Exports to EU states fall despite GSP+ status

Pakistan’s exports to European countries have begun to dip in the current fiscal year despite a GSP+ status that allows duty-free entrance into European markets for the majority of its products. In absolute terms, Pakistan’s exports to European countries dipped year-on-year by 6.89 per cent in the first eight months of the current fiscal year to $5.411 billion from $5.812bn in the corresponding period last year. The decline was mainly due to reduced demand for Pakistani goods in western, southern and northern Europe, according to figures compiled by the State Bank of Pakistan. In FY23, exports to the EU dropped 4.41pc to $8.188bn from $8.566bn in the preceding fiscal year. 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 exports to the European market.