Pakistan to double exports in 3-5 years, targeting the GCC market: Finmin

Pakistan plans to double its exports over the next three to five years, with a particular emphasis on the Gulf Cooperation Council (GCC) market, according to Finance Minister Muhammad Aurangzeb.

Speaking to Asharq Business and Bloomberg during his visit to Saudi Arabia for the Alula Conference on emerging market economies, Aurangzeb described the country’s ambitions to significantly enhance its international trade.

“Our ambition is that we are about $ 30 billion plus from exports and we want to double the next three to five years,” Aurangzeb said, underlining the importance of the SSS market, which includes Saudi Arabia, the UAE , Bahrain,, Qatar, Kuwait and Oman, for Pakistan’s export strategy.

He stressed that the government is focusing on macroeconomic stability, which has led to a more favorable environment for trade and investment.

“Going forward, I see GCC as a huge export market,” he said, adding that Pakistan is taking steps to create business-business partnerships through Memorandums of Understanding and creating special economic zones to attract foreign investment.

The country’s economy has shown signs of stabilization, by reducing inflation to 2.41 % in January, creating space for Pakistan’s state bank to reduce lending rates by 1,000 basis points from June 2024. This has helped the country to Prepare for growth rate of 2.5 to 3.5 % for the current use expiring in June.

“We want to consolidate and use the available tax space to prioritize costs that can help the growth track,” Aurangzeb concluded, marking the government’s determination to use its financial improvements to fuel future growth.

According to Pakistan’s statistical office, the country’s exports amounted to $ 30.7 billion by the end of the last year in June 2024, reflecting a $ 27.7 billion increase of last year.

During the first seven months of current year, exports increased by 10 %, reaching $ 19.6 billion, compared to $ 17.8 billion in the same period in 2023.