EU Green Deal rules put textile exports at a crossroads

Pakistan's textile sector has entered 2026 at a defining juncture, with its long-standing export model facing mounting pressure from tightening global regulations, intensifying competition and domestic cost constraints. After a modest recovery in 2025 that lifted textile exports to around $17.85 billion, industry leaders now warn that the sector's preferential access to European markets under the GSP Plus regime is increasingly at risk. These concerns dominated discussions at the Global Procurement and Supply Chain Summit (GPS 2026), held in Karachi, where policymakers, procurement leaders and textile executives assessed the evolving global trade environment. Addressing the summit as chief guest, Shahbaz H Syed, President and CEO of EXIM Bank of Pakistan, described the current environment as a "perfect storm", driven by rising energy costs, aggressive sustainability regulations and redirected global supply flows.