The EU and Pakistan are important political partners. The Delegation of the European Union to Pakistan represents the EU on a range of issues including: development cooperation, trade, humanitarian assistance, security and counter terrorism, energy, environment, health, transport, migration and climate change.

Political and security relations are getting stronger, something which is underscored by the EU-Pakistan Strategic Engagement Plan 2019.

A EU-Pakistan Joint Commission meets annually to review the progress on the agreement.

The EU is by far the biggest export destination for Pakistani products - about 1/3^rd of its exports reach the EU market. 

Pakistan’s exports to the EU grew by more than 64% since the granting of the GSP+ status Generalised System of Preferences (GSP) in 2014. In 2019, Pakistani exports to the EU were worth €7.49 billion. This represents almost 30% of Pakistan's exports globally. This is about twice the exports to the USA and about 3 times exports to China.

Pakistan's exports to the EU are heavily dependent on textile and clothing products, which account for 76% of all exports.  Many more products could be exported to the EU under the GSP+ preferences. A more diverse export base, in particular in value-added products would allow Pakistan multiply its benefit of GSP+.

On 10/02/2020, the European Commission released its third biennial report on the Generalised Scheme of Preferences (GSP). Generalised Scheme of Preferences (GSP) is the EU trade policy’s main tool to support developing countries and their efforts to pursue sustainable development. The GSP removes import duties from products coming into the EU from developing countries. This helps developing countries to alleviate poverty and create jobs, while at the same time abiding by international values and principles.

 2019 Biennial Report on the Generalised Scheme of Preferences (GSP)

The EU is third largest source of Pakistan’s imports after China (29%); and the UAE (14%) accounting for around 9% of the total imports in 2018. The main imports from the EU are machinery and appliances, transport equipment and chemical and pharmaceuticals. 

Infographic timeline GSP+  

Interesting EU-Pakistan bilateral Trade statistics

Through the MIP, the EU is contributing more than €340 million to rural development in Pakistan.

The funding programme focuses on boosting economic growth and livelihoods in some of Pakistan’s poorest areas.

Efforts will therefore be made to:

• Widen access to basic public services,
• Reduce social and economic inequality,
• Increase income-generating activities, and
• Contribute to building peace and stability in areas affected by unrest. 

About €97 million has been allocated through the MIP to bolster democracy in Pakistan.

Specific objectives are to:

• Strengthen democratic institutions and electoral processes – fighting corruption, improving legislation and greater scrutiny of government.
• Support the decentralisation of public administrations – improving the management of public finances and service delivery.
• Improve security and the rule of law – protecting people’s human rights, making law enforcement, legal and judicial systems more accountable.
• Promote Human Rights – strengthen the capacity of the key institutions and civil society to promote, monitor and enhance awareness on Human Rights.

EU Annual Report on Human Rights and Democracy in the World 2019 – Country Updates