Key Points
- India’s expanding trade agreements with the EU, UK and US are not an immediate danger to Pakistan’s exports
- Experts urge Pakistan to focus on competitiveness, quality and market diversification
- Pakistan retains duty-free access under GSP+ until at least 2027
- Risks arise over time as tariff advantages narrow
ISLAMABAD: India’s recent and proposed trade agreements with major economies do not pose an immediate threat to Pakistan’s export sector, trade experts argued, calling instead for Islamabad to respond with stronger competitiveness and strategic economic reforms.
In a television interview, Dr Abid Qayyum Salihri, Executive Director of the Sustainable Development Policy Institute (SDPI), finds global trade increasingly shaped by political decisions and shifting rules, rather than traditional economic logic.
Pakistan should examine trade deals involving India, the European Union, the United Kingdom, and the United States realistically, rather than seeing them as a direct danger to its export markets, he remarked.
Dr Salihri noted that India’s trade with the European Union and the United States is significantly larger than Pakistan’s. India’s export volumes to the EU and US outpace Pakistan’s by a wide margin, particularly in textiles, apparel, and manufactured goods.
He said if a free trade agreement between India and the EU is fully implemented, Pakistan could face reduced tariff advantages under its Generalised Scheme of Preferences Plus (GSP+) status, making quality, price, and timely delivery even more important for exporters.
Industry representatives echoed these concerns. Kamran Arshad, chairman of the All Pakistan Textile Mills Association, said Pakistan’s current duty-free access to EU markets is a strength but warned that India’s new tariff benefits could narrow Pakistan’s competitive edge, especially in textiles and apparel.
Saquib Fayyaz Magoon, vice-president of the Federation of Pakistan Chambers of Commerce and Industry, said the narrowing of tariff advantages in major export markets underscores the need for structural improvements in Pakistan’s export sectors.
Despite these competitive pressures, analysts emphasised that current trade arrangements do not immediately endanger Pakistan’s exports. Pakistan’s access to duty-free trade with the EU and other partners continues through the GSP+ framework, which provides a cushion until at least 2027.
On the United States front, discussions between India and Washington on enhanced market access remain preliminary, experts said, and Islamabad should avoid basing policy decisions on tentative announcements.
Dr Salihri said Pakistan needs to invest in product quality, value addition, design innovation and export facilitation to strengthen its position in traditional and new markets. He stated that diversification into emerging markets, such as the Gulf, East Africa and Southeast Asia, could help mitigate long-term risks.
Experts agree that India’s trade deals should be interpreted not as immediate threats but as strategic signals that reinforce the importance of competitiveness in a rapidly evolving global trading landscape.
