PM reviews measures to meet $60bn export target

In an effort to propel Pakistan out of the economic quagmire it finds itself in, Prime Minister (PM) Shehbaz Sharif outlined measures that could boost export revenues to a staggering $60 billion within five years. As per reports, this development came about as the PM chaired a meeting on current measures set to increase exports.

He has directed his economic team to develop reforms surrounding tariff structures, which could help propel the economy through export growth. Current tariff rates are extortionate, and according to PM Sharif, they should be reduced to support transnational commercial activities.

However, if the cash-strapped nation is to implement such tariff reforms, the national exchequer might witness a fall in its tariff income inflows in the short run. This is because tariffs and duties on imports allow Islamabad to collect revenues, which will allow the country to augment its fiscal budget.

Moreover, a reduction in tariffs on imports could result in pressures on the rupee which might cause a devaluation of the national currency. This will be a severe setback for industries and the government alike, as the rupee has stayed relatively stable over the past year, ushering in an era of prosperity.

PM Shehbaz Sharif outlined that the new tariff reforms should not hurt the economy as they should serve to boost industrial production levels. This spells great news for industries that have imported goods as a major input, as cheaper imports may allow them to produce their own products more cost-effectively, thus boosting competitiveness among domestic sectors.

Additionally, Shehbaz Sharif reiterated the importance of the IT, agriculture and service sectors. Export-led economic growth is the mantra of the Prime Minister’s Uraan Pakistan project.

In a bid to boost exports, he issued directives to reform the governance process surrounding the Export Development Fund for the Development of Export Industries. If his directives are followed and implemented, Uraan Pakistan might just leave the drawing board and make tangible improvements to the economy.

During the meeting, the PM was updated on the steps being taken to reform the Ministry of Commerce (MoC) and meet Uraan Pakistan’s export target of $60 billion within five years. The MoC has been exerting itself to boost exports over the past year.

Jam Kamal Khan recently set up Pakistan’s first-ever single-country ‘Made in Pakistan’ exhibition in Jeddah. According to reports, more such exhibitions are on the horizon, which may allow Pakistani exporters to secure lucrative export contracts.