Pakistan’s exports to European countries experienced a significant resurgence in the first quarter of the current fiscal year, primarily driven by higher shipments to Western states. According to data compiled by the State Bank of Pakistan, exports to the European Union (EU) rose by 7.88% to $2.204 billion in the July-September period of FY25, compared to $2.043 billion during the same period in FY24.
This growth can be attributed to a slight increase in demand for Pakistani goods in various parts of Europe, including Western, Eastern, and Northern regions. Despite a 3.12% decline in FY24, when exports to the EU fell to $8.240 billion, Pakistan’s exports have picked up momentum, partly due to its continued access to the EU’s Generalized Scheme of Preferences Plus (GSP+) status, which allows duty-free entry into most European markets.
In October 2023, the European Parliament extended the GSP+ status until 2027, further enhancing the prospects for developing countries like Pakistan to benefit from reduced or zero tariffs on exports to European markets.
Regional Breakdown:
- Western Europe, which includes major economies like Germany, the Netherlands, France, Italy, and Belgium, accounted for the largest share of Pakistan’s exports to the EU. Exports to this region surged by 12.04% to $1.088 billion in the first quarter of FY25, up from $0.971 billion in the same period last year.
- Northern Europe saw a notable increase of 9.89%, with exports reaching $165.5 million, compared to $150.6 million in 3MFY24.
- Southern Europe experienced a slight decline of 0.144%, with exports totalling $772.6 million, down from $773.7 million during the same period last year. Within this region, exports to Spain dropped by 3.32% to $354.8 million, while exports to Italy fell by 0.84% to $296.6 million. However, Greece saw a modest rise of 6% in exports, reaching $31.64 million.
- The standout performance came from Eastern Europe, which recorded a robust growth of 19.96%, with exports climbing to $178.25 million from $148.59 million in FY24.
This resurgence in exports to Europe, particularly in the context of the GSP+ status, highlights the resilience of Pakistan’s trade relations with the EU despite global economic challenges. The favorable trade conditions are expected to continue boosting the country’s export potential in the coming months.
