ISLAMABAD: Pakistan’s exports to European countries posted a year-on-year increase of 7.44 per cent in FY25, largely driven by improved demand in western and southern European markets.

According to data compiled by the State Bank of Pakistan, export earnings from the European Union (EU) rose to $8.863bn in FY25, up from $8.249bn in the preceding fiscal year. The rebound was attributed to a modest uptick in demand for Pakistani goods— especially textiles and clothing—across western, eastern and northern Europe.

This marks a reversal from FY24, when exports to the EU had declined 3.12pc to $8.240bn despite Pakistan’s continued access to the GSP+ facility, which grants duty-free entry into most European markets.

Western Europe remains the top regional destination within the EU for Pakistani exports, with shipments increasing 8.34pc to $4.323bn in FY25 from $3.990bn in FY24. Within this bloc, exports to Germany grew 11.35pc to $1.687bn, while those to the Netherlands, Pakistan’s second-largest European market, rose 7.72pc to $1.492bn. Exports to France increased 10.82pc to $563.76m. However, exports to Belgium fell 2.42pc to $543.43m.

Southern Europe also registered growth, albeit modest. Exports rose 3.41pc to $3.095bn in FY25 from $2.993bn a year earlier. Spain remained the top destination in the region, with exports inching up 2.27pc to $1.482bn. Italy saw a marginal rise of 0.89pc to $1.132bn, while exports to Greece surged 18.64pc to $154.11m from $129.89m.

Northern Europe recorded a stronger performance, with exports increasing 17.73pc to $748.95m in FY25 from $636.12m the previous year. Eastern Europe saw a 10.49pc rise in exports to $696.27m, compared to $630.14m in FY24.

Pakistan’s exports to the United Kingdom—a major trading partner before Brexit—also showed a positive trend, rising 7.19pc to $2.160bn in FY25 from $2.015bn in the corresponding period last year. This follows a 2.33pc increase in FY24, when exports to the UK reached $2.014bn, up from $1.968bn in FY23.

Overall, the export data suggests a gradual revival in Pakistan’s trade with Europe, particularly in the textile and apparel segments, as demand strengthens across key EU economies.

Published in Dawn, Aug 1st, 2025