Europe’s stern warning to Pakistan, threat of trade ban creates panic; Will the economic crisis deepen further?

Amidst Pakistan’s economic crisis and its declining credibility on international forums, Europe has adopted a bold and tough stance. In recent developments, European countries have warned Pakistan in clear words that if the standards are not followed, trade concessions will be removed. While on one hand Pakistan’s diplomatic relations with America seem to be warming again, on the other hand this ‘threat’ of Europe has increased the concerns of Islamabad. Experts believe that if Europe imposes trade sanctions, it will be almost impossible for Pakistan’s economy to sustain itself. Danger looming over GSP+ status: Europe has expressed strong objection mainly to the ‘GSP+’ status given to Pakistan. Due to human rights violations, ignoring labor laws and not meeting international standards, the European Union has given Pakistan an ultimatum to make stringent reforms. If Pakistan does not improve its policies within the stipulated time frame, it will face huge difficulties in exporting its products to Europe. This situation is enough to directly destroy the textile and export sector of Pakistan, which is already suffering from shortage of foreign exchange. America’s friendship versus Europe’s strictness. Interestingly, on one hand, Pakistan’s increasing defense and diplomatic relations with America are in the news, while on the other hand, this attitude of Europe has become a ‘double trouble’ for Pakistan. According to analysts, America may be supporting Pakistan for its strategic interests, but Europe’s displeasure at the economic level can further impoverish it. A major export market of Pakistan is in Europe, and stopping trade support from there would mean destabilization of the entire economy of the country. Now it remains to be seen whether Pakistan will improve its policies or will get further entangled in the web of international sanctions.