Pakistan’s exports to EU see marginal rise in first seven months of FY25

ISLAMABAD: Pakistan’s exports to the European Union (EU) recorded a modest increase of 1.43% during the first seven months of the current fiscal year (2024-25), according to official data reported by Dawn.

Between July 2024 and January 2025, exports to the EU reached $5.05 billion, up from $4.98 billion in the same period last year. The data, compiled by the State Bank of Pakistan (SBP), reflects a limited growth despite the country’s continued access to the EU’s Generalised Scheme of Preferences Plus (GSP+) facility.

The GSP+ status, which allows Pakistan to export goods to the EU on preferential terms, has been in effect since January 2014. The facility was extended for an additional four years in 2023. Despite this, the growth in exports has remained subdued.

Textile products continued to dominate Pakistan’s exports to the EU, accounting for over 80% of the total. However, the report notes that the sector has not seen significant expansion in its export volumes. Other sectors, such as leather and sports goods, also contributed to the export figures but did not register notable growth.

Germany, the Netherlands, Spain, Italy, and Belgium remained the top EU destinations for Pakistani exports. Germany led the list, importing goods worth $1.08 billion during the period under review. The Netherlands followed with $1.01 billion, while Spain and Italy imported $0.79 billion and $0.72 billion, respectively. Belgium accounted for $0.41 billion in imports from Pakistan.

Officials attributed the slow growth to a range of factors, including economic challenges in the EU and increased competition from other countries. The report also highlighted that the government is working on strategies to diversify export products and explore new markets within the EU to boost future growth.

Pakistan’s overall exports to the EU have grown since the introduction of GSP+ in 2014, but the pace of increase has slowed in recent years. The report emphasized the need for policy measures and improvements in product quality to enhance competitiveness in the European market.