Global sourcing is shifting fast. Rising labor costs in China, capacity constraints in Bangladesh, and ongoing trade frictions have created an urgent need for diversification. One market that’s often overlooked but increasingly strategic is Pakistan.
For EU importers, Pakistan offers a tariff edge under GSP+. For U.S. buyers, it provides a path to reduce overreliance on China while securing competitive pricing in textiles, leather, and home goods.
The EU Advantage – GSP+ Tariff Benefits
The EU’s GSP+ (Generalised Scheme of Preferences Plus) program gives Pakistan duty-free access on many textile and apparel exports. This delivers:
- Lower landed costs than competitors.
- Increased margins for retailers.
- Alignment with EU ESG goals, thanks to Pakistan’s investments in cleaner production.
The U.S. Opportunity – Diversification and Risk Management
While U.S. buyers don’t benefit from GSP+, Pakistan remains highly attractive because:
- Diversification: Less dependence on Chinese suppliers.
- Competitive Pricing: Strong in textiles, footwear, and leather goods.
- Resilient Supply Chains: Spreads sourcing risk across multiple regions.
- ESG Readiness: Many exporters are internationally audited and certified.
Key Industries Driving Growth
- Textiles & Apparel – Pakistan’s largest export engine, with global certifications.
- Leather Goods – Competitive quality at scale.
- Home Textiles – Towels, bedding, and furnishings for mass-market and premium buyers.
Practical Steps for Procurement Leaders
- Map your sourcing mix to measure tariff savings (EU) or diversification benefits (U.S.).
- Engage early with suppliers to lock in capacity.
- Conduct ESG due diligence to ensure compliance with global standards.
- Leverage Pakistan as a strategic hub, not just a tactical backup.
Conclusion
Pakistan’s role in global sourcing is no longer secondary. For European buyers, it means direct tariff savings. For U.S. buyers, it’s a strategic hedge against geopolitical and cost risks.
👉 In 2025, Pakistan isn’t just an alternative – it’s an advantage.