Pakistan remains largest beneficiary of GSP+, says European Commission

• Pakistan secured €732m through tariff concessions: report.
• Report notes institutional and legislative developments.
• EU accounts for 28 % of the country’s total exports.
  

Pakistan has benefited from the EU’s Generalised Scheme of Preferences Plus (GSP+) since 2014, remaining its largest beneficiary with €7.5 billion in GSP+ eligible exports to the EU in 2024, according to the EU report released on Thursday.

The report noted that Pakistan secured estimated €732 million in tariff exemptions in 2024 alone, with the EU accounting for 28 % of the country’s total exports.

According to the report, textiles and clothing make up roughly 70–76 % of the country's exports to the EU in 2024.

The sectors benefiting most from GSP+ preferences in 2024 were clothing, textiles, leather and fur articles, prepared foods and beverages and miscellaneous manufactures (S-20).

These sectors have dominated Pakistan's export basket under GSP+ products to the EU and continue to underpin the country’s comparative advantage in labour-intensive manufacturing exports.

"Clothing accounts for a large share of total exports and GSP+ preference utilisation (95.3 %), underscoring Pakistan's dependence on preferential market access for these products in its EU trade." 

The top five export sectors to the EU all achieved preference utilisation rates of 93.6 %- 97.7 % in 2024. As Pakistan's exports to the EU are highly concentrated, its trade performance is exposed to sector-specific shocks (energy prices, compliance costs, demand cycles), as per the report.

International conventions 

The European Commission said Pakistan maintained ratification of all 27 international conventions linked to the GSP+ framework and continued to engage regularly with the EU's monitoring mechanism.

The report highlighted a number of institutional and legislative developments, including the National Commission for Human Rights obtaining global "A" status and legislation for the establishment of the National Commission for Minorities, which it described as an important step towards minority protection.

It also recognised the implementation rules for the anti-torture law, related training initiatives and prison reforms, as well as new legislation aimed at strengthening the protection of women, combating domestic violence and addressing child marriage.

The commission further praised Pakistan's efforts to protect workers' rights, prevent forced labour and eliminate child labour.

It also acknowledged the country's climate policy, carbon market guidelines and biodiversity initiatives, while describing new anti-narcotics laws and the introduction of a digital case management system as positive developments.

The report reaffirmed the EU's commitment to providing €400 million in development and reform support to Pakistan, underscoring continued cooperation between the two sides under the GSP+ framework.

The report comes months after EU Ambassador to Pakistan Raimundas Karoblis reaffirmed the bloc's commitment to supporting the continuation of Pakistan’s GSP+ trade preferences.

Speaking at a Europe Day reception in May, he described Pakistan as an important economic and strategic partner of the European Union and pledged close cooperation with Islamabad to help secure the continuation of the arrangement.

Karoblis said the EU, as Pakistan's largest trading partner and leading export destination, remained committed to deepening bilateral ties, creating jobs, driving innovation and supporting sustainable growth.

He also stressed the importance of international cooperation in addressing shared challenges, including climate change, technological transformation and democratic pressures, saying the EU and Pakistan were working together on climate adaptation, education and economic cooperation.