PM Shehbaz stresses GSP+ role in Pakistan's economic growth in meeting with EU leaders

European chief thanks PM for Pakistan’s initiative to mediate in the conflict between the United States and Iran

Prime Minister Shehbaz Sharif and European Union leaders discussed the importance of GSP+ for Pakistan’s economic development, employment and trade with the bloc during a meeting on the sidelines of the United Nations General Assembly in New York, the Prime Minister's Office said on Thursday.

The EU’s GSP+ offers developing countries preferential access to European markets in return for commitments on sustainable development and good governance.

Under the scheme, eligible countries are required to implement 27 international conventions covering human rights, labour rights, environmental protection, and good governance. In exchange, the European Union reduces import duties to zero on more than two-thirds of the tariff lines applied to its exports. Pakistan is currently one of eight countries that benefit from this scheme.

According to the PMO, PM Shehbaz met European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen, with the leaders reviewing the “full spectrum” of Pakistan-EU relations.

The premier “highlighted the importance of GSP Plus for Pakistan’s economic development, employment generation and trade with the European Union” and reiterated Pakistan’s commitment to continued engagement with the EU under the framework.

Prime Minister held a meeting with President of the European Council, H.E. Mr. António Luís Santos da Costa and the President of the European Commission, H.E. Ms.Ursula Gertrud von der Leyen on the sidelines of the United Nations General Assembly in New York.

The leaders… pic.twitter.com/UWmiQQ7N0b

— Prime Minister's Office (@PakPMO) September 23, 2026

He also reaffirmed Pakistan’s commitment to further strengthening its “broad-based partnership” with the European Union and to the full implementation of the Pakistan-EU Strategic Engagement Plan.

PM Shehbaz “underscored the importance of sustained leadership-level engagement” to provide greater direction and momentum to relations between Pakistan and the EU.

Von der Leyen also described the meeting as “very good”, saying the EU “valued its partnership with Pakistan”.

“Our Strategic Engagement Plan reflects both the breadth of this partnership and the shared commitment to democracy, the rule of law, human rights and civic space,” she said in a post on X.

Very good meeting with Prime Minister @CMShehbaz at #UNGA.

The EU values its partnership with Pakistan.

Our Strategic Engagement Plan reflects both the breadth of this partnership and the shared commitment to democracy, the rule of law, human rights and civic space.

We work… pic.twitter.com/FWPXFBqjKL

— Ursula von der Leyen (@vonderleyen) September 23, 2026

She said the EU and Pakistan “worked together on stability and security” and thanked PM Shehbaz for Pakistan’s initiative to mediate in the conflict between the United States and Iran. “Pakistan is playing an important role in support of de-escalation, dialogue and peaceful resolution of conflicts,” von der Leyen said.

The EU Commission president said the two sides had also discussed “how to take our partnership forward, from trade to addressing illegal migration”.

The leaders exchanged views on regional and global developments and reaffirmed the importance of “dialogue, diplomacy, international law and peaceful resolution of disputes”, according to the PMO.

The prime minister reiterated his invitation to the presidents of the European Council and European Commission to visit Pakistan and expressed his desire to continue working closely with the EU leadership to deepen the “mutually beneficial partnership”.

Pakistan's continued push for GSP+

Pakistan’s push to retain preferential access to the European Union market intensified this year as the bloc prepares to replace the current GSP+ framework from 2027. Under the scheme, Pakistan benefits from reduced or zero tariffs on exports in return for implementing 27 international conventions covering areas including human rights, labour rights, environmental protection and good governance.

The European Commission’s latest assessment, released in July, acknowledged legislative progress by Pakistan but also raised concerns over compliance with GSP+ obligations, including human rights, governance, freedom of expression, labour rights and environmental protection. Pakistan subsequently expressed “disappointment”, with Foreign Office spokesperson Tahir Andrabi saying the report did not present a “sufficiently balanced picture” of the country’s performance.

Deputy Prime Minister and Foreign Minister Ishaq Dar reaffirmed Pakistan’s commitment to implementing the international conventions underpinning GSP+, stressing the importance Islamabad attached to its economic partnership with the EU. The European Commission’s assessment had said Pakistan faced compliance issues and would need to address shortcomings to qualify under the revised framework.

The stakes are significant for Pakistan’s exporters. The EU’s GSP report showed that Pakistan recorded about €7.1 billion in exports to the bloc in 2024 under preferential tariffs, with a utilisation rate of more than 95 per cent. Another Express Tribune report put the figure at €7.5 billion, with Pakistan emerging as the largest beneficiary among GSP+ countries.

In September, EU Ambassador to Pakistan Raimundas Karoblis said Islamabad would have to demonstrate “clear progress” in legislating and implementing the international laws and conventions underpinning the scheme if it wanted to continue benefiting from GSP+ beyond 2027. He also urged exporters to ensure compliance and maintain engagement with the government over concerns raised by the European Commission on human rights, labour rights, governance and environmental protection.

The issue remained prominent in high-level diplomatic contacts this month. Dar stressed the importance of GSP+ during his meeting with EU foreign policy chief Kaja Kallas on the sidelines of the UN General Assembly on September 21, while the two sides discussed Pakistan-EU relations and regional developments.

The EU and Pakistan also continued broader economic engagement. On September 22, the two sides signed three grant agreements worth €65 million covering investment facilitation, climate and energy resilience in Khyber-Pakhtunkhwa, and support for the rule of law and business environment.