Pakistan must apply afresh for GSP Plus status from January 2027, because the EU scheme that gives it duty-free access expires in December.
Officials say the current arrangement keeps running through a grace period until December 2028. That window lets the EU Commission and parliament finish the new rules.
How GSP Plus status will change
Any country can apply once the revised regulation takes effect on January 1, 2027. Present beneficiaries, among them Pakistan, get two extra years to finish the process.
Commerce Secretary Jawad Paul told a National Assembly committee that no extension will come automatically. Pakistan must apply formally and file an action plan that covers 32 UN conventions.
The scheme offers zero or reduced duties on a wide range of goods, which gives Pakistani firms a pricing edge in European markets. In exchange, members must prove headway on conventions covering rights, labour, the environment and governance.
Pakistan has used GSP Plus status since 2014. Its exports to the EU reached about $8.96 billion in 2025-26, and clothing and textiles make up the bulk. Leather, prepared foods and other manufactured goods also benefit.
What the EU wants from Pakistan
EU Ambassador Raimundas Karoblis met the Pakistan Textile Council in Karachi. He said The bloc is not adding new standards. Instead, the bloc expects visible gains, chiefly in human rights and in the rule of law.
The new framework puts more weight on putting commitments into practice than on ratifying treaties or passing laws. Karoblis said the EU will step up its engagement with the government, and the textile sector is following every signal closely.
First comes a push for short-term gains. After that, Pakistan should present a credible action plan with concrete steps, timelines and measurable targets.
The EU’s assessment of Pakistan for 2023-2025 appeared on July 16. Paul said it holds both positive and negative points, and human rights are among the concerns. It also mentions security and climate.
Paul said security problems, economic strain and floods have held back Pakistan on some commitments. Basic fixes must come from Pakistan itself, he added. He also asked lawmakers to explain the country’s position when they talk to European Parliament members.
Pressure on exporters
Textile Council chairman Fawad Anwar said that keeping GSP Plus status matters for exports, jobs, tax revenue and the wider chain of businesses that depend on the sector.
He added that the EU’s free trade pact with India will put more competitive heat on Pakistani exporters, even with preferences intact.
Foreign Minister Ishaq Dar raised the issue last month with EU foreign policy chief Kaja Kallas at the UN General Assembly. He called the scheme central to Pakistan’s trade with the bloc.
Meanwhile, officials say they trimmed duties on about 2,000 tariff lines last year, which cuts the cost of imported inputs. It does not offer direct incentives to exporters, the committee chair said.
For now, GSP Plus status is safe through 2028, but officials know that reapplying will test Pakistan’s record on the conventions.
