Syed Ahmed Raza

ISLAMABAD: The World Bank estimates an untapped potential of nearly US$60 billion for Pakistan&#39;s exports, according to its latest Pakistan Development Update report released this week. The report stated that some structural constraints obstructed Pakistan&rsquo;s export competitiveness and productivity. &quot;While the country has made progress in recent years, more reforms are needed to support export-led growth and improve resilience,&quot; it said.&nbsp;The World Bank said some tariffs, regulations, and limited access to trade finance and logistics continue to hamper export performance.&nbsp;The report acknowledged recent government initiatives, including the five-year National Tariff Policy (2026-2030), which aims to reduce the average tariff rate from 20.2 percent to 9.7 percent by 2030. However, it said tariff reforms alone would need to be complemented by steps such as a market-determined exchange rate, stronger trade finance systems, and improved digital and energy infrastructure to boost exports.&nbsp;&ldquo;The government has placed export growth at the center of its development agenda and has made important strides in tackling policy and structural barriers,&rdquo; said Anna Twum, co-author of the report. &ldquo;However, tariff reforms alone will not suffice and must be complemented by broader measures to ensure a market-determined exchange rate, strengthen trade finance, enhance trade facilitation, and expand access to export markets,&rdquo; she added. The report also underscored Pakistan&rsquo;s growing potential in digital services, noting that while digitally delivered exports now account for about 10 percent of total exports, Pakistan&rsquo;s global share remains low at just 0.1 percent. It suggested investing in broadband expansion, fiber-optic connectivity, and modern digital regulations to enhance export capacity in the IT and technology sectors.&nbsp;With the World Bank revising Pakistan&rsquo;s growth projection to 2.6 percent, the report said that unlocking export potential will be key to achieving sustainable, debt-free growth and ensuring long-term economic stability.

Economy

The bank highlights that high tariffs, regulatory barriers, and limited access to trade finance and logistics continue to weigh on export performance.

Articles tagged with "Pakistan's GDP"

Pakistan has $60bn export potential, says World Bank