Pakistan remained the largest beneficiary of the European Union’s Generalised Scheme of Preferences Plus (GSP+) in 2024, exporting €7.5 billion worth of GSP+-eligible goods while maintaining ratification of all 27 international conventions required under the trade scheme, according to the European Commission’s latest GSP+ report released on Thursday.
The report said the preferential arrangement saved Pakistani exporters an estimated €732 million in tariffs during 2024, with the EU accounting for 28 per cent of Pakistan’s total exports. It also noted that Pakistan continued to engage regularly with the bloc’s GSP+ monitoring mechanism, highlighting progress on a range of human rights, labour, governance and environmental reforms.
The GSP+ scheme grants Pakistan duty-free or reduced-duty access to the European Union for most exports in return for implementing and upholding 27 international conventions on human rights, labour rights, environmental protection, climate change and good governance.
The Commission also highlighted a series of institutional and legislative reforms undertaken by Pakistan. It noted that the National Commission for Human Rights had secured global “A” status, while legislation establishing the National Commission for Minorities marked an important step towards strengthening minority rights.
The report further acknowledged the implementation of rules under Pakistan’s anti-torture law, related training initiatives and prison reforms. It also recognised legislation aimed at enhancing the protection of women, tackling domestic violence and addressing child marriage.
In the area of labour rights, the Commission praised Pakistan’s efforts to strengthen workers’ protections, combat forced labour and eliminate child labour. It also cited progress on climate policy, carbon market guidelines, biodiversity initiatives, updated anti-narcotics legislation and the introduction of a digital case management system as positive developments.
Trade continued to be dominated by textiles and clothing, which accounted for roughly 70 to 76 per cent of Pakistan’s exports to the EU in 2024. Clothing alone recorded a GSP+ preference utilisation rate of 95.3 per cent, underscoring the country’s reliance on preferential access for labour-intensive exports.
The report warned, however, that Pakistan’s exports to the EU remain heavily concentrated in a handful of sectors, making trade performance vulnerable to shocks such as rising energy costs, compliance requirements and fluctuations in European demand.
Reaffirming its long-term engagement, the European Commission also reiterated its commitment to providing €400 million in development and reform support to Pakistan under the GSP+ framework, signalling continued cooperation on governance, human rights, labour standards and sustainable development.
