Pakistan becomes biggest beneficiary of EU GSP+ scheme with EUR 7.1 billion exports

Pakistan became the largest beneficiary of the European Union's Generalised Scheme of Preferences Plus (GSP+) in 2024, recording EUR 7.1 billion (USD 8.3 billion) in exports to the 27-member bloc under the preferential trade arrangement, according to the European Commission's fifth GSP report released on Thursday.

The report said Pakistan recorded a preference utilization rate of 95.1%, one of the highest among GSP+ beneficiaries, reflecting the country's effective use of the tariff concessions available under the scheme.

The GSP+ programme grants developing countries duty-free or reduced-tariff access to the EU market in exchange for implementing 27 international conventions covering human rights, labour rights, environmental protection, climate action and good governance.

Pakistan remained the scheme's largest beneficiary by export value, ahead of other GSP+ countries, including the Philippines and Sri Lanka.

The European Commission said Pakistan made progress in several areas covered by the programme's monitoring framework. It cited legislative reforms that reduced the scope of the death penalty, implementation of rules under the Anti-Torture Act, and the adoption of Child Marriage Restraint Acts in Balochistan and Islamabad to strengthen protections for children.

The report also highlighted improvements in labour rights, saying Pakistan ratified the International Labour Organization's Protocol to the Forced Labour Convention and launched initiatives to help transition workers from the informal to the formal economy.

On governance, the report said Pakistan updated policies aimed at combating corruption, alongside reforms undertaken by several other GSP+ beneficiary countries.

The European Commission said the GSP framework continues to serve as an effective incentive for sustainable development by linking trade preferences with internationally recognised standards on human rights, labour protections, environmental stewardship and governance. It added that the scheme promotes structured engagement between the EU, beneficiary governments and civil society while supporting economic growth through duty savings and maintaining safeguards for sensitive sectors within the bloc.

Pakistan has benefited from the EU's GSP+ scheme since 2014. Preferential access to the European market has contributed significantly to the country's textile and apparel exports, which account for the bulk of its shipments to the bloc.