Paltry growth in exports to EU

ISLAMABAD: Pakistan’s exports to European countries experienced a modest year-on-year growth of 1.32 per cent in the first seven months of 2025-26, mainly due to increased shipments to southern and eastern European nations.

Official data showed that, in absolute terms, export earnings from the European Union increased to $5.436 billion in July-January, up from $5.365bn during the same period last year, according to figures compiled by the State Bank of Pakistan.

In FY25, exports to the EU increased by 7.44pc to $8.863bn, up from $8.249bn in the preceding fiscal year. In FY24, exports declined by 3.12pc to $8.240bn despite its GSP status, which allows duty-free entry into most European markets.

Western Europe, which includes countries like Germany, the Netherlands, France, Italy, and Belgium, accounts for the largest share of Pakistan’s exports to the EU. Exports to this region decreased marginally by 3.14pc to $2.622bn in 7MFY26, from $2.707bn in FY25.

There will be a greater challenge for exporters to retain market share following the ongoing conflict in the Middle East, coupled with rising input costs in the country. Exports to northern Europe also slightly declined........

© Dawn Business