BRUSSELS: It has been over a decade since Pakistan was granted the Generalized System of Preferences Plus (GSP+) status by the European Union. The GSP+ is a trade mechanism through which the EU offers developing countries preferential access to its markets. It serves as a special incentive arrangement promoting sustainable development and good governance, aimed at supporting vulnerable developing nations such as Pakistan. Over the years, Pakistan has become the largest beneficiary of the EU’s GSP+ program.
The generous tariff reductions have led to a massive boost in Pakistan’s trade with the EU. Islamabad’s exports to the EU have increased by more than 47.25 per cent since the inception of the GSP+ status. More significantly, it is its textile exports which has been the major beneficiary, with a rise of 66.6 per cent since 2013. Among EU nations, Germany, Spain, the Netherlands, Italy, Poland, and Portugal have emerged as leading export destinations for Pakistan. In terms of value, from €3564 million, the value of imports from Pakistan has risen to €7964 million from 2013 to 2023. Pakistan is running a trade surplus, with the bilateral trade in goods between the two at €12 billion in 2024, with a deficit for the EU of €4.6 billion. All these data points successfully paint a rosy picture, forecasting a promising future for Pakistan’s trade and economic development. However, there is an important aspect of the GSP+ status that needs as much attention as the success story.
An important tenet of GSP regulation is that the beneficiary countries have to ratify and effectively implement 27 international conventions on human rights, labor, environmental protection, and good governance to receive preferential trade benefits. Pakistan has, by default, ratified all 27 core international conventions, but when it comes to its implementation, the story is drastically different and, unfortunately, not so rosy.
Antithetical to the covenants ratified, the truth is that Pakistan is a model case of widespread and systematic violations of human rights: a state highly tolerant of its human rights excesses. Thus, considering the abysmal track record of the last decade, one finds little courage to extend support for continuation of the GSP+ status for Pakistan.
From gender and ethnic discrimination to the use of military courts for civilians, Pakistan’s image is marred with a multitude of incidents of human rights violations. The 2018-19 assessment by the EU reported no progress on the legislation on labour rights, along with a lack of safer spaces for civil society, voices of dissent, and the safety of journalists. Moreover, the sectarian conflicts, including violence against Shia community in 2020, 2023 and 2024; and systematic persecution of religious minorities through discriminatory laws, targeted violence, forced conversions, mob attacks, and the weaponization of digital platforms of Pakistan’s Hindu, Christian, Sikh, Shia, Ahmadi, Kalash, and other minority communities have already kept the UNHCR on their toes. As per the report by the Center for the Study of Organized Hate (CSOH), the cases of violence against religious minorities have increased as recently as between 2024 and the first half of 2025. As of July 2025, UNHCR experts expressed their concern of increasing violence against vulnerable communities, where these communities “have witnessed relentless attacks, killings, and unending harassment for months in the context of hostility and advocacy of hatred against them.” UNHCR also observed that the attacks are taking place with tacit official complicity and warned the state to break the pattern of impunity that allows perpetrators to act without restraint or fear of consequences.
The socio-economic development front of Pakistan is also in doldrums, indicating system’s apathy and lack of will to improve citizen’s welfare while breaking the covenants of Good Governance and Labour Rights. On the citizen’s welfare front, the updated estimates from the World Bank reveal that poverty headcount in Pakistan has increased to 44.7 percent, implying that almost half of its population is living below the poverty line, subjected to abject poverty conditions.
Despite the rising flow of trade revenues, the system hasn’t translated its trade revenue into bringing positive change in its social fabric and institutions. Surprisingly, and much to the discontent of the human rights and welfare covenants, the total federal budget’s allocation to education, including basic and higher education, has dropped 44 percent, slashed from Rupees 103.8 billion in FY 2024-25 to Rupees 58 billion in the new budget. In 2023, Pakistan spent only 1.9 percent of its GDP on education, vis-à-vis the South Asian average of 2-3 percent. Similarly, health sector is characterised by massive underinvestment. The health expenditure, as a percent of GDP, is around 1 percent, significantly lower than recommended by global health organizations like the World Health Organization (WHO). Instead, Pakistan increased its defence budget between 2016-17 and 2025-26 by more than 200 times, with a current allocation of massive 2.55 trillion rupees (or $9 billion). And these numbers don’t include the massive burden of military pensions that burden the government budget allocations.
The textile sector, which is championing under the GSP+ regime, is also championing in the field of labour rights violations. There are frequent violations of wage regulations, and a major fraction of the textile workers possess no written contracts. There is no provision of statutory minimum wage, as the employees are appointed through third parties under informal economy, unprotected by social security or insurance. The Pakistani suppliers are accused of systematically violating labour laws by withholding fair wages, suppressing union organizing, and other unfair practices.
The EU has already expressed its concern over blasphemy laws, enforced disappearances, freedom of expression, media independence, impunity for rights violations, due process, fair trials, civic space, and the death penalty situation, which need to be addressed to continue the trade privileges.
Given Pakistan’s trade success and Human Rights failure under the GSP+ regime, the question is: Is GSP+ status successful in incentivising Pakistan to protect its citizens? In the wake of the violation of conventions in every dimension, whether it is human rights, good governance or labour rights, is it justified for the EU to renew the GSP+ status? What kind of signal will be sent to the global community, and what kind of incentive are provided to the nations to improve their poor institutions? Are the signing of the conventions only empty threats or do they wield real power? The EU has a lot on its plate to address before crowning Pakistan again with the status and tacitly approving disregard to international conventions, while it is time for Pakistan to stop taking preferential trade treatment and the resulting growth for granted.
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