Pakistan's exports to Western Europe fall 3.53% to $3.66 billion despite GSP+ status

Pakistan’s exports to major Western and Northern European markets declined during the first 10 months of FY2025-26 despite the continuation of the European Union’s GSP+ status, with shipments to Western Europe falling 3.53% to $3.664 billion and exports to Northern Europe slipping 0.79% to $618.52 million.

According to data compiled by the State Bank of Pakistan, Pakistan’s overall exports to European countries increased marginally by 0.51% year-on-year to $7.608 billion during July-April FY26.

Western Europe remained Pakistan’s largest export destination within Europe, accounting for the biggest share of shipments to the EU.

Exports to Germany declined 3.53% to $1.369 billion from $1.419 billion, while exports to the Netherlands fell 3.53% to $1.227 billion from $1.272 billion.

Shipments to France decreased 3.26% to $457.99 million, while exports to Belgium dropped 4.23% to $440.67 million. However, exports to Southern Europe rose 5.75% to $2.705 billion during the review period from $2.558 billion a year earlier.

Within the region, exports to Spain increased 7.04% to $1.322 billion, while exports to Italy grew 3.52% to $969.44 million. Exports to Greece, however, declined 9.85% to $110.93 million.

Exports to Eastern Europe also increased 5.09% to $620.63 million from $590.57 million.

In the post-Brexit period, Pakistan’s exports to the United Kingdom edged down 0.66% to $1.801 billion during July-April FY26 from $1.813 billion in the same period last year.

Trade analysts said the ongoing Middle East conflict, rising energy costs and increasing competition from countries receiving preferential market access in Europe, including India, were creating additional pressure on Pakistani exporters, particularly in the textile sector.

They warned that higher energy prices and weaker consumer spending in Europe, already affected by the war in Ukraine, could further weaken export demand.