Pakistan Faces Possible Loss of Preferential Trade Access

The European Union’s latest assessment warns that Pakistan’s GSP+ privileges are at risk if human‑rights concerns are not addressed promptly. Issues highlighted include enforced disappearances, extrajudicial killings, restrictions on free speech, pressure on journalists, minority discrimination, lack of judicial independence and forced labour.

A European Commission report covering 2023‑2025 points out that none of the 273 forced‑disappearance cases recorded in 2025 have led to convictions, suggesting systemic gaps in accountability.

The new GSP+ framework, slated to start on 1 January 2027, will raise the number of required international conventions from 27 to 32. Pakistan is permitted to maintain its current status until the end of 2028, after which it must re‑apply under stricter criteria.

In 2024, Pakistan’s exports to the EU under the scheme amounted to €7.1 billion, generating tariff savings of approximately €73.2 million. The textile and apparel industry, which represents 70‑76 % of these exports, could see additional duties of 9‑12 % if preferential access is withdrawn.