ISLAMABAD: Pakistan’s exports to Europe have surged to $3.8 billion in the first five months of the current fiscal year, state-run media reported on Monday, marking an increase of 8.62 percent compared to the same period last year. 

The European Union (EU) is Pakistan’s second most important trading partner, accounting for over 14 percent of Pakistan’s total trade and absorbing 28 percent of Pakistan’s total exports. Pakistani exports to the EU are dominated mostly by textiles and clothing.

Pakistan avails the Generalized Scheme of Preferences (GSP)+ status, a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance.

The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan. 

“Pakistan’s exports to Europe surged to 3.8 billion dollars, reflecting an 8.62 percent increase in the first five months of current fiscal year,” state broadcaster Radio Pakistan reported.

It said the growth in exports was driven by the Special Investment Facilitation Council (SIFC), a Pakistani hybrid civil-military body, in the sectors of textiles, leather, garments, sports goods and surgical instruments.

Pakistan’s government formed the SIFC in June 2023 to promote business opportunities in various sectors such as agriculture, mining, information technology and defense, and attract foreign investment. 

The SIFC has targeted mainly Gulf countries in its attempt to revitalize Pakistan’s economy and ensure it heads toward sustainable growth in the years to come. The council was set up in 2023 as Pakistan faced tough economic challenges amid dwindling forex reserves and a rapidly depreciating national currency.

Finance Minister Muhammad Aurangzeb has repeatedly stressed the importance of shifting Pakistan’s economy from an import-dependent one toward an export-led one, saying that without it sustainable economic growth is difficult to achieve. 

In recent months, Pakistan has vigorously pursued economic and investment deals with Gulf countries such as Saudi Arabia, the United Arab Emirates and bilateral trade cooperation with Central Asian states, Russia and others.