Pakistan Faces EU Review of Trade Access

Pakistan’s leadership faces difficult decisions as the European Union evaluates its eligibility for continued GSP-Plus market access. Brussels assessed Pakistan’s progress and requires further reforms to maintain the preferential trade arrangement. Islamabad must submit a detailed action plan and reapply for GSP-Plus by the end of 2028, with the July 16 assessment serving as the benchmark.

The EU’s new trade rules, effective January 2027, shift from monitoring to a reapplication process. At stake are approximately €7.5 billion in annual exports and €730 million in tariff exemptions, crucial for Pakistan’s textile industry and employment. The requested reforms aren’t new demands, but obligations Pakistan accepted to qualify for the GSP-Plus scheme and align with domestic goals for stability and prosperity.

The EU report acknowledged Pakistan’s advancements in areas like narrowing the scope of the death penalty, enacting laws against child marriage and domestic violence, and ratifying the ILO forced-labour protocol. The government now has over two years to demonstrate commitment and treat the reapplication as an opportunity to accelerate long-promised reforms, fostering both economic growth and societal progress.