Export-led growth key to cutting $32b deficit

Pakistan must focus on exports, industrial growth and economic reforms over the next ten years to become one of the world's leading economies, Federal Minister for Planning Ahsan Iqbal said during a visit to the Lahore Chamber of Commerce and Industry (LCCI), according to a statement issued on Saturday.

"After the success of the "Marka-e-Haq," Pakistan must now win the "Marka-e-Maeeshat," because strong defence cannot be sustained without a strong economy," Iqbal said, adding that the government is removing unnecessary regulations, red tape and business barriers to support exports, which are the only sustainable path for economic development. The target of achieving $100 billion in exports by 2035 is as important for Pakistan as achieving nuclear capability once was, he added.

LCCI President Faheemur Rehman Saigol, who welcomed the minister, said Pakistan's trade deficit has reached nearly $32 billion in just ten months, making it essential to adopt an immediate export?led growth strategy. Planning, industrial policies and incentives should be aligned with export?oriented sectors so that Pakistani products can compete effectively in global markets.

Reducing the cost of doing business should be the government's top priority, said Saigol. Expensive electricity, high interest rates, multiple taxes and complex regulations are creating serious difficulties for industries. The current regional situation, supply chain disruptions and uncertainty have further increased business costs.

Saigol appreciated the government's focus on development projects under the Public Sector Development Programme but stressed that funds should be spent on projects that directly improve industry, exports, logistics and productivity. He noted that the second phase of the China-Pakistan Economic Corridor is focusing on industrial cooperation, special economic zones, agriculture, IT and technology transfer, but local business communities must be given an active role in joint ventures.

He called for special industrial zones for small and medium enterprises (SMEs) with shared facilities, warehouses, utilities, one?window operations and modern waste treatment systems to reduce costs and improve competitiveness. Pakistan's IT and digital economy sectors have strong growth potential, so planning should prioritise digital infrastructure, IT exports, freelancing and innovation systems to help the country's youth earn more foreign exchange.

Iqbal said Pakistan must focus on value addition, better packaging, marketing, branding and international certification to increase exports. He noted that Pakistan is the world's fourth largest producer of dates but is not gaining enough benefit due to a lack of value addition. Similarly, Pakistani mangoes, cutlery, fan manufacturing and handicrafts have strong global potential. China imports nearly $2.8 trillion annually, but Pakistan's share is only $3 billion, so the country needs to enter the Chinese market in a serious and organised manner.

The tax?to?GDP ratio is only 10.5%, while successful countries maintain ratios between 15% and 16%, Iqbal said. Unless the tax net is expanded and tax evasion eliminated, the burden on honest taxpayers will continue to increase. He urged the government and the business community to work together to stabilise the economy and put Pakistan on the path of sustainable development and prosperity.

Saigol also announced that the Lahore Chamber will organise the "Lahore Chamber Freelancing Awards" in June 2026. He highlighted the need for continuous consultation between the Planning Commission and chambers of commerce, adding that the LCCI, representing more than 48,000 members, is fully prepared to cooperate with the government in national economic planning and policy reforms. The meeting was attended by senior LCCI office?bearers and executive committee members.