Pakistan’s exports have remained largely stagnant at around $25 billion to $30 billion for nearly two decades, with the government acknowledging that high taxes, expensive energy, costly financing, and structural weaknesses continue to erode the country’s export competitiveness.
The issue was discussed during a meeting of the National Assembly Standing Committee on Commerce, where lawmakers questioned why exports have failed to gain momentum despite repeated policy initiatives and ambitious growth targets.
Lawmakers Question Uraan Initiative
During the meeting, Aliya Kamran, who moved the calling attention notice, pointed out that more than a year and a half after the launch of the government’s Uraan export initiative, tangible progress remains elusive.
She said the continued stagnation raises serious questions about the effectiveness of existing export promotion policies, particularly as the government has publicly set a target of increasing exports to $60 billion.
Ministry Identifies Key Obstacles
In its briefing, the Ministry of Commerce acknowledged that several long-standing issues continue to hold exporters back. These include what officials described as an anti-export bias in the tax system, limited access to affordable financing, high energy tariffs, and weak trade facilitation that adds to compliance and transaction costs.
Commerce Secretary Jawad Paul told lawmakers that improving competitiveness and productivity are the two most critical requirements for boosting exports.
Cost of Doing Business a Major Barrier
Jawad Paul said export competitiveness depends on lowering the overall cost of doing business. He cited affordable electricity and gas, cheaper transportation, easier access to credit, and a supportive taxation framework as essential components of any credible export strategy.
He acknowledged that Pakistan’s commitments under the International Monetary Fund programme restrict the government’s ability to reduce taxes. However, he stressed that easing the burden on exporters remains vital. “Ideally, I would recommend zero taxation for exports,” he told the committee.
Productivity Also Under Scrutiny
The commerce secretary also highlighted productivity gaps across industries, arguing that firms must become more efficient to compete in international markets despite structural constraints. He said productivity improvements are necessary to offset high input costs and weak infrastructure.
Export Targets Face Reality Check
The discussion comes as the government continues to promote the Uraan initiative as a cornerstone of its economic agenda. However, the ministry’s own assessment suggests that achieving the $60 billion export target will require deeper and more politically difficult reforms.
Lawmakers were told that without meaningful reductions in energy prices, improvements in financing access, and structural changes to taxation and trade facilitation, Pakistan’s exports are unlikely to break out of their long-running stagnation.
