Exports to Europe rise on improved demand in 1HFY25

Exports to European countries grew 8.32 per cent in the first half of 2024-25, mainly due to higher shipments to western states. In absolute terms, Pakistan’s exports to the European Union (EU) reached $4.429 billion in July-December FY25 from $4.089bn last year, according to data compiled by the State Bank of Pakistan. The export resurgence was due to a slight increase in demand for Pakistani goods in western, eastern and northern Europe. In FY24, Pakistan’s exports to the EU dipped 3.12pc to $8.240bn despite its GSP+ status, which allows duty-free entry into most European markets. In October 2023, the European Parliament unanimously voted to extend the GSP+ status for another four years until 2027 for developing countries, including Pakistan, to enjoy duty-free or minimum duty on European exports.