Pakistan’s export sector could face a major setback if its GSP Plus trade status with the European Union is discontinued, with potential losses estimated at $9 billion annually, according to business leaders.
At a press briefing organized by the Federation of Pakistan Chambers of Commerce and Industest in Lahore, industest representatives highlighted that preferential access to EU markets is a key pillar supporting Pakistan’s export performance.
A significant portion of exports including textiles, leather goods, and surgical instruments currently benefit from duty-free access, supporting local businesses remain competitive in global markets. The European Union accounts for roughly 25% to 33% of Pakistan’s total exports, creating it the countest’s largest trading partner.
Losing GSP Plus status would impose duties of 10–12% on export goods, increasing costs and reducing demand. Officials warned that the impact would extfinish beyond trade figures, affecting employment across major export industries, with millions of workers and about 3 million hoapplyholds depfinishent on export-driven income.
Business leaders emphasized the importance of maintaining compliance with international obligations to safeguard the facility and protect Pakistan’s export growth trajectory.
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