- August 13, 2026
- Posted by: Tresmark
- Category:
EU Ends Automatic GSP+ Extension, Pakistan to Face New Requirements
The European Union (EU) has revised its GSP+ framework, ending the automatic extension of trade preferences under the new scheme starting in January 2027.
According to Commerce Secretary Jawad Paul, countries seeking continued GSP+ benefits will have to formally apply and submit an action plan covering 32 UN conventions. The EU will evaluate these plans during a two-year transition period.
Pakistan’s compliance with the new framework will be closely assessed, with the EU raising concerns over issues including human rights, security and climate-related challenges.
The Commerce Ministry said Pakistan’s difficult security and economic conditions, along with flood-related climate challenges, have affected its implementation capacity.
Meanwhile, the government is pursuing tariff reforms to improve export competitiveness. Officials said Pakistan reduced tariffs on around 2,000 tariff lines last year to make raw materials more affordable.
The government provided PKR160 billion in support to industry and exporters last year, while PKR120 billion has been allocated for FY2026-27. Officials said the latest package contributed to a $1.27 billion increase in exports during FY2025-26.
The National Assembly Standing Committee on Commerce also reviewed Pakistan’s trade deficit with China, export financing for SMEs, restructuring of the Export Development Fund and the financial position of the Trading Corporation of Pakistan.
