Minister for Planning, Development and Special Initiatives Ahsan Iqbal has called for the federal government to formally declare an ‘export emergency’ in order to revive trade competitiveness and accelerate export-driven growth.

Addressing a press conference during the release of the Monthly Development Outlook Report, he said that Pakistan’s macro indicators are showing gradual improvement, supported by moderating inflation, stronger industrial output, rising remittances, and improved export performance.

Iqbal proposed a series of measures to support exporters, including the declaration of an export emergency, the establishment of a dedicated facilitation hotline at the Prime Minister’s Office, and ensuring the timely clearing of refund claims owed to export firms.

Sharing the latest economic data, he said Pakistan recorded 3.7% GDP growth in Q1 FY2026, compared with 1.6% in the same quarter of FY2025, driven by a 9.4% expansion in the industrial sector and stable performance in agriculture and services.

The minister reported improved fiscal discipline, noting that the Planning Ministry saved Rs3.5 billion during the first half of FY2025-26, while the government approved the release of Rs356 billion for development projects—out of which Rs210 billion has already been utilized.

He added that inflation eased from 7.2% in July to 5.2% in December, although temporary weather-related disruptions led to supply-side pressures. Exports have started to show renewed momentum, while large-scale manufacturing has rebounded after two years, with industrial growth rising from 0.6% to 5% between July and October.

Iqbal criticised past policy choices that relied on import-led growth, arguing that Pakistan’s previous 6% GDP target widened the trade deficit by USD 50 billion. In contrast, he stressed that sustained export growth is essential for long-term macro stability.

Despite flood-related production disruptions, he noted that exports grew 1% during July–November FY2026, reaching USD 16.6 billion, adding that experts believe faster export growth will determine the country’s economic trajectory going forward.

Reviewing development spending, he said Rs356 billion in PSDP authorizations were issued in the first half of the year, with Rs314.5 billion sanctioned and 21% utilization achieved, compared to 13.5% during the same period last year—indicating stronger project execution.

Meanwhile, four new projects were approved in December, while three were forwarded to ECNEC. Newly cleared projects are expected to generate roughly 3,000 direct and 64,500 indirect jobs nationwide.

Iqbal also highlighted progress on CPEC connectivity, the rise in IT exports, and emphasized the need for energy sector reforms over the next two years to establish a stable foundation for growth by 2027.

On health-related matters, he reiterated Pakistan’s commitment to eradicating polio, noting that Pakistan and Afghanistