EU scraps automatic GSP Plus extension, Pakistan must submit action plan on 32 UN conventions from Jan 2027

The Commerce Ministry told a National Assembly committee that Pakistan will not get an automatic renewal of its GSP Plus trade status once the EU's new scheme starts in January 2027. Commerce Secretary Jawad Paul said any country seeking an extension must apply with an action plan covering 32 UN conventions. Profit reported that the framework includes a two-year transition period for submitting such plans for EU review.

Paul told the panel that the EU assessment of Pakistan had positive and negative findings, with human rights among the concerns. He noted that the report also pointed to security and climate matters, which the EU usually raises in such reviews, and urged members to help explain Pakistan's stance to European lawmakers. According to Paul, the EU accepted that security conditions, economic difficulties and flood-related climate effects have constrained Pakistan's capacity to implement measures.

Committee member Asad Alam Khan Niazi asked if exporters would need to guarantee higher exports in return for incentives. Chairman Jawad Hanif said no direct incentives are offered, and that cutting duties and taxes, which he called a response to over-taxation, aims to boost competitiveness. Officials added that a new policy reduces protection, and that tariffs on 2,000 tariff lines were lowered last year in an effort to bring down raw material expenses.