EU trade benefits at risk over Pakistan’s human rights record

EU trade benefits at risk over Pakistan’s human rights record

Pakistan’s preferential trade access to the European Union (EU) could face uncertainty due to growing concerns over the country’s human rights situation, National Assembly Standing Committee on Finance Chairman Syed Naveed Qamar warned on Tuesday. However, the government maintained that Pakistan faced no immediate threat to its GSP+ status.

The committee also expressed frustration over the failure of another trader registration scheme. The government announced plans to take enforcement action against traders who did not join the scheme, sparing the 222 participants, subject to approval from Prime Minister Shehbaz Sharif.

“We are getting signals that the GSP+ status is in the doldrums because of human rights issues,” Qamar, a former finance and commerce minister, told the committee during its meeting.

Although he did not identify the specific concerns behind the warning, the EU’s latest monitoring report on the Generalised Scheme of Preferences Plus (GSP+) highlighted several shortcomings in Pakistan. These included human rights violations, weaknesses in the judicial system and restrictions on freedom of expression.

The current GSP+ arrangement will remain in place until December 2028. Minister of State for Finance and Revenue Bilal Kayani informed the committee that a deputy prime minister-led body was preparing Pakistan’s application for the next scheme, which is expected to begin in January 2029.

Pakistan remains the largest beneficiary of the EU’s GSP+ trade arrangement. According to the bloc’s fifth monitoring report, Pakistan exported goods worth €7.5 billion to EU member states in 2024 under preferential tariffs. The report assessed the implementation of 27 international conventions in countries benefiting from the scheme.

Maintaining this preferential access is particularly important for Pakistan, as the country continues to struggle to achieve substantial export growth despite years of government support, tax concessions and other incentives for exporters.

The EU report urged Pakistan to address worsening trends involving enforced disappearances and restrictions on freedom of expression. It also called for amendments or repeal of laws concerning blasphemy, cybercrime, including PECA, defamation, counterterrorism and sedition.

Under the revised GSP framework scheduled to take effect in 2027, the EU has identified several priorities for future engagement with Pakistan. These include accountability for human rights violations, stronger action against torture, reforms in prisons and capital punishment, and measures to reverse the growing problem of enforced disappearances and restrictions on freedom of expression.