In a positive development for Pakistan’s economy, exports to European countries have witnessed a significant rise of 8.62% during the first ten months of the Fiscal Year 2025, according to the State Bank of Pakistan (SBP). This upward trend comes at a time when global markets continue to face uncertainty, making it a promising sign for the country’s export sector.
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Exports during the same period last year stood at $6.954 billion.
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Western European markets like Germany, France, the Netherlands, Belgium, and Italy fueled the growth.
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The textile and clothing sector was the top contributor to this export boom.
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GSP+ status continues to play a vital role in boosting European demand.
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Northern Europe saw the highest regional growth at 17.39%.
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Growth: 17.39%
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Notable Markets: Sweden, Norway, Denmark, Finland
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Northern Europe showed the highest percentage increase, indicating new opportunities in markets that were previously underutilized by Pakistani businesses.
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Growth: 3.62%
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Top Buyers: Spain, Italy, Greece
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Southern European countries saw modest yet consistent growth. Italy and Greece are emerging as strategic importers of textile and leather goods.
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Growth: 13.96%
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Promising Markets: Poland, Romania, Hungary, Czech Republic
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Eastern Europe, often overshadowed by its western counterparts, showed double-digit growth, proving that demand is expanding across the entire continent.
The Generalised Scheme of Preferences Plus (GSP+) is a key trade agreement between Pakistan and the European Union. Under this scheme:
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Pakistan enjoys duty-free access to over 66% of EU tariff lines.
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The agreement supports sustainable development and good governance in return for trade incentives.
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It has become a game-changer for Pakistani exporters, especially in the textile and apparel industries.
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Lower costs for European importers
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Higher competitiveness of Pakistani products
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Increase in orders and volume from EU-based retailers and wholesalers
The renewal of GSP+ for Pakistan remains critical in ensuring future trade stability and continued growth in exports.
Despite rising inflation and economic slowdowns globally, Pakistan’s export performance in Europe is a clear sign of resilience. The textile sector continues to benefit from its established supply chains and cost-effective production.
European buyers prefer Pakistan because of our quality and delivery consistency. GSP+ has given us an edge over competitors from countries like India and Bangladesh
With strong performance in FY2025, Pakistan’s export sector has proven its ability to compete on the global stage. The 8.62% growth in exports to Europe is not just a number — it represents thousands of jobs, millions in revenue, and renewed international trust in Pakistani products.
Sustaining this trend will require continuous innovation, investment in quality, and a diplomatic focus on keeping favorable trade agreements like GSP+ intact.
The European market has emerged as a beacon of hope for Pakistan’s export economy. The continued demand for Pakistani textiles and other goods, paired with supportive trade agreements, presents a clear path for growth.
Exporters must now focus on scaling operations, ensuring compliance, and targeting new niches to take full advantage of this momentum.
