BoP problems: Competitive, export-driven economy constitutes the solution: Ahsan
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal on Wednesday called for a globally competitive, export-driven economy to overcome Pakistan’s recurring balance of payments related problems and strengthen economic sovereignty, saying that achieving the USD100 billion export target by 2035 is essential for Pakistan to break the cycle of economic dependency, ensure sustainable growth, and strengthen its economic independence.
Addressing the inaugural session of the 39th International Conference and Annual General Meeting of the Pakistan Society of Development Economists (PSDE), themed “Mission USD100 Billion: The National Race for Sustainable Export-led Prosperity,” he said Pakistan must shift from consumption-driven growth to production- and export-led growth to avoid recurring economic crises.
“A nation’s economic sovereignty rests on its ability to pay its way in the world,” the Minister said, highlighting Pakistan’s widening export gap with successful Asian economies.
Under URAAN Pakistan, he emphasised competitive clusters, complete value chains and integration into global supply networks. He urged PIDE and the research community to develop actionable export roadmaps identifying products, markets, missing capabilities, institutional responsibilities and delivery timelines. He also stressed that export success requires policy continuity beyond political transitions and welcomed research that challenges government assumptions.
The minister said a country unable to generate sufficient income to meet its needs had to rely on borrowing, which eventually constrained its decision-making, slowed development and left the aspirations of its youth vulnerable to recurring balance-of-payments crises.
Comparing Pakistan’s export performance with that of other countries, he said its goods exports stood at approximately USD32 billion in calendar year 2024, compared with USD47 billion for Bangladesh, USD330 billion for Malaysia and USD404 billion for Vietnam.
He said Pakistan’s goods exports stood at around USD6 billion in 1990, compared with USD2.5 billion for Vietnam. By 2024, Vietnam’s exports had surged to USD404 billion, underscoring the need for Pakistan to reassess its economic choices and production strategy.
Ahsan Iqbal said Pakistan had repeatedly experienced a cycle in which economic growth increased imports, put pressure on the exchange rate and eventually necessitated restrictive measures to restore stability.
Referring to the 6 per cent economic growth recorded in 2022, he said it was accompanied by record imports of USD80 billion and a trade deficit of USD50 billion, illustrating the risks of consumption-led expansion.
Speaking on occasion, Pakistan Institute of Development Economics (PIDE) Vice Chancellor and PSDE President Dr Nadeem Javaid said Pakistan’s exports of goods and services as a share of GDP declined from around 16 percent in the late 1990s to approximately 10.4 percent in 2024, limiting its ability to capitalise on opportunities in international markets.
He said high energy costs, tariffs, financing constraints, logistical challenges, skills gaps and regulatory uncertainty, coupled with incentives favouring protected domestic markets and low-value-added activities, undermined export competitiveness.
Citing China, Vietnam, Bangladesh and India, he highlighted the importance of integrating firms into global production networks, upgrading products, improving quality, advancing technology and promoting value addition.He said weak export capacity fuelled recurring cycles of growth, rising imports, foreign exchange pressures and stabilisationprogrammes, adding that stabilisation alone could not ensure sustainable growth.
Emphasising structural reforms, he said policies must reward productivity, skills development and technological upgrading rather than protection and exemptions, enabling Pakistani firms to compete sustainably in international markets.
He said that exports of USD 100 billion dollars is the scoreboard, not the strategy, stressing that the pathways must build firms’ capabilities, with support disciplined by measurable performance and success judged by better jobs, higher real wages and improved living standards.
Drawing on the research, Javaid outlined five pathways for Pakistan: upgrading existing strengths in textiles, agriculture and IT; attracting export-oriented investment that brings technology, buyers and domestic supplier opportunities; building the next generation of exporters from first orders to scale and higher-value production; developing new export growth engines through experimentation and performance-based support; and converting diplomatic relationships and geographic advantages into commercial connectivity through usable corridors, recognised standards and buyer networks.
Guest of Honour Yuan Jianmin, Senior Advisor to the Xinjiang Government, China, highlighted opportunities to deepen Pakistan–China economic cooperation through CPEC 2.0. He proposed expanding trade in agricultural and food products, establishing a green channel at Khunjerab for fresh produce, widening RMB use in cross-border payments, and advancing cooperation in artificial intelligence, IT outsourcing and computing infrastructure. His remarks underscored opportunities to translate connectivity into trade and productive partnerships.
Presenting the Secretary’s Report, Associate Professor DrFaheem Jehangir, Dean (Policy), PIDE, and Secretary, PSDE, said 24 papers had been selected through blind review from 204 abstracts, while 31 PhD scholars were participating in poster presentations. He announced cash awards for outstanding papers and posters at the Minister’s direction and reported the addition of 541 PSDE members.
Copyright Business Recorder, 2026