Pakistan’s Trade with The European Union (EU) and Its Member States
This report, titled “Pakistan’s Trade with the European Union (EU) and Its Member States,” is a part of the Pakistan...
This report, titled “Pakistan’s Trade with the European Union (EU) and Its Member States,” is a part of the Pakistan Business Council’s (PBC) Market Access Series 2024-25. The report provides a comprehensive analysis of Pakistan’s trade performance with the EU, both as a bloc and with individual member countries.
The European Union (EU) has its historical origins in the aftermath of World War II when European leaders sought to prevent future conflicts and foster peace and cooperation among European countries.
Combined, the EU is one of the world’s largest economies. The table below lists the top 10 economies of the EU based on gross domestic product (GDP) in 2023. Following Brexit, the UK has not been included in this list.
The EU combined produced $18.06 trillion worth of goods and services in 2023, accounting for around 17.5 % of the world’s output. The following table shows the top 10 economies within the EU, where Germany has the highest GDP of $4525.7 billion and accounts for 24.3% of the EU economy. Following Germany are France, Italy, Spain, and the Netherlands.
Table 1: Top EU Economies Based on GDP 2023
| Rank | Country | GDP 2023 (USD Billion) | Share in the EU Economy (%) |
|---|---|---|---|
| 1 | Germany | 4,525.7 | 24.3 |
| 2 | France | 3,051.8 | 16.4 |
| 3 | Italy | 2,300.9 | 12.4 |
| 4 | Spain | 1,620.1 | 8.7 |
| 5 | Netherlands | 1,154.4 | 6.2 |
| 6 | Poland | 809.2 | 4.4 |
| 7 | Belgium | 644.8 | 3.5 |
| 8 | Sweden | 585.0 | 3.1 |
| 9 | Ireland | 551.4 | 3.0 |
| 10 | Austria | 511.7 | 2.8 |
Source: World Bank
Pakistan’s Trade with the European Union
The EU is a significant trading partner for Pakistan, it unilaterally granted Pakistan GSP+ status in 2014, thereby facilitating preferential access to its common market. The GSP+ has allowed Pakistan to export a wide range of products to the EU market at reduced or zero tariffs, leading to a notable increase in exports, particularly in the textiles and clothing sectors.
The following figure shows Pakistan’s trade trends with the EU for the last five years. Over the last five years, Pakistan’s trade with the European Union (EU) has seen growth. Total trade between the EU and Pakistan reached $12.1 billion in 2024, making EU Pakistan’s second most important trading partner after China, accounting for approximately 13.6% of Pakistan’s total trade. The EU is the most crucial export destination for Pakistan, with 27.6% of the country’s exports heading to the European market. Conversely, the EU ranks as Pakistan’s sixth-largest import source, with imports of $3.2 billion in 2024.
The GSP+ scheme has facilitated Pakistan’s exports to the EU, with zero import duties applied to 66 percent of tariff lines. As a result, Pakistan’s exports to the EU have consistently increased over the years, rising from $5.1 billion in 2015 to $9.0 billion in 2024, making it the largest beneficiary among all GSP+ countries.
About 78.7% of EU imports from Pakistan are imported using GSP+ preferential tariffs, showcasing the scheme’s significance in promoting trade. The current preference utilization rate, representing the ratio of preferential imports to GSP+ eligible imports, stands at an impressive 87.9%.
Figure 1: Pakistan’s Trade Trends with the EU
Source: ITC Trade Map
The table below shows Pakistan’s exports to the EU for the year 2024. Pakistan’s total exports to the EU in 2024 were $9.0 billion, accounting for 27.6% of Pakistan’s total exports to the world. Pakistan’s largest export destination within the EU was Germany, with exports amounting to $1.7 billion in 2024, and accounting for 19.2% of total exports to the EU. Excluding Germany, the top 4 consisted of Netherlands, Spain, Italy, and Belgium respectively.
Table 2: Pakistan Exports to EU Members 2024
| Country | Pakistan Exports 2024 (USD Million) | Share in Exports to the EU (%) |
|---|---|---|
| European Union (EU 27) | 8,951.2 | 27.6% |
| Germany | 1,722.1 | 19.2% |
| Netherlands | 1,601.3 | 17.9% |
| Spain | 1,471.5 | 16.4% |
| Italy | 1,135.0 | 12.7% |
| Belgium | 696.7 | 7.8% |
| France | 519.5 | 5.8% |
| Poland | 437.0 | 4.9% |
| Denmark | 256.8 | 2.9% |
| Portugal | 220.0 | 2.5% |
| Sweden | 166.4 | 1.9% |
| Greece | 136.4 | 1.5% |
| Ireland | 103.1 | 1.2% |
| Romania | 87.8 | 1.0% |
| Slovenia | 63.6 | 0.7% |
| Czech Republic | 52.8 | 0.6% |
| Bulgaria | 49.3 | 0.6% |
| Lithuania | 45.5 | 0.5% |
| Hungary | 44.0 | 0.5% |
| Croatia | 29.6 | 0.3% |
| Finland | 28.2 | 0.3% |
| Slovakia | 25.7 | 0.3% |
| Austria | 17.9 | 0.2% |
| Cyprus | 14.5 | 0.2% |
| Estonia | 12.7 | 0.1% |
| Latvia | 9.1 | 0.1% |
| Malta | 4.7 | 0.1% |
| Luxembourg | 0.1 | 0.0% |
| European Union Nes | 0.1 | 0.0% |
Source: ITC Trade Map
The table below shows Pakistan’s imports from the EU for the year 2024. Pakistan’s total imports from the EU in 2024 were worth $3.2 billion, accounting for 5.6% of Pakistan’s total imports from the world. Pakistan’s largest import source within the EU was Germany, with imports of $711.1 million, and accounting for 22.5% of imports from the EU. Excluding Germany, the top 4 import sources were the Netherlands, Italy, France, and Belgium.
