Despite GSP+ status, Pakistan exports to EU decline
Celina Ali
Islamabad: Pakistan’s exports to European Union underwent a discernible downturn, marking a decline of 6.27 percent during the initial nine months of the ongoing fiscal year.
Despite the coveted GSP+ status, which affords most Pakistani exports duty-free access to European markets, the allure of European destinations seemed to wane. The European Parliament’s unanimous decision in October 2023 to extend the GSP+ privilege for an additional four years offered a glimmer of hope, yet the reality painted a different picture.
Figures compiled by the State Bank of Pakistan painted a sobering picture: a decline in exports from $6.27 billion to $6.105 billion in the corresponding months, attributing the slump primarily to diminished demand across western, southern, and northern Europe.
The decline in exports to Western Europe, comprising economic powerhouses like Germany, the Netherlands, and France, was particularly stark, plunging by 12 percent. This region, traditionally a bastion of Pakistani exports, witnessed a notable contraction from $3.353 billion to $2.947 billion in the initial nine months of FY24.
Amidst this gloomy panorama, a glimmer of optimism emerged from Eastern Europe, where exports surged by 8.38 percent, signaling a potential shift in trade dynamics.
Southern Europe, although experiencing a marginal decline, showcased pockets of resilience, with exports to Spain witnessing a modest uptick of 3.73 percent. Conversely, exports to Italy tapered off by 3.22 percent, reflecting the nuanced landscape of regional trade dynamics.
Meanwhile, in the aftermath of Brexit, the United Kingdom, once a cornerstone of Pakistan’s export portfolio, witnessed a modest uptick of 2.34 percent, offering a semblance of stability amidst the tumultuous post-Brexit landscape.
Assurances from the British government regarding the continuity of preferential market access schemes provided a modicum of reassurance amidst the uncertainty, underscoring the delicate dance of diplomacy and economic pragmatism in an ever-evolving global landscape.
