KARACHI: President of the Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain, has raised alarms over the decline in Pakistan’s export receipts from European markets. He emphasized that maintaining preferential access under the European Union’s Generalized Scheme of Preferences Plus (GSP+) is essential for the country’s economic stability. He urged the Ministry of Commerce to collaborate with exporters in crafting strategies to address declines in specific markets and products.
According to Pakistan Businessmen and Intellectuals Forum, the State Bank of Pakistan's October 2026 Monthly Export Receipts Report showed that Pakistan's merchandise export receipts from European markets fell by 1.84 percent year on year, amounting to $2.35 billion during the period of July to September 2026. Western Europe saw a decline of 8.51 percent, and Eastern Europe experienced a 15.05 percent drop. Specifically, export receipts from Germany, Italy, Belgium, and the Netherlands decreased by varying percentages. Hussain called for the Ministry of Commerce to analyze these declines by product and collaborate with exporters to address the issues related to pricing, quality, and delivery.
Hussain pointed out the disruptions caused by the US-Iran war and the closures of strategic maritime routes, which have increased freight and insurance costs, impacting transit times to Europe. Rising production and raw material costs also challenge the competitiveness of Pakistani textile exporters. He welcomed the announcement by Federal Minister for Maritime Affairs that Mediterranean Shipping Company would resume its 'Premium I-Pak' service, which is expected to lower freight costs and ensure timely deliveries.
Hussain also highlighted that, per the European Commission, €7.5 billion worth of Pakistani exports were eligible for GSP+ preferences in 2024, with potential tariff savings of €732 million. Any disruption in these preferences could significantly affect the textile and apparel sectors. He noted the EU's concerns in its 2023-2025 review of Pakistan’s GSP+ implementation, urging governments to demonstrate tangible progress in meeting international conventions to secure continued preferences post-2028.
The completion of free trade agreement negotiations between India and the European Union poses additional challenges, as it could enhance India’s access to the European market, affecting Pakistan’s competitive edge. Hussain stressed the importance of government and business community collaboration to address the EU's concerns, reduce production costs, and assist small and medium-sized exporters in meeting international standards.