Pakistan Textile Exports Face Risk from India EU Deal

Former caretaker Federal Minister for Commerce, Gohar Ejaz, has warned that a new trade agreement between India and the European Union could seriously harm Pakistan’s economy. He said the deal poses a major threat to Pakistan textile exports, which could face losses of up to 9 billion dollars if immediate steps are not taken by the government.

In a statement, Gohar Ejaz said the agreement may put the livelihoods of nearly ten million people at risk. He explained that the special trade preference once given to Pakistan by the European Union has now ended. Under the new arrangement, zero tariffs will apply equally to all regional countries, reducing Pakistan’s competitive edge.

He stressed that the government must make urgent decisions to protect the local textile industry. According to him, providing electricity and gas to industries at regionally competitive prices is essential to keep factories running and exports stable.

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Gohar Ejaz also demanded that tax rates on industries should be brought in line with neighboring countries. He said high production costs and weak systems have made it difficult for Pakistani industries to compete globally, and businesses can no longer carry this extra burden.

He concluded that without timely reforms, Pakistan textile exports may suffer long-term damage due to the India–EU trade deal. He urged policymakers to revise industrial and trade policies quickly to safeguard exports, jobs, and overall economic stability.