ISLAMABAD JULY 28: Despite having GSP+ status, which permits duty-free entrance into the majority of European markets, Pakistan’s exports to European nations decreased 3.12% in FY24, a development that seems to be of great worry to policymakers.
Pakistan’s exports to the European Union decreased to $8.240 billion in FY24 from $8.505 billion the year before, based on figures provided by the State Bank of Pakistan. Reduced demand for Pakistani commodities in western, southern, and northern Europe was the primary cause of the fall.
The European Parliament overwhelmingly decided in October 2023 to prolong the GSP+ status—which allows poor nations like Pakistan to enjoy duty-free or little tariff on European exports—for a further four years, until 2027.Exports to the EU fell 4.41 percent to $8.188 billion in FY23 from $8.566 billion in
Pakistan’s main export market to the EU is Western Europe, which comprises nations like Germany, the Netherlands, France, Italy, and Belgium.
On the other hand, exports to this area have dropped by 8.33 percent. In FY24, the export value was $3.983 billion, compared to $4.345 billion at the same time the previous year.
There is a bright spot in the shape of a surge in exports to Eastern Europe, even as exports to Western Europe decreased and saw a meager gain to Southern and Northern Europe. In FY24, exports totaled $629.762 million, up 6% from $560.09 million in the same months the previous year.
