GSP-Plus renewal

Published
4

THERE is no glossing over the fact that the country’s leadership faces tough choices in the months ahead. Brussels has delivered its verdict on Pakistan, and it does not make for comfortable reading.

While Pakistan’s progress in key areas has been noted and appreciated, the European Union clearly expects Islamabad to ‘do more’ to keep GSP-Plus access to its markets. The pressure will start building as the EU’s new trade rules come into effect in January 2027. Under these rules, Pakistan will not simply be monitored: it must reapply for GSP-Plus, submit a written plan of action, and win Brussels’ approval by the end of 2028.

It has also been made clear that the country assessment published on July 16 is the baseline against which Pakistan’s application will be judged. At stake are some €7.5bn annual exports that enjoy preferential access to the EU, and roughly €730m in yearly savings from tariff exemptions.

The tariff savings alone can mean the difference between profit and loss for Pakistan’s textile sector, the single biggest beneficiary of the GSP-Plus scheme, and which provides millions of livelihoods in an already constrained economy. It bears pointing out here that the reforms Brussels is asking for are not concessions being extracted by a foreign power: they are obligations Pakistan freely undertook to take advantage of the GSP-Plus scheme.

More importantly, those reforms also align closely with successive leaders’ efforts to foster a stronger, more stable and more prosperous Pakistan. The country’s successes in key areas, which have been acknowledged by the EU, should give the leadership the hope and confidence it needs. The same report credits real progress in terms of the narrowing of the death penalty’s scope, new laws against child marriage and domestic violence, ratification of the ILO forced-labour protocol, and a solid record on climate and environmental commitments for a country ranked among the world’s most vulnerable.

Therefore, instead of reacting defensively or in despair, the government must demonstrate seriousness and commitment. It has been given a window of over two years, and a demanding but clear checklist. The wise course would be to treat the GSP-Plus reapplication process not as a bureaucratic or diplomatic hurdle to be ‘managed’, but as a catalyst for the reforms the country has long promised itself.

As its recent record shows, Pakistan does not lack the capacity for progress. The only thing needed is an alignment of priorities — an understanding that what needs to be done is not only good for jobs and economic growth but also for Pakistan’s society as a whole. The national leadership has succeeded in large part in stabilising the economy; now, it must allow society the freedoms it needs to start stabilising itself.

Published in Dawn, July 18th, 2026

Opinion

Editorial

State of denial
Updated 18 Oct, 2026

State of denial

If the Taliban regime commits to preventing groups based on its soil from attacking neighbouring states, the process of normalisation and regional integration of Afghanistan can begin.
Suffering in silence
18 Oct, 2026

Suffering in silence

TOO many Pakistani children have nowhere to turn when abused online. An estimated 1.5m internet-using children aged...
Export imperative
18 Oct, 2026

Export imperative

THE government’s efforts to boost Pakistan’s external sector through diversified financing, higher foreign...
No talks
Updated 17 Oct, 2026

No talks

The government should understand that the PTI’s protest march and its reaction to it will look like nothing more than a storm in a teacup.
Strengthening LGs
17 Oct, 2026

Strengthening LGs

THE ECP has done well to refuse to allow the Punjab administration to push the local government elections to April....
Lesser citizens
Updated 17 Oct, 2026

Lesser citizens

Interfaith harmony will prevail when the message to end bias is conveyed from the pulpit, alongside efforts to punish zealotry.