ISLAMABAD: Exports to European countries recorded a year-on-year growth of 4.5 per cent in the first half of fiscal year 2025-26, driven primarily by increased shipments to southern, eastern and northern European states.

Pakistan’s export could worsen following a recent agreement between India and the EU, as New Delhi remains Islamabad’s main competitor in the European textile market.

On Monday, Foreign Minister Ishaq Dar chaired a inter-ministerial meeting to review measures aimed at strengthening economic and trade cooperation with the EU.

An official statement said that Mr Dar underscored the importance of deepening and expanding trade and economic engagement with the EU, noting that the bloc remains a key economic partner, particularly under the GSP+ framework.

The minister highlighted that Pakistan has successfully completed four biennial GSP+ reviews and reaffirmed the country’s commitment to fully meeting its obligations under the scheme.

Official data showed that export earnings from the EU rose to $4.638 billion during July-December, up from $4.438bn, showed the State Bank of Pakistan data.

Western Europe — including Germany, the Netherlands, France, Italy, and Belgium — accounts for the largest share of Pakistan’s exports to the EU. Exports to the region slightly increased by 0.23pc to $2.195bn in 6MFY26, up from $2.190bn.

Exports to northern Europe rose by 4.82pc to $373.006 million in 6MFY26 from $355.860m in the corresponding period of the previous year.

Shipments to southern Europe increased by 9.16pc to $1.667bn in 6MFY26 from $1.527bn. Within the region, exports to Spain grew by 11.35pc to $807.45m from $725.11m, while exports to Italy increased by 7.51pc to $612.88m from $570.08m. However, exports to Greece declined by 9.03pc to $64.45m. Exports to eastern Europe rose 10.51pc to $403.576m in 6MFY26.

Before Brexit, Pakistan’s largest export destination was the UK. In the post-Brexit period, exports to the UK slightly decreased by 0.27pc to $1.096bn in 6MFY26 from $1.099bn a year earlier.

Published in Dawn, February 10th, 2026