ISLAMABAD: Pakistan’s exports to major western and northern European markets have recorded negative growth in the first nine months of the current fiscal year compared with a year ago, despite the continuation of the Generalised Scheme of Preferences (GSP+) status, raising concerns about weakening demand for the country’s goods.

The development comes against the backdrop of a shifting global trade environment, as the US-Iran conflict sends shockwaves through the Middle East, impacting global goods transport and accelerating the fall in exports to European markets.

Additionally, earlier this year, European Union preferential market access was offered to India, one of Pakistan’s key competitors in textiles.

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.

Post negative growth to region in first nine months of FY26 amid ME conflict

Official data compiled by the State Bank showed that Pakistan’s exports to European countries recorded a paltry year-on-year growth of 0.94 per cent to $6.86 billion in the nine months (July to March) of fiscal year 2025-26 (9MFY26), against $6.79bn over the last year.

In FY25, exports to the EU rose 7.44pc to $8.86bn, up from $8.24bn in the previous fiscal year. In comparison, in FY24, Pakistan’s exports to the EU had dipped 3.12pc to $8.24bn despite its GSP+ status.

Exports to northern Europe slightly dipped by 0.85pc to $557.31m in 9MFY26, from $562.13m in the corresponding months last year.

Exports to western Europe slightly fell by 3.14pc to $3.30bn in 9MFY26, from $3.41bn in FY25.

The country’s exports to Germany declined by 2.97pc to $1.24bn. Exports to Netherlands slipped by 1.78pc to $1.1bn. Exports to France decreased by 2.62pc to $411.89m, while the same to Belgium fell by 4.73pc to $402.86m.

However, exports to southern Europe grew by 6.47pc to $2.43bn in 9MFY26, from $2.28bn in the corresponding period last year, while exports to eastern Europe grew 5.06pc to $566.92m in 9MFY26, from $539.63m in the corresponding period last year.

Exports went up 7.44pc to $1.18bn in Spain, rose by 4.26pc to $880.13m in Italy, but fell by 8.44pc to $98.16m in Greece.

Before Brexit, Pakistan’s major export destination was the UK. In the post-Brexit period, Pakistan’s exports to the UK decreased slightly to $1.62bn in 9MFY26, from $1.62bn in the corresponding period last year, a decline of 0.23pc.

In FY25, Pakistan’s exports to the UK increased by 7.19pc to $2.16bn from $2.02bn in the preceding year.

Published in Dawn, April 27th, 2026