Govt targets $100bn exports by 2035 to end economic dependency

October 14, 2026 (MLN): Pakistan needs to raise its exports to $100bn by 2035 to break the cycle of economic dependency, achieve sustainable growth and strengthen economic independence, as the country seeks to shift from consumption-driven expansion to production-led prosperity.

Pakistan’s goods exports stood at approximately $32bn in 2024, significantly below Bangladesh’s $47bn, Malaysia’s $330bn and Vietnam’s $404bn, highlighting the country’s widening competitiveness gap and the need for a fundamental transformation of its economic structure.

Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal said the country’s inability to generate sufficient foreign exchange through exports had repeatedly forced it to rely on borrowing, restricting policy choices and exposing the economy to recurring balance-of-payments pressures.

Speaking at the 39th International Conference and Annual General Meeting of the Pakistan Society of Development Economists (PSDE), he said Pakistan must prioritise production and exports over consumption to achieve lasting economic stability.

He cited the 6% economic growth recorded in 2022, which coincided with imports reaching a record $80 billion and the trade deficit widening to $50 billion, as an example of the vulnerabilities associated with consumption-led expansion.

The minister said Pakistan’s economic growth had repeatedly triggered higher imports, pressure on the exchange rate and restrictive measures to restore stability. A stronger export base, he added, was necessary to prevent the recurrence of these economic cycles.

Pakistan’s export performance also reflects a long-term divergence from regional competitors. While the country’s goods exports amounted to around $6 billion in 1990, Vietnam’s exports stood at approximately $2.5bn.

By 2024, Vietnam’s goods exports had climbed to $404 billion, demonstrating the potential of sustained industrial development and export-oriented policies.

Under the government’s URAAN Pakistan framework, exports have been identified as a central pillar of economic transformation, with the objective of strengthening foreign exchange generation and maintaining stability over the next five, 10 and 20 years.

Ahsan Iqbal stressed that achieving the $100bn target would require the development of competitive industrial clusters, the completion of value chains and deeper integration into global supply networks.

Such clusters could bring businesses, skilled workers, universities, technology providers, testing laboratories, financial institutions, logistics operators and international buyers into closer coordination.

He also emphasised the need to align domestic production with international demand, meet global quality standards and ensure reliable delivery to secure long-term export orders.

Agriculture, manufacturing, services, information technology, the blue economy and creative industries offer opportunities to expand exports, provided Pakistan increases value addition, improves branding, adopts modern technology and strengthens access to international markets.

Highlighting the importance of capturing greater value from domestic products, the minister cited Pakistani carpets sold internationally at substantially higher prices under foreign brands.

He said local businesses needed to develop their own designs, brands and value-added products to retain a larger share of export earnings.

He further called for research focused on identifying competitive industries and promising export markets, attracting investment and determining the policy reforms required to achieve the national target.

Pakistan, he said, possessed the human talent, business capabilities, natural resources and strategic location necessary to compete globally, but these advantages needed to translate into productive capacity and internationally competitive exports.

Pakistan Institute of Development Economics (PIDE) Vice Chancellor and PSDE President Dr Nadeem Javaid said exports of goods and services had declined from around 16% of GDP in the late 1990s to approximately 10.4% in 2024, limiting Pakistan’s ability to benefit from international trade opportunities.

He identified high energy costs, tariffs, financing constraints, logistical bottlenecks, skills shortages and regulatory uncertainty among the key obstacles undermining export competitiveness. Incentives favoring protected domestic markets and low-value-added activities had further weakened the capacity of local businesses to compete internationally.

Referring to the experiences of China, Vietnam, Bangladesh and India, he stressed the importance of connecting domestic firms with global production networks, upgrading products, improving quality, adopting advanced technologies and increasing value addition.

Dr Javaid said weak export capacity continued to fuel a cycle of economic growth, rising imports, foreign exchange shortages and stabilization programmes.

He emphasized that stabilization measures alone could not deliver sustainable prosperity without structural reforms that rewarded productivity, skills development and technological advancement rather than protection and exemptions.

The two-day conference, titled “Mission $100 Billion: The National Race for Sustainable Export-led Prosperity,” is being held from October 14 to 15 under the auspices of PSDE in collaboration with PIDE and the Ministry of Planning, Development and Special Initiatives.

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