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5.9

weighted score 5.9 · nine dimensions

Country Risk Profile

Pakistan

Sourcing risk, regulatory exposure and audit intelligence for Pakistan-origin supply chains.

Forced & child labour

7

TVPRA 2024 lists 8 Pakistani products including cotton, bricks, carpet, and textiles with forced and child labour. Systemic bonded labour in brick kilns documented.

Worker rights & FOA

6

ITUC Global Rights Index rating 5 — no guarantee of rights. Freedom of association restricted in practice. Improving under EU GSP+ monitoring conditions.

OHS & audit transparency

6

Weak OHS enforcement. Ali Enterprises factory fire (2012, 289 deaths) exposed systemic garment sector failures. Improving under GSP+ conditions but enforcement gaps remain.

Food & product safety

6

Moderate RASFF alert rate for rice, spices, and sesame seeds. Limited DG SANTE audit missions. Enforcement capacity weak but improving.

Environmental & regulatory

4

Pakistan does not export major EUDR commodities at scale. Main exports are textiles — not covered by EUDR. No active EU IUU card.

Governance & anti-corruption

8

TI CPI 2024: Pakistan scores 27/100 — well below the 40 threshold. Severe corruption exposure affecting customs, certifications, and regulatory enforcement.

Tariff & preferential access

3

EU GSP+ in force — zero duty on ~66% of tariff lines. Very favourable preferential access, conditional on 27 international conventions.

Non-tariff barriers

6

Some enhanced controls under Regulation 2019/1793 for food products (rice, sesame). Complex documentation requirements.

Supply chain traceability

7

Negligible EcoVadis coverage. Highly fragmented textile and garment supply chains with extensive informal subcontracting. Limited visibility beyond tier-1.

Labour & Social Risk

Labour & Social Risk

Forced labour
Bonded labour in brick kilns is systemic — estimated 4.5 million workers in conditions of debt bondage. Cotton harvesting in Sindh and Punjab involves documented child labour. The Bonded Labour System (Abolition) Act exists but enforcement is weak.
TVPRA listings
US DOL ILAB TVPRA List 2024 includes 8 Pakistani products: bricks (CL+FL), carpet (CL+FL), coal (CL), cotton (CL+FL), glass bangles (CL), leather (CL), surgical instruments (CL), textiles (CL).
GSP+ conditionality
Pakistan's EU GSP+ status is conditional on implementing 27 international conventions. The European Commission's latest monitoring report flagged concerns around freedom of expression, death penalty application, and labour rights enforcement.
Audit landscape
Social compliance auditing is concentrated among tier-1 exporters to EU and US markets. Sub-tier supply chains — particularly in spinning, dyeing, and raw material sourcing — have minimal audit coverage.

EU Regulatory Exposure

EU Regulatory Exposure

GSP+ status
Pakistan benefits from EU GSP+ — zero duty on approximately 66% of EU tariff lines. This is the most favourable preferential access available short of a comprehensive FTA. Renewal is subject to ongoing monitoring.
EUDR exposure
Pakistan's primary exports (textiles, garments, leather, surgical instruments) are not covered by the EU Deforestation Regulation. EUDR exposure is minimal compared to agricultural commodity exporters.
EU Forced Labour Regulation
Regulation (EU) 2024/3015 applies from December 2027. Given documented forced labour in cotton, brick, and textile supply chains, Pakistani-origin goods in these categories face investigation risk.
CBAM
Pakistan's steel and cement exports to the EU are minimal. CBAM exposure is low relative to major industrial exporters.