EDITORIAL: Pakistan’s relationship with the European Union’s GSP+ scheme has acquired a familiar rhythm.
Every monitoring cycle produces fresh warnings over compliance with human rights commitments, every review raises concerns about the country’s continued eligibility, and every time Pakistan manages to retain the trade concessions after an anxious period of diplomatic engagement.
The latest report follows much the same pattern. The difference is that the stakes have become considerably higher for an economy that has far fewer alternatives than it did a decade ago.
There should be no misunderstanding about what is at risk.
Since joining the GSP+ arrangement in 2014, Pakistan has enjoyed preferential access to one of the world’s largest export markets. The latest figures underline its importance. Pakistan exported €7.5 billion worth of GSP+-eligible goods to the European Union in 2024, with tariff preferences estimated at €732 million. For an economy struggling to generate sufficient foreign exchange, those are not marginal benefits. They are among the pillars supporting the country’s fragile external sector.
That dependence has only intensified.
Pakistan’s export performance remains persistently disappointing despite years of promises to diversify products, improve competitiveness and expand into new markets. Remittances continue to shoulder a disproportionate share of the burden of financing the external account, while exports have repeatedly failed to grow at the pace required by an economy of more than 240 million people. Against that backdrop, losing preferential access to the European market would represent a severe economic setback that the country is ill-equipped to absorb.
The concerns raised by the European Union therefore deserve careful attention rather than reflexive dismissal.
The latest monitoring report points to issues relating to the rule of law, freedom of expression, enforced disappearances, judicial independence and accountability, while acknowledging progress in areas such as minority rights legislation, the Anti-Torture Act’s implementing rules and the continued moratorium on executions. Whether Islamabad agrees with every observation is almost secondary. The more immediate reality is that these assessments will shape future decisions on Pakistan’s continued participation in the revised GSP+ framework after 2027.
This is hardly the first time Pakistan has found itself at such a crossroads.
Every GSP+ review has involved difficult discussions over compliance with the international conventions that underpin the arrangement. That is inherent in the scheme itself. Preferential market access is not granted unconditionally. It rests upon commitments that participating countries voluntarily undertake when they choose to join. Once those commitments are accepted, fulfilling them becomes both a legal and an economic obligation.
There is also a broader lesson.
Pakistan cannot continue relying indefinitely on preferential trade arrangements while postponing the structural reforms needed to make its export sector globally competitive on its own merits. GSP+ has undoubtedly provided valuable support to exporters, particularly the textile industry, but preferential access was always intended as an opportunity rather than a permanent substitute for competitiveness. The country still needs to broaden its export base, improve productivity and reduce its overwhelming dependence on a handful of sectors and markets.
That long-term challenge, however, does not diminish the urgency of the immediate one.
The government should approach the latest EU observations with seriousness and sustained engagement. Where shortcomings genuinely exist, corrective action should follow. Where Pakistan believes progress has been overlooked, it should present its case through constructive diplomacy supported by credible evidence. Neither confrontation nor complacency serves the national interest.
Pakistan has successfully navigated previous GSP+ reviews, often after periods of considerable uncertainty. There is no guarantee that future reviews will prove equally accommodating. The revised framework due to take effect from 2027 is expected to place even greater emphasis on compliance and measurable outcomes.
The country’s economic circumstances leave little room for unnecessary risk. At a time when exports remain underwhelming, foreign investment subdued and remittances continue carrying an outsized share of the external burden, safeguarding preferential access to the European market should rank among the government’s highest economic priorities.
Copyright Business Recorder, 2026