Pakistan leads EU GSP+ exports, reforms remain crucial

Pakistan has emerged as the largest beneficiary of the European Union’s Generalised Scheme of Preferences Plus (GSP+) programme, recording exports worth €7.1 billion to EU countries in 2024 under preferential tariff arrangements. The latest report on the GSP+ scheme shows that Pakistan also achieved an impressive utilisation rate of more than 95 percent, reflecting its strong use of the trade incentives offered by the European Union.

The GSP+ programme grants developing countries reduced or zero-duty access to European markets. In return, participating countries are expected to implement international conventions related to human rights, labour rights, environmental protection and good governance. The programme has become an important driver of Pakistan’s exports, particularly in the textile and manufacturing sectors.

According to the report, Pakistan outperformed all other GSP+ beneficiary countries in export value. Nations such as the Philippines and Sri Lanka also benefited from the scheme, but their exports remained below Pakistan’s level.

The report acknowledged several positive developments made by Pakistan during the review period. It highlighted legislative reforms aimed at reducing the use of the death penalty and the implementation of rules under the Anti-Torture Act. Provincial governments also introduced child marriage restraint laws to improve legal protections for children and vulnerable communities.

Progress was also recorded in the labour sector. Pakistan ratified the International Labour Organization’s protocol on forced labour and introduced initiatives designed to move workers from the informal economy into formal employment. These measures are intended to improve working conditions and strengthen compliance with international labour standards.

The report further recognised Pakistan’s efforts to improve transparency and strengthen anti-corruption policies through updated governance measures.

Despite these achievements, the report pointed to several areas where further progress is required. It expressed concerns over judicial independence, accountability for human rights violations and restrictions affecting freedom of expression and media. It also noted that reports of torture and weak enforcement of existing legal protections remain important challenges.

Labour rights continue to require greater attention. Child labour and forced labour remain present in parts of the agriculture sector and the informal economy. Labour inspection departments also face shortages of staff and resources, limiting their ability to enforce workplace regulations effectively.

Environmental governance was identified as another area needing improvement. The report stated that limited institutional capacity has slowed Pakistan’s progress in meeting climate commitments and implementing stronger environmental safeguards.