'Indian duty-free access threatens GSP Plus edge'

Pakistan’s textile exporters say new trade deals giving Indian products duty-free entry to European Union and UK markets could weaken Pakistan’s GSP Plus advantage. SITE Association of Industry President Abdul Hadi told The Express Tribune that the preference has supported access for about 89% of Pakistan’s textile and apparel exports to the EU, but its value is being challenged by competitors’ improved terms. He also pointed to higher production expenses and shifting trade patterns.

Textiles generated $18 billion in exports in fiscal year 2025-26 and account for about 60% of Pakistan’s export earnings. Exports rose 5.26% year-on-year to $5.026 billion in the opening quarter of fiscal year 2026-27, but exporters face pressure from costs and international competition. Hadi urged investment in technology, higher-value goods and new markets, alongside incentives for technical textiles and branded clothing; he also called for stronger domestic cotton production, after cotton-import spending climbed 54.9% in fiscal year 2024-25.