ISLAMABAD: Pakistan’s exports to major western and northern European markets recorded negative growth in FY26, despite the continuation of GSP+ status, compared with the previous year.
This has raised serious concerns for policymakers about the decline in exports to Europe, while Brussels has already hinted that any further extension in GSP+ status will be contingent on full compliance with human rights, press freedom, and political rights.
For Pakistani exporters, the evolving situation presents a dual challenge: maintaining compliance with EU conditions while facing increasing competition from countries gaining preferential or expanded market access.
Official data compiled by the State Bank of Pakistan showed that exports to European countries shrank by 0.18pc to $9.089 billion in FY26 from $9.106bn in the preceding year.
Exporters will face a greater challenge in retaining market share amid the ongoing conflict in the Middle East and rising input costs in the country. Exports to northern Europe slightly dipped by 1.31pc to $741.985m in FY26, from $751.783m in FY25.
Exports to southern Europe grew by 3.35pc to $3.206bn in FY26, from $3.102bn a year ago. In this region, exports to Spain grew 5.18pc to $1.562bn in FY26 from $1.485bn in FY25.
Exports to eastern Europe grew 3.36pc to $801.71m from $775.63m in FY25.
In the post-Brexit period, Pakistan’s exports to the UK decreased 0.55pc to $2.148bn in FY26.
Published in Dawn, July 31st, 2026
