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Pakistan Exports to Europe Stagnant Despite GSP+ Benefits

Pakistan's exports to Europe stagnated in the first nine months of fiscal year 2025-26, rising just 0.94% despite continued GSP+ trade benefits. Exports to western Europe declined 3.14%, with key markets like Germany, Netherlands, and France seeing drops. Southern Europe exports grew 6.47%, led by Spain and Italy, while UK exports remained flat. The stagnation reflects slowing demand across major European markets, despite previous growth of 7.44% in FY25.

Key Points: Pakistan's EU Exports Stagnate Despite GSP+ Benefits

  • Pakistan's exports to Europe up only 0.94% in 9MFY26
  • Exports to western Europe fell 3.14%
  • Germany, Netherlands, France exports declined
  • Southern and eastern Europe showed growth
2 min read

Pakistan's exports to Europe stagnate despite GSP+ sops

Pakistan's exports to Europe stagnate in 9MFY26, rising just 0.94% despite GSP+ trade benefits, with declines in key markets like Germany and Netherlands.

"The stagnation reflects slowing demand across key western and northern European markets - Pakistan Today report"

New Delhi, April 28

Pakistan's exports to Europe have stagnated in the first nine months of 2025-26 despite the continued access to the European Union's Generalised Scheme of Preferences Plus, according to a report in the local media.

The report in the Pakistan Today newspaper highlights that the country's exports to western Europe declined by 3.14 per cent to $3.30 billion in the first nine months of FY26 from $3.41 billion a year earlier, while shipments to northern Europe also fell by 0.85 per cent to $557.31 million from $562.13 million.

The report highlights that Pakistan's exports to Germany fell by 2.97 per cent to $1.24 billion, to the Netherlands by 1.78 per cent to $1.1 billion, to France by 2.62 per cent to $411.89 million, and to Belgium by 4.73 per cent to $402.86 million in the first nine months of FY26.

Pakistan's exports to European markets showed limited growth in the first nine months of fiscal year 2025-26, reaching $6.86 billion, up 0.94 per cent from $6.79 billion in the same period last year, according to data compiled by the State Bank of Pakistan.

The stagnation reflects slowing demand across key western and northern European markets, the article noted.

In contrast, exports to southern Europe increased by 6.47 per cent to $2.43 billion, compared to $2.28 billion in the same period last year. Exports to eastern Europe also rose 5.06 per cent to $566.92 million from $539.63 million.

Among individual markets, exports to Spain grew 7.44 per cent to $1.18 billion, while shipments to Italy increased 4.26 per cent to $880.13 million. Exports to Greece, however, declined by 8.44 per cent to $98.16 million.

Exports to the United Kingdom remained largely unchanged, slipping 0.23 per cent to $1.62 billion in 9MFY26 compared to the same period last year.

In the previous fiscal year, Pakistan's exports to the European Union increased 7.44 per cent to $8.86 billion from $8.24 billion. However, in FY24, exports had declined by 3.12 per cent despite GSP+ access, the report added.

- IANS

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Reader Comments

P
Priya S
It's surprising that Spain and Italy showed growth while Germany and France declined. Maybe diversification is happening, but too slowly. Pakistan needs to focus on textile value addition—India's success in technical textiles and garments is a good example to follow.
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James A
From a global trade perspective, this isn't just a Pakistan problem—Europe's demand has been sluggish overall. But the 3.14% decline to western Europe is concerning when you have preferential access. India's exports to the EU grew 5% last year despite no GSP+ benefits, because of better product quality and compliance.
S
Sarah B
Interesting how the UK numbers barely changed. Brexit must have something to do with that—they're no longer part of EU trade deals. GSP+ is a privilege that can be withdrawn if compliance on human rights and governance isn't maintained. Pakistan should consider this a warning.
V
Vikram M
🙏 It's sad to see a neighbour struggle despite trade perks. But honestly, without political stability, consistent policies, and better infrastructure, no trade deal can work wonders. Pakistan should look at Bangladesh's RMG sector growth—they did it with GSP and investment in worker skills.
M
Michael C
The 0.94% overall growth is basically flat. Meanwhile, India's exports to EU grew 12% in the same period. It's not about GSP—it's about competitiveness, logistics, and ease of doing business. Pakistan's exchange rate volatility and energy costs are destroying their export edge.

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