Export economy is the key: Iqbal

LAHORE:

Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal highlighted the urgent need for Pakistan to transition to an export-based economy to achieve rapid economic growth.

Speaking at the 10th budget summit, organised by the University of Management and Technology (UMT) on Saturday, the minister highlighted the critical role of exports in ensuring sustainable development and reducing reliance on foreign aid.

Addressing a gathering of students, academics, and policymakers, Iqbal reflected on Pakistan's developmental journey since its inception in 1947. He noted that the country, which began with scarce resources, has achieved significant milestones, including becoming the seventh nuclear power globally and producing advanced JF-17 Thunder jets.

"From using thorns as pins in offices to building a modern telecommunications system with high mobile density, Pakistan has made remarkable strides," he remarked.

However, the minister cautioned that these achievements pale when compared to other nations. In 1960, Pakistan's manufacturing exports were comparable to those of South Korea, Malaysia, and Thailand, but today, Pakistan lags significantly with exports at 32 billion dollars, while South Korea's exceed 600 billion dollars. Similarly, Pakistan's per capita income of 1,600 dollars is dwarfed by China's 16,000 dollars, despite starting at similar levels in 1980.

Iqbal posed a pressing question; why has Pakistan fallen behind countries like Vietnam, Bangladesh, and India, which have surged ahead in exports and economic growth? He attributed this lag to the lack of a conducive environment for development, marked by conflict, instability, and short-term economic policies.

"Successful nations prioritise peace, ensure stability, and maintain policy continuity for at least a decade," he explained, citing examples like Singapore, Malaysia, and China, where long-term leadership and consistent policies drove progress.

Pakistan, in contrast, has faced decades of instability, including involvement in external conflicts and internal challenges like terrorism and political uncertainty. "We fought others' wars, from the Soviet conflict to the war on terror, bringing instability to our doorstep," Iqbal remarked. He stressed that economic policies need a minimum of 10 years to yield results, a continuity which Pakistan has struggled to maintain.

Drawing from the government's "Uraan Pakistan" initiative, the minister outlined a roadmap to address these challenges. Central to this vision is transforming Pakistan into an export-led economy, with a target of increasing exports from 32 billion dollars to 100 billion dollars within 8 to 10 years.

"If we achieve this goal, we can build momentum to reach the next 100 billion dollars in just 5 to 10 more years," he said, underscoring the need for sustainable growth aligned with foreign exchange reserves.

The minister highlighted the potential of e-commerce, which allows individuals to sell products globally from home, and called for incentives to revive Pakistan's "rusty export engine." He also emphasised the importance of aligning growth with global technological shifts, such as the Fourth and Fifth Industrial Revolutions, encompassing artificial intelligence, cloud computing, and biotechnology.

Ahsan Iqbal also highlighted recent government initiatives to position Pakistan in the techno-economy, including the establishment of national centres for artificial intelligence, big data, cybersecurity, and quantum computing. These centres, connected to universities nationwide, are fostering startups and industry-oriented research.

"We are mapping university faculties to industry needs, ensuring research drives economic growth," he said.

The minister also expressed concern over Pakistan's 11% higher education enrolment ratio, compared to 30% in India and 60% in China, and the 25 million children out of school. "No country has developed without 90% literacy," he warned, calling for universal primary education. On climate change, Iqbal stressed the need for smart agriculture and weather-resistant seeds to secure food supplies, alongside energy efficiency and renewable energy adoption to meet global carbon standards.

Concluding his speech, the minister urged the youth to seize opportunities in digital skills, cloud computing, and quantum technologies. "Pakistan is not an ordinary country; it was founded on Allama Iqbal's vision of economic empowerment for Muslims," he said, encouraging young Pakistanis to stay and work hard to realise their dreams.

He called for a national consensus to address education, healthcare, population growth, exports, technology, climate change, and extremism. "If the nation unites and pushes together, Pakistan will soar to new heights," he affirmed.