The European Union (EU) is Pakistan’s largest export destination, accounting for roughly 28% of the country’s total exports—equivalent to around $9 billion annually in recent years.

This strong trade relationship is largely supported by Pakistan’s preferential access under the Generalized Scheme of Preferences Plus (GSP ), which allows duty-free or reduced-tariff entry on nearly two-thirds of product categories. Since the introduction of GSP in 2014, Pakistan’s exports to the EU have grown by approximately 60%, reflecting the effectiveness of this arrangement in enhancing trade competitiveness. The export portfolio remains heavily concentrated in textiles, which constitute over 75% of Pakistan’s exports to the EU, underlining the sector’s pivotal role. Key markets within the EU include Germany, the Netherlands, Spain and Italy, making the bloc not only a major consumer base but also a reliable, high-value trading partner that contributes........

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