Pakistan’s Uphill Fight to Keep GSP+ Benefits

Islamabad is in the thick of a delicate dance with Brussels over the future of its coveted GSP+ trade preferences. The current EU Generalised Scheme of Preferences (GSP+) is set to expire at the end of 2026, and Pakistan must re‑apply for the next, more demanding regime.

Raimundas Karoblis, the EU ambassador to Pakistan, made it clear in a recent interview: “The government will need to take steps towards improving the situation, which will also be very important in the re‑application process. The situation is not certain, and, of course, GSP+ preferences cannot be taken for granted.” In other words, the EU isn’t going to roll the benefits over automatically.

While a two‑year transition period runs until 31 December 2028, during which existing beneficiaries will still enjoy tariff cuts, the period is not a safety net. The EU could pull the plug if it feels Pakistan is not living up to the convention’s standards.

The latest European Commission assessment – covering 2023‑25 and published in July – painted a mixed picture. It acknowledged that Pakistan has introduced some legislative and administrative reforms, but it also flagged regression in several areas and limited on‑the‑ground impact. Serious concerns were listed: enforced disappearances, extrajudicial killings, attacks on journalists, minority rights, judicial independence, access to justice, and forced labour.

“There are areas of regression, and of course, this means that the government needs to address them,” Karoblis added, emphasizing that the same standards apply both to the current GSP+ framework and to any future re‑application.

Pakistani officials, meanwhile, seem to be walking a tightrope. Outgoing foreign office spokesperson Tahir Andrabi thanked the EU for recognising Pakistan’s continued compliance with 27 international conventions, but he argued the Commission’s report “did not present a sufficiently balanced picture of Pakistan’s performance.” He reiterated that GSP+ remains central to the country’s economic relationship with the EU and pledged “constructive engagement” and “effective implementation” of the relevant conventions.

When Dawn reached out to the ministries of information, law and commerce for a broader view, no response came. The silence leaves us wondering how coordinated the government’s strategy really is.

Pakistan faces a two‑pronged challenge. First, it must convince the EU that it still qualifies for the new, stricter scheme. Second, it must halt – and ideally reverse – the backsliding highlighted in the commission’s report, lest it jeopardise even the temporary benefits it enjoys during the transition.

The stakes are high. Since 2014, Pakistan has been the EU’s biggest GSP+ beneficiary. In 2024 alone, the country enjoyed almost €732 million in tariff exemptions, and €7.115 billion worth of exports accessed the preferential market. That represented roughly €7.482 billion of the total €8.275 billion exported to the EU – about 28 % of Pakistan’s total export basket, and nearly 90 % of what went to Europe.

The textile and clothing sector is the biggest beneficiary, accounting for roughly 70‑76 % of Pakistan’s EU shipments. Lose the preferences, and Pakistani garments could suddenly become less competitive in one of their most vital markets.

In short, the EU’s warning is not just a diplomatic nicety. It’s a reality check for Islamabad: the GSP+ lifeline is under scrutiny, and any further misstep could mean a steep economic blow, especially for the millions of workers dependent on the textile industry.