Ahsan Iqbal says government pursuing export diversification and industrial reforms to achieve sustainable economic growth
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Thursday said the government was pursuing an ambitious strategy to diversify Pakistan’s export products and markets to achieve sustainable economic growth of at least 6%, with a long-term target of increasing exports to $100 billion by 2035.
Addressing a media briefing on the Monthly Development Report, the minister said Pakistan’s future growth must be driven by exports rather than domestic consumption to ensure lasting economic stability.
“Our destination is not only stabilisation but sustainable growth of at least 6%. That growth has to be export-led; otherwise it will become another economic bubble that bursts within a few years,” Ahsan Iqbal said.
He stressed that Pakistan could no longer rely on exporting the same products to the same markets, noting that the country’s export structure had changed little over the past four decades despite increasing global competition.
“We have to diversify both our product portfolio and our export markets. Pakistan is still exporting many of the same products to the same destinations as it did 40 years ago. This model is no longer sufficient for a competitive global economy,” he said.
The minister said the government was working closely with the State Bank of Pakistan (SBP) and the private sector to transform the country’s top 20 export clusters into globally competitive industries. Incentives are also being offered to promote non-traditional export sectors, including engineering, light engineering, chemicals and advanced manufacturing, to expand Pakistan’s export base.
Ahsan Iqbal acknowledged that merchandise exports faced challenges during the previous fiscal year due to disruptions in regional shipping routes, higher insurance costs and logistical difficulties arising from the Iran-US conflict. Despite these external pressures, he said exports of goods and services still recorded overall growth.
He highlighted the strong performance of workers’ remittances, which reached a record $41.6 billion, representing an 8.6% increase compared with the previous fiscal year. According to the minister, the higher inflows helped maintain stability in Pakistan’s external sector despite geopolitical uncertainty in the Gulf region.
Reviewing the broader economy, Ahsan Iqbal said Pakistan’s gross domestic product (GDP) expanded by 3.7% during the last fiscal year despite severe floods and regional disruptions. He added that economic growth could have exceeded 4% had these external shocks not occurred.
Sector-wise, agriculture recorded growth of 2.9%, services expanded by 4.1%, while the industrial sector grew by 3.5%, reflecting a gradual recovery in economic activity.
The planning minister also pointed to improving international confidence in Pakistan’s economy, noting that Standard & Poor’s recently upgraded the country’s sovereign credit rating from B- to B, following earlier rating improvements by Moody’s and Fitch Ratings.
“This international endorsement reflects growing confidence in Pakistan’s economic direction under Prime Minister Shehbaz Sharif’s leadership. We should project these successes confidently to strengthen investor confidence,” he said.
Ahsan Iqbal said the government remained committed to preserving macroeconomic stability through prudent fiscal management and market-based economic policies. He defended recent petroleum price adjustments, saying they were necessary to reflect international oil price movements and protect the economy from fiscal imbalances.
The minister added that the Ministry of Planning was simultaneously pursuing structural reforms, including a new governance model for Islamabad and reforms in higher education aimed at aligning university curricula with the demands of the Fourth and Fifth Industrial Revolutions and the rapidly evolving artificial intelligence-driven economy.