Pakistan Continues to Deliver its GSP+ Promises

The debate surrounding Pakistan’s participation in the European Union’s GSP+ framework often begins with a simple question: has the country done enough? The latest assessment offers a more useful one. Is Pakistan continuing to move in the right direction despite the economic, political and security challenges it has faced over recent years?

Viewed through that lens, the answer is difficult to ignore.

No country undergoing repeated economic crises, devastating floods, political uncertainty and persistent security concerns can be expected to reform every institution at the same pace as more stable economies.

Yet Pakistan’s experience under GSP+ demonstrates that progress is possible even under difficult circumstances. Which shows that as an incentive intended to promote sustained reformed, it is working.

The latest assessment does not present Pakistan as a country that has completed its reform journey. It does highlight areas requiring greater implementation and points towards work that remains unfinished. Continuous evaluation is the mechanism through which the partnership encourages further progress.

At the same time, the assessment also records achievements that deserve equal attention.

Pakistan remains the largest beneficiary of the GSP+ arrangement, reflecting the depth of its economic relationship with the European Union. Europe continues to receive more than a quarter of Pakistan’s exports, while Pakistani businesses made effective use of over 95 percent of the trade preferences available during 2024. Those figures demonstrate that Pakistani exporters have invested heavily in meeting European standards and have integrated themselves into one of the world’s most competitive markets.

That commercial relationship carries wider consequences. Millions of Pakistanis earn their livelihoods in export-oriented industries, particularly textiles, clothing, leather goods and food processing. Continued access to the European market strengthens these sectors, encourages investment and supports employment at a time when Pakistan’s economy continues to recover from successive external shocks.

The importance of GSP+, however, extends beyond trade. One of the central assumptions behind the arrangement has always been that economic opportunity and institutional reform can reinforce one another.

Pakistan’s experience increasingly supports that proposition. Progress has not arrived through sweeping political declarations. It has emerged gradually through legislation, judicial decisions, administrative reforms and the strengthening of public institutions.

The latest assessment acknowledges that trajectory. Pakistan has maintained its commitment to all twenty-seven international conventions underpinning GSP+, continued meeting its reporting obligations and engaged constructively with the European Union’s monitoring process.

Such engagement reflects confidence rather than reluctance. Countries that intend to disengage from reform do not invite scrutiny. They avoid it. Pakistan has instead continued to participate in a process built on dialogue and accountability.

The same pattern is visible across several policy areas. The National Commission for Human Rights secured GANHRI A-status accreditation, while institutions responsible for protecting women and children’s rights continued their work.

Reforms within the justice sector, including prison improvements, judicial training and efforts to reduce case backlogs, indicate institutions that are steadily becoming more effective. Legislative changes narrowing the scope of capital punishment and the continuation of the de facto moratorium on executions also represent meaningful developments acknowledged within the assessment.

Women’s rights, child protection, education and labour reforms reveal a similar direction of travel. Domestic violence legislation has now been completed across the federation. Child marriage reforms continue to expand legal protection.

Pakistan has ratified the ILO Protocol to the Forced Labour Convention, strengthened mechanisms to combat child labour and advanced policies addressing wage reform and labour formalisation. These are not isolated measures. Together they reflect a broader effort to strengthen the legal and institutional foundations of economic development.

Environmental governance tells a comparable story. Climate reporting has improved, international environmental obligations have been met, legislative frameworks have been updated and Pakistan’s elevation to CITES Category 1 confirms that domestic legislation now satisfies Convention standards.

At a time when environmental compliance increasingly influences international trade, these developments also strengthen Pakistan’s long-term export competitiveness.

These achievements suggest that reform is continuing despite significant constraints. That reality should inform future decisions regarding GSP+.

The purpose of the framework has never been to punish countries facing complex developmental challenges. Its purpose has been to encourage progress by creating incentives for governments, institutions and industries to continue moving forward.

The latest assessment indicates that this approach has yielded measurable results in Pakistan. Economic integration has gone hand in hand with gradual institutional improvement, while continuous engagement has encouraged reforms that extend well beyond trade policy.

Reversing that relationship would carry real consequences. Reduced market access would place additional pressure on export industries that employ millions of Pakistanis. Lower competitiveness would weaken investment incentives precisely when Pakistan needs greater industrial expansion.

At the same time, diminishing the benefits associated with GSP+ would inevitably reduce one of the strongest external incentives supporting continued reform across governance, labour rights, environmental protection and institutional development.

Constructive engagement has produced tangible progress. Disengagement offers no comparable pathway. The European Union has consistently described GSP+ as a partnership built on dialogue, shared values and continuous improvement.

Pakistan’s latest assessment demonstrates that this philosophy continues to produce results. Progress remains uneven, implementation challenges remain real and further reforms are unquestionably necessary. Yet the direction of travel is clear, and the framework itself has become an important contributor to that progress.

For that reason, the future of GSP+ should not be viewed solely through the narrow lens of compliance scores or individual recommendations. It should also be assessed by a broader question: has the partnership helped Pakistan become a stronger trading partner?

SAT Editorial Desk

SAT Editorial Desk

Your go-to editorial hub for policy perspectives and informed analysis on pressing regional and global issues.

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