India-EU FTA: Pakistan rattled by India-EU ‘mother of all deals’, textile exports face risk

New Delhi (The Uttam Hindu): The historic Free Trade Agreement (FTA) signed between India and the European Union (EU) on January 27, 2026 has reshaped the global trade landscape. Described as the “mother of all deals” by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, the agreement links a combined market of nearly two billion people, accounting for around 25 percent of global GDP. Following this mega deal, concerns have intensified in Pakistan, especially over its textile sector and exports. Analysts believe India’s strong value addition, vertical integration, and large production capacity could weaken Pakistan’s competitiveness in European markets.

Pakistan’s Foreign Office spokesperson Tahir Andrabi, during a press briefing, said that Islamabad is fully alert to the possible impact of the India-EU agreement. He stated that Pakistan is in active contact with European officials to safeguard its export interests and is closely monitoring all aspects of the deal.

Andrabi added that Pakistan will continue engagement with the European Union on trade, investment, and shared interests to preserve long-standing cooperation and friendly ties. He said necessary steps would be taken to protect Pakistan’s advantages and exports in the European market.

Textile sector faces the biggest threat

Pakistani exporters and economic experts have warned that the textile sector could be hit the hardest by the agreement. Media reports suggest that several European orders may shift to India, raising fears of factory shutdowns and large-scale job losses in Pakistan. Think tanks have cautioned the Shehbaz Sharif government that the India-EU FTA could significantly erode the trade advantages Pakistan has enjoyed in the European market so far.