Islamabad (TDI): Pakistan remained the largest beneficiary of the European Union’s Generalized Scheme of Preferences Plus (GSP+), exporting €7.5 billion worth of GSP+-eligible goods to the EU in 2024 and securing an estimated €732 million in tariff savings, according to the European Commission’s latest report released on Thursday.
The report said the European Union accounted for 28 percent of Pakistan’s total exports in 2024, underlining the country’s continued reliance on preferential access to the European market.
Pakistan’s exports to the EU remained heavily concentrated in textiles and clothing, which made up around 70 to 76 percent of total exports in 2024. Other key sectors benefiting from GSP+ included leather and fur products, processed food and beverages, and miscellaneous manufactured goods.
According to the report, clothing alone recorded a 95.3 percent preference utilization rate, reflecting Pakistan’s strong dependence on the GSP+ framework for maintaining its competitiveness in the European market. The top five export sectors all achieved utilization rates ranging from 93.6 to 97.7 percent.
However, the Commission cautioned that Pakistan’s export basket remains highly concentrated, making it vulnerable to sector-specific risks such as fluctuations in energy prices, rising compliance costs and changing global demand.
Read More: Pakistan, EU Discuss GSP+ and Strengthening Economic Ties
On governance and reforms, the report noted that Pakistan has maintained ratification of all 27 international conventions required under the GSP+ framework and continues to engage with the EU’s monitoring mechanism.
The Commission acknowledged several positive developments, including the National Commission for Human Rights obtaining ‘A’ status, legislation to establish the National Commission for Minorities, implementation of anti-torture rules, prison reforms, and laws aimed at strengthening women’s rights, tackling domestic violence and preventing child marriage.
It also recognized Pakistan’s efforts to improve labour rights, eliminate child and forced labour, strengthen climate policies, introduce carbon market guidelines, promote biodiversity, enact anti-narcotics legislation and launch a digital case management system.
Read More: Pakistan, EU Parliamentary Delegation Reaffirm Partnership Under GSP+ Framework
The report reaffirmed the European Union’s commitment to provide €400 million in development and reform assistance to Pakistan, signalling continued cooperation 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+ status, describing Pakistan as an important economic and strategic partner of the European Union.
