Pakistan must 'do more' to keep EU market access, Brussels says

Pakistan's leadership faces critical decisions regarding its access to European Union markets, as Brussels has indicated that Islamabad must "do more" to retain its GSP-Plus status. The EU's new trade rules, effective January 2027, will require Pakistan to reapply for the preferential trade scheme by the end of 2028. This reapplication will be assessed against a baseline evaluation published on July 16.

The stakes are high, with approximately €7.5 billion in annual exports and €730 million in yearly tariff savings dependent on the GSP-Plus access. The textile sector, Pakistan's largest export industry and a significant employer, relies heavily on these tariff exemptions for profitability, especially in an already strained economy.

The EU has emphasized that the requested reforms are not foreign concessions but obligations Pakistan voluntarily undertook. These reforms align with national efforts to foster a stronger, more stable, and prosperous Pakistan. The EU report acknowledged progress in areas such as narrowing the scope of the death penalty, enacting laws against child marriage and domestic violence, ratifying the ILO forced-labor protocol, and demonstrating commitment to climate and environmental goals.

Instead of a defensive reaction, the government is urged to show seriousness and commitment. With over two years until the new rules take effect, Pakistan has a clear checklist. The reapplication process should be viewed as a catalyst for long-promised reforms, leveraging the country's demonstrated capacity for progress to align priorities for economic growth and societal well-being.