A joint staff working document published by the European Commission on 16 July 2026 assesses Pakistan's compliance with its obligations under the EU's Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) for the period 2023-2025, finding progress in some areas but serious regression in others. Pakistan is the largest GSP+ beneficiary, with EUR 7.5 billion in eligible exports and EUR 732 million in tariff exemptions in 2024. The assessment, accompanying a joint report to the European Parliament and the Council on the Generalised Scheme of Preferences (GSP), highlights grave concerns over enforced disappearances, extrajudicial killings, and deteriorating freedom of expression, which could jeopardise Pakistan's future eligibility under revised rules from 2027.
The document, prepared jointly by the Commission's trade and foreign policy services, notes that Pakistan has ratified all 27 GSP+ conventions and issued no new reservations. No executions have been carried out since December 2019, four crimes have been removed from the scope of capital punishment, and presidential clemency was granted in October 2025. Positive legislative steps include the approval of the National Commission for Minorities bill at the end of 2025, the Domestic Violence Bill for Islamabad, the first marital rape conviction in February 2024 in Sindh, ratification of the ILO Protocol of 2014 to the Forced Labour Convention, and the criminalisation of child marriage in Islamabad (May 2025), Balochistan (November 2025), and Punjab (February 2026).
However, the assessment raises serious concerns about enforced disappearances and extrajudicial killings, which have increased, with no prosecutions for enforced disappearances to date. The Commission of Inquiry closed over 9,000 cases without finding state agent involvement. Freedom of expression has deteriorated: amendments to cybercrime, anti-terrorism, and blasphemy laws have been used against dissidents, journalists, and minorities, with over 300 falsely accused blasphemy victims still in jail as of April 2026. The document also notes that 26 million children aged 5-16 (38% of the school-age population) are out of school, and government education spending has fallen to a new low.
On 19 June 2025, the Commission suspended Pakistan's GSP+ preferences for non-fuel ethanol for two years (21 June 2025 to 20 June 2027) due to serious market disturbance. Additionally, over 2 million Afghan nationals have returned to Afghanistan since September 2023 under the Illegal Foreigners Repatriation Plan, with at least 10% deported.
The assessment concludes that Pakistan faces serious compliance gaps on human rights, rule of law, and labour enforcement, risking future GSP+ eligibility under revised rules from 2027. The European Parliament and the Council will now consider the findings, which could lead to enhanced monitoring or suspension of preferences.
For EU importers and consumers, continued GSP+ preferences keep Pakistani goods competitive, but potential suspension could raise costs. For Pakistani exporters, particularly textiles and leather, losing preferences would hit EUR 7.5 billion in exports. For human rights and labour groups, the assessment validates concerns but may not trigger immediate action. For EU policymakers, the findings pressure a tougher stance under the revised GSP regulation, balancing trade benefits with values.