Table 3: Pakistan Imports from EU Members 2024
| Country | Pakistan Imports 2024 (USD Million) | Share in Imports from EU (%) |
|---|---|---|
| European Union (EU 27) | 3,158.9 | 5.6% |
| Germany | 711.1 | 22.5% |
| Netherlands | 331.7 | 10.5% |
| Italy | 329.1 | 10.4% |
| France | 324.8 | 10.3% |
| Belgium | 227.1 | 7.2% |
| European Union Nes | 207.0 | 6.6% |
| Spain | 145.9 | 4.6% |
| Romania | 144.7 | 4.6% |
| Sweden | 139.1 | 4.4% |
| Denmark | 111.7 | 3.5% |
| Poland | 104.5 | 3.3% |
| Austria | 72.3 | 2.3% |
| Ireland | 60.3 | 1.9% |
| Finland | 50.7 | 1.6% |
| Hungary | 46.8 | 1.5% |
| Czech Republic | 27.7 | 0.9% |
| Portugal | 23.6 | 0.7% |
| Bulgaria | 20.8 | 0.7% |
| Greece | 18.4 | 0.6% |
| Lithuania | 16.9 | 0.5% |
| Latvia | 13.9 | 0.4% |
| Slovenia | 8.4 | 0.3% |
| Croatia | 6.2 | 0.2% |
| Slovakia | 5.3 | 0.2% |
| Estonia | 4.9 | 0.2% |
| Luxembourg | 3.8 | 0.1% |
| Cyprus | 1.7 | 0.1% |
| Malta | 0.5 | 0.0% |
Source: ITC Trade Map
Pakistan’s Top Exports to the European Union
The table below shows Pakistan’s top 10 exported products to the EU between 2022 and 2024. Pakistan’s most exported product in 2024 to the EU was men’s or boys’ ensembles of cotton, and its exports amounted to $974.9 million. This accounted for 10.9% of all exports to the EU in 2024. Other top exported products included bedlinen of cotton & textile materials, toilet & kitchen linen, men’s or boys’ trousers, and husked or brown rice.
Table 4: Pakistan’s Top 10 Exports to the European Union
All Values in USD Million
| Code | Product Label | Pakistan’s Exports to European Union (EU 27) | ||
|---|---|---|---|---|
| 2022 | 2023 | 2024 | ||
| TOTAL | All Products | 9,304.7 | 8,336.5 | 8,951.2 |
| 620322 | Men’s or boys’ ensembles of cotton (excl. knitted or crocheted, ski ensembles and swimwear) | 954.4 | 674.0 | 974.9 |
| 630231 | Bedlinen of cotton (excl. printed, knitted or crocheted) | 747.4 | 714.4 | 846.6 |
| 630260 | Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excl. … | 413.0 | 436.4 | 468.4 |
| 630239 | Bedlinen of textile materials (excl. of cotton and man-made fibres, printed, knitted or crocheted) | 359.2 | 340.9 | 384.3 |
| 620342 | Men’s or boys’ trousers, bib and brace overalls, breeches and shorts, of cotton (excl. knitted … | 330.5 | 369.3 | 352.5 |
| 630210 | Bedlinen, knitted or crocheted | 463.8 | 289.8 | 320.3 |
| 100620 | Husked or brown rice | 169.8 | 248.5 | 253.5 |
| 611090 | Jerseys, pullovers, cardigans, waistcoats and similar articles, of textile materials, knitted … | 289.2 | 229.0 | 247.5 |
| 610349 | Men’s or boys’ trousers, bib and brace overalls, breeches and shorts of textile materials, … | 217.6 | 157.8 | 210.5 |
| 611595 | Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied … | 155.0 | 156.8 | 199.1 |
Source: ITC Trade Map
Pakistan’s Top Imports from the European Union
The table below shows Pakistan’s top 10 imported products from the EU between 2022 and 2024. Pakistan’s most imported product from the EU in 2024 was turnings & shavings (iron or steel), and its imports amounted to $151.4 million. This accounted for 4.8% of all imports to the EU in 2024. Other top imported products included medicaments, cell cultures, worn clothing & accessories, light oils, and waste & scrap (iron or steel).
