Pakistan’s exports to Europe fall 1.84% in first quarter

Pakistan’s exports to European markets declined during the first quarter of the 2026-27 fiscal year despite the country retaining preferential access under the European Union’s Generalised Scheme of Preferences Plus programme. State Bank of Pakistan data showed that shipments to Europe fell by 1.84% to $2.350 billion between July and September, compared with $2.394 billion during the same period last year.

The overall decline masked sharply different results across European regions. Exports to northern Europe increased by 21.07%, rising from $195.191 million to $236.321 million. Shipments to southern Europe also grew, reaching $879.896 million from $835.862 million a year earlier, an increase of 5.26%.

Spain was a notable growth market within southern Europe. Pakistan’s exports to the country rose by 17.78% to $451.244 million, compared with $383.122 million in the corresponding quarter of the previous fiscal year. Greece recorded a smaller increase of 3.52%, with exports reaching $34.961 million.

The gains were offset by weaker performance in several larger markets. Exports to Italy declined by 8.49% to $298.731 million, while shipments to eastern Europe fell by 15.05% to $168.761 million from $198.677 million. The eastern European contraction was one of the steepest regional declines recorded during the quarter.

Western Europe, which accounts for the largest portion of Pakistan’s European trade, registered an 8.51% fall. Export proceeds from the region dropped to $1.065 billion from $1.164 billion in the first quarter of the previous fiscal year. The region includes major destinations such as Germany, the Netherlands, France, Italy and Belgium.

Exports to Germany decreased by 12.77% to $389.116 million, down from $446.100 million. Shipments to the Netherlands fell by 3.07% to $370.005 million, while exports to France slipped by 0.47% to $136.030 million. Belgium purchased Pakistani goods worth $127.431 million, representing a decline of 7.57% from the previous year.

The United Kingdom moved in the opposite direction. Pakistan’s exports to the country increased by 6.64% to $612.305 million during the quarter, compared with $574.171 million a year earlier. The UK had been one of Pakistan’s leading European export destinations before leaving the European Union and remains an important independent market.

Trade analysts have warned that higher energy prices linked to the continuing Middle East conflict could weaken consumer demand across Europe. Pakistan also faces increased competition after the European Union extended preferential market access to India, a major rival in textiles. The figures indicate that retaining tariff advantages alone may not be sufficient to produce export growth when demand, energy costs and competitive pressures are moving against Pakistani suppliers.