Pakistan will have to meet five additional international requirements to retain its Generalized Scheme of Preferences Plus (GSP+) trade benefits from the European Union under a revised framework scheduled to take effect in 2029.

The new requirements will increase the number of international conventions Pakistan must implement from 27 to 32. Secretary Commerce Jawad Paul informed the National Assembly Standing Committee on Commerce that Pakistan would also need to submit a fresh application under the EU’s revised rules.

He said the European Union had submitted its assessment of Pakistan to the European Parliament and described the findings as satisfactory. Pakistan will continue receiving benefits under the existing arrangement until 2029.

EU Adds Five New Conditions for Pakistan

Under the revised GSP+ framework, Pakistan will have to comply with five additional international conventions covering:

• Protection of the rights of persons with disabilities.
• Prevention of the recruitment of children into armed conflicts.
• Effective labour inspections.
• Consultation between governments, employers, and workers on labour policies.
• Combating human trafficking, migrant smuggling, and organised crime.

Pakistan has already ratified all five conventions. However, it will have to demonstrate that the commitments are being effectively implemented to retain preferential access to European markets.

The revised framework will also replace the Kyoto Protocol with the Paris Climate Agreement, which Pakistan has already ratified.

Pakistan Must Submit Fresh GSP+ Application

Pakistan will have to submit a new application under the revised EU mechanism, supported by a detailed action plan explaining how it intends to implement all 32 international conventions.

Existing beneficiary countries will retain their trade preferences during a two-year transition period ending in December 2028.

This gives Pakistan time to meet the additional requirements before the revised framework takes effect in 2029.

Pakistan’s Trade With India Also Discussed

The committee also reviewed Pakistan’s suspension of bilateral trade with India, which has remained in place since 2019.

Commerce Secretary Jawad Paul acknowledged that indirect trade between the two countries continued through third countries, including the United Arab Emirates.

Committee Chairman Javed Hanif Khan questioned the economic rationale behind the suspension, noting that China and India continued trading despite tensions between them.

The discussion took place during a meeting of the National Assembly Standing Committee on Commerce, which reviewed Pakistan’s international trade arrangements and challenges facing the export sector.