Pakistan's continued access to the European Union's preferential GSP+ trade scheme is at risk unless it bridges a growing gap between legislative reforms and deteriorating human rights conditions, according to the EU's latest monitoring report. The warning comes despite Pakistan exporting €7.5 billion in GSP+ eligible goods to the EU in 2024, mainly textiles and clothing, saving exporters an estimated €732 million in tariff exemptions. Main Developments The EU's GSP+ monitoring report for 2023-2025 found that Pakistan has regressed in several key areas despite being the bloc's largest beneficiary under the scheme. The report stated that while Pakistan has shown positive change in limited areas, it faces compliance issues with its obligations under the 27 international conventions linked to GSP+. Legislative and institutional improvements acknowledged by the EU include the establishment of a National Commission for Minorities, narrowing the scope of the death penalty, continuing the de facto moratorium on executions, and adopting implementing rules under the Anti-Torture Act. The EU also welcomed the passage of a Domestic Violence Bill for Islamabad and described Pakistan's first marital rape conviction as a significant milestone in advancing women's rights. Read also: Pakistan's 5G Launch Won't Spike Prices Immediately, PTA Confirms On labour standards, the EU noted Pakistan's ratification of the International Labour Organization's 2014 Protocol to the Forced Labour Convention and improvements in labour monitoring mechanisms. New provincial action plans to combat child labour were also acknowledged, though the report stressed that enforcement remains weak and child labour has only declined gradually. Background The GSP+ scheme, officially the Special Incentive Arrangement for Sustainable Development and Good Governance, grants developing countries preferential access to the EU market in exchange for implementing international conventions on human rights, labour rights, environmental protection, and good governance. Pakistan has been a beneficiary since 2014, making it the largest user of the scheme among all recipients. The current monitoring period covers 2023-2025, building on earlier reviews that have consistently raised concerns about the gap between Pakistan's legislative commitments and actual implementation. The EU report draws on official data, civil society input, and its own assessments to evaluate progress across the 27 conventions. Why It Matters The GSP+ scheme saves Pakistani exporters hundreds of millions of euros annually in tariffs, making it a critical component of the country's trade strategy, particularly for the textile sector. Losing preferential access would increase costs for Pakistani goods in the EU market, potentially harming exports and economic growth. The EU's warning signals that trade benefits alone are insufficient to maintain the arrangement, with the bloc increasingly linking market access to demonstrable human rights improvements on the ground. This shift could set a precedent for other trade agreements and development partnerships globally. What's Next A revised GSP framework is scheduled to take effect from 2027, and the EU has identified priority areas Pakistan must address to retain preferential market access. These include ensuring accountability for human rights violations, preventing torture, reforming prison conditions and capital punishment laws, reversing the trend of enforced disappearances, protecting freedom of expression, tackling violence against women, expanding children's access to education, ending child marriages, fully implementing provincial child labour elimination plans, strengthening enforcement against forced labour, preventing discrimination against minorities, and reinforcing the independence and operational capacity of anti-corruption institutions at both federal and provincial levels. Future access to GSP+ will increasingly depend on demonstrable progress in implementing international human rights, labour rights, and governance commitments rather than legislative promises alone, the report suggests.