Ahsan Iqbal urges export-driven growth

Planning minister warns short-term economic fixes risk boom-and-bust cycles during visit to KCCI

KARACHI:

While underscoring the importance of sustainable export-led economic growth, Federal Minister for Planning, Development & Special Initiatives Ahsan Iqbal said rapid growth is achievable through short-term measures, but such an approach would ultimately lead to economic instability due to excessive imports and limited foreign exchange reserves.

"We can take immediate steps to accelerate economic growth, but such growth would be short-lived and unsustainable, leading to a boom-and-bust cycle. Instead, we must pursue long-term, sustainable growth that is export-driven. If we want to ensure lasting progress, our growth must be anchored in exports, so it is not artificial and prone to crashing," he said during his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Monday.

The minister pleaded for building robust foreign exchange reserves to secure Pakistan's future and self-sustainability.

While highlighting peace, stability, continuity of policies, and reforms as four essential pillars for national success, Iqbal cited countries such as India, Bangladesh, Indonesia, Turkey, Japan, and South Korea that have adopted these principles to great effect.

He said, "Unfortunately, Pakistan has struggled to implement these pillars consistently. It's time we commit ourselves as a nation to safeguarding them for economic progress. Pakistan has the potential to be among the top five economies in Asia. With abundant resources and hardworking people, we can succeed—if we embrace innovation and change."

He also introduced the recently-launched National Productivity, Quality, and Innovation Initiative, urging businesses to integrate these three elements into their operations.

"If we want to become a competitive economy, we must prioritise productivity, quality, and innovation in every enterprise. These elements must become a core part of every business ecosystem," he said.

The minister invited the KCCI to form sectoral working groups and provide recommendations for boosting exports in key areas, including agriculture, manufacturing, services, IT, mining, manpower exports, creative industries, and the blue economy.

"With focused efforts and the right policies, these sectors can help us achieve $100 billion in exports," he said.

He also proposed that KCCI, in collaboration with the Ministry of Planning, initiate a Small and Medium-sized Enterprise (SME) Innovation Fellowship Programme to connect business mentors with young entrepreneurs and suggested forming a Green Karachi Business Alliance to promote sustainable practices.