Pakistan has witnessed a 7.54% decrease in its exports to European countries during the first seven months (July-Jan) of the current fiscal year FY 2023-24, as per data released by the State Bank of Pakistan.
The export figures, which stood at $4.866 billion from July to January in FY24, saw a decline from the $5.263 billion recorded in the same period the previous year.
This downturn reflects the reduced demand for Pakistani goods across various regions in Europe, including the western, southern, and northern parts.
Despite enjoying the Generalised System of Preferences Plus (GSP+) status, which grants preferential access to the markets of 27 European Union (EU) member states, Pakistani exporters have faced challenges.
This status, extended by the European Parliament until 2027, aims to support developing countries by allowing duty-free or minimal-duty exports to the EU market.
However, the anticipated boost in trade has not materialized in the face of economic uncertainties affecting demand.
The most significant decrease was observed in Western Europe, comprising key trade partners like Germany, the Netherlands, France, Italy, and Belgium, where exports plunged by 13.85% to $2.393 billion in the reported period, down from $2.778 billion the previous year.
Conversely, a slightly positive development was noted in exports to Eastern Europe, particularly Spain, which saw a 5.67% increase to $856.423 million.
Nonetheless, exports to Southern and Northern Europe depicted marginal declines and challenges, respectively.
