Loss of GSP Plus Could Cost Pakistan $9 Billion

Pakistan’s export sector could suffer a major setback if its GSP Plus trade status with the European Union is discontinued, with business leaders warning of potential losses reaching $9 billion annually.

At a press briefing held by the Federation of Pakistan Chambers of Commerce and Industry in Lahore, industry representatives stressed that the preferential access to European markets is a key pillar supporting the country’s export performance.

They highlighted that a significant portion of Pakistan’s exports, particularly textiles, leather goods, and surgical instruments, currently benefit from duty-free access under the arrangement. This advantage allows local exporters to remain price-competitive in global markets.

Officials noted that the European Union remains Pakistan’s largest trading partner, accounting for roughly one quarter to nearly one third of total exports. Losing this status would mean export goods could face duties of 10 to 12 percent, increasing costs and reducing demand.

Business leaders also cautioned that the impact would extend beyond trade figures, affecting employment across major export industries. Millions of workers rely on sectors such as textiles and leather, with around 3 million households directly dependent on export-driven income.

They emphasized the need for continued compliance with international obligations to safeguard the trade facility and protect Pakistan’s export growth trajectory.