Minister Iqbal Stresses the Need for an Export-Oriented Economy to Address Trade Deficits

Federal Minister for Planning, Development and Special Initiatives, Prof Ahsan Iqbal, addressed the All Pakistan Chambers Presidents' Conference on "Reforms in Pakistan's Economy for Sustainable Development" held in Islamabad on Wednesday. During his address, the Federal Minister discussed the economic situation being faced by Pakistan, emphasizing the

need for increased resources and reduced expenses to navigate the current fiscal challenges.

Minister Ahsan Iqbal addressing the business community highlighted the critical financial shortfall facing Pakistan. He explained that in the last fiscal year, the government generated a total revenue of 7000 billion rupees, while the country required 8000 billion rupees solely for debt repayment. This resulted in a deficit of 1000 billion rupees, excluding other national expenses.

"The tragedy of Pakistan is that in 75 years, the country's economy has not been transformed into an export-oriented one," said Professor Iqbal.

He noted that whenever Pakistan's economy shows signs of improvement, it is burdened by imports due to the lack of an effective export policy. This leads to trade deficits as export earnings fail to meet foreign exchange demands, causing the economy to crash when import costs are controlled through emergency measures.

To address these challenges, the current government has developed a framework of five priorities, termed the #5EsFramework, aimed at improving the country's economy. Minister Iqbal stressed the importance of collective effort, stating,

"No single institution, leader, or government can work alone. Government, private sector, civil society, academia, media, politicians, establishment, and judiciary all need to play their role as Team Pakistan to overcome economic difficulties."

Minister Iqbal further emphasized the necessity of political stability and policy continuity for attracting investment and fostering development, asserting that internal or external investment is impossible amidst political chaos and uncertainty.

Professor Iqbal outlined the government's efforts to manage the economic burden, including reducing the development budget from 1400 billion rupees to 1150 billion rupees to avoid imposing additional taxes. Despite these challenges, the government is promoting investment in the public-private sector in the next financial year's development budget to transition Pakistan from an import-oriented economy to an export-oriented one.

"Our economy's success depends on how quickly we can increase domestic exports from 30 billion dollars to 100 billion dollars, Increasing exports will help Pakistan escape the IMF's influence.

Addressing the business conference, Minister Iqbal further highlighted the government's concessions, including a reduction in electricity prices for industries by 10 rupees per unit. He also noted that the government is working on the transfer of Chinese industry to Pakistan, aiming for substantial growth in the agriculture sector.

Professor Iqbal discussed the second phase of the China-Pakistan Economic Corridor (CPEC), which includes five corridors focusing on growth, livelihood, technology and innovation, green energy, and open regional development.

1. Corridor of Growth: Projects to drive economic development, requiring at least 7 to 8 percent continuous growth rate.
2. Corridor of Livelihood: Initiatives to promote employment opportunities.
3. Corridor of Technology and Innovation: Focus on artificial intelligence, information technology, and innovation.
4. Green Corridor: Low carbon emission power projects to replace expensive oil-based projects, guided by Chinese expertise.
5. Open and Regional Development Corridor: Inclusion of other regional countries in CPEC initiatives.

In the second phase of CPEC, business-to-business investment will be promoted, with the private sector playing a key role. The development of domestic industry and agriculture will be a priority, supported by strategic collaboration with Chinese partners.

Federal Minister Ahsan Iqbal concluded by reaffirming the government's commitment to transforming Pakistan's economy into a resilient, export-oriented one. He called for unity and collective effort across all sectors of society to achieve sustainable economic development and stability.