Pakistan Exports: Shipments to Europe Fall 1.84% to $2.35 Billion in Q1 FY27

Pakistan’s exports to European markets declined by 1.84% to $2.35 billion during the first quarter of fiscal year 2026-27, despite preferential trade access under the Generalised Scheme of Preferences Plus (GSP+). Shipments to several major destinations, including Germany, the Netherlands and Belgium, recorded declines during the period.

According to data compiled by the State Bank of Pakistan (SBP), export earnings from European countries fell to $2.350 billion during July-September FY27, compared with $2.394 billion in the corresponding period last year. The decline amounted to approximately $44 million.

The overall contraction was mainly driven by weaker shipments to western and eastern Europe, although exports to southern and northern European markets recorded growth.

Western Europe, Pakistan’s largest regional export market in Europe, recorded an 8.51% decline in shipments to $1.065 billion, compared with $1.164 billion a year earlier.

Germany, one of Pakistan’s major European export destinations, registered a 12.77% fall in imports from Pakistan, with export proceeds declining to $389.116 million from $446.100 million.

Exports to the Netherlands decreased by 3.07% to $370.005 million, compared with $381.752 million in the same quarter last year. France recorded a marginal decline of 0.47%, with shipments slipping to $136.030 million from $136.686 million. Exports to Belgium also fell 7.57% to $127.431 million from $137.871 million.

Eastern Europe recorded an even sharper contraction, with Pakistani exports declining 15.05% to $168.761 million from $198.677 million in the corresponding period of FY26.

However, stronger performance in southern Europe partly offset these losses. Exports to the region increased 5.26% to $879.896 million from $835.862 million.

Spain emerged as a major growth destination, with Pakistani exports rising 17.78% to $451.244 million, compared with $383.122 million a year earlier. In contrast, shipments to Italy declined 8.49% to $298.731 million from $326.460 million, while exports to Greece increased 3.52% to $34.961 million.

Northern Europe recorded the strongest regional growth, with exports rising 21.07% to $236.321 million from $195.191 million.

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Meanwhile, Pakistan’s exports to the United Kingdom, an important market following its departure from the European Union, increased 6.64% to $612.305 million from $574.171 million during the same period.

The mixed performance comes amid concerns about weakening demand in European markets. Rising energy costs and continued economic pressures associated with the Ukraine war have affected consumer spending, potentially weighing on demand for imported goods.

Trade analysts have also warned that the ongoing Middle East conflict could push energy costs higher and further weaken European demand. Pakistani exporters face additional pressure from growing competition from India, particularly in the textile sector, as preferential market access arrangements continue to shape competition in European markets.