ISLAMABAD: Pakistan’s status under the Generalized Scheme of Preferences Plus (GSP+), which makes the European Union its largest export market, led by Germany, is up for renewal ahead of the new framework launching in 2028. Following a monitoring visit last winter, the EU published a report in July outlining key compliance areas Pakistan must address, German Ambassador to Pakistan Ina Lepel stated at a meet-the-press programme here on Monday.
Beneficiary countries must reapply, and officials hope Pakistan will complete the necessary work convincingly to retain its preferential trade status.
Germany supports Pakistan’s ongoing IMF program on merit, noting positive signs of Pakistan’s economic resilience following recent shocks. German Ambassador expressed hope that the government’s momentum on IMF-mandated structural reforms will persist as the program moves forward.
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Bilateral trade between Germany and Pakistan has stagnated at roughly €3.5 billion since 2017, showing minimal growth despite a historical economic relationship that dates back to 1959, when Pakistan became the first nation to sign an investment protection agreement with Germany, she said.
However, the German ambassador highlighted renewed corporate interest driven by a global push to diversify supply chains. Pointing to Pakistan’s large consumer market and strategic location, she noted key steps to boost ties—including an upcoming German-Pakistan business forum and a newly established Pakistan Desk at the German-Emirati Joint Chamber of Commerce in Dubai to facilitate cross-border deals.
She said the number of Pakistani students pursuing higher education in Germany has more than doubled over the past decade, surging from 6,000 in 2017 to 13,000 today. German officials attribute the influx primarily to the country’s tuition-free public university system, which functions as a de facto scholarship for international students who only need to cover living expenses. Supported by a close partnership between the German Academic Exchange Service (DAAD) and Pakistan’s Higher Education Commission, academic and skilled labor mobility between the two nations continues to experience steady growth, she added.
Copyright Business Recorder, 2026