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hreflang="es" ><span class="ecl-site-header__language-link-code">es</span><span class="ecl-site-header__language-link-label" lang="es">español</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_cs" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="cs" ><span class="ecl-site-header__language-link-code">cs</span><span class="ecl-site-header__language-link-label" lang="cs">čeština</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_da" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="da" ><span class="ecl-site-header__language-link-code">da</span><span class="ecl-site-header__language-link-label" lang="da">dansk</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_de" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="de" ><span class="ecl-site-header__language-link-code">de</span><span class="ecl-site-header__language-link-label" lang="de">Deutsch</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_et" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="et" ><span class="ecl-site-header__language-link-code">et</span><span class="ecl-site-header__language-link-label" lang="et">eesti</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_el" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="el" ><span class="ecl-site-header__language-link-code">el</span><span class="ecl-site-header__language-link-label" lang="el">ελληνικά</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_en" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link ecl-site-header__language-link--active" hreflang="en" ><span class="ecl-site-header__language-link-code">en</span><span class="ecl-site-header__language-link-label" lang="en">English</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_fr" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="fr" ><span class="ecl-site-header__language-link-code">fr</span><span class="ecl-site-header__language-link-label" lang="fr">français</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_ga" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="ga" ><span class="ecl-site-header__language-link-code">ga</span><span class="ecl-site-header__language-link-label" lang="ga">Gaeilge</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_hr" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="hr" ><span class="ecl-site-header__language-link-code">hr</span><span class="ecl-site-header__language-link-label" lang="hr">hrvatski</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_it" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="it" ><span class="ecl-site-header__language-link-code">it</span><span class="ecl-site-header__language-link-label" lang="it">italiano</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_lv" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="lv" ><span class="ecl-site-header__language-link-code">lv</span><span class="ecl-site-header__language-link-label" lang="lv">latviešu</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_lt" class="ecl-link 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class="ecl-site-header__language-link-label" lang="mt">Malti</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_nl" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="nl" ><span class="ecl-site-header__language-link-code">nl</span><span class="ecl-site-header__language-link-label" lang="nl">Nederlands</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_pl" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="pl" ><span class="ecl-site-header__language-link-code">pl</span><span class="ecl-site-header__language-link-label" lang="pl">polski</span></a></li><li class="ecl-site-header__language-item"><a 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lang="fi">suomi</span></a></li><li class="ecl-site-header__language-item"><a href="https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/pakistan_sv" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-site-header__language-link" hreflang="sv" ><span class="ecl-site-header__language-link-code">sv</span><span class="ecl-site-header__language-link-label" lang="sv">svenska</span></a></li></ul></div></div></div></div> <div class="ecl-site-header__search-container" role="search"> <a class="ecl-button ecl-button--tertiary ecl-site-header__search-toggle" href="" data-ecl-search-toggle="true" aria-controls="oe-search-search-form" aria-expanded="false" ><svg class="ecl-icon ecl-icon--s ecl-site-header__icon" focusable="false" aria-hidden="true" role="img"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#search"></use></svg>Search </a> <form class="ecl-search-form ecl-site-header__search" role="search" 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data-ecl-breadcrumb-item="static"><a href="/eu-trade-relationships-country-and-region/countries-and-regions_en" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-breadcrumb__link" >Countries