Pakistan’s exports to the European Union (EU) recorded an 8.32 percent growth in the first half of FY25, reaching $4.429 billion compared to $4.089 billion in the same period last year. The increase was primarily driven by higher shipments to Western Europe, according to data compiled by the State Bank of Pakistan.
Western Europe, which includes Germany, the Netherlands, France, Italy, and Belgium, remains the largest market for Pakistan’s exports to the EU. Shipments to this region increased 12.16 percent to $2.186 billion in July-December FY25, compared to $1.949 billion in the same period last year.
Exports to Northern Europe saw a 14.29 percent rise to $353.42 million, up from $309.22 million. Eastern Europe experienced an 18.75 percent increase to $364.89 million, while Southern Europe registered a marginal 0.06 percent growth to $1.525 billion.
Among individual European markets, Germany, Pakistan’s top EU trading partner, saw a 15.11 percent surge in imports from Pakistan, reaching $843.72 million. The Netherlands, the second-largest destination, recorded a 10.79 percent increase to $742.73 million, while France saw a 10.40 percent rise to $280.56 million. Exports to Belgium also improved 7.55 percent, reaching $298.95 million.
In Southern Europe, exports to Italy increased slightly by 0.18 percent to $569.35 million, while exports to Spain dropped 3.07 percent to $724.92 million. Greece, however, recorded a 7.77 percent rise to $70.84 million.
The rise in exports comes after a 3.12 percent decline in FY24, despite Pakistan benefiting from GSP+ status, which provides duty-free or reduced-tariff access to European markets.
In October 2023, the European Parliament extended this preferential trade arrangement for another four years until 2027, offering developing countries, including Pakistan, a competitive edge in EU trade.
Meanwhile, Pakistan’s exports to the United Kingdom grew 7.84 percent in 6MFY25, reaching $1.10 billion, compared to $1.02 billion in the same period last year. The UK had historically been Pakistan’s top export market within Europe before Brexit.
The export growth to the EU and UK signals a recovery in demand for Pakistani products, aided by preferential trade agreements and an increase in shipments to key European economies. However, further expansion will depend on trade diversification, supply chain improvements, and sustaining competitive pricing in European markets.
