KARACHI: Planning and Development Minister Ahsan Iqbal has urged the banking sector to take a more proactive role in driving Pakistan’s export growth. Speaking at a conference of bank chiefs organized by the State Bank of Pakistan (SBP), he proposed the establishment of an “Export Development Window” to provide soft loans to small and medium enterprises (SMEs), aiming to significantly boost the country’s exports.
This initiative is part of the government’s ambitious five-year economic transformation plan, Uraan Pakistan, which aims to double exports from $30 billion to $100 billion and elevate the GDP growth rate to 6%.
SMEs as the Key to Economic Transformation
Minister Iqbal emphasized the critical role of SMEs in export expansion, industrial development, and innovation. “The financial sector must step up to support SMEs, which can potentially add $40-60 billion in exports over the next five years,” he said.
Highlighting the untapped potential of sectors like IT, services, agriculture, mining, the blue economy, and workforce exports, he called for a shift in banking priorities. “Banks must go beyond their comfort zones of lending to the government and actively support businesses ready to scale exports,” he added.
Past Challenges and the Road Ahead
Iqbal reflected on Pakistan’s three missed opportunities for economic takeoff in the past:
- The 1960s momentum was derailed by the 1965 war.
- The 1990s efforts were thwarted by political instability.
- The progress made in 2016 was disrupted by political changes in 2018.
“Pakistan now has a unique opportunity to rewrite its economic narrative. Over the next 22 years, we can position ourselves as a model of rapid development,” the minister asserted.
Innovative Programs for Workforce and SMEs
Iqbal outlined several innovative initiatives to foster growth and innovation:
- Scholarship Programs: Collaborating with the SBP to fund scholarships for students admitted to the world’s top 25 universities.
- Laptop Leasing Schemes: Introducing laptop financing programs, similar to vehicle leasing, to empower the workforce and promote IT development.
- Monitoring Progress: Establishing a National Economic Transformation Unit at the Prime Minister’s House to track ministry performance under Uraan Pakistan, with quarterly reports to ensure accountability.
Call to Action for Banks and Businesses
Iqbal urged businesses and banks to adopt a forward-thinking approach. “Many businesses are comfortable generating billions in the domestic market, and banks often prefer the safety of lending to the government. But redirecting credit to SMEs can unlock immense potential for both sides,” he explained.
He emphasized that even at standard interest rates, local bank loans could provide SMEs with the financial muscle to compete globally, thereby fostering a win-win situation for all stakeholders.
Conclusion: Building a Resilient Economic Future
With the Uraan Pakistan plan, the government envisions a robust, export-driven economy. The collaboration between the financial sector, businesses, and government will be instrumental in achieving this ambitious goal.
