ISLAMABAD (TNS) Export promotion is essential for the country’s economy, which includes joint initiatives by the government and the private sector for better branding of products, quality packaging, market intelligence, and access to global markets to increase dollar reserves and achieve sustainable economic growth. The recent increase in IT exports is a positive step.
Prime Minister Muhammad Shehbaz Sharif has expressed satisfaction over Pakistan’s exports reaching US $ 2.7 billion in the first month of the new fiscal year. Exports have increased by 17% from July 2024 to July 2025, which is very welcome. A 9% increase in exports in just one month is very satisfactory.
Export-led growth is the top priority of the government, and the positive effects of the current government’s economic policies are emerging. Economic indicators are moving in the right direction, and the efforts of the government’s economic team are commendable.
The government is working to promote exports, increase investment, and provide a business-friendly environment in the country. The implementation of the faceless customs assessment system is improving port operations, which has facilitated trade activities. The Prime Minister has said that the increase in the ratio of tax collection to GDP is satisfactory for the government. He termed the improvement in Pakistan’s credit rating by international financial institutions as a sign of stability in the economy. The Prime Minister said that remittances reached $34.9 billion in the last fiscal year, which is 28.8% more than in the fiscal year 2023-24. He also reiterated his commitment to provide more facilities to overseas Pakistanis. In addition, Shehbaz Sharif also expressed satisfaction over the historic performance of the Pakistan Stock Exchange, where the 100 index has crossed the 145,000 level. Prime Minister Shehbaz Sharif has expressed gratitude to overseas Pakistanis for sending record remittances in December 2025. The 16.5 percent increase in remittances is a manifestation of the confidence of overseas Pakistanis in government policies. Overseas Pakistanis sending remittances for the construction and development of the homeland is a high example of love for the country. He said that overseas Pakistanis are our valuable asset, the entire nation, including me, is proud of them, and measures for the welfare of overseas Pakistanis are among the top priorities of the government. Federal Finance Minister Muhammad Aurangzeb says that the government’s main focus is on promoting exports and reducing dependence on imports so that the economy can be built on a sustainable basis. In a statement, the federal minister said that the government will issue a formal proposal for the selection of financial advisors in the next few weeks. “It is also being considered which option to choose from: dollars, euros, Islamic sukuk, or panda bonds to obtain capital from the global market.” Pakistan is also preparing to introduce its first-ever Panda Bond soon. According to a statement issued by the Ministry of Finance, Pakistan is going to step into the global bond market again after a gap of 4 years, which reflects the coming stability in the country’s economy. The Finance Minister clarified that various financial sources are being considered, including the issuance of Panda Bonds along with dollars, euros, and Islamic Sukuk bonds. These steps are being described as important progress towards Pakistan’s return to the global financial markets. During the World Economic Forum, the Pakistani delegation, led by Prime Minister Shehbaz Sharif, is busy convincing global investors that Pakistan’s economy has recovered and there is a conducive environment for investment in the sectors of minerals, agriculture, and technology. The Federal Minister said that significant progress has been made in terms of economic stability in the recent period, and important economic indicators such as inflation, interest rates, fiscal deficit, and current account are moving in a positive direction. It is important to make exports the main engine of the country’s economy, as reliance on domestic demand alone cannot provide sustainable growth. Government reforms, positive negotiations with the IMF, improved law and order situation, and reduction in global tensions led to a record rally in the stock exchange on the first day of the business week. During this time, the trading benchmark KSE Index quickly crossed the 186,000 mark and traded at a daily high of 187,761 points. During this time, investors made a profit of Rs 220 billion, as a result of which the total capital volume increased to Rs 21,194 billion. Due to the acceleration, share prices increased by 57.20%. The market continued to trade in the green zone throughout the day, and investor confidence was restored, due to which shares of oil and gas, auto, cement, and pharma companies performed significantly. At the end of the business, the KSE 100 index closed at a historical level of 187,761 points for the first time, with an increase of 2,662 points, while the KSE 30 index closed at 57,522 points with an increase of 784 points, and the All Shares Index closed at 112,676 points with an increase of 1,167 points. Trading volume increased by 25%. 