Earlier this month, the EU Ambassador to Pakistan Raimundas Karoblis also warned Pakistan that access to the GSP+ — which allows duty-free entry into most European markets — was neither guaranteed nor automatic, signalling a more conditional approach from Brussels reliant on Islamabad’s progress on human rights issues

News Desk/DNA

ISLAMABAD: Pakistan’s exports to major Western and Northern European markets have recorded negative growth in the first nine months of the current fiscal year compared with a year ago, despite the continuation of the Generalised Scheme of Preferences (GSP+) status, raising concerns about weakening demand for Pakistani goods.

The development comes against the backdrop of a shifting global trade environment, as the US-Iran conflict sends shockwaves through the Middle East, impacting global goods transport, accelerating the fall in exports to European markets.

Additionally, earlier this year, European Union preferential market access was offered to India, one of Pakistan’s key competitors in textiles.

Earlier this month, the EU Ambassador to Pakistan Raimundas Karoblis also warned Pakistan that access to the GSP+ — which allows duty-free entry into most European markets — was neither guaranteed nor automatic, signalling a more conditional approach from Brussels reliant on Islamabad’s progress on human rights issues.

For Pakistani exporters, the evolving situation presents a dual challenge: maintaining compliance with EU conditions while facing increasing competition from countries gaining preferential or expanded market access.

Exporters will face mounting pressure to retain their markets amid logistical challenges posed by the ongoing conflict coupled with rising input costs in the country.

Trade analysts warn that the conflict could further dampen export demand, as rising energy costs are likely to squeeze consumer spending in Europe, which is already under strain from the economic fallout of the Ukraine war.

They caution that these pressures could erode purchasing power and weigh further on demand for imported goods, including those from Pakistan.

Official data compiled by the State Bank of Pakistan showed that Pakistan’s exports to European countries recorded a paltry year-on-year growth of 0.94 per cent to $6.86 billion in the nine months (July to March) of fiscal year 2025-26 (9MFY26) against $6.79bn over the last year.

The slowdown is mainly driven by a decline in shipments to northern and western European states.

In FY25, the exports to the EU rose 7.44pc to $8.86bn, up from $8.24bn in the previous fiscal year. In comparison, in FY24, Pakistan’s exports to the EU had dipped 3.12pc to $8.24bn despite its GSP+ status.

Exports to northern Europe slightly dipped by 0.85pc to $557.31m in 9MFY26, from $562.13m in the corresponding months last year.Western Europe, which includes countries such as Germany, the Netherlands, France, and Belgium, accounts for the largest share of Pakistan’s exports to the EU.

Exports to southern Europe grew by 6.47pc to $2.43bn in the 9MFY26, from $2.28bn in the corresponding period last year, while exports to eastern Europe grew 5.06pc to $566.92m in 9MFY26 from $539.63m in the corresponding period last year.

Before Brexit, Pakistan’s major export destination was the United Kingdom. In the post-Brexit period, Pakistan’s exports to the UK decreased slightly to $1.62bn in 9MFY26 from $1.62bn in the corresponding period last year, a decline of 0.23pc. In FY25, Pakistan’s exports to the UK increased by 7.19pc to $2.16bn from $2.02bn in the preceding year.

ISLAMABAD, APR 26: The federal government has implemented the Transit of Goods Order 2026, opening new trade corridors to Iran through Pakistan.

The move is aimed at facilitating regional trade by allowing goods from third countries to transit via Pakistani routes.

According to the Ministry of Commerce, the order has come into effect immediately following the issuance of a formal notification.

Major transit routes activated

Under the new policy, key transit routes have been designated, including Gwadar, Karachi, and Taftan.

The Gwadar-Gabad route has been opened for shipments to Iran, while the Karachi-Taftan cargo corridor has also been formally approved.

Additionally, a new route from the Makran coastal belt to Gabad has been included to further strengthen connectivity.

Gwadar gains commercial status

The government has also granted Gwadar Port commercial status under the new order.

A long transit corridor has been established from Gwadar to Quetta and onward to Taftan, creating a continuous logistics chain for regional trade.

Transit rules

The notification makes it mandatory for transit cargo to provide a financial guarantee, ensuring compliance with regulations.

Customs procedures will be implemented under the rules of the Federal Board of Revenue, with specific corridors designated for smooth transit operations.

The Ministry of Commerce confirmed that goods originating from third countries will now be allowed to pass through Pakistan en route to Iran.

Officials say the Karachi-Gwadar-Taftan transit network is fully functional, supporting increased trade flow across the region.

ISLAMABAD, APR 25: Iranian Foreign Minister Abbas Araghchi, leading a high-level delegation, on Saturday held talks with Prime Minister Shehbaz Sharif on the evolving regional situation, as Islamabad steps up efforts to revive stalled peace negotiations between Tehran and Washington.

Deputy Prime Minister and Foreign Minister Ishaq Dar, and Chief of Army Staff (COAS) and Chief of Defence Forces (CDF) Field Marshal Syed Asim Munir also participated in the meeting, a statement issued by the PM Office said.

Following the meeting, PM Shehbaz that said he and the Iranian delegation exchanged views on the regional situation.

“We also discussed matters of mutual interest, including further strengthening Pakistan-Iran bilateral relations,” the premier wrote in a post on X.

The Araghchi-led Iranian delegation departed Pakistan after meeting the country’s top civil and military leadership, sources said.

