Exports to Europe fall despite GSP+
Pakistan’s exports to European countries declined 6.27 per cent in the first nine months of the current fiscal year. Exports to the European Union states have begun to dip in the current fiscal year despite a GSP+ status that allows most Pakistani goods a duty-free entrance into European markets. 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 Europe. In absolute terms, Pakistan’s exports to the EU dipped to $6.105bn in 9MFY24 from $6.27bn in the corresponding months of last year. According to figures 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 FY23, exports to the EU dropped 4.41pc to $8.188bn from $8.566bn in the preceding fiscal year. Western Europe, which includes countries such as Germany, the Netherlands, France, Italy and Belgium, accounts for the largest portion of Pakistan’s exports to the EU.