Exports fail to take off despite big Uraan target

ISLAMABAD: Despite the government’s much-publicized Uraan programme targeting USD60 billion in exports, the Commerce Ministry on Tuesday admitted that the country’s exports remain stagnant, citing anti-export taxes, high energy and financing costs, and structural hurdles that increase the cost of doing business in the country.

In a meeting of the National Assembly Standing Committee on Commerce, chaired by Muhammad Jawed Hanif Khan, a calling attention notice regarding the country’s exports was taken up, highlighting that export earnings have remained stagnant at USD25-30 billion for nearly two decades.

Aliya Kamran, the mover of the calling attention notice, questioned why exports remain stagnant despite the URAAN programme’s USD60 billion target, noting that more than a year and a half after its launch, no export growth has been observed.

The committee also discussed the export performance and the challenges facing the country’s export sector while considering the Calling Attention Notice.

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The Secretary, Ministry of Commerce, highlighted several factors affecting export competitiveness, including energy costs, financing, taxation, productivity, and the broader economic environment.

He emphasized that two key factors are essential for boosting exports: competitiveness and productivity.

According to the Secretary, competitiveness requires lowering the cost of doing business by ensuring affordable inputs, reduced energy costs, cheaper transportation, lower financing costs, and a supportive taxation structure. Referring to Pakistan’s commitments under the IMF programme, he noted that tax reductions are constrained and must be considered alongside other economic priorities. “Ideally, I would recommend zero taxation for exports,” he remarked, while stressing that all these factors must be addressed collectively to enhance export competitiveness.

The Secretary further highlighted productivity as the second critical determinant of export growth, stating that improving productivity is necessary for firms to compete effectively in international markets despite structural constraints.

In writing, the Ministry of Commerce acknowledged that the major factors contributing to the high cost of doing business in Pakistan include an anti-export bias in the tax regime, limited access to finance for businesses, high energy costs that undermine industrial competitiveness, and inadequate trade facilitation measures that increase compliance burdens and transaction costs.

Copyright Business Recorder, 2026