ISLAMABAD: The European Union (EU) has warned that Pakistan’s continued access to the lucrative GSP+ trade scheme will depend on addressing a widening gap between legislative reforms and deteriorating human rights conditions, saying the country has regressed in several key areas despite enjoying record trade benefits.
According to the EU’s latest GSP+ monitoring report covering the 2023-2025 period, Pakistan remained the bloc’s largest beneficiary of the Special Incentive Arrangement for Sustainable Development and Good Governance, exporting EUR 7.5 billion worth of GSP.
European Union (EU) on Thursday pointed out “issues” in Pakistan’s fulfillment of its responsibilities vis-a-vis the Generalised System of Preferences Plus (GSP+) scheme and stressed that it will be up to Islamabad to rectify those problems to continue qualifying under the new GSP arrangement.
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Pakistan has “been facing compliance issues with its GSP+ obligations and has regressed in some areas while positive change has been limited. Significant concerns remained, generally impacting the rule of law and civil society space. Enforced disappearances and extrajudicial killings increased, without accountability for perpetrators.
Freedom of expression deteriorated due to further amendments to cybercrime, anti-terrorism, and blasphemy laws, allowing for vague provisions to be used against dissidents, human rights defenders, journalists, minorities, and ordinary citizens. This includes criminal and administrative procedures that may result in imprisonment, financial confiscation, or denial of travel abroad.
Looking ahead, Pakistan’s continued access to the preferential trade benefits under the EU’s GSP+ scheme will depend on tangible progress in addressing the issues the European Union has identified as areas of concern.
According to the Report, “To ensure further GSP+ eligibility and compliance with international commitments, including in view of the revised GSP rules as of 2027, key priorities for future engagement include: accountability for human rights violations; more effort to counter torture, both in prisons and capital punishment; reversing negative developments in terms of enforced disappearances and freedom of expression”.
Pakistan has benefited from the EU’s Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) since 2014, remaining its largest beneficiary with EUR 7.5 billion in GSP+ eligible exports to the EU in 2024 (primarily textiles and clothing) and an estimated EUR 732 million in tariff exemptions in 2024 alone.
Despite this trade success, economic fragility persisted, exacerbated by climate vulnerabilities and negative political developments. During the 2023-2025 monitoring period, Pakistan has been facing compliance issues with its GSP+ obligations.
Notable progress included legislation to create a National Commission for Minorities, a reduction in the scope of the death penalty, the continuation of the de facto moratorium on executions, and the adoption of implementing rules of the Anti-Torture Act. Other legislative advances include a Domestic Violence Bill for Islamabad.
Recent constitutional amendments have been criticised for further undermining judicial independence. This compounds with issues like obstacles to fair trial and access to justice. Forced labour continued to affect too many. To ensure further GSP+ eligibility and compliance with international commitments, including in view of the revised GSP rules as of 2027, key priorities for future engagement include: ensuring accountability for human rights violations; increased efforts against torture; in-prison and capital punishment reforms; reversing negative developments in relation to enforced disappearances and violations of freedom of expression.
Pakistan’s fragile political structure, including the complex federal set-up and imbalances between provinces, as well as the role of the military in politics and the economy, created a significant challenge to the country’s development, as did escalating security concerns stemming from domestic militancy, terrorism, as well as conflict with neighbouring countries.
Pakistan was involved in a brief but intense military conflict with India in May 2025. Relations with Afghanistan have been very tense since October 2025, leading to the closure of the border between the two countries, occurrences of terrorist attacks originating from Afghan soil, and Pakistani airstrikes into Afghan territory.
Pakistan avoided a debt default in July 2023 after facing severe pressure on external payments, minimal foreign exchange reserves, import restrictions, record-high inflation, and negligible growth.
Copyright Business Recorder, 2026