Pakistan has set an ambitious target of increasing its exports to $100 billion by 2035 as the government seeks to reduce economic dependence on foreign borrowing, strengthen foreign exchange earnings and establish a sustainable foundation for long-term growth. Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal said the country needs to shift from consumption-driven expansion towards a production-led economic model that prioritises industrial development, productivity and international competitiveness. Pakistan’s goods exports stood at approximately $32 billion in 2024, considerably lower than those of several regional economies, including Bangladesh, Malaysia and Vietnam. The gap highlights the challenges facing Pakistan’s export sector and the need for structural reforms to improve the country’s position in international markets.
Speaking at the 39th International Conference and Annual General Meeting of the Pakistan Society of Development Economists, Ahsan Iqbal said Pakistan’s inability to generate sufficient foreign exchange through exports had repeatedly forced the country to depend on borrowing. This dependence has restricted economic policy choices and exposed the country to recurring balance-of-payments pressures. He pointed to the 6% economic growth recorded in 2022, when imports reached a record $80 billion and the trade deficit widened to $50 billion, as an example of the risks associated with consumption-led growth. According to the minister, economic expansion that relies heavily on imported goods can place additional pressure on foreign exchange reserves, weaken the exchange rate and eventually require restrictive measures to restore stability. A stronger export base, he said, is essential to break this recurring cycle and support sustainable economic progress.
Pakistan’s export performance over the past three decades illustrates the scale of the challenge. In 1990, Pakistan’s goods exports were approximately $6 billion, while Vietnam’s exports stood at around $2.5 billion. By 2024, Vietnam’s goods exports had reached $404 billion, compared with Pakistan’s approximately $32 billion. Bangladesh recorded goods exports of around $47 billion during the same period, while Malaysia’s exports stood at approximately $330 billion. These figures demonstrate the different growth paths taken by regional economies and underline the importance of sustained industrial development, export-oriented policies and integration into global supply chains. Under the government’s URAAN Pakistan framework, exports have been placed at the centre of the country’s economic transformation strategy, with planning intended to support foreign exchange generation and economic stability over the next five, 10 and 20 years.
Ahsan Iqbal said achieving the $100 billion export target would require Pakistan to establish competitive industrial clusters, complete domestic value chains and strengthen connections with international production networks. These clusters would bring businesses, skilled workers, universities, technology providers, testing laboratories, financial institutions, logistics operators and international buyers into closer coordination. Such an approach could help businesses improve production efficiency, access specialised expertise and meet the requirements of overseas customers. The minister also stressed the importance of aligning domestic manufacturing with international demand, maintaining consistent product quality and ensuring reliable delivery schedules. Meeting international standards and fulfilling export orders consistently would be necessary for Pakistani businesses to establish lasting relationships with global buyers and secure a greater share of international trade.
The government has identified several sectors that could contribute to export expansion, including agriculture, manufacturing, services, information technology, the blue economy and creative industries. However, increasing exports from these sectors will require greater value addition, stronger branding, modern production technologies and improved access to international markets. The information technology sector, in particular, offers opportunities to expand the country’s services exports by connecting local skills and businesses with overseas customers. Across other industries, the focus would need to move beyond selling basic commodities or low-value products towards developing higher-value goods and services that can compete internationally. Ahsan Iqbal highlighted the example of Pakistani carpets sold abroad at substantially higher prices under foreign brands, arguing that domestic businesses should develop their own designs, brands and value-added products. Retaining more of the value generated from locally produced goods could help businesses increase export earnings and strengthen Pakistan’s position in international markets.
The minister also called for research to identify industries with strong competitive potential, promising export destinations and the policy reforms needed to support investment. He said Pakistan possessed the human talent, business capabilities, natural resources and strategic location required to compete globally, but these advantages needed to translate into productive capacity and internationally competitive exports. Better coordination between policymakers, industry, researchers and educational institutions could help identify gaps in production, skills and technology while directing investment towards sectors with greater export potential. Developing specialised industrial capabilities and improving connections between domestic suppliers and international buyers would also be important for building a more resilient export economy.
Pakistan Institute of Development Economics Vice Chancellor and Pakistan Society of Development Economists President Dr Nadeem Javaid said exports of goods and services had declined from approximately 16% of gross domestic product in the late 1990s to around 10.4% in 2024. He said this decline had limited Pakistan’s ability to benefit from international trade opportunities. Among the major obstacles affecting export competitiveness, he identified high energy costs, tariffs, financing constraints, logistical bottlenecks, shortages of skilled workers and regulatory uncertainty. He also highlighted how incentives favouring protected domestic markets and low-value-added activities had weakened the ability of local businesses to compete with international producers. Addressing these challenges would require reforms that make it easier for companies to invest, improve production and develop goods and services that meet the needs of overseas markets.
Referring to the experiences of China, Vietnam, Bangladesh and India, Dr Javaid stressed the importance of connecting domestic businesses with global production networks, upgrading products, improving quality, adopting advanced technologies and increasing value addition. He said Pakistan’s limited export capacity continued to contribute to a cycle in which economic growth leads to higher imports, foreign exchange shortages and subsequent stabilisation programmes. According to him, stabilisation measures alone cannot deliver lasting prosperity without structural reforms that reward productivity, skills development and technological advancement rather than relying on protection and exemptions. Improving the business environment and encouraging companies to compete internationally would therefore be essential to achieving sustainable export-led growth.
The discussions are taking place during the two-day conference titled “Mission $100 Billion: The National Race for Sustainable Export-led Prosperity,” being held from October 14 to 15 under the auspices of the Pakistan Society of Development Economists, in collaboration with the Pakistan Institute of Development Economics and the Ministry of Planning, Development and Special Initiatives. The conference brings attention to the policy, industrial and commercial changes required to achieve Pakistan’s export ambitions. Reaching the $100 billion target by 2035 will depend on the country’s ability to improve productivity, expand value-added production, strengthen technological capabilities and establish reliable access to international markets. The proposed shift towards an export-led economic model is intended to reduce dependence on external borrowing and create a stronger foundation for economic stability over the coming decade.
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