Abstract

This study examines the impact of the EU’s GSP+ trade scheme on Pakistan’s econom-ic growth, compliance with international standards, and governance challenges. The study aim is to assess how GSP+ influences export performance, sectoral reliance, and adherence to EU-mandated labor, environmental, and human rights standards. It employs a mixed-methods approach, conducting quantitative analysis of trade and governance data alongside qualitative context on the institutional and political factor affecting compliance. Data from the GSP Hub, EU monitoring reports, and interna-tional sources such as the World Bank highlight trends in export growth and compli-ance challenges faced by Pakistan since obtaining GSP+ status in 2014. GSP+ has played an important role in increasing Pakistan textile export to the EU but at the same time it also vulnerability in some issues regarding governance and sectoral con-centration. Frequent government turnover and weak regulatory enforcement hinder consistent compliance, particularly in labor and environmental standards. However, comparisons with other GSP+ beneficiaries including Armenia and the Philippines indicate that successful implementation is a function of policy continuity and having diversified exports. The comprehensive analysis of the intersection between political instability, sectoral reliance, and GSP+ compliance, offering a nuanced perspective on Pakistan’s unique challenges and opportunities. The findings suggest that strengthen-ing policy continuity, enhancing institutional capacity, and fostering EU-Pakistan co-operation are essential for Pakistan to fully leverage GSP+ benefits. The targeted re-forms to address compliance gaps and diversify exports can help Pakistan secure long-term economic growth and maintain its GSP+ status amidst evolving EU trade standards. …víceméně