The European Union has urged Pakistan to prioritise the effective implementation of its existing international commitments rather than focusing primarily on passing new legislation to retain benefits under the Generalised Scheme of Preferences Plus (GSP+) trade arrangement. EU Ambassador to Pakistan Raimundas Karoblis said the bloc was not introducing new standards under the scheme but expected demonstrable improvements in areas of concern, particularly human rights and the rule of law. Speaking at a meeting with the Pakistan Textile Council (PTC) in Karachi, he stressed that Pakistan would need to show measurable progress as the EU prepares to introduce its revised Generalised Scheme of Preferences framework from January 1, 2027.
The GSP+ arrangement allows eligible developing countries, including Pakistan, to export a wide range of products to the European market at zero or reduced tariffs in exchange for implementing international conventions covering human rights, labour rights, environmental protection and good governance. Pakistan has benefited from the arrangement since 2014, with textiles and clothing accounting for a substantial share of its exports to the bloc. The continuation of preferential access is therefore important for the country’s export earnings, industrial activity and employment. Under the transitional arrangements for the EU’s new GSP framework, existing beneficiaries will be required to reapply by the end of 2028.
Pakistan’s exports to the European Union reportedly reached $8.96 billion in fiscal year 2025-26. The sectors benefiting most from GSP+ preferences include textiles and clothing, leather and fur articles, prepared foods and beverages, and miscellaneous manufactured goods. The EU’s monitoring report covering 2023-2025 also identified Pakistan as the bloc’s largest beneficiary of the Special Incentive Arrangement for Sustainable Development and Good Governance. According to the report, Pakistan exported €7.5 billion in GSP+-eligible goods to the EU in 2024, primarily textiles and clothing, while the estimated value of tariff exemptions reached €732 million that year. These figures underline the economic significance of maintaining preferential access to the European market.
Karoblis said the EU intended to strengthen engagement with the Pakistani government, beginning with immediate, short-term improvements and followed by a credible action plan. The plan is expected to include concrete measures, clear timelines and measurable performance indicators. According to a statement issued by the PTC, the revised framework places greater emphasis on how effectively countries implement their commitments rather than simply ratifying international conventions or adopting related legislation. The EU’s assessment of Pakistan for the 2023-2025 period, published on July 16, 2026, was also discussed during the meeting, with the ambassador highlighting the need for progress on human rights and the rule of law.
The EU’s identified priorities cover several areas of governance and fundamental rights. These include ensuring accountability for human rights violations, strengthening efforts against torture, and advancing reforms related to prisons and capital punishment. The monitoring priorities also include addressing negative developments concerning enforced disappearances and freedom of expression, tackling violence against women, improving children’s access to education and ending child marriage. Pakistan is also expected to implement provincial and territorial action plans aimed at eliminating child labour and strengthen enforcement of existing laws against forced labour. Further priorities include reducing discrimination against minorities and strengthening the independence, impartiality and operational capacity of anti-corruption bodies at both federal and provincial levels.
PTC Chairman Fawad Anwar told the meeting that continuation of GSP+ status was critical for Pakistan’s textile and apparel exports, employment, tax contributions and the wider network of businesses and livelihoods connected to the sector. He also highlighted the competitive pressure Pakistani exporters could face from the EU-India Free Trade Agreement. The agreement is expected to support greater trade liberalisation between India and the European Union’s 27 member states, potentially creating additional competition for Pakistani suppliers even if Pakistan retains its existing GSP+ preferences. For an export sector that depends heavily on access to international markets, changes in relative tariff treatment could affect pricing and competitiveness.
Zaki Bashir, chief executive of Gul Ahmed, argued that conditions within Pakistan’s textile and apparel export sector should be assessed separately from national-level findings. He noted that the concerns raised in the assessment related to national conditions rather than being specific to the textile industry. His comments highlighted the industry’s interest in ensuring that assessments and compliance expectations take account of sector-specific circumstances while recognizing the broader commitments Pakistan must meet under the scheme.
PTC Chief Executive Hasan Shafqaat also called for greater clarity and proportionate implementation of emerging EU regulatory requirements, particularly the Digital Product Passport and supply chain due diligence obligations. These requirements could extend transparency and traceability expectations across the entire production chain, potentially reaching back to the farm level. For textile and apparel manufacturers, meeting such obligations may require improved record-keeping, supplier verification and the ability to demonstrate where materials originate and how they move through production. Clear guidance and sufficient preparation time will be important for businesses adapting to these requirements.
The PTC delegation attending the meeting was led by Fawad Anwar and included Vice Chairman Anees Khawaja, Zaki Bashir of Gul Ahmed, Kashif Chawla of Alkaram Towels, Asif Riaz of Naveena Group, Siddique Bhatti of US Apparel, Haris Khan of Utopia Industries, Ahmed Javed of AGI Denim, Junaid, General Manager Finance at Utopia Industries, and Muhammad Hasan Shafqaat, chief executive of the PTC.
The discussions reflect the importance of both regulatory compliance and export competitiveness as Pakistan prepares for the next phase of GSP+. The EU’s message centres on demonstrating that existing commitments are being implemented effectively, with progress supported by practical actions and measurable outcomes. For Pakistan, continued preferential access could support textile exports and employment, but the country will also need to address the concerns identified in the EU’s monitoring process. At the same time, exporters face the challenge of preparing for new product-traceability and supply-chain requirements while competing with suppliers from other countries seeking greater access to the European market.
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