ISLAMABAD: Exports to European countries increased by 8.62% in the first five months of the current fiscal year, mainly due to increased shipments to western provinces.
The resurgence in exports to Europe this fiscal year is due to a slight increase in demand for Pakistani products in Western, Eastern and Northern Europe.
Pakistan’s exports to the European Union (EU) in absolute terms reached $3.866 billion in the July-November period of FY25 from $3.559 billion in the same period last year, according to data compiled by the State Bank of Pakistan.
Pakistan’s exports to the EU in FY24 fell by 3.12% to $8.24 billion despite its GSP+ status, which allows duty-free entry to most European markets.
In October 2023, the European Parliament unanimously voted to extend GSP+ status for a further four years until 2027, allowing developing countries, including Pakistan, to enjoy duty-free or minimum tariffs on European exports. .
Western Europe, which includes countries such as Germany, Netherlands, France, Italy, and Belgium, accounts for the largest portion of Pakistan’s exports to the EU. Exports to the region increased by 11.67% from $1.731 billion in May 2024 to $1.933 billion in May 2025.
Exports to Eastern and Northern Europe also increased slightly during the period. Exports to northern Europe amounted to $288,351 million in the period ending May 2025, an increase of 10.44% from $261,092 million in the same month last year.
Exports to Southern Europe decreased by 2.89% to $1,273 million in the year ending May 2025, compared to $1,311 million in the same period last year. In the region, exports to Spain in the period ending May 2025 decreased by 5.94% to $600.87 million from $638.5 million a year earlier.
Exports to Italy for the fiscal year ended May 2025 decreased by 5.24% to $480.73 million, compared to $501.99 million in the same period last year. Exports to Greece in the current fiscal year recorded a slight increase of $59.17 million, an increase of 15.43% compared to $51.26 million from the previous year.
However, exports to Eastern Europe increased by 44.95%. Exports to the region totaled $372.24 million, up from $256.87 million in the same period last year.
Before leaving the EU, Pakistan’s main export destination was the UK. In the post-Brexit period, Pakistan’s exports to the UK increased marginally to $935.02 in 5MFY 2025 from $863.48 million in the same period of the previous year, indicating an increase of 8.25%.
Pakistan’s exports to the UK in FY24 increased by 2.33% to $2.014 billion from $1.968 billion in the previous year.
However, the UK government assured Islamabad that there would be no change in the post-Brexit scenario, as evidenced by Pakistan’s inclusion in the preferential market access regime.
Pakistan’s exports to Western Europe increased by 11.67% to $1.933 billion in 5MFY24 from $1.731 billion last year.
Exports to Germany increased by 15.29% to $707.65 million in the May 2024 period from $613.77 million. Similarly, exports to the Netherlands, the second largest market for Pakistani products, increased by 10.86% to $621.16 million in the quarter ended May 2024 from $560.26 million in the same period last year.
Exports to France in the year ended May 2024 increased by 11.42% to $230.86 million from $207.18 million, followed by Belgium, which increased by 9.17% from $236.21 million in the same period last year. .
Published at Dawn on January 12, 2025
