The European Union’s latest rights monitoring report warns that Pakistan could lose its GSP+ trade privileges—€732 million in tariff exemptions last year—if it does not curb violations. EU imports from Pakistan topped €8.3 billion in 2024, so a loss would sharpen security worries along India’s border.

Why the EU is raising the alarm

The Generalised Scheme of Preferences Plus (GSP+) grants developing nations duty-free access to the EU market in exchange for ratifying a set of international human-rights conventions. Pakistan has been the programme’s biggest beneficiary, especially in textiles and clothing.

A Joint Staff Working Document released on 16 July, covering the 2023-2025 monitoring period, paints a stark picture. The report notes the creation of a National Commission for Minorities but says most progress stays “on paper.” It flags a systematic backslide on core rights obligations and warns that continued market access hinges on tangible change.

Systemic violations that could cost billions

The EU’s chief concern is the surge in enforced disappearances and extrajudicial killings in Balochistan and Khyber Pakhtunkhwa. The Commission of Inquiry on Enforced Disappearances has closed more than 9,000 cases without finding evidence of state involvement or securing a single prosecution.

Recent amendments to anti-terrorism statutes in Balochistan and Punjab now allow preventive detention without charge or judicial oversight. The document calls the new provisions a blur between legitimate law-enforcement and enforced disappearance. Vague language in cybercrime and sedition laws, the report adds, chills journalists, students and political activists.

Religious minorities and the rule of law

Blasphemy laws are being used to target minorities, the EU notes. An online “blasphemy business group” that involved over 800 people in extortion scams was dismantled, yet hundreds of those falsely accused remain behind bars. The assessment highlights harsh treatment of Ahmadi Muslims and a climate of impunity for mob violence against places of worship.

Judicial independence also falters. Recent constitutional amendments and the practice of trying civilians in military courts raise doubts about fair-trial standards. The EU argues these trends erode the rule of law and undermine any reform that exists only on paper.

What’s at stake for Pakistan

  • Economic fallout – Losing GSP+ status would strip Pakistan of duty-free access to a market that absorbed €8.3 billion of its goods last year.

The Indian angle

  • Competitive advantage – If Pakistan’s GSP+ benefits are curtailed, Indian textile exporters could seize a larger slice of the EU market, bolstering India’s role in global garment supply chains.
  • Security considerations – The rise in extrajudicial killings and enforced disappearances signals instability in Pakistan’s western provinces, a factor that shapes India’s border calculus.
  • Diplomatic validation – The EU’s firm stance adds multilateral weight to concerns India has long raised about Pakistan’s internal governance and rule-of-law deficiencies.

Takeaway

The EU is using trade as a lever to enforce human-rights standards, and Pakistan’s billions-worth of export gains sit on a fragile foundation. How Islamabad addresses the EU’s concerns will decide not only the fate of its preferential market access but also the security calculus of its neighbour.