ISLAMABAD: Exports to European countries grew 9.86 per cent in the first seven months of the current fiscal year from a year ago mainly due to higher shipments to western states.
In absolute terms, Pakistan’s exports to the European Union (EU) reached $5.345 billion in July-January FY25 from $4.865bn 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 12.72pc to $2.702bn in 7MFY25, up from $2.397bn in 7MFY24.
There is also a slight increase in exports to eastern and northern Europe. The exports to the north of Europe saw a rise of 17.10pc to $428.64m in 7MFY25, up from $366.03m in the corresponding months last year.
Exports to southern Europe saw a paltry growth of 2.58pc to $1.788bn in 7MFY25 from $1.743bn in the corresponding period last year. In this region, exports to Spain record a paltry growth of 0.5pc to $857.02m in 7MFY25 from $856.52m in the preceding year.
Exports to Italy increased 2pc to $662.55m in 7MFY25 compared to $649.52m in the same period last year. Exports to Greece recorded a marginal increase of 10.78pc to $81.59m during the year under review against $73.65m over the previous year.
However, exports to eastern Europe grew 18.57pc to $426.55m from $359.74m 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 $1.273bn in 7MFY25 from $1.188bn over the corresponding period of last year, an increase of 7.15pc.
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 12.72pc to $2.702bn in 7MFY24 from $2.397bn last year.
Exports to Germany surged 17.15pc to $1.003bn in 7MFY24 from $856.14m.
Similarly, exports to the Netherlands, the second biggest market for Pakistani goods, increased 12.60pc to $881.34m in 7MFY25 from $782.67m over the corresponding period of last year.Exports to France rose 9.11pc to $327.76m in 7MFY24 from $300.37m, followed by a 8.2pc rise to Belgium’s $343.91m against $317.84m.
Published in Dawn, March 2nd, 2025
