Prime Minister Shehbaz Sharif has reaffirmed Pakistan’s commitment to continued engagement with the GSP+ of the European Union (EU), the Prime Minister’s Office (PMO) said on Thursday.

The prime minister made the remarks during a meeting with European Council President António Luís Santos da Costa and European Commission President Ursula Gertrud von der Leyen on the sidelines of the United Nations General Assembly in New York.

During the meeting, the leaders reviewed the full spectrum of Pakistan-EU relations and expressed satisfaction at the growing momentum in high-level exchanges and engagement between Pakistan and the EU, according to the PMO.

PM Shehbaz underscored the importance of “sustained leadership-level engagement” in providing greater direction and momentum to the relationship.

He reaffirmed Pakistan’s commitment to further strengthening its “broad-based partnership” with the European Union and the full implementation of the Pakistan-EU Strategic Engagement Plan, the PMO said.

The leaders also exchanged views on regional and global developments and reaffirmed the importance of dialogue, diplomacy, international law and the “peaceful resolution of disputes”.

Prime minister also reiterated his invitation to the presidents of the European Council and European Commission to visit Pakistan and expressed his desire to continue working closely with them to “further deepen the mutually beneficial partnership”.

PM Shehbaz’s remarks came as Pakistan and the EU on Monday signed €65 million (about $75m) in financing agreements to support Global Gateway investments, strengthen the rule of law and business environment, and enhance energy and environmental resilience.

Meanwhile, in a post on X, Von der Leyen described the meeting with PM Shehbaz as “very good” and said the EU valued its partnership with Pakistan.

She said the EU and Pakistan had discussed how to take their partnership forward, “from trade to addressing illegal migration”.

She also thanked the prime minister for his initiative to mediate in the conflict between the United States and Iran, adding that Pakistan was playing an “important role” in support of de-escalation, dialogue and the peaceful resolution of conflicts.

Earlier this week, Deputy Prime Minister and Foreign Minister Ishaq Dar met the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, where he stressed the significance of GSP+ for Pakistan’s trade relations with the EU.

The meetings take place against the backdrop of an intense engagement between Islamabad and Brussels over the trading scheme and its future.

The current EU GSP+ framework is set to expire at the end of this year, and Pakistan is required to seek inclusion in the successor regime, which would carry more stringent requirements.

Though the new trading framework will take effect with the turn of the year, Pakistan and other existing beneficiaries will continue to receive preferences during a two-year transition period ending on Dec 31, 2028.

But the transition does not amount to an automatic continuation of the facility for the two years or a roll over into the new scheme.

A European Commission assessment covering the years 2023-25, released in July this year, concluded that Pakistan had faced compliance issues with its obligations, regressed in several areas and made limited positive change.

It should be mentioned that the EU’s GSP+ regime is tied to compliance with international conventions on human rights, labour rights, environmental protection and good governance.

The report had identified significant concerns relating to enforced disappearances and extrajudicial killings, freedom of expression, journalists’ and minority rights, judicial independence, access to justice and forced labour.

Earlier this month, the European Union’s ambassador to Pakistan, Raimundas Karoblis, had also cautioned that GSP+ benefits could not be taken for granted.

Transitioning from ‘macroeconomic stabilisation towards a recovery path’: Shehbaz tells IMF

On Wednesday, PM Shehbaz, in a meeting with the International Monetary Fund’s top official, stressed that Pakistan was transitioning from “macroeconomic stabilisation towards a recovery path”, PMO said.

PM Shehbaz met with the Managing Director Kristalina Georgieva on the sidelines of the UNGA.

Pakistan is currently under a $7 billion, 37-month IMF programme, aimed at stabilising the economy through fiscal discipline, structural reforms, and measures to support long-term growth.

In the meeting, the premier thanked the IMF for its “continued support” for Pakistan’s economy. He reaffirmed that his government was committed to implementing the IMF-supported reform programme.

PM Shehbaz also appreciated Georgieva’s role in “strengthening Pakistan’s constructive partnership” with the lending agency.

The premier also reaffirmed the government’s “strong ownership” of the IMF’s es economic reform agenda.

He also “reiterated Pakistan’s strong resolve to maintain the momentum of reforms and advance structural measures aimed at strengthening the economy and laying the foundations for sustainable and inclusive growth,” the PMO added.

The prime minister also held that Pakistan was transitioning from “macroeconomic stabilisation towards a recovery path, supported by prudent fiscal and monetary policies,” despite regional conflict and external inflationary pressures.

PM Shehbaz also highlighted progress made in “fiscal discipline, external buffers and investor confidence,” citing “the National Tariff Policy, enhanced domestic revenue mobilisation, and progress on privatisation”.

He also said that the government was protecting vulnerable segments of society.

Georgieva, for her part, lauded Pakistan’s performance under the IMF, while also acknowledging that Pakistan’s efforts aimed at economic stabilisation were showing “tangible results”.

Pakistan’s upcoming IMF programme review and “continued cooperation between Pakistan and the fund in advancing reforms, strengthening economic resilience and supporting sustainable growth”.

Deputy Prime Minister & Foreign Minister Ishaq Dar and Finance Minister Muhammad Aurangzeb were also present at the meeting, among other senior government functionaries.