ISLAMABAD: The European Union (EU) on Thursday granted Generalised System of Preferences (GSP) Plus status to Pakistan with an impressive count of 406 votes, granting Pakistani products a duty free access to the European market.

According to media reports, 406 members of the European Parliament expressed their support for Pakistan while 186 lawmakers voted against the status, which has been granted till 2017.

The GSP Plus status will allow almost 20 per cent of Pakistani exports to enter the EU market at zero tariff and 70 per cent at preferential rates.

Prime Minister Nawaz Sharif congratulated the nation over the European Union award.

“Award of GSP Plus status shows the confidence of international markets in the excellent quality of Pakistani products,” he said in a statement.

The prime minister said: “gaining access to European markets was the top most priority of the government as part of economic development agenda, which has been achieved due to continuous hard work of the ministers and officials from the ministries of finance, commerce and foreign affairs and friends of Pakistan in Europe.”

This status would enable Pakistan to export more than US$1 billion worth of products to the international markets. Only the textile industry would earn profits of more than Rs1 trillion per year.

EU trade concessions will benefit the country’s largest manufacturer and exporter, the textile and clothing industry, the most by enabling its products to compete with those of regional rivals like Bangladesh and Sri Lanka, which already have duty free access to the bloc’s market.

PM Sharif further said that increase in exports would resultantly facilitate in economic growth and help in generation of millions of additional jobs in the country.

Meanwhile expressing his pleasure over the development, Finance Minister Ishaq Dar said the EU status will help Pakistani exports to rise by up to $2 billion.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Token austerity
Updated 11 Mar, 2026

Token austerity

The ‘austerity’ measures are a ritualistic response to public anger rather than a sincere attempt to reform state spending.
Lebanon on fire
11 Mar, 2026

Lebanon on fire

WHILE the entire Gulf region has become an active warzone, repercussions of this conflict have spread to the...
Canine crisis
11 Mar, 2026

Canine crisis

KARACHI’S stray dog crisis requires urgent attention. Feral canines can cause serious and lasting physical and...
Iran’s new leader
Updated 10 Mar, 2026

Iran’s new leader

The position is the most powerful in Iran, bringing together clerical authority and political and ideological leadership.
National priorities
10 Mar, 2026

National priorities

EVEN as the country faces heightened risks of attacks from actual terrorists, an anti-terrorism court in Rawalpindi...
Silenced march
10 Mar, 2026

Silenced march

ON the eve of International Women’s Day, Islamabad Police detained dozens of Aurat March activists who had ...