GSP-Plus renewal

THERE is no glossing over the fact that the country’s leadership faces tough choices in the months ahead. Brussels has delivered its verdict on Pakistan, and it does not make for comfortable reading.

While Pakistan’s progress in key areas has been noted and appreciated, the European Union clearly expects Islamabad to ‘do more’ to keep GSP-Plus access to its markets. The pressure will start building as the EU’s new trade rules come into effect in January 2027. Under these rules, Pakistan will not simply be monitored: it must reapply for GSP-Plus, submit a written plan of action, and win Brussels’ approval by the end of 2028.

It has also been made clear that the country assessment published on July 16 is the baseline against which Pakistan’s application will be judged. At stake are some €7.5bn annual exports that enjoy preferential access to the EU, and roughly €730m in yearly savings from tariff exemptions.

The tariff savings alone can mean the difference between profit and loss for Pakistan’s textile sector, the single biggest beneficiary of the GSP-Plus scheme, and which provides millions of livelihoods in an already constrained economy. It bears pointing out here that the reforms Brussels is asking for are not concessions being extracted by a foreign power: they are obligations Pakistan freely undertook to take advantage of the GSP-Plus scheme.

More importantly, those reforms also align closely with successive leaders’ efforts to foster a stronger, more stable and more prosperous Pakistan. The country’s successes in key areas, which have been acknowledged by the EU, should give the leadership the hope and confidence it needs. The same report credits real progress in terms of the narrowing of the death penalty’s scope, new laws against child marriage and domestic violence, ratification of the ILO forced-labour protocol, and a solid record on climate and environmental commitments for a country ranked among the world’s most vulnerable.

Therefore, instead of reacting defensively or in despair, the government must demonstrate seriousness and commitment. It has been given a window of over two years, and a demanding but clear checklist. The wise course would be to treat the GSP-Plus reapplication process not as a bureaucratic or diplomatic hurdle to be ‘managed’, but as a catalyst for the reforms the country has long promised itself.

As its recent record shows, Pakistan does not lack the capacity for progress. The only thing needed is an alignment of priorities — an understanding that what needs to be done is not only good for jobs and economic growth but also for Pakistan’s society as a whole. The national leadership has succeeded in large part in stabilising the economy; now, it must allow society the freedoms it needs to start stabilising itself.

Published in Dawn, July 18th, 2026 ...