Pakistan starts preparing for the new GSP+ phase

Pakistan has accelerated preparations for the next phase of the European Union’s GSP+ trade preferences. The Ministry of Commerce has started working on a comprehensive action plan to implement the reforms and measures required under the new European framework.

In the new system, mere ratification of international agreements will not be enough for Pakistan. The European Union has also made effective implementation of 32 international conventions and its reliable evidence an important condition. Current beneficiary countries will have to reapply to remain in the new GSP+ scheme.

The Ministry of Commerce is working with the relevant institutions to formulate a mechanism for sharing responsibilities and monitoring progress regarding the conventions. The government is trying to identify the shortcomings in various sectors in a timely manner so that the necessary steps can be completed by the stage of the new application.

The new EU framework has given greater prominence to requirements related to human rights, labour rights, environmental protection, climate change and good governance. The monitoring process is also more systematic and evidence-based than before.

According to the Ministry of Commerce, the relevant ministries and departments will have to prepare action plans related to their scope. The current target is to complete the Convention-wise Action Plan by June 2028. After that, Pakistan will hold pre-application negotiations with the EU and submit a new application for the continuation of GSP+ privileges.

The new system will be implemented from January 1, 2027; however, the current GSP+ beneficiary countries have been given a transition period until the end of 2028. During this period, the privileges will continue, but it will be necessary to reapply for the new scheme and fulfil the required conditions.

The economic importance of this issue for Pakistan is particularly high. The European Union is one of Pakistan’s most important export markets, and a large number of Pakistani products enjoy preferential access under GSP+. According to the EU, the trade in goods between the two sides was €12.2 billion in 2025, with textiles and apparel accounting for a large share of Pakistani exports.

The government’s current effort is to complete the necessary reforms before the next phase of GSP+ and provide a strong foundation for Pakistan’s export industry to maintain preferential access to the European market.