PAKISTAN-EU TRADE DYNAMICS: AN EXAMINATION OF ECONOMY CHALLENGES AND OPPORTUNITIES IN THE VIEW OF INTERNATIONAL RELATIONS

Abstract

This study explores the multifaceted economic and trade relations between Pakistan and the European Union (EU) through the lens of International Relations (IR) theories. Over the years, the EU has emerged as one of Pakistan’s largest trading partners, offering significant opportunities for economic growth and development. The Generalized Scheme of Preferences Plus (GSP+) status granted by the EU has played a pivotal role in boosting Pakistan’s exports, particularly in textiles and agriculture, while fostering compliance with human rights and environmental standards. However, these relations are influenced by complex dynamics, including shifting geopolitical alliances, trade policies, and economic interdependence. Using a blend of liberal and realist IR frameworks, this research examines the evolution of Pakistan-EU economic ties, highlighting key trade agreements, challenges, and their broader implications for regional stability and global commerce. The findings underscore the need for strategic policy adjustments to sustain mutual economic benefits and address emerging global trade challenges, such as climate change and digital transformation. By delving into this critical aspect of international relations, the study aims to provide insights into enhancing cooperation and maximizing the potential of Pakistan-EU economic partnerships.