Business & Finance / Pakistan

German envoy urges Pakistan to widen GSP Plus exports beyond textiles

Germany's ambassador told the Faisalabad Chamber on 22 April 2026 that Pakistan underuses GSP Plus duty-free access and should diversify beyond textiles and leather.

The Faisalabad Chamber of Commerce and Industry building, a modern glass-fronted structure carrying the FCCI sign and lettering
FILE PHOTO The Faisalabad Chamber of Commerce and Industry building, where the ambassador addressed the business community. Photo: APP. Used to illustrate the venue, not the meeting itself.

The message to Faisalabad exporters

German Ambassador Ina Lepel urged Pakistan on Wednesday 22 April 2026 to fully use the opportunities available under the European Union’s GSP Plus scheme to increase exports to Germany, and to move beyond traditional sectors to strengthen the national economy. She was addressing the business community at a meeting of the Faisalabad Chamber of Commerce and Industry (FCCI).

Lepel said Pakistan was benefiting mainly through textile and leather exports, while a wide range of non-traditional products also qualified for duty-free access and should be explored. She expressed satisfaction with bilateral relations and said Pakistan offered strong investment potential because of its road network and basic infrastructure, while noting that challenges related to taxation and regulatory frameworks still needed to be addressed. In January, Pakistani exporters warned that the EU-India free trade agreement could erode Pakistan’s exports, weeks after EU states approved the EU-Mercosur pact.

Cooperation and concerns

The ambassador praised German technology and said Pakistan should use it to improve industrial productivity and competitiveness. She pointed to European Union funds available for improvements in sectors including textiles, and to German development agency GIZ’s work supporting technical education in Pakistan, saying that cooperation would continue.

On people-to-people links, she said around 10,000 Pakistani students were studying in Germany and that skilled labourers were also travelling for vocational training, stressing the value of learning German. Asked about visas, she said they were issued under a defined procedure.

FCCI President Farooq Yousaf Sheikh welcomed the delegation, called for further expansion of ties and thanked Germany for its support to water supply projects in Faisalabad. He said Pakistan’s exports to Germany during 2025-26 stood at $987 million, a favourable trade balance, and described Germany as Pakistan’s most reliable partner within the European Union. He also raised delays in visa appointments for exporters and suggested a dedicated embassy desk or a fixed weekly day for chamber members.

The chamber said the envoy recorded her impressions in the FCCI visitors’ book, was given a commemorative lapel pin for the chamber’s golden jubilee along with a shield and gifts, and joined participants for a group photograph. Lepel also raised the idea of establishing a Pakistan-Germany Joint Chamber of Commerce to allow the two countries’ private sectors to interact directly.

What is not settled

The report did not give a timeline or target for diversifying exports, nor say whether Germany or the European Union had committed new funds. It also did not indicate whether the proposed joint chamber or the visa-desk request had received a response, leaving both as proposals from the meeting rather than agreed measures.