Pakistan remained the largest beneficiary of the European Union’s GSP Plus trade scheme, with exports worth €7.5 billion receiving preferential market access in 2024, according to the European Commission’s latest monitoring report.
The report said tariff concessions under the Generalised Scheme of Preferences Plus saved Pakistani exporters an estimated €732 million during the year.
Pakistan’s utilisation rate of available GSP Plus concessions rose to 95.1%, indicating that exporters used nearly all the preferential access available to eligible products.
The European Union imported about 28% of Pakistan’s total exports in 2024, highlighting the bloc’s importance as one of the country’s largest export markets.
Pakistani clothing, textiles, leather goods, prepared food products and other exports were among the main beneficiaries of reduced or zero tariffs under the arrangement.
GSP Plus gives eligible developing countries preferential access to the European market in return for implementing international conventions covering human rights, labour rights, environmental protection and good governance.
The European Commission said Pakistan had maintained its ratification of all 27 international conventions required under the scheme and continued regular cooperation with the EU’s monitoring process.
The report noted several institutional and legislative developments in Pakistan while also assessing the country’s implementation of its international commitments.
It described the National Commission for Human Rights securing global “A status” as a major institutional development. The status recognises national human rights bodies that meet international standards relating to independence, mandate and performance.
The report also identified legislation for the establishment of a National Commission for Minorities as an important step towards strengthening the protection of minority communities.
Progress in implementing rules under legislation against torture and custodial violence, training relevant officials and introducing prison reforms was also acknowledged.
The European Commission noted legislative measures related to women’s protection, domestic violence and child marriage as significant developments.
It also recognised steps concerning workers’ rights, the elimination of forced labour and efforts to prevent child labour.
Pakistan’s environmental measures, including its climate policy, carbon market guidelines and biodiversity protection initiatives, were also acknowledged in the assessment.
The report identified new anti-narcotics legislation and the introduction of a digital case-management system as positive developments in governance and law enforcement.
Pakistan has benefited from GSP Plus since 2014. The scheme grants reduced or zero tariffs on a large range of eligible goods but requires beneficiaries to demonstrate continued progress in implementing international conventions.
The European Commission regularly monitors GSP Plus beneficiaries and reports on their compliance with the conventions linked to the arrangement.
The EU has also reiterated its commitment to providing Pakistan with €400 million in development and reform cooperation.
The funding is intended to support economic development, governance reforms, environmental sustainability and other areas of cooperation between Pakistan and the European Union.
The European Commission’s trade information describes Pakistan as the largest GSP Plus beneficiary and the EU as a major destination for Pakistani exports.
Reporter Ahmed Mansoor