PIDE sets out six-point roadmap to unlock Pakistan’s export potential

ISLAMABAD, Oct 16 (APP): The Pakistan Institute of Development Economics (PIDE) has outlined a six-point reform roadmap to unlock Pakistan’s export potential, calling for tariff reforms, lower trade costs, policy continuity and diversification into digital, maritime and creative economies to achieve sustainable, export-led growth.

The recommendations were presented at the conclusion of the 39th International Conference of the Pakistan Society of Development Economists (PSDE), which brought together policymakers, economists and researchers to discuss strategies for strengthening the country’s export competitiveness.

Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister on Commerce and Industries, said the National Tariff Policy 2025–30 would rationalise around 7,500 tariff lines and cap customs duty at 15 per cent.

He said some 500 regulatory requirements were under review, while financing for small and medium enterprises (SMEs) was planned to increase from Rs1 trillion to Rs2 trillion.

He highlighted the Trade Facilitation Board and Pakistan Single Window as key initiatives to streamline trade procedures, identifying information and communication technology (ICT), artificial intelligence, agriculture, minerals and the blue economy as major drivers of export diversification.

Presenting the conference’s key findings, Dr. Faheem Jehangir, Dean (Policy) at PIDE and Secretary PSDE, pointed out that Pakistan’s GDP had doubled over the past 15 years, while exports had remained largely stagnant.

He attributed the gap to protection-oriented incentives, policy discontinuity, political uncertainty, weak investor confidence, limited strategic trade agreements, high logistics and border costs, and a narrow export base.

The six-point roadmap calls for sustaining URAAN Pakistan beyond political cycles; reforming tariffs and pursuing strategic free trade agreements; rationalising logistics oversight and strengthening the Pakistan Single Window and Corridor Export Coordination Cells; protecting investors through adequate foreign exchange reserves, risk-hedging mechanisms and simpler regulations; promoting export-oriented investment and SME clusters; and developing new growth engines in AI-enabled agriculture, ICT, the blue economy, tourism and creative industries.

The conference noted that improved integration of the Pakistan Single Window and better corridor coordination could reduce trade costs by 10–14 per cent, while the establishment of around 5,000 new SMEs could contribute US$2.5 billion in exports.

During the concluding panel, titled “How to Export More: Learning from Newly Industrialised Economies,” speakers stressed that policy continuity, public trust, trade-specific skills, reliable energy supplies and predictable tax and customs regimes were essential for sustained investment.

The panel was chaired by Prof. Dr. Zafar Nawaz Jaspal, Vice Chancellor of Quaid-i-Azam University, and moderated by Tahir Habib Cheema, Chief (Admin & Finance) at the Federal Board of Revenue (FBR).

Other participants included Syed Asad Ali Shah, Governance and Economic Reform Specialist; Dr. Babur Wasim, Senior Economist at the Asian Development Bank; Shafiq Shehzad, Director General Trade Policy at the Ministry of Commerce; and Dr. Madiha Riaz, Professor of Economics at PIDE.

The speakers cautioned that cheap labour and tax incentives alone could not ensure long-term competitiveness.

Technical sessions explored digital trade, port digitalisation, sustainable fisheries, Blue Bonds and overseas labour mobility aligned with verified international demand.

Researchers also highlighted the importance of strong institutions and the rule of law in promoting tourism and proposed a Music Export Council and a National Music Export Fund to support creative exports.

Dr. Kabir Ahmed Sidhu, Chairman of the Securities and Exchange Commission of Pakistan (SECP), delivered the Allama Iqbal Memorial Lecture, titled “Beyond the Mandi: Connecting Pakistan’s Farms to Finance, Markets and Exports.”

The session was chaired by Dr. Sardar Mohazzam, former Managing Director of the National Energy Efficiency and Conservation Authority (NEECA).

Prof. Dr. David Daokui Li of Tsinghua University, Beijing, delivered the Mahbub ul Haq Memorial Lecture on “Three Key Lessons and Pragmatic Forms of Assistance from China,” chaired by Dr. Samuel Rizk, UNDP Resident Representative.

The conference received 204 extended abstracts, of which 24 papers, including 10 authored by women, were selected through blind peer review.

Of 78 PhD poster submissions, 31 were selected for presentation, with women accounting for 60 per cent of entries.

The newly introduced PhD Symposium brought together 31 scholars, including 19 women, who received guidance on research design from Dr. Eatzaz Ahmed of Iqra University and international publishing from Tatiana Golea of Springer Nature. The PSDE also enrolled 541 new members through its digital membership portal.

Dr. Jamshed ur Rahman of Government College University, Lahore, won the Best Research Paper award of Rs300,000, followed by Dr. Mohammad Ali of NESPAK, Islamabad, who received Rs200,000, and Fatima Ejaz of Fatima Jinnah Women University, Rawalpindi, who secured Rs100,000.

In the Best Research Poster category, PhD scholar Iffat Irshad of Fatima Jinnah Women University, Rawalpindi, won the first prize of Rs150,000, while Muhammad Asif Ali of the University of Swabi received the second prize of Rs100,000.

In his closing address, Dr. Nadeem Javaid (SI), Vice Chancellor of PIDE and President of PSDE, said export-led growth was essential for Pakistan’s economic stability.

He called for a shift from managing scarcity to creating wealth through productivity and innovation, urging policymakers to translate the conference’s findings into practical measures and young researchers to pursue policy-relevant research.

He thanked GIZ, the Asian Development Bank, the Higher Education Commission, Quaid-i-Azam University, international experts and the PIDE team for their support despite austerity constraints, before formally declaring the conference closed.

The conference’s recommendations woukd be shared with policymakers and relevant development stakeholders to help create an enabling environment for achieving Pakistan’s target of US$100 billion in exports by 2035.