$60bn exports by 2029 target unachievable: MoC

ISLAMABAD: The Ministry of Commerce has expressed its inability to achieve the ambitious export target of $60 billion by 2029 set by the Prime Minister, citing a range of international and domestic challenges, according to official documents available with Business Recorder.

“Achieving the $60 billion export target by 2029 presents a formidable challenge amid complex international and domestic dynamics. External factors such as the ongoing impact of US tariffs, the prolonged Russia-Ukraine conflict, and a general slowdown in global markets continue to exert significant pressure on Pakistan’s export performance. Domestically, high energy prices and infrastructural constraints further complicate the path to sustained export growth,” the Ministry noted.

On the matter of regulatory and structural reforms, the Ministry stated that tariff rationalisation efforts are currently under way, aimed at reducing industrial costs. E-commerce, identified as a key driver of modern trade, is also receiving policy attention.

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“We are introducing a new e-commerce policy designed to boost the sector by improving regulations, strengthening digital infrastructure, and providing targeted support for online exporters,” the Ministry said adding that to address inefficiencies in the domestic market, a new domestic commerce policy is being developed to revitalise local production, increase domestic surplus, and enhance export potential.

The Ministry emphasised that a coordinated policy approach is essential to drive export growth, with critical interventions in financial support, regulatory facilitation, energy pricing, and trade mechanisms.

Regarding financial and liquidity support, the Ministry noted that efforts are under way to reduce policy rates and expand export facilitation schemes. Concessional financing mechanisms are also being revived to promote solarisation and support industrial expansion.

Ensuring regionally competitive energy pricing and a reliable power supply for export-oriented industries remain core priorities, the Ministry, adding that wheeling rates for industrial consumers are being reassessed to facilitate cost-effective energy usage.

On the regulatory front, the Ministry highlighted that streamlining the clearance process for imported inputs vital to export industries is a top priority. Existing export facilitation schemes are being redesigned to enhance targeting and efficiency. Additionally, tariff rationalisation and expedited refund claims are being pursued to support exporters. “Achieving the $60 billion export target will require a focus on key enablers, including trade diplomacy, SME capacity building, enhanced market access, trade facilitation, and institutional reforms—all underpinned by a cohesive, whole-of-government approach.”

In this regard, the Ministry maintains that it is prioritising targeted policy interventions and implementing sector-specific roadmaps to unlock the full potential of each industry. These roadmaps cover agriculture and food processing, manufacturing and mining, services, and textiles.

A particular focus is being placed on increasing the share of non-textile products in the export basket without undermining the performance of the textile sector. According to the Ministry, these efforts are already yielding positive results, with notable growth—both in value and share—in the manufacturing, mining, agriculture, and food processing sectors.

However, the Ministry noted that achieving the $60 billion target is contingent upon several critical factors, including foreign direct investment (FDI), industrial relocation, and mineral exploration. External shocks, such as U.S. tariffs and the broader slowdown in global markets continue to pose significant obstacles to export performance.

The Ministry of Commerce is currently spearheading several initiatives aimed at enhancing Pakistan’s export competitiveness.

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