Pakistan’s GSP+ Success Reinforces Stronger Trade and Reform Partnership with the European Union

Pakistan has received a significant vote of confidence from the European Commission through its latest review of the Generalised Scheme of Preferences Plus (GSP+) programme, with the report highlighting the country’s strong export performance, continued institutional reforms and sustained engagement with international commitments.

The assessment presents Pakistan as the largest beneficiary of the European Union’s GSP+ scheme, underlining the programme’s vital contribution to the country’s exports, employment and industrial growth. The findings also reaffirm the strategic importance of Pakistan-EU economic relations at a time when global trade remains increasingly competitive.

According to the report, Pakistani exporters made exceptionally effective use of the preferential trade arrangement during 2024. Of the €7.482 billion worth of exports eligible for GSP+ preferences, €7.115 billion benefited from the scheme, resulting in an impressive utilisation rate of 95.1 percent.

The European Union remained Pakistan’s largest export destination, accounting for 28 percent of the country’s total exports. The report estimates that Pakistan received approximately €732 million in tariff savings during 2024—equivalent to nearly nine percent of the country’s export value to the EU. These exemptions significantly enhanced the competitiveness of Pakistani products in European markets.

The country’s leading export sectors—including textiles, garments, leather goods, prepared foods and miscellaneous manufactured products—continued to perform strongly, recording preference utilisation rates between 93.6 and 97.7 percent. These industries remain among Pakistan’s largest employers and continue to play a central role in supporting economic growth and job creation.

Beyond trade, the European Commission acknowledged Pakistan’s continued commitment to implementing the 27 international conventions that form the foundation of the GSP+ framework. The report noted that Pakistan has maintained all treaty ratifications, introduced no new reservations and remained broadly compliant with its international reporting obligations.

Pakistan’s cooperation with the European Union’s monitoring mission during November and December 2025 was also recognised as evidence of transparency, institutional engagement and a willingness to maintain constructive dialogue with international partners.

The review highlights notable progress in strengthening Pakistan’s human rights institutions. It commended the National Commission for Human Rights for obtaining GANHRI A-status accreditation in 2024 while recognising the continued work of institutions dedicated to protecting the rights of women and children.

Judicial and legal reforms also received positive attention. The report cited progress in prison reforms, implementation of anti-torture legislation, judicial training initiatives and efforts to reduce the backlog of appeals before the Supreme Court. It further acknowledged Pakistan’s decision to remove four offences from the scope of capital punishment, the absence of executions since December 2019 and the exercise of presidential clemency in October 2025 as important developments in the country’s justice system.

Women’s and children’s rights were identified as another area of meaningful progress. The European Commission welcomed the completion of domestic violence legislation across all provinces and Islamabad, Sindh’s first conviction in a marital rape case and legislative reforms addressing child marriage in several jurisdictions.

The report also recognised Pakistan’s expanding social protection initiatives. Progress under the National Education Emergency Action Plan, teacher recruitment, reopening of schools and enrolment campaigns that brought between 25,000 and 30,000 children into schools in Islamabad were highlighted as encouraging developments aimed at improving educational access.

Labour reforms featured prominently in the review. Pakistan’s ratification of the International Labour Organization’s Protocol to the Forced Labour Convention in March 2025, the establishment of district vigilance committees and the adoption of child labour action plans across all provinces and territories were described as important milestones.

The report further noted that the country’s labour reform agenda has moved beyond legislative commitments, citing the completion of a national gender pay gap study, development of a wage reform action plan and efforts to formalise small and medium-sized enterprises and informal workers.

Environmental governance also emerged as a key area of progress. The European Commission acknowledged Pakistan’s compliance with reporting obligations under the UN Framework Convention on Climate Change and other international environmental agreements. The country also received recognition for ratifying the Kigali Amendment and introducing updated policy frameworks on climate change, clean air, biodiversity conservation and hazardous waste management.

In another important achievement, Pakistan’s upgrade to CITES Category 1 was recognised as confirmation that its national legislation now fully meets the standards required under the Convention on International Trade in Endangered Species.

The report also highlighted governance improvements, including completion of the second-cycle implementation review under the United Nations Convention Against Corruption (UNCAC), stronger pharmaceutical regulations, reforms to narcotics legislation and the introduction of digital case management systems aimed at improving public administration.

Looking ahead, the European Union reaffirmed its long-term commitment to Pakistan through a €400 million cooperation programme covering the 2021–2027 period. The funding will support initiatives in green economic growth, education, climate resilience, governance reforms, rule of law, skills development and women’s economic empowerment, signalling that the partnership extends well beyond trade.

Overall, the European Commission’s latest GSP+ review portrays Pakistan as a country that has not only maximised the commercial benefits of preferential access to European markets but has also continued advancing reforms across governance, human rights, labour standards and environmental protection. The findings strengthen Pakistan’s case for continued engagement under the GSP+ framework while reinforcing the growing strategic partnership between Islamabad and Brussels.