Pakistan’s exports to the European Union fell 11.93 per cent during January to November 2015, indicating preferential market access has failed to boost dwindling exports. The main reasons for the decline are: recession in the EU, high unemployment, decline in demand and a fall in non-essential imports in European countries, and the depreciation of the euro against the dollar.

The impact of the GSP Plus scheme on the textile and clothing sector in Pakistan has also been negligible. The sector constitutes 75 per cent of Pakistan’s total exports to the EU under the scheme. Textile and clothing exports to the EU declined by 6.24 per cent year-on-year. Home textile exports dipped 8.51 per cent. Exports of cotton and intermediary goods of textiles reflected a decline of 16.94 per cent year-on-year. In the non-textile sector, exports of carpets and rugs declined by 6.70 per cent.

Pakistan got preferential market access to the EU in January 2014 under the Generalised System of Preferences. In the first year, a growth of 20 per cent was witnessed. But this growth could not be sustained. Exporters say they do not get refunds on time, and that this has created financial problems for them.