Exports to Europe dip despite GSP+ as Middle East conflict hurts demand

Pakistan – (Staff Reporter/Web Desk) – Exports to Europe dip despite GSP+ status, and the numbers have begun to worry policymakers. Pakistan’s shipments to the region fell in the first quarter of 2026-27 compared with last year.

Data from the State Bank of Pakistan shows that overall exports to European countries slipped 1.84pc to $2.350bn in July-September. A year ago, the figure stood at $2.394bn.

The fall was small, but the trend is a concern. Pakistan hoped the GSP+ status would give its goods a strong edge in European markets.

Two main factors are behind the slowdown. The ongoing Middle East conflict has hurt demand. At the same time, the European Union has offered preferential market access to India, a major rival in textiles.

Trade analysts warn that the pain may not end here. Rising energy costs could squeeze household budgets in Europe. Shoppers there are already under strain from the fallout of the Ukraine war.

Western Europe, the largest buyer, saw exports drop 8.51pc to $1.065bn from $1.164bn. Germany fell 12.77pc to $389.116m. The Netherlands slipped 3.07pc to $370.005m. France eased 0.47pc to $136.030m, and Belgium declined 7.57pc to $127.431m.

Eastern Europe also lost ground. Exports there fell 15.05pc to $168.761m from $198.677m.

There was some good news. Northern Europe grew 21.07pc to $236.321m, up from $195.191m.

Southern Europe rose 5.26pc to $879.896m from $835.862m. Spain led with a jump of 17.78pc to $451.244m. Greece grew 3.52pc to $34.961m. Italy, however, fell 8.49pc to $298.731m.

The United Kingdom, once Pakistan’s top European buyer before Brexit, also did well. Exports there climbed 6.64pc to $612.305m from $574.171m.

Experts say Pakistan must act fast to protect its share in Europe. Without stronger efforts, rivals with better access may keep taking market share.