Table 5: Pakistan’s Top 10 Imports from the European Union
All Values in USD Million
| Code | Product Label | Pakistan’s Imports from European Union (EU 27) | ||
|---|---|---|---|---|
| 2022 | 2023 | 2024 | ||
| TOTAL | All Products | 5,293.2 | 3,510.2 | 3,158.9 |
| 720441 | Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings of iron … | 288.5 | 190.8 | 151.4 |
| 300490 | Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, … | 152.1 | 120.1 | 132.1 |
| 300259 | Cell cultures, whether or not modified (excl. cell therapy products) | 72.4 | 155.0 | 131.4 |
| 630900 | Worn clothing and clothing accessories, blankets and travelling rugs, household linen and articles … | 94.6 | 90.7 | 104.2 |
| 271012 | Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume “incl. … | 384.7 | 179.0 | 96.1 |
| 720449 | Waste and scrap of iron or steel (excl. slag, scale and other waste of the production of iron … | 204.5 | 81.1 | 72.2 |
| 100199 | Wheat and meslin (excl. seed for sowing, and durum wheat) | 0.0 | 92.2 | 72.0 |
| 760200 | Waste and scrap, of aluminium (excl. slags, scale and the like from iron and steel production, … | 69.9 | 73.0 | 66.4 |
| 841199 | Parts of gas turbines, n.e.s. | 52.4 | 24.8 | 52.7 |
| 300431 | Medicaments containing insulin but not antibiotics, put up in measured doses “incl. those for … | 45.1 | 36.3 | 43.0 |
Source: ITC Trade Map
Potential Trade with the European Union
Pakistan’s Potential Exports to the European Union
The table below shows Pakistan’s top theoretical potential products for additional exports to the EU in 2024. The aggregate theoretical potential for the top 10 products amounted to $6,167.4 million during this year.
Table 6: Pakistan’s Export Potential to the European Union
All Values in USD Million
| Code | Product Label | Pakistan’s Exports to European Union (EU 27) | European Union (EU 27)’s Imports from World | Pakistan’s Exports to World | Export Potential |
|---|---|---|---|---|---|
| 100630 | Semi-milled or wholly milled rice, whether or not polished or glazed | 188.5 | 2,478.8 | 3,260.5 | 2,290.3 |
| 630260 | Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excl. … | 468.4 | 1,608.0 | 1,085.4 | 617.1 |
| 100640 | Broken rice | 7.9 | 553.0 | 534.5 | 526.6 |
| 630231 | Bedlinen of cotton (excl. printed, knitted or crocheted) | 846.6 | 1,384.3 | 1,359.6 | 513.0 |
| 271019 | Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, … | 0.0 | 139,392.4 | 469.2 | 469.2 |
| 630710 | Floorcloths, dishcloths, dusters and similar cleaning cloths, of all types of textile materials | 68.0 | 932.1 | 470.9 | 402.9 |
| 20110 | Carcases or half-carcases of bovine animals, fresh or chilled | 0.0 | 2,064.7 | 366.5 | 366.5 |
| 170199 | Cane or beet sugar and chemically pure sucrose, in solid form (excl. cane and beet sugar containing … | 0.0 | 5,135.0 | 342.2 | 342.2 |
| 120740 | Sesamum seeds, whether or not broken | 24.4 | 415.8 | 346.0 | 321.6 |
| 901890 | Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. | 128.7 | 24,857.2 | 446.6 | 317.9 |
Source: ITC Trade Map
Pakistan’s Potential Imports from the European Union
The table below shows Pakistan’s top theoretical potential products for additional imports from the EU in 2024. The aggregate theoretical potential for the top 10 products amounted to $21,273.5 million.
Table 7: Pakistan’s Import Potential from the European Union
All Values in USD Million
| Code | Product Label | Pakistan’s Imports from European Union (EU 27) | European Union (EU 27)’s Exports to World | Pakistan’s Imports from World | Import Potential |
| 270900 | Petroleum oils and oils obtained from bituminous minerals, crude | 0.0 | 21,921.9 | 5,611.8 | 5,611.8 |
| 271012 | Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume “incl. … | 96.1 | 76,992.4 | 4,381.7 | 4,285.6 |
| 151190 | Palm oil and its fractions, whether or not refined (excl. chemically modified and crude) | 0.0 | 2,409.8 | 2,918.4 | 2,409.8 |
| 854143 | Photovoltaic cells assembled in modules or made up into panels | 0.0 | 4,691.4 | 2,198.7 | 2,198.7 |
| 271019 | Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, … | 7.1 | 139,256.2 | 1,904.1 | 1,897.0 |
| 851713 | Smartphones for wireless networks | 0.0 | 42,515.2 | 1,736.3 | 1,736.3 |
| 271111 | Natural gas, liquefied | 0.0 | 1,071.6 | 3,984.3 | 1,071.6 |
| 271119 | Gaseous hydrocarbons, liquefied, n.e.s. (excl. natural gas, propane, butane, ethylene, propylene, … | 0.0 | 877.0 | 977.8 | 877.0 |
| 120190 | Soya beans, whether or not broken (excl. seed for sowing) | 0.0 | 987.2 | 595.9 | 595.9 |
| 390210 | Polypropylene, in primary forms | 0.6 | 7,193.6 | 590.2 | 589.6 |
Source: ITC Trade Map
The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk
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