India-EU FTA puts $9 billion exports, 10 million jobs in Pakistan at risk, says former minister
India-EU FTA: Kamran Arshad, chairman of the All Pakistan Textile Mills Association said that the dynamic has now fundamentally changed and that India is now “significantly more competitive in the EU market”.
- Jan 30, 2026,
- Updated Jan 30, 2026 1:01 PM IST
India’s free trade agreement with the European Union, widely appreciated and lauded in the country, has spread a pall of gloom across the border. The reason? It is likely to eat away their exports and jobs by affecting Pakistan’s Generalised System of Preferences Plus (GSP+) scheme that granted duty-free, quota-free access for two-thirds of their export lines.
Former Pakistani commerce minister, sharing a data card on the EU FTA, said Pakistan’s “zero-tariff honeymoon” is over. He said the $9 billion in exports to the EU due to the scheme is redundant, as the same tariffs will now be applicable to “all main regional competitors”.
“The Government of Pakistan must enable industry to compete in the region at regional energy, tax, and financing costs. Industry can no longer bear the burden of systemic inefficiencies. The decision must be taken today – 9 billion dollars exports to EU and 10 million jobs are at risk,” he said.
According to Times of Islamabad, the India-EU FTA will erode the marginal advantage Pakistan had, especially on apparel and textile, which is the “country’s largest industrial employer and single biggest export earner”. It quoted figures from the Pakistan Bureau of Statistics and the All Pakistan Textile Mills Association to show that textiles and clothing amounted to 60 per cent of the total merchandise exports in FY2024, generating about $16.5 billion. Most of the finished goods, constituting the single largest share, went to the EU and the UK.
Ejaz, in an earlier address, had stated that this compounded the risks posed by the India-UK deal that eliminated 90 per cent of tariff over a phased 10-year period. Not only that, Bangladesh and Vietnam, apart from India have already expanded capacity and modernised production.
Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), told Arab News that the dynamic has now fundamentally changed and that India is now “significantly more competitive in the EU market”.
Meanwhile, Islamabad said that it was reviewing the implications of the India-EU FTA, but also reaffirmed its commitment to the long-standing relations with the 27-nation bloc.
Foreign Office spokesman Tahir Andrabi said during a routine press briefing, “Both for Pakistan and EU, and import of textile and apparels, from Pakistan to UK, for the consumer market tripled, providing them with uninterrupted supply of affordable goods through the arrangement, and the total volume between our two sides stand close to over 12 billion euros... We remain committed to further strengthening relations with the EU in all areas of mutual interest, including trade.”
India’s free trade agreement with the European Union, widely appreciated and lauded in the country, has spread a pall of gloom across the border. The reason? It is likely to eat away their exports and jobs by affecting Pakistan’s Generalised System of Preferences Plus (GSP+) scheme that granted duty-free, quota-free access for two-thirds of their export lines.
Former Pakistani commerce minister, sharing a data card on the EU FTA, said Pakistan’s “zero-tariff honeymoon” is over. He said the $9 billion in exports to the EU due to the scheme is redundant, as the same tariffs will now be applicable to “all main regional competitors”.
“The Government of Pakistan must enable industry to compete in the region at regional energy, tax, and financing costs. Industry can no longer bear the burden of systemic inefficiencies. The decision must be taken today – 9 billion dollars exports to EU and 10 million jobs are at risk,” he said.
According to Times of Islamabad, the India-EU FTA will erode the marginal advantage Pakistan had, especially on apparel and textile, which is the “country’s largest industrial employer and single biggest export earner”. It quoted figures from the Pakistan Bureau of Statistics and the All Pakistan Textile Mills Association to show that textiles and clothing amounted to 60 per cent of the total merchandise exports in FY2024, generating about $16.5 billion. Most of the finished goods, constituting the single largest share, went to the EU and the UK.
Ejaz, in an earlier address, had stated that this compounded the risks posed by the India-UK deal that eliminated 90 per cent of tariff over a phased 10-year period. Not only that, Bangladesh and Vietnam, apart from India have already expanded capacity and modernised production.
Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), told Arab News that the dynamic has now fundamentally changed and that India is now “significantly more competitive in the EU market”.
Meanwhile, Islamabad said that it was reviewing the implications of the India-EU FTA, but also reaffirmed its commitment to the long-standing relations with the 27-nation bloc.
Foreign Office spokesman Tahir Andrabi said during a routine press briefing, “Both for Pakistan and EU, and import of textile and apparels, from Pakistan to UK, for the consumer market tripled, providing them with uninterrupted supply of affordable goods through the arrangement, and the total volume between our two sides stand close to over 12 billion euros... We remain committed to further strengthening relations with the EU in all areas of mutual interest, including trade.”