ISLAMABAD: Exports to European countries grew 8.32 per cent in the first half of 2024-25, mainly due to higher shipments to western states.

In absolute terms, Pakistan’s exports to the European Union (EU) reached $4.429 billion in July-December FY25 from $4.089bn last year, according to data compiled by the State Bank of Pakistan.

The export resurgence was due to a slight increase in demand for Pakistani goods in western, eastern and northern Europe.

In FY24, Pakistan’s exports to the EU dipped 3.12pc to $8.240bn despite its GSP+ status, which allows duty-free entry into most European markets.

In October 2023, the European Parliament unanimously voted to extend the GSP+ status for another four years until 2027 for developing countries, including Pakistan, to enjoy duty-free or minimum duty on European exports.

Western Europe, which includes countries such as Germany, the Netherlands, France, Italy, and Belgium, accounts for the largest portion of Pakistan’s exports to the EU. The exports to this region increased by 12.16pc to $2.186bn in 6MFY25, up from $1.949bn in 6MFY24.

There is also a slight increase in exports to eastern and northern Europe. The exports to the north of Europe saw a rise of 14.29pc to $353.42m in 6MFY25, up from $309.22m in the corresponding months last year.

Exports to southern Europe saw a paltry growth of 0.06pc to $1.525bn in 6MFY25 from $1.524bn in the corresponding period last year. In this region, exports to Spain dipped 3.07pc to $724.92m in 6MFY25 from $747.93m in the preceding year.

Exports to Italy increased 0.18pc to $569.35m in 6MFY25 compared to $568.29m in the same period last year. Exports to Greece recorded a marginal increase of 7.77pc to $70.84m during the year under review against $65.73m over the previous year. However, exports to eastern Europe grew 18.75pc to $364.89m from $307.26m in the corresponding period last year.

Before Brexit, Pakistan’s major export destination was the United Kingdom. In the post-Brexit period, Pakistan’s exports to the UK slightly went up to $1.10bn in 6MFY25 from $1.02bn over the corresponding period of last year, an increase of 7.84pc.

In FY24, Pakistan’s exports increased by 2.33pc to $2.014bn to the UK from $1.968bn in the preceding year.

Pakistan’s exports to western Europe increased by 12.16pc to $2.186bn in 6MFY24 from $1.949bn last year.

Exports to Germany surged 15.11pc to $843.72m in 6MFY24 from $732.97m. Similarly, exports to the Netherlands, the second biggest market for Pakistani goods, increased 10.79pc to $742.73m in 6MFY25 from $670.39m over the corresponding period of last year.

Exports to France rose 10.40pc to $280.56m in 6MFY24 from $254.12m, followed by a 7.55pc rise to Belgium’s $298.95m against $277.96m.

Published in Dawn, February 11th, 2025