1,198,656,139 shares were traded yesterday. A total of 486 companies were traded, out of which 278 companies saw their share prices increase, 167 companies saw their share prices decrease, and 41 companies saw their prices remain stable.According to the State Bank, IT exports recorded a 26 percent increase in December 2025 and reached $437 million, the highest monthly level ever. In November 2025, the volume of IT exports was $348 million, which was a significant increase of 27 percent in just one month. According to experts, this increase is the result of improved global demand for IT services, software development, freelancing, and other technology-related services. During the first 6 months of the current fiscal year, IT exports recorded a 20 percent increase and reached $2.236 billion. Former Chairman Pasha Zohaib Khan said that if the IT sector is provided with policy continuity, tax facilities, and further improvement of digital infrastructure, technology exports are expected to increase further. More than 70 percent of the population across the country is using digital services, which clearly reflects the growth of the digital economy in Pakistan. Governor State Bank Jamil Ahmed says that the government and the State Bank are jointly striving to transform Pakistan into a digital economy. In this regard, the State Bank’s Vision 2028 fully reflects the digitization of the country. Industries need to be activated. Only a few large companies are participating in exports; there is a need to bring more industries into the export sector. Effective branding of products at the global level, standard packaging, and accurate information about market trends. By relaxing local market protection policies, companies will be ready to compete globally. The increase in information technology exports is a major achievement and needs to be promoted further. To increase exports, the government is implementing policies and practical measures, such as the export emergency. The aim of increasing exports is to reduce the current account deficit, achieve stable economic growth, and enhance national security and sovereignty. To promote exports, the government, industrialists, and traders will have to work together, where the quality of products is improved, access to new markets is gained, and the capabilities of the digital sector are highlighted so that Pakistan’s economy can be strengthened. In the current circumstances, the sustainable way to support the economy is to promote exports. After the Prime Minister’s recent announcements regarding increasing exports, the impression is emerging at the public level that the government has started considering imposing an export emergency and accelerating practical measures to increase exports. At present, Pakistan’s annual exports are about $32 billion, which has been targeted to be increased to $60 billion in the next four years. According to the Federal Minister for Planning, if this target is not achieved in four years, Pakistan may once again have to seek financial assistance from friendly countries and the IMF. The minister’s fear may be correct, but the general opinion is that it may be necessary to go to the IMF again within four years. At present, Pakistan owes about $13 billion in short-term loans from friendly countries, which is continuously increasing pressure on the economy. This is why the government is now talking about an economic model based on exports instead of growth dependent on imports and expenditures. One of the major reasons for the obstacles in exports is considered to be the delay in tax refunds. In December, the FBR faced a tax shortfall of Rs 330 billion, while the refund payment was reduced by about 47 percent. That is, an attempt was made to meet tax targets by withholding tax refunds. Neither the tax targets were achieved nor could the difficulties of exporters be reduced. This may have a direct impact on the industry and export sector because the capital of industrialists is stuck with the government. In the last 24 years, Pakistan’s exports have increased threefold, while Vietnam’s exports have increased 26 times during the same period. Perhaps Pakistan has not paid attention to value addition and new global markets. Even today, a large part of the country’s exports is limited to traditional textiles and raw agricultural products. The government claims that the economy has stabilized, with a growth rate of 3.7 percent in the first quarter. Large manufacturing showed a growth rate of 5 percent in the first four months. However, this growth cannot be considered sustainable unless there is a clear and continuous increase in exports. If the government succeeds in timely payment of tax refunds and restoring the confidence of exporters, the target of $60 billion is difficult but not impossible. Otherwise, Pakistan may once again be trapped in the clutches of debt.According to the Federal Bureau of Statistics, exports declined by 8.5 percent on an annual basis in the first half of the current fiscal year (July-December). The volume of exports in the same period of the previous fiscal year was $16.6 billion, which was $15.2 billion in the current fiscal year. From July to December, food exports fell by 40 percent, plastic goods exports by 43 percent, pharmaceutical products by 28 percent, and transport equipment exports by 36 percent. The main reason for the decline in exports is expensive energy. Other problems include reduced production, discontinuity in industrial and economic policies, reduced investment, and heavy tax burden. The government should focus on urgent reforms to improve exports. The provision of cheap and uninterrupted energy is a basic condition for promoting industrial production. To increase agricultural exports, farmers should be ensured access to cheap and quality agricultural inputs so that production increases and quality improves. In addition, a reduction in taxes, regulatory duties, and other financial barriers is also essential to restore the confidence of exporters to invest. The decline in exports is not just a temporary crisis but a warning for the country’s economic development. The government should make the export policy clear, stable, and investor-friendly, and make the country’s economy stable and competitive in global markets through long-term reforms.