and Regions</a><svg class="ecl-icon ecl-icon--fluid ecl-breadcrumb__icon" focusable="false" aria-hidden="true" role="presentation"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></li><li class="ecl-breadcrumb__segment ecl-breadcrumb__current-page" data-ecl-breadcrumb-item="static" aria-current="page">Pakistan</li></ol></nav><div class="ecl-page-header__info"><h1 class="ecl-page-header__title"><span>Pakistan</span></h1></div><div class="ecl-page-header__description-container"><p class="ecl-page-header__description">EU trade relations with Pakistan. Facts, figures and latest developments. </p></div></div></div> </div> <main class="ecl-u-pb-xl" id="main-content" data-inpage-navigation-source-area="h2.ecl-u-type-heading-2, div.ecl-featured-item__heading"> <div class="ecl-container"> <div class="ecl-row"> <div class="ecl-col-s-12 ewcms-top-sidebar"> <div> <div data-drupal-messages-fallback class="hidden"></div> </div> </div> </div> <div class="ecl-row"> <div class="ecl-col-s-12"> <div id="block-ewcms-theme-main-page-content" data-inpage-navigation-source-area="h2, div.ecl-featured-item__heading" class="ecl-u-mb-l"> <article dir="ltr"> <div> <dl class="ecl-description-list ecl-description-list--horizontal ecl-u-mb-s ecl-u-mt-s" ><dt class="ecl-description-list__term">Country or region</dt><dd class="ecl-description-list__definition ecl-description-list__definition--taxonomy"><ul class="ecl-description-list__definition-list"><li class="ecl-description-list__definition-item">Pakistan</li></ul></dd><dt class="ecl-description-list__term">Trade topics</dt><dd class="ecl-description-list__definition ecl-description-list__definition--taxonomy"><ul class="ecl-description-list__definition-list"><li class="ecl-description-list__definition-item">Negotiations and agreements</li><li class="ecl-description-list__definition-item">Trade policy</li></ul></dd></dl> <div class="ecl-u-mb-2xl"> <a id="paragraph_597"></a> <div class="ecl"><p>EU-Pakistan bilateral trade relations are governed by the <a href="https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex:32004D0870">Cooperation Agreement from 2004</a>. Enhancing bilateral trade and investment is also part of the <a href="https://eeas.europa.eu/sites/eeas/files/eu-pakistan_five-year_engagement_plan.pdf">EU-Pakistan 5-year Engagement Plan from 2012</a>.</p><p>Pakistan is a major beneficiary of the trading opportunities offered by the <a href="/development-and-sustainability/generalised-scheme-preferences_en" class="ecl-link">EU Generalised Scheme of Preferences (GSP)</a>. From 1 January 2014, Pakistan benefits from generous tariff preferences (mostly zero duties on two thirds of all product categories) under the so-called GSP+ arrangement aiming to support sustainable development and good governance. In order to maintain GSP+, Pakistan has to keep ratification and effectively implement 27 core international conventions on human and labour rights, environmental protection, and good governance.</p><h2>Trade picture</h2><ul><li>The EU is Pakistan's second most important trading partner, accounting for 15.3% of Pakistan's total trade in 2023.</li><li>In 2023, Pakistan was the EU's 47<sup>th</sup> largest trading partner in goods, accounting for 0.2% of EU trade.</li><li>Pakistani exports to the EU are dominated by textiles and clothing, accounting for 73.2% of Pakistan's total exports to the EU in 2023.</li><li>Pakistan's imports from the EU are mainly comprised of machinery and transport equipment (23.9% in 2023) as well as chemicals (19.8% in 2023).</li><li>Pakistan is the largest beneficiary of the EU's GSP+ arrangement.</li></ul><article> <div><script type="application/json">{"service":"charts","version":"2.0","dataset":{"format":"csv","source":"https:\/\/webgate.ec.europa.eu\/isdb_results\/charts\/country\/pakistan_goods.csv"},"data":{"chart":{"type":"column"},"xAxis":{"type":"category","title":{"text":"Years"},"gridLineColor":"#49A69C"},"colors":["#41afaa","#d7642d","#e6a532"],"legend":{"itemStyle":{"fontWeight":"bold"}},"plotOptions":{"series":{"dataLabels":{"style":{"fontWeight":"bold"}}}},"title":{"text":"Trade in goods, \u20ac billions"},"yAxis":{"title":{"text":"Billions"}},"tooltip":{"valueSuffix":"\u20acbn"}}}</script> </div> </article> <article> <div><script type="application/json">{"service":"charts","version":"2.0","dataset":{"format":"csv","source":"https:\/\/webgate.ec.europa.eu\/isdb_results\/charts\/country\/pakistan_services.csv"},"data":{"chart":{"type":"column"},"xAxis":{"type":"category","title":{"text":"Years"},"gridLineColor":"#49A69C"},"colors":["#41afaa","#d7642d","#e6a532"],"legend":{"itemStyle":{"fontWeight":"bold"}},"plotOptions":{"series":{"dataLabels":{"style":{"fontWeight":"bold"}}}},"title":{"text":"Trade in