Govt. to diversify products, markets for sustainable 6% export-led growth: Ahsan Iqbal

ISLAMABAD, Jul 30 (APP):Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Thursday said the government was pursuing robust diversification of Pakistan’s product and market portfolios to achieve sustainable economic growth of at least six per cent.

He stressed that expanding exports through new products and destinations was critical to securing long-term economic independence.

Addressing a media briefing on the Monthly Development Report, the minister said the government was working closely with industry and the State Bank of Pakistan (SBP) to transform the country’s top 20 export clusters into globally competitive sectors while promoting non-traditional industries, including engineering, light engineering, chemicals and advanced manufacturing.

“Our destination is not only stabilisation but sustainable growth of at least six per cent. That growth has to be export-led; otherwise it will become another economic bubble that bursts within a few years,” Ahsan said.

He said the government had set a target of increasing Pakistan’s exports to $100 billion by 2035, adding that the existing export structure was inadequate to achieve this objective.

“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 remarked.

The minister said the government, in collaboration with the SBP and the private sector, was offering incentives to promote non-traditional export sectors, including engineering, light engineering, chemicals and advanced manufacturing, to broaden the country’s export base.

He said the strategy also aimed to transform Pakistan’s top 20 export clusters into globally competitive industries capable of generating higher-value exports and strengthening the external sector.

Ahsan acknowledged that merchandise exports during the last fiscal year were affected by disruptions in regional shipping routes, higher insurance costs and logistical challenges arising from the Iran-US conflict. However, exports of goods and services still recorded overall growth despite these external shocks.

He said workers’ remittances reached a record $41.6 billion, up 8.6 per cent over the previous year, helping maintain external sector stability despite geopolitical uncertainties in the Gulf region.

Highlighting the broader economic performance, the minister said Pakistan achieved GDP growth of 3.7 per cent during the last fiscal year despite severe floods and regional disruptions, adding that the economy could have expanded beyond four per cent in the absence of those external shocks. Agriculture grew by 2.9 per cent, services by 4.1 per cent and industry by 3.5 per cent.

The government also prioritised development spending, while cost rationalisation measures under the Public Sector Development Programme (PSDP) generated savings of Rs12.62 billion, improving resource utilisation.

During the year, the Central Development Working Party (CDWP) held 21 meetings, approving 192 development projects and recommending 96 schemes to the Executive Committee of the National Economic Council (ECNEC). The approved portfolio is expected to generate about 289,153 direct and 424,052 indirect jobs.

The Ministry of Planning also strengthened project monitoring, expanded international development partnerships, finalised the Annual Plan 2026-27 and secured the National Economic Council’s approval of a Rs3,675 billion national development outlay, while reaffirming its commitment to advancing reforms for resilient, inclusive and sustainable economic growth.

He said prudent economic management had also earned international recognition, with Standard & Poor’s upgrading Pakistan’s sovereign credit rating from B- to B, following earlier upgrades by Moody’s and Fitch.

“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 said the government remained committed to maintaining macroeconomic stability through responsible fiscal management and market-based policies, noting that difficult decisions, including petroleum price adjustments linked to international oil prices, were necessary to protect the economy.

The Ministry of Planning, he said, was simultaneously pursuing structural reforms, including a new governance model for Islamabad and higher education reforms to align university curricula with the demands of the Fourth and Fifth Industrial Revolutions and the emerging artificial intelligence-driven economy.