Business & Finance Print edition: 2026-02-10

Dar says committed to meeting GSP Plus obligations

Published February 10, 2026 Updated February 10, 2026 05:50am

3 min

By Fida Hussain

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ISLAMABAD: Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar reaffirmed Pakistan’s commitment to fulfilling all obligations necessary to expand trade with the European Union (EU) under the GSP Plus scheme.

Ishaq Dar said this at a high-level inter-ministerial meeting held here on Monday to review measures aimed at strengthening Pakistan’s economic and trade cooperation with the bloc. He highlighted that Pakistan has successfully completed four biennial GSP Plus reviews and reaffirmed Pakistan’s commitment to fulfilling its obligations under the scheme to expand mutually beneficial trade opportunities.

According to an official statement, the Deputy Prime Minister underscored the importance of deepening and expanding trade and economic engagement with the EU, noting that the EU remains a key economic partner for Pakistan, particularly under the GSP Plus framework.

The meeting was attended by Federal Minister for Law & Justice, SAPM Tariq Bajwa, Secretary Foreign Affairs Amna Baloch, the Secretaries of Commerce, Interior, Overseas Pakistanis and Human Rights, Pakistan’s Ambassador to the EU, along with senior officials from relevant federal and provincial departments.

Pakistan has intensified efforts to explore new avenues for economic engagement with the EU while also seeking an extension of the “crucial” GSP Plus scheme, following the finalization of what has been described as a landmark trade agreement between India and the bloc.

A similar meeting, chaired by Ishaq Dar, was also held on January 30, during which participants were briefed on the potential impact on Pakistan’s exports to EU markets if tariff-free access is granted to India, as the New Delhi–EU deal has yet to be endorsed by the European Parliament.

The meetings are seen as part of a broader diplomatic and policy push after India and the EU concluded talks and finalised the free trade deal, granting Indian exporters sweeping tariff-free access to Europe. Pakistani exporters warn that it could erode Pakistan’s competitiveness, particularly in textiles, the largest export sector.

Pakistan’s exports to the European Union (EU) exceeded USD9 billion in 2024–2025, with the EU as a top, critical market accounting for nearly 24-29 percent of Pakistan’s total global exports.

According to an official of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the GSP Plus status allows Pakistan a duty-free access for nearly 80 percent of its exports to the EU, the country’s textile exports stand at USD6.2 billion, marginally ahead of India’s USD5.6bn exports even though the latter faces a 12 percent tariff. He said that once India secures zero-rated access under the trade deal, Pakistan’s advantage will vanish and our exports could suffer a severe blow.

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