Karachi, 28-Jan-2026 (PPI): A senior Pakistani business leader has sounded the alarm over a newly finalised free trade agreement between India and the European Union, describing it as a “serious challenge” that threatens to deliver a “severe blow” to the nation’s export base.

Saquib Fayyaz Magoon, Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), warned that the pact could completely erode Pakistan’s competitive edge in crucial European markets.

In a statement, Mr. Magoon, who is also the Chairman of the Businessmen Panel Progressive (BMPP), pointed out that despite Pakistan enjoying GSP Plus status—which allows nearly 80 percent of its exports duty-free access to the EU—its textile exports of $6.2 billion are only marginally ahead of India’s $5.6 billion, which are subject to a 12 percent tariff.

“Once India secures zero-rated access under the EU deal, Pakistan’s advantage will vanish, and our exports could suffer a severe blow,” he cautioned, stressing that the country risks losing its foothold in the European market if urgent corrective actions are not taken.

He asserted that after facing defeat on the battlefield, India has now “opened an economic front” by finalising trade deals with multiple partners, including the EU. “Once a market is lost, regaining entry is extremely difficult,” Mr. Magoon remarked, urging the government to act decisively.

To counter the impending threat, the FPCCI official called on the government to declare an “export emergency” and adopt industry-friendly policies. His proposed immediate measures include reducing electricity tariffs to 9 cents per unit, simplifying the tax regime, and providing new incentives to exporters.

Drawing a parallel with national defence, Mr. Magoon emphasised that the business community requires government support to succeed in this economic conflict. “Just as the armed forces secured victory on the battlefield, the business community now needs government support to win this economic war,” he stated.