Pakistan, Jan. 28 -- Pakistan's textile sector faces serious challenges after India signed a free trade agreement with the European Union. Experts warn the deal could hurt Pakistan's $9 billion exports. The agreement eliminates EU tariffs on Indian textile products, narrowing Pakistan's competitive advantage.

The EU accounts for 24% of Pakistan's textile exports, making it a key market for garments and value-added products. Analysts say India's zero-tariff access will pressure Pakistan to maintain prices and market share. Industry leaders fear the deal may end Pakistan's preferential treatment under GSP+ status, which currently benefits exporters.

Read more: India, EU strike historic trade pact

According to JS Global and the Pakistan T...