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 by 1.12pc to $435.085m in 7MFY26, from $439.998m in the same period last year.

However, there is a slight increase in exports to eastern and southern Europe.

Exports to southern Europe increased by 7.21pc to $1.920bn in 7MFY26, up from $1.791bn in the same period last year. Within this region, exports to Spain rose 8.93pc to $933.85m in 7MFY26, from $857.27m a year ago.

Exports to Italy increased 5.02pc to $698.33m in 7MFY26 compared to $664.96m in the same period last year. Exports to Greece recorded an 8.45pc decline to $74.71m, down from $81.61m in the previous year.

However, exports to Eastern Europe increased by 7.59pc to $459.293m in 7MFY26 from $426.885m in the same period last year.

Before Brexit, Pakistan’s major export destination was the United Kingdom. In the post-Brexit period, Pakistan’s exports to the UK slightly decreased to $1.272bn in 7MFY26 from $1.273bn over the corresponding period last year, a decline of 0.07pc.

In FY25, Pakistan’s exports to the UK increased by 7.19pc to $2.160bn from $2.015bn in the preceding year.

Pakistan’s exports to western Europe slightly declined by 3.14pc to $2.622bn in 7MFY26, from $2.707bn last year.

Exports to Germany dipped 1.76pc to $987.30m in 7MFY26 from $1.005bn. Similarly, exports to the Netherlands, the second-largest market for Pakistani goods, fell by 1.82pc to $866.05m in 7MFY26 from $882.08m over the corresponding period last year.

Exports to France fell by 2.89pc to $320.21m in 7MFY26 from $329.76m, followed by a 3.29pc decline to Belgium’s $332.77m against $344.12m.

Published in Dawn, March 10th, 2026

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