Pakistan gets Rs249 billion tariff relief as EU GSP+ report lauds achievements
The report praises Pakistan’s significant tariff savings and progress in governance, human rights, labour reforms and environmental commitments.
The report shows that Pakistan effectively utilized 95.1% of available GSP+ trade preferences in 2024, secured an estimated EUR 732 million or Rs248.9 billion in tariff exemptions and maintained its position as a key trading partner of the European Union, while also recording advancements in justice, education, social protection, women’s rights, climate policies and institutional reforms.
EU GSP+ Report presents primarily as a strong endorsement of Pakistan’s economic relevance, institutional engagement and continued progress under the EU’s GSP+ framework.
Pakistan remains the largest beneficiary of GSP+, with the arrangement delivering measurable gains for exports, employment and industrial production.
In 2024, EUR 7.482 billion of Pakistani exports were eligible for GSP+ preferences, of which EUR 7.115 billion successfully used the facility. This represents a preference utilisation rate of 95.1%, demonstrating that Pakistani exporters are making highly effective use of the scheme.
The EU remained Pakistan’s principal export market, receiving 28% of the country’s total exports. This confirms the strategic importance of the Pakistan-EU trade relationship.
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Pakistan secured an estimated EUR 732 million in tariff exemptions during 2024. This amount was equal to approximately 9% of Pakistan’s export value to the EU, providing direct commercial relief to Pakistani exporters.
The top five export sectors achieved preference-utilisation rates ranging from 93.6% to 97.7%. Clothing, textiles, leather, prepared foods and miscellaneous manufactures continue to sustain labour-intensive production and employment.
The report also recognises Pakistan’s continued commitment to all 27 international conventions linked to GSP+. Pakistan maintained all ratifications, entered no new reservations and remained largely compliant with reporting requirements.
Pakistan’s participation in the EU monitoring mission of November and December 2025 reflects continued transparency, institutional engagement and willingness to cooperate with international partners.
The report acknowledges important developments in human-rights and justice institutions. The National Commission for Human Rights received GANHRI A-status accreditation in 2024, while commissions dealing with children and women remained active.
Progress on prison reforms, anti-torture implementation, judicial training and the reduction of the Supreme Court appeals backlog should be projected as evidence of gradual but continuing institutional improvement.
Pakistan’s removal of four offences from the scope of capital punishment, the absence of executions since December 2019 and the exercise of presidential clemency in October 2025 were also recognised.
Women’s and children’s rights recorded notable progress. The completion of domestic-violence legislation across all provinces and Islamabad, the first marital-rape conviction in Sindh and the adoption of child-marriage reforms in several jurisdictions represent significant legal and judicial developments.
Pakistan’s social-protection system has expanded considerably over the past decade. The National Education Emergency Action Plan, teacher recruitment, school reopening and the enrolment drive for 25,000 to 30,000 children in Islamabad demonstrate policy movement in education.
Labour reforms should be covered as another positive area. Pakistan ratified the ILO Protocol to the Forced Labour Convention in March 2025, established district vigilance committees and adopted child-labour action plans across all provinces and territories.
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The gender-pay-gap study, national wage-reform action plan and roadmap for formalising SMEs and workers indicate that labour-market reforms are moving beyond legislation toward implementation.
Environmental progress is another major positive. Pakistan met important reporting obligations under the UNFCCC and other environmental agreements, ratified the Kigali Amendment and introduced updated climate, clean-air, biodiversity and hazardous-waste frameworks.
Pakistan’s upgrade to CITES Category 1 is an international confirmation that its national legislation meets Convention standards.
Governance reforms were also acknowledged. Pakistan completed the second-cycle UNCAC implementation review, strengthened pharmaceutical controls, improved narcotics legislation and introduced digital case-management mechanisms.
The EU’s commitment of EUR 400 million for 2021 to 2027 demonstrates that the relationship extends beyond trade. The funding supports green growth, human capital, governance, education, climate resilience, rule of law, skills development and women’s participation.