services, \u20ac billions"},"yAxis":{"title":{"text":"Billions"}},"tooltip":{"valueSuffix":"\u20acbn"}}}</script> </div> </article> <article> <div><script type="application/json">{"service":"charts","version":"2.0","dataset":{"format":"csv","source":"https:\/\/webgate.ec.europa.eu\/isdb_results\/charts\/country\/pakistan_fdi.csv"},"data":{"chart":{"type":"column"},"xAxis":{"type":"category","title":{"text":"Years"},"gridLineColor":"#49A69C"},"colors":["#41afaa","#d7642d","#e6a532"],"legend":{"itemStyle":{"fontWeight":"bold"}},"plotOptions":{"series":{"dataLabels":{"style":{"fontWeight":"bold"}}}},"title":{"text":"Foreign direct investment, \u20ac billions"},"yAxis":{"title":{"text":"Billions"}},"tooltip":{"valueSuffix":"\u20acbn"}}}</script> </div> </article> <article> <div><script type="application/json">{"service":"frame","src":"https:\/\/webgate.ec.europa.eu\/isdb_results\/charts\/country\/date_updated.html","title":"Statistics - last updated"}</script> </div> </article> <h2>The EU and Pakistan</h2><p>The EU and Pakistan have set up a Sub-Group on Trade to promote the development of two-way trade. The Sub-Group on Trade, set up under the auspices of the EU-Pakistan Joint Commission, is the forum for discussions on trade policy developments more broadly. It also aims to tackle individual market access issues which hamper trade between the two parties.</p><p>While Pakistan's economy holds considerable potential, high costs of doing business, complex regulation and infrastructure bottlenecks all have a detrimental effect on trade and growth. Pakistan's trade regime and regulatory environment still remain comparatively restrictive.</p><p>Textiles and clothing account for over 80% of Pakistan's exports to the EU. While the textiles and clothing industry are the backbone of Pakistani exports, relying so heavily on one product category carries risks for Pakistan. Trade diversification would play an essential role in this respect. The granting of GSP+ preferences in 2014 should stimulate Pakistan's efforts towards diversification.</p><ul><li>As a result of GSP+, more than 78% of Pakistan's exports enter the EU at preferential rates.</li><li>Around 80% of the textiles and clothing articles imported to the EU from Pakistan enter the EU at a preferential tariff rate. Around a quarter of these imports are bed linen, table linen and toilet and kitchen linen.</li></ul><h3>Pakistan's trade preferences</h3><ul><li>The EU supports Pakistan's integration into the world economy and its sustainable economic development by granting it GSP+ trade preferences.</li><li>Thanks to GSP+ more than 76% of Pakistan's exports, including textiles and clothing, enter the EU duty and quota free. This represents almost 20% of Pakistan's exports globally. The GSP+ preferences should also help Pakistan diversify its export basket.</li><li>In order to maintain GSP+ Pakistan has to keep ratification and effectively implement 27 core international conventions on human and labour rights, environmental protection and good governance. This is closely monitored by the European Commission and also under a permanent scrutiny by the EU Member States and European Parliament, as well as civil society.</li></ul><h2>Trading with Pakistan</h2><ul><li><a href="https://trade.ec.europa.eu/access-to-markets/en/content/eu-market-0">Importing into the EU</a> from Pakistan<ul><li><a href="https://tron.trade.ec.europa.eu/investigations/ongoing" class="ecl-link">EU trade defence measures on imports</a> from Pakistan</li></ul></li><li><a href="https://trade.ec.europa.eu/access-to-markets/en/non-eu-markets/PK">Exporting from the EU</a> to Pakistan<ul><li><a href="https://tron.trade.ec.europa.eu/investigations/cases" class="ecl-link">Trade defence measures in force in Pakistan</a></li></ul></li><li>Trade relations are part of <a href="https://eeas.europa.eu/delegations/pakistan_en">the EU's overall political and economic relations with Pakistan</a></li><li>Pakistan is a <a href="http://www.wto.org/english/thewto_e/countries_e/pakistan_e.htm" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">member of the World Trade Organization</span><svg xmlns:xlink="http://www.w3.org/1999/xlink" class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external"></use></svg></a></li></ul></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_598"></a> <div id="block-latestnews" class="ecl-u-mt-l"> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_3336"></a> <div id="block-latestevents" class="ecl-u-mt-l"> </div> </div> </div> </article> </div> </div> </div> <div class="ecl-row"> <div class="ecl-col-s-12"> <div> <div id="block-ewcms-theme-socialshare"> <div class="ecl-social-media-share"> <p class="ecl-social-media-share__description"> Share this page </p> <script 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