Pakistan Must Meet Stricter EU Terms to Keep GSP+ Trade Access After 2028
Pakistan's GSP+ status runs until December 31, 2028, but the EU's revised framework means Islamabad must reapply for continued benefits, with €7.5 billion in exports and €732 million in tariff savings at stake.
Pakistan's current Generalized System of Preferences Plus (GSP+) status will remain valid until December 31, 2028, Minister of State for Finance Bilal Azhar Kayani informed the National Assembly Standing Committee on Finance on Tuesday, as lawmakers voiced concern about the country's longer-term access to European markets.
Committee Chairman Syed Naveed Qamar described the programme's future as uncertain and called for concrete improvements to protect Pakistan's preferential trade position. Kayani said Prime Minister Shehbaz Sharif is holding regular meetings aimed at ensuring the necessary reforms and preserving the country's standing under the scheme.
Pakistan has benefited from GSP+ since 2014, which allows eligible exports, especially textiles and clothing, to enter the European Union at reduced or zero tariffs. Under the EU's revised GSP framework approved in 2026, however, Pakistan will have to apply afresh for continued GSP+ benefits beyond the 2028 deadline rather than relying automatically on its existing beneficiary status.
The Pakistan Textile Council has urged the Prime Minister to coordinate federal and provincial efforts to meet the EU's conditions, which include commitments on human rights, labour rights, environmental protection and the rule of law. Compliance in these areas is central to qualifying for the preferential arrangement.
The economic stakes are considerable. According to the EU's 2026 assessment, Pakistan exported €7.5 billion worth of GSP+-eligible goods to the bloc in 2024 and received an estimated €732 million in tariff exemptions. Those savings directly support the competitiveness of Pakistan's textile and garment exporters in one of their largest overseas markets.
With the 2028 expiry approaching, officials and industry representatives are expected to focus on demonstrating measurable progress on the EU's governance and sustainability criteria. Failure to secure renewed benefits could raise costs for exporters and weigh on the country's trade earnings.
