Exports to Europe dip in FY24 despite GSP+

In what appears to be a big concern for policymakers, Pakistan’s exports to European countries fell 3.12 per cent in FY24 despite its GSP+ status, which allows duty-free entry into most European markets. In absolute terms, Pakistan’s exports to the EU dipped to $8.240bn in FY24 from $8.505bn in the preceding year, according to data compiled by the State Bank of Pakistan. The decline was mainly due to reduced demand for Pakistani goods in western, southern, and northern Europe. In October 2023, the European Parliament unanimously voted to extend the GSP+ status for another four years until 2027 for developing countries, including Pakistan, to enjoy duty-free or minimum duty on European exports.