ISLAMABAD: Pakistan remained the largest beneficiary of the European Union’s Generalised Scheme of Preferences Plus (GSP+) in 2024, with eligible exports totaling €7.5 billion, according to an EU report released Thursday.
The country secured an estimated €732 million in tariff exemptions last year, with the EU accounting for 28% of Pakistan’s total exports, the report said.
Textiles and clothing dominated Pakistan’s export basket to the EU, representing roughly 70% to 76% of all shipments in 2024. The sectors that benefited most from GSP+ preferences included clothing, textiles, leather and fur articles, prepared foods and beverages, and miscellaneous manufactures.
“Clothing accounts for a large share of total exports and GSP+ preference utilisation at 95.3%, underscoring Pakistan’s dependence on preferential market access for these products in its EU trade,” the report stated.
The top five export sectors all achieved preference utilisation rates between 93.6% and 97.7% in 2024. However, the report cautioned that Pakistan’s trade performance remains vulnerable to sector-specific shocks, including energy price fluctuations, compliance costs and demand cycles, given the high concentration of its exports to the EU.
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 noted several institutional and legislative developments, including the National Commission for Human Rights obtaining global “A” status and legislation establishing the National Commission for Minorities, which it described as an important step toward minority protection.
The commission also recognized Pakistan’s implementation rules for anti-torture laws, related training initiatives and prison reforms, as well as new legislation aimed at strengthening protections for women, combating domestic violence and addressing child marriage.
The EU praised Pakistan’s efforts to protect workers’ rights, prevent forced labor and eliminate child labor. 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 under the GSP+ framework.
The findings come 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 and pledged close cooperation with Islamabad to help secure the arrangement’s renewal.
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, and said the EU and Pakistan were working together on climate adaptation, education and economic cooperation.
