minorities, including Christians, Hindus, and Ahmadis, as well as restrictions on press freedom.