EU warns Pakistan GSP+ status dependent on ‘list of issues,’ including human rights

Ambassador Olof Skoog, EU Special Representative for Human Rights (EUSR) meets Pakistan’s Foreign Minister Ishaq Dar (left) in Islamabad, Pakistan, on January 28, 2025. (MOFA/File)
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Updated 31 January 2025
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EU warns Pakistan GSP+ status dependent on ‘list of issues,’ including human rights

  • Statement comes after EU envoy’s visit to Pakistan following bloc criticizing sentencing of civilians by military courts
  • GSP+ status in spotlight again this week as Pakistan passed controversial cybercrime law to regulate social media platforms

ISLAMABAD: The European Union’s mission in Islamabad on Friday reminded Pakistan that trade benefits it received under the GSP+ scheme depended on progress the country made on addressing a list of issues, including human rights, saying “tangible” efforts remained essential. 

The statement came after a week-long visit to Pakistan by Ambassador Olof Skoog, EU Special Representative for Human Rights (EUSR), to engage the country on human and labor rights issues and to discuss Pakistan’s plans to address them, including in view of the ongoing assessment under the GSP+ trade scheme.

The GSP+ scheme grants beneficiary countries’ exports duty-free access to the European market in exchange for voluntarily agreeing to implement 27 international core conventions, including on human and civil rights.

Multiple developments on the human rights front have raised concerns over Pakistan’s GSP+ status in recent weeks. The EU last month openly criticized Pakistan for sentencing over 80 civilians in army courts after charging them for anti-government riots in May 2023 in which military installations were attacked, saying it was “inconsistent” with Pakistan’s international obligations. This week, the country’s GSP+ status was once more in the spotlight after parliament passed a controversial cybercrime law that journalists and digital rights activists have widely said aims to crackdown against dissent on social media platforms. The government denies this. 

“As we approach the midterm of the current monitoring cycle, we encourage Pakistan to continue on its reform path as it prepares for reapplication under the upcoming new GSP+ regulation,” the EU mission in Islamabad said in a statement. 

“The trade benefits under GSP+ depend on the progress made on addressing a list of issues, including on human rights, and tangible reforms remain essential.”

In his meetings with senior Pakistani leaders including the deputy prime minister, information minister, the chief justice and military leaders, Skoog discussed areas of concern such as the application of blasphemy laws, women’s rights, forced marriages and conversions, enforced disappearances, freedoms of expression, religion or belief, independence of the media, impunity for rights violations, due process, the right to a fair trial, civic space, the death penalty, judicial backlog and the integrity and independence of the judiciary.

Pakistan has become the largest beneficiary of GSP+ in recent years, with its businesses increasing their exports to the EU market by 108 percent since the launch of the trade scheme in 2014.

In October 2023, the EU unanimously voted to extend GSP+ status until 2027 for developing countries, including Pakistan.


Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

Updated 57 min 40 sec ago
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Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

  • State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
  • Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26

KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).

Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.

According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.

“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.

He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.

The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.

He also noted that headline inflation had declined to 5.8 percent in January 2026.

The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.

The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”

Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.