Pakistan’s textile exporters face heightened uncertainty as the EU demands stronger implementation of human rights and labour commitments ahead of its revised GSP+ regime in 2027.
The European Union has urged Pakistan to demonstrate measurable improvements in human rights, labour protection and the rule of law to safeguard preferential access to the European market under the Generalised Scheme of Preferences Plus (GSP+).
During discussions with the Pakistan Textile Council (PTC) in Karachi, EU Ambassador Raimundas Karoblis stressed that implementing existing commitments—not merely passing legislation—would determine Pakistan’s prospects under the renewed arrangement.
€732 Million in Annual Tariff Benefits at Stake
Pakistan has benefited from GSP+ since January 2014, making it the scheme’s largest beneficiary.
According to the European Commission’s July 16, 2026 assessment, Pakistan exported €7.5 billion in GSP+-eligible goods in 2024, predominantly textiles and apparel, receiving an estimated €732 million in tariff exemptions.
Approximately 89% of Pakistani textile and clothing imports into the EU benefit from preferential tariffs, making continued access commercially critical.
Implementation Gaps Raise Concerns
The EU’s assessment covering 2023–2025 acknowledged legislative progress but identified persistent weaknesses in enforcement.
Major concerns include enforced disappearances, restrictions on freedom of expression, child and forced labour, minority protections and judicial independence.
Karoblis called for immediate improvements followed by a credible action plan containing measurable indicators, specific measures and implementation deadlines.
PTC Chairman Fawad Anwar highlighted the implications for exports, employment and associated industries. Gul Ahmed CEO Zaki Bashir urged the EU to distinguish textile-sector performance from broader national shortcomings.
New GSP+ Rules Begin in 2027
The revised EU GSP regulation takes effect on January 1, 2027, expanding the framework from 27 to 32 international conventions and strengthening monitoring requirements.
Existing beneficiaries retain preferences during a transition period but must reapply by the end of 2028, supported by implementation plans.
For Pakistan’s textile industry, maintaining GSP+ will require coordinated government reforms alongside stronger factory-level labour compliance. Meanwhile, the EU-India trade agreement adds competitive pressure.
The immediate test is whether Pakistan can translate commitments into verifiable improvements before its GSP+ reassessment.
