Pakistan Faces Five New GSP+ Conditions
Pakistan will have to meet five new GSP+ conditions to keep its duty-free trade access to the European Union under a revised scheme that takes effect in 2029.
Commerce Secretary Jawad Paul told the National Assembly Standing Committee on Commerce that Pakistan would need to submit a fresh application under the EU’s revised Generalised Scheme of Preferences Plus (GSP+) framework. The committee was reviewing Pakistan’s international trade arrangements and the challenges facing its export sector.
Paul said the European Union had submitted its assessment of Pakistan to the European Parliament and described the findings as satisfactory. He added that Pakistan remained covered under the existing arrangement until 2029.
Five new GSP+ conditions raise the total to 32
Under the revised GSP+ framework, Pakistan will have to meet five additional international conventions, taking the total from 27 to 32.
The five cover the rights of people with disabilities, preventing the recruitment of children into armed conflict, effective labour inspections, consultation between governments, employers and workers on labour policies, and combating human trafficking, smuggling and organised crime.
Pakistan has already ratified all five conventions. The main challenge will be showing that they are being put into practice, rather than signing them. The revised framework also replaces the Kyoto Protocol with the Paris Climate Agreement, which Pakistan has already ratified.
Pakistan will still have to submit a fresh GSP+ application, along with a detailed action plan showing how it will carry out all 32 conventions. Existing beneficiaries can keep their trade preferences during a two-year transition period that ends in December 2028.
Why GSP+ matters for Pakistan’s exporters
The stakes are high for exporters. Duty-free access to the EU supports textile and garment shipments, which form the backbone of Pakistan’s export earnings. Textile exporters have already warned of a steep decline in orders, citing weak demand in Western markets, higher freight costs and delays in export support.
The flour milling industry has also pressed for a market-driven trade policy, while the government has been working to widen the export base beyond traditional goods. Exports have already taken a hit from the Afghan trade ban, which the Commerce Ministry says has cost about $1bn.
Against that backdrop, keeping GSP+ is a priority. Losing duty-free access would raise the price of Pakistani goods in Europe and put exporters at a disadvantage against rivals that still enjoy preferential terms. The committee’s discussion shows the government is treating the 2029 deadline as a live task, not a distant one.
The remittance inflows that have supported the external account show that Pakistan’s economy leans on more than one pillar, but exports remain the durable source of foreign exchange. GSP+ is one of the few levers that directly affects how much exporters earn.
Trade with India also came up
The committee also discussed Pakistan’s suspension of bilateral trade with India, which has remained in place since 2019. Jawad Paul acknowledged that trade between the two countries was still taking place indirectly through third countries, including the United Arab Emirates.
Committee Chairman Javed Hanif Khan questioned the logic of the suspension, pointing out that China and India had continued bilateral trade despite tensions between the two countries.
The discussion took place during a meeting of the National Assembly Standing Committee on Commerce, where members reviewed Pakistan’s international trade arrangements and the challenges facing its export sector.
For exporters, the message from the meeting is clear. The paperwork for GSP+ renewal starts now, and the test will be implementation on the ground, from labour inspections to action against trafficking. Pakistan has signed the conventions. The next two years will show whether it can prove it lives by them.
Frequently asked questions
What is GSP+?
GSP+ is the European Union’s scheme that gives duty-free access to developing countries that ratify and implement 27 international conventions on human rights, labour, the environment and good governance.
How many new conditions must Pakistan meet?
Pakistan must meet five additional conventions, taking the total from 27 to 32, under the revised framework that takes effect in 2029.
Has Pakistan ratified the five new conventions?
Yes. Pakistan has already ratified all five, so the challenge is proving effective implementation rather than signing them.
Until when does the current GSP+ cover Pakistan?
Pakistan remains covered under the existing arrangement until 2029, with a two-year transition period ending in December 2028.
What else did the committee discuss?
The committee also discussed the suspension of bilateral trade with India since 2019, and heard that trade still flows indirectly through third countries such as the UAE.
