Steady Gains Across Key European Markets
Pakistan’s exports to the European Union reached $4.638 billion in the first half of the 2025-26 fiscal year (July–December), reflecting a 4.5% increase over the same period last year, when exports totaled $4.438 billion. The GSP Plus status has played a strategic role, enhancing the competitiveness and market access of Pakistani products across Southern and Eastern Europe.
Exports to Southern Europe rose by over 9%, with Spain and Italy recording increases of 11.35% and 7.51%, respectively. In Eastern Europe, Pakistan’s market presence expanded by more than 10%, while Northern Europe saw steady growth of around 5%. Western Europe, including Germany, France, and the Netherlands, remains Pakistan’s largest export destination, maintaining a critical position in the country’s European trade portfolio.
Strategic Diversification Amid Regional Competition
Recent trade agreements between India and the EU have heightened competition, particularly in the textile sector. Nonetheless, the federal government remains committed to consolidating trade relations under the GSP Plus framework. Minister of Foreign Affairs Ishaq Dar recently emphasized that Pakistan has successfully completed all GSP Plus reviews, demonstrating adherence to international standards and obligations.
Experts note that while exports to the United Kingdom have seen a slight dip, strong demand from other EU states has supported overall export volumes. Pakistan’s economic strategy now focuses on diversifying markets further to establish the country as a resilient and influential trade partner globally.
