Pakistan is facing scrutiny over its access to the European Union’s Generalised Scheme of Preferences Plus (GSP+) trade benefits. Concerns raised in a recent report highlight issues with Pakistan’s human rights record, governance standards, and commitment to international obligations. The country’s eligibility for the revised GSP+ framework, effective from 2027, is in question due to persistent challenges related to the rule of law, freedom of expression, and judicial independence.
The European Union’s assessment is crucial as Pakistan’s economy relies heavily on this preferential trade arrangement. Since 2014, Pakistan has enjoyed tariff-free access to the EU market under the GSP+ scheme. In 2024 alone, exports to the EU under this program amounted to 7.5 billion euros, with estimated tariff concessions valued at around 732 million euros.
The review gains significance amid Pakistan’s struggles with export growth, foreign investment, and reliance on remittances. Analysts warn that any disruption to GSP+ benefits could severely impact Pakistan’s economy, particularly its textile sector, which heavily relies on European markets. Compliance with international conventions is essential for maintaining preferential market access under GSP+.
The upcoming revised GSP+ regime is expected to emphasize measurable compliance, posing a risk for countries failing to address governance and human rights issues. Pakistan is urged to undertake structural reforms to enhance its export competitiveness. Continued reliance on a limited export base and markets leaves Pakistan vulnerable if EU preferential access is restricted.
