Pakistan’s exports to Europe stagnate at $6.86 billion in 9MFY26 despite GSP+ status

Pakistan’s exports to European markets showed limited growth in the first nine months of fiscal year 2025–26, reaching $6.86 billion, up 0.94 per cent from $6.79 billion in the same period last year, according to data compiled by the State Bank of Pakistan.

The marginal increase comes despite continued access to the European Union’s Generalised Scheme of Preferences Plus (GSP+) and reflects slowing demand across key western and northern European markets.

Exports to western Europe declined by 3.14 per cent to $3.30 billion in 9MFY26 from $3.41 billion a year earlier. Shipments to northern Europe also fell by 0.85 per cent to $557.31 million from $562.13 million.

Country-level data shows exports to Germany dropped 2.97 per cent to $1.24 billion, while exports to the Netherlands declined 1.78 per cent to $1.1 billion. Exports to France fell 2.62 per cent to $411.89 million, and shipments to Belgium decreased 4.73 per cent to $402.86 million.

In contrast, exports to southern Europe increased by 6.47 per cent to $2.43 billion, compared to $2.28 billion in the same period last year. Exports to eastern Europe also rose 5.06 per cent to $566.92 million from $539.63 million.

Among individual markets, exports to Spain grew 7.44 per cent to $1.18 billion, while shipments to Italy increased 4.26 per cent to $880.13 million. Exports to Greece, however, declined by 8.44 per cent to $98.16 million.

Exports to the United Kingdom remained largely unchanged, slipping 0.23 per cent to $1.62 billion in 9MFY26 compared to the same period last year.

In the previous fiscal year, Pakistan’s exports to the European Union increased 7.44 per cent to $8.86 billion from $8.24 billion. However, in FY24, exports had declined by 3.12 per cent despite GSP+ access.