GCC key focus area for Pakistan’s export strategy, says Finance Minister

RIYADH: Pakistan’s Finance Minister, Muhammad Aurangzeb, has announced the country’s ambitious plan to double its export revenue within the next three to five years, with a strong emphasis on expanding trade with the Gulf Cooperation Council (GCC) nations.

Speaking to Bloomberg at the Alula Conference for Emerging Market Economies 2025 in Saudi Arabia, Aurangzeb elaborated on Pakistan’s strategy to significantly increase its international trade activities

He said Pakistan’s current export value is approximately $30 billion, and the nation aims to double this figure within the next three to five years, emphasising crucial role of the GCC market, comprising Saudi Arabia, the UAE, Bahrain, Qatar, Kuwait, and Oman, in achieving this export target.

The Finance Minister highlighted the government’s focus on achieving macroeconomic stability, which has resulted in a more conducive environment for trade and investment. He identified the GCC as a market with substantial export potential. To capitalise on this, Pakistan is actively pursuing business-to-business collaborations through memorandums of understanding (MoUs) and establishing special economic zones to attract foreign investment.

Revival of Exim Bank, key priority for Pakistan’s economic growth, says Aurangzeb

Pakistan’s economy has shown signs of stabilisation, with inflation decreasing to 2.41 percent in January. This improvement has enabled the State Bank of Pakistan to reduce borrowing rates by 1,000 basis points since June 2024. These developments are expected to support an economic growth rate of 2.5 percent to 3.5 percent for the current fiscal year, which concludes in June.

Aurangzeb concluded by stating the government’s intention to consolidate and utilize the available fiscal space to prioritize expenditures that will support the country’s growth trajectory, demonstrating the government’s commitment to leveraging the recent economic improvements to stimulate future growth.

Data from the Pakistan Bureau of Statistics reveals that the country’s exports totalled $30.7 billion by the end of the last fiscal year in June 2024, representing an 11 percent increase compared to the previous year’s $27.7 billion.

Furthermore, exports increased by 10 percent in the initial seven months of the current fiscal year, reaching $19.6 billion compared to $17.8 billion during the same period in 2023.