Pakistan’s export sector could face a major setback of up to $9 billion if it loses its GSP Plus trade status with the European Union. This special status allows Pakistani products to enter European markets without paying duties, making them more competitive internationally.
Business leaders have warned that duty-free access is especially important for key industries such as textiles, leather, and surgical instruments. These sectors rely heavily on exports to Europe and benefit greatly from lower trade costs under the GSP Plus arrangement.
The European Union is Pakistan’s largest trading partner and accounts for nearly one-third of the country’s total exports. Losing this status could lead to serious economic challenges.
Experts estimate that tariffs could increase by 10 to 12 percent, making Pakistani goods more expensive and less attractive to buyers in European markets.
As a result, export volumes may decline, directly affecting industries and businesses across the country. Millions of workers who depend on export-related jobs could also face uncertainty if demand decreases.
Industry representatives have stressed the importance of maintaining compliance with international standards and agreements linked to the GSP Plus program. They believe that meeting these requirements is essential to protect this valuable trade benefit.
Officials and business leaders are urging the government to take necessary steps to ensure continued eligibility. Protecting GSP Plus status is seen as crucial for sustaining export growth, supporting industries, and maintaining economic stability in Pakistan.