The sources privy to the matter said the high-level Iranian delegation, which landed in Islamabad on the first leg of a tri-nation trip, will now visit Muscat and Moscow.

The key meeting came as Islamabad is making all-out efforts to facilitate the second round of talks between Tehran and Washington.

After mediating a two-week ceasefire between the US and Iran on April 8, PM Shehbaz had invited delegations from both sides to Islamabad for negotiations.

However, the first round of talks concluded without an agreement as Tehran and Washington disagreed on key issues such as Iran’s nuclear and ballistic missile programmes and the control of the Strait of Hormuz.

Tehran closed the strait for all traffic after the US and Israel launched a joint bombing campaign against Iran on February 28, which ended on April 8 following the Pakistan-mediated ceasefire.

Despite the inconclusive first round of talks and US President Donald Trump’s announcement of a naval blockade of Iranian ports, Islamabad continued its efforts to bring both sides back to the negotiating table and ensure an extension in the ceasefire.

Hours before the expiry of the truce on April 22, President Trump announced extending the ceasefire, saying he was acting at the request of Pakistan.

The US president said that he was holding off attacks until Iranian leaders and representatives could come up with what he called a unified proposal.

Washington also confirmed that Trump’s envoys Steve Witkoff and Jared Kushner will head to Pakistan on Saturday for a new round of talks with Iran on ending the war.

Speaking to Fox News on Friday, White House Press Secretary Karoline Leavitt said that US Vice President JD Vance remained ready to fly to Pakistan but will not for now.

Iran’s FM calls on CDF Munir
Meanwhile, earlier today, FM Araghchi also called on Field Marshal Munir in the federal capital before he met PM Shehbaz.

Diplomatic sources told Geo News that Pakistan’s National Security Adviser Asim Malik and Interior Minister Mohsin Naqvi also attended the meeting.

Iran’s Deputy Foreign Minister Kazem Gharibabadi, Iran’s ambassador to Pakistan Reza Amiri-Moghaddam and Iranian foreign ministry spokesperson Esmaeil Baghaei were also present during the huddle.

Araghchi, accompanied by the Iranian delegation, landed in Islamabad Friday night.

At the time of his arrival, the Foreign Office said that the Iranian foreign minister would hold meetings with Pakistan’s senior leadership to discuss ongoing efforts for regional peace and stability.

Ahead of Araghchi’s visit, Iran’s state media reported that he was embarking on a tri-nation tour that includes visits to Islamabad, Muscat and Moscow.

“The purpose of this visit is to hold bilateral consultations and discuss current developments in the region, as well as the latest situation in the war imposed by the United States and the Israeli regime against Iran,” the state news agency IRNA said.

ISLAMABAD, APR 25 /DNA/ – President Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mehmood, has expressed strong appreciation for the Government of Pakistan’s forward-looking and proactive diplomatic engagement aimed at promoting regional stability.

In particular, he commended Pakistan’s constructive role in facilitating dialogue between the United States and Iran, noting that such initiatives reinforce the country’s emerging position as a credible advocate of peace and economic cooperation.

He emphasized that these efforts are instrumental in enhancing investor confidence, strengthening regional harmony, and unlocking sustainable economic opportunities.

While reaffirming ICCI’s firm support for the Government, he underscored the urgent need to address pressing domestic challenges affecting the business community.

He drew attention to the prolonged closure of key road arteries in Islamabad and Rawalpindi, which has severely disrupted the mobility of goods and critically affected supply chains, particularly those related to fast-moving consumer goods (FMCGs), thereby he has demanded the simplification of the procedure to improve the situation.

President Mehmood acknowledged and appreciated the efforts of the local administration for introducing certain remedial measures, including a special mechanism for the transportation of fast-moving consumer goods. However, he noted that despite these steps, long queues of vehicles and containers can still be witnessed on motorways and adjoining routes, reflecting the persistence of logistical bottlenecks.

He further noted that, over the past several days, containers carrying essential commodities have remained stranded due to restricted access to the federal capital. This situation has adversely impacted distributors, importers, wholesalers, retailers, and traders, resulting in substantial financial losses, supply shortages, and failure to meet market demand. He cautioned that goods worth billions of rupees are at risk, while the broader distribution network remains effectively paralyzed.

President Mehmood stressed that, although the maintenance of law and order is of paramount importance, it must be pursued through a balanced and pragmatic approach that does not unduly impede economic activity.

He urged Mohsin Naqvi, Federal Minister for Interior, to take immediate cognizance of the situation and implement arrangements that ensure the restoration of transport routes, thereby facilitating the smooth movement of goods alongside necessary security measures.

He further highlighted that several representative trade bodies, including the All Pakistan Importers and Distributors Consortium (APIDC), the Confectionery Distributors Association (CDA), and the Rawalpindi-Islamabad Distributors Association (RIDA), have collectively raised this matter, terming it a serious concern for the entire business ecosystem.

Senior Vice President Tahir Ayub observed that the ongoing disruption is not confined to large enterprises but is also severely affecting small traders and daily-wage earners whose livelihoods depend on uninterrupted supply chains.

He emphasized that the restoration of normal transport operations is essential to safeguard livelihoods and maintain market stability.

Vice President Irfan Chaudhry added that continuity in supply chains constitutes the backbone of economic resilience, particularly in the context of essential consumer goods.

He urged the authorities to adopt a calibrated and pragmatic mechanism that ensures effective security management while preserving the uninterrupted flow of commercial activity.=DNA