Pakistan urges EU to keep GSP+ accessible, flags ethanol loss and GI disputes

Pakistan's Commerce Minister Jam Kamal Khan meets EU monitoring mission in Islamabad, Pakistan, on November 28, 2025. (Commerce Ministry)
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Updated 28 November 2025
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Pakistan urges EU to keep GSP+ accessible, flags ethanol loss and GI disputes

  • Pakistan says it has implemented all required conventions ahead of GSP+ review
  • Delegation hears concerns over ethanol tariff change, Pakistan–India Basmati GI case

ISLAMABAD: Pakistan has pressed the European Union to keep the next GSP+ trade framework development-focused and avoid imposing new conditions on beneficiary states, Commerce Minister Jam Kamal Khan told a visiting EU monitoring mission in Islamabad on Friday, warning that the EU’s recent withdrawal of preferences for Pakistani ethanol had already damaged farmer incomes.

The Generalized Scheme of Preferences Plus grants Pakistan highly preferential access to EU markets in return for implementing 27 international human-rights, labor-rights and governance conventions. The EU is Pakistan’s largest export destination, making the scheme a lifeline for its textiles-led, export-dependent economy and a major source of manufacturing and rural employment.

The EU monitoring mission, led by Sergio Balibrea of the European Commission’s DG TRADE and accompanied by Ambassador Raimundas Karoblis, arrived in Islamabad this week as Brussels prepares for the next biennial GSP+ review.

Pakistan is one of the program’s largest beneficiaries and is seeking renewal amid rising economic pressures and intense competition from regional exporters.

“The Minister urged that the new GSP+ framework should maintain its development outlook without imposing excessive new conditions on beneficiary countries,” the commerce ministry said in a statement after Khan met the EU delegation. 

Khan also warned that the EU’s recent decision to remove GSP preferences for ethanol, Pakistan’s largest non-textile export under the scheme, had “adversely affected farmers’ livelihood,” according to the statement. 

Ethanol exports had benefited from duty-free access under GSP+, but the EU’s revised tariff schedule earlier this year reimposed duties, sharply reducing Pakistan’s price competitiveness in the bloc and hitting a supply chain that supports millions of sugarcane farmers.

The minister also raised concerns over the long-running geographical indication (GI) dispute over Basmati rice — a premium aromatic variety jointly grown in Pakistan and India — urging the EU to ensure an “impartial” decision as both countries await the bloc’s ruling on which side may register exclusive GI rights. Securing GI protection would determine who can legally market their Basmati as an authentic, origin-designated product in Europe, a market worth hundreds of millions of dollars annually.

Khan further encouraged the EU to consider additional Pakistani products for GI listing, including Sindhi Ajrak, Pink Salt and mangoes, which Islamabad says deserve formal recognition for their cultural heritage and export value.

Both sides “reaffirmed their commitment to strengthening Pakistan–EU trade ties under a stable and predictable GSP+ partnership,” the statement said.

A day earlier, the EU monitoring delegation met the law minister and urged Pakistan to close gaps in its human-rights protections, strengthen enforcement mechanisms and improve data and institutional reforms as part of the EU’s ongoing review of Pakistan’s GSP+ trade privileges, the Press Information Department said in a statement.

Human Rights Minister Senator Azam Nazeer Tarar received the delegation led by Sergio Balibrea of the European Commission’s DG TRADE and accompanied by EU Ambassador Raimundas Karoblis.

“Pakistan reaffirmed its strong commitment to the GSP+ framework, emphasizing that the Pakistan–EU partnership remains central to governance reforms, institutional strengthening, and sustainable development,” the PID statement said after the meeting.

“As one of the largest beneficiaries of GSP+, Pakistan highlighted the program’s role in advancing human-rights protections and aligning domestic legislation with international standards.” 

The EU team, however, raised issues requiring “further attention regarding human rights in the country,” including the need for stronger policies, legislation and institutions to meet Pakistan’s obligations under the 27 UN conventions tied to GSP+, the PID statement said.

During Thursday’s meeting, Pakistani officials briefed the delegation on steps taken since 2014, including new legal protections for women, children, labor groups, persons with disabilities and marginalized communities. They also highlighted progress in independent national rights bodies such as the National Commission for Human Rights, which retains its “A” status, and ongoing implementation of national action plans on human rights and business and human rights across federal and provincial levels. 

Pakistan also reaffirmed its commitment to freedom of expression and media safety, pointing to measures under the National Commission for Protection of Journalists and Media Professionals. 

Updates were also shared on sensitive areas such as reductions in capital offenses, the implementation of the Mercy Petition Policy, enforcement of the Torture and Custodial Death Act, and what the ministry described as “over 85 percent resolution of cases” by the Commission of Inquiry on Enforced Disappearances. 

According to the PID, the delegation was also briefed on gender initiatives including the National Gender Policy Framework, gender-responsive budgeting and social protection program such as the Benazir Income Support Program, which supports more than nine million women. 

Officials similarly outlined progress on child-rights institutions including the National Commission on the Rights of Child, the ZARRA alert system and child protection institutes, alongside recent legislation on child marriage and broader efforts to address child labor, online exploitation and out-of-school children. 

The ministry said Tarar “welcomed the EU’s constructive suggestions on enhancing data integration, inter-provincial coordination, treaty reporting, and implementation mechanisms.” 

Pakistan also acknowledged ongoing cooperation with the EU under the Huqooq-e-Pakistan Project and said it “remains fully committed” to sustaining progress under GSP+ and strengthening its human-rights framework. The Huqooq-e-Pakistan Project is an EU-funded technical assistance program designed to help Pakistan implement human-rights reforms, improve treaty reporting and strengthen federal and provincial institutions linked to the GSP+ monitoring process.


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.