Qudsia Bano

The government has renewed its commitment to an export-led growth model, aiming to revitalise Pakistan’s economy through enhanced competitiveness, increased foreign exchange earnings, and improved investment flows. This shift is being complemented by a series of targeted reforms in the banking sector, which experts say are essential to unlocking the potential of export-oriented industries.

Speaking at a policy roundtable recently, officials from the Ministry of Commerce emphasised that the future of sustainable growth lies in strengthening the export base, reducing dependency on imports, and creating a business environment that attracts both local and foreign investors. Recent structural measures include easing access to trade finance, rationalising tariffs on raw materials, and digitising export procedures.

Financial institutions are being called upon to play a more proactive role in facilitating trade. Banks are now expected to offer more tailored financing solutions for exporters, especially small and medium enterprises (SMEs), which have historically struggled to gain access to credit under conventional models.

Asim Mustafa, Regional Head at Faysal Bank, believes the reforms are a step in the right direction. “For too long, our banking sector has remained inward-focused, prioritising consumer lending over development finance,” he said. “Exporters, particularly in value-added textile and IT services, need customised financial products. The recent push by the State Bank to enhance export credit schemes and streamline foreign currency operations is already encouraging results on the ground,” he added.

The government has also encouraged public-private partnerships to improve export infrastructure, with new logistics corridors and dry ports under development. Digitalisation, including the integration of customs and banking platforms, is being fast-tracked to improve transparency and reduce procedural bottlenecks.

Shahid Javed, a senior economist at the State Bank of Pakistan, echoed similar sentiments. “Export-led growth is not just a trade policy; it’s a macroeconomic necessity. Our current account stability depends on it. But to make this successful, reforms must be deep and sustained. We are working closely with banks to ensure that foreign exchange regulations evolve in line with market needs, without compromising on prudential standards,” he said.

While challenges remain, including global market volatility and energy constraints, experts agree that aligning monetary, trade, and banking policies is vital to reviving economic momentum. With the banking sector now playing a more development-oriented role, the stage is being set for a more resilient and globally competitive economy.

Credit: INP-WealthPk