Deputy Prime Minister Ishaq Dar says that the government is providing ample opportunities to the business community, which is putting Pakistan on the path to becoming a prosperous and strong country.
Meanwhile, the government has decided to abolish the personal baggage scheme, the most popular method of importing used vehicles, and implement a new policy. About 99 percent of small vehicles imported into the country used to come through this scheme, but now the vehicle can be purchased only from the country where the importer is resident, and such vehicles cannot be sold for one year. The government had earlier allowed overseas Pakistanis to import vehicles, but news of misuse of this facility kept coming out, after which this decision was taken. This decision may also reduce hundi hawala, as there were reports of more payments being made through hundi hawala under the personal baggage scheme. This move may prove to be good for the local auto sector. When imported vehicles are limited, consumers will turn to local vehicles, which is possible to increase production and investment. Apart from this, unnecessary oversupply or price fluctuations in the market may also be reduced. It may be difficult for the middle class to get a better and cheaper imported vehicle immediately, but if the government is successful in promoting local industry and regulating imports, Pakistan’s auto market may become more stable and secure in the long run. Earlier, there were three or four auto manufacturing companies in Pakistan; now their number has increased to 13. The new companies were expecting that if they were bringing investment and providing jobs in the country, the import of used vehicles would end. The new decision can also be seen in this context.
The government has signed a memorandum of understanding with US President Donald Trump’s family’s crypto company, World Liberty Financial, to promote technical understanding of cross-border transactions and digital payment architecture. The agreement could help increase financial inclusion through crypto and blockchain technology. Through this, Pakistan can also establish its own digital currency structure that can play a significant role in bringing transparency and innovation to the country’s financial system. SC Financial Technologies will work with the Central Bank of Pakistan and integrate its $1 billion stablecoin with the digital payments structure. This can bring transparency to the banking system and make cross-border financial transactions easier and safer. Pakistan has already signed a memorandum of understanding with the world’s largest crypto platform, Binance, for the tokenization of up to $2 billion of government financial assets and distribution on the blockchain. This shows that steps are being taken towards the digital financial revolution. The memorandum has been signed. This shows that steps are being taken towards a digital financial revolution. Sustainable economic growth is not possible without making exports the main driver of the economy. Addressing the Pakistan Policy Dialogue in Islamabad, Federal Minister for Development and Planning Ahsan Iqbal said that at least a 90 percent literacy rate is essential for the country’s development, while sustained and sustainable economic growth cannot be possible in Pakistan without making exports the main driver of the economy. A maximum of 6 percent of GDP can be achieved by relying on domestic demand; however, this is not a long-term solution. According to him, the main reason for the dollar shortage and current account deficit is the lack of a desired increase in exports. Out of 523 listed companies in the country, only 70 have exports exceeding $10,000, which is clear proof of limited export capacity. Exports must be promoted as an important pillar of national security and sovereignty. The Federal Minister said that Pakistan is the fifth-largest producer of dates in the world, but unfortunately, we are not able to effectively brand and package our products, due to which we are not getting a better position in the global market. Due to policies to protect the local market, companies do not pay attention to competition in the global market.
