Pakistan exports to EU states fall despite GSP+ status
Newswire
Islamabad: Pakistan’s exports to European countries have begun to dip in the current fiscal year despite a GSP+ status that allows duty-free entrance into European markets for the majority of its products.
In absolute terms, Pakistan’s exports to European countries dipped year-on-year by 6.89 per cent in the first eight months of the current fiscal year to $5.411 billion from $5.812bn in the corresponding period last year.
The decline was mainly due to reduced demand for Pakistani goods in western, southern and northern Europe, according to figures compiled by the State Bank of Pakistan.
In FY23, exports to the EU dropped 4.41pc to $8.188bn from $8.566bn in the preceding fiscal year.
In October 2023, the European Parliament unanimously voted to extend the GSP+ status for another four years until 2027 for developing countries, including Pakistan, to enjoy duty-free or minimum duty on exports to the European market.
Western Europe, which includes countries such as Germany, the Netherlands, France, Italy and Belgium, accounts for the largest portion of Pakistan’s exports to the EU.
However, there has been a significant decrease of 13.2pc in exports to this region. The export value stood at $2.609bn in the first eight months of FY24, down from $3.006bn during the same period last year.
While exports to western, southern and northern Europe have seen a decline, there is a silver lining in the form of an uptick in exports to Eastern Europe. The exports saw an increase of 8.2pc to $407.6m in 8MFY24 against $376.68m over the corresponding months of last year.
Exports to southern Europe saw a paltry decline of 1.1pc to $1.971bn in 8MFY24 from $1.993bn over the corresponding period of last year.
In this region, exports to Spain grew 4.66pc to $966.95m in 8MFY24 from $923.85m over the last year. Exports to Italy declined 3.36pc to $733.79m in 8MFY24 against $759.36m in the same period last year.
However, exports to northern Europe have not done well, recording a 3.04pc dip. The export value to this region stood at $423.732m, down from $437.03m in the corresponding period last year.
