In 2020, the EU extended the GSP plus Pakistan`s status until 2022. In 2019, the eu-Pakistan trade deficit increased by 1.947 billion euros (surplus for Pakistan), which means that Pakistani exports to the EU have increased, while its imports from the EU have increased from 5.652 billion euros in 2018 to 5.545 billion euros (down 1.89 percent) on an annual basis. Total trade increased by 3.78%, from 13.562 billion euros to 13.037 billion euros in 2018 and 2019. [10] Information on institutional, trade and development relations between the EU and Pakistan can be found on the website of the European Union delegation in Pakistan. The EU is Pakistan`s main export target. In 2019, the EU accounted for 33% of Pakistan`s foreign trade, with 7.492 billion euros of Pakistani exports to the EU, mainly of textiles, but also of medical equipment and leather goods, while EU exports to Pakistan amounted to 5.545 billion euros (mainly mechanical and electrical equipment, but also chemicals and pharmaceuticals). [5] The EU-Vietnam agreement is the most comprehensive trade agreement the EU has with a developing country. Bilateral trade relations between the EU and Pakistan are governed by the 2004 Cooperation Agreement. The promotion of bilateral trade and bilateral investment is also part of the EU-Pakistan Five-Year Commitment Plan from 2012. The EU and Pakistan have set up a trade subgroup to promote the development of trade between the two sides. The Trade subgroup, created under the aegis of the EU-Pakistan Joint Commission, is the forum for discussion of wider trade developments and also aims to address individual market access issues that hinder trade between the two sides.
The first trade cooperation agreement between the European Commission and Pakistan was signed in 1976 and, ten years later, a trade and cooperation agreement is signed, valid for five years and tacitly renewed since then. During the 2016 strategic dialogue, the two sides continued to strengthen their relations and agreed to replace the EU-Pakistan Five-Year Commitment Plan with an EU-Pakistan Strategic Engagement Plan (SEP). In June 2019, MS was signed in Brussels between the EU and Pakistan. This plan is based on the rules of international law and the Charter of the United Nations, mutual respect, trust and common interests. MS covers traditional areas such as peace and security, democracy, the rule of law, good governance, human rights, migration and mobility, trade and investment. But it has also introduced cooperation in other increasingly important areas such as energy, climate change, connectivity, education and culture, as well as science and technology. Another problem with the EU is that it is not seen as a serious political and security actor. In this area, the union`s institutional framework and political conditionalities prevent the Union from being seen as a strong power. The EU`s emphasis on trade and democracy, as well as the almost non-existent absence in the area of security and military assistance (excluding counter-terrorism programmes and police training) limit its potential influence on Pakistan. Some believe that the approach to aid and the development approach is a flawed and outdated policy. It limits not only the perception of the military, but also that of political parties.
Pakistan`s closest allies (the United States, China and Saudi Arabia) have traditionally been a source of arms delivery. The question is what strategy to adopt in the event that a military government returns to power. This scenario is particularly achievable when one considers that the Pakistani civilian government must reduce the role of the military in foreign affairs, defence and intelligence.
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