Pakistan’s exports to EU rise 1.32% to $5.43 billion in July–January

Pakistan’s exports to the European Union increased 1.32 percent year-on-year to $5.436 billion in July–January 2025–26, compared with $5.365 billion in the same period last year, according to data compiled by the State Bank of Pakistan.

The modest growth was mainly supported by increased shipments to southern and eastern European markets, while exports to western and northern Europe recorded slight declines.

In the previous fiscal year, Pakistan’s exports to the EU rose 7.44 percent to $8.863 billion, compared with $8.249 billion in FY24. In FY24, exports had declined 3.12 percent to $8.240 billion, despite Pakistan benefiting from GSP+ status, which allows duty-free access to most European markets.

Western Europe, which includes Germany, the Netherlands, France, Italy and Belgium, remained the largest destination for Pakistani exports but recorded a 3.14 percent decline, with shipments falling to $2.622 billion in July–January 2025–26 from $2.707 billion a year earlier.

Exports to Germany declined 1.76 percent to $987.30 million from $1.005 billion, while shipments to the Netherlands, the second-largest market for Pakistani goods, fell 1.82 percent to $866.05 million from $882.08 million.

Exports to France decreased 2.89 percent to $320.21 million from $329.76 million, while shipments to Belgium dropped 3.29 percent to $332.77 million from $344.12 million.

Exports to northern Europe also declined slightly by 1.12 percent to $435.08 million, compared with $439.99 million in the same period last year.

In contrast, exports to southern Europe increased 7.21 percent to $1.920 billion from $1.791 billion in the corresponding period last year.

Within this region, exports to Spain rose 8.93 percent to $933.85 million, compared with $857.27 million a year earlier.

Exports to Italy increased 5.02 percent to $698.33 million from $664.96 million, while shipments to Greece declined 8.45 percent to $74.71 million from $81.61 million.

Exports to eastern Europe also showed growth, rising 7.59 percent to $459.29 million, up from $426.88 million in the same period last year.

Meanwhile, Pakistan’s exports to the United Kingdom, once the country’s largest European market before Brexit, remained almost unchanged, declining 0.07 percent to $1.272 billion in July–January 2025–26 from $1.273 billion a year earlier.

In FY25, exports to the UK had increased 7.19 percent to $2.160 billion, compared with $2.015 billion in the previous fiscal year.

Exporters, however, may face additional challenges in maintaining their market share in Europe amid rising input costs and uncertainties linked to the ongoing conflict in the Middle East.