Pakistan’s trade profile stands at a critical juncture. More than 55 percent of the country’s exports come from textiles, and over 80 percent of these are destined for just three markets: the EU, UK, and the US.

Together, these buyers dominate global textile demand of USD 795.4 billion, with the US alone accounting for around 15 percent (second only to the EU27).

Pakistan’s reliance on these markets reflects both their size as buyers and the advantages of unilateral preferences such as GSP , reinforced by long-established commercial ties.

But the ground is shifting. The US is increasingly resorting to tariff and non-tariff measures, while the EU is tightening requirements on supply chain traceability and sustainability. Buying decisions are no longer shaped by historic relationships but by what has effectively become a “license to sell.”

This shift means Pakistan’s traditional anchors — preferential access in the EU and established relations with the US - can no longer guarantee sustainable market access. Instead, future survival will depend on three verticals: compliance, customization, and competitiveness.

By 2027, the EU’s Digital Product Passport (DPP) will be fully enforced. US tariffs are already in place. And production costs at home remain exceptionally high due to energy prices. The next 12 months will be decisive, determining whether Pakistan can put its export sector on a path to resilience or let it sink under the weight of inaction and global shifts it has failed to prepare for.

Compliance — the license to sell:

Meeting international standards should not be seen as a barrier but as an upfront investment in sustaining exports. The shift the world will increasingly witness is in their evolving enforcement, moving from a WTO-led multilateral framework to region-specific, buyer-driven requirements.

As a GSP beneficiary, Pakistan has ratified 27 UN conventions and achieved export growth, but progress on human and labour rights continues to raise EU concerns. In any case, the scheme is no longer an ‘easy window’ into Europe, as compliance is now embedded directly into export requirements. With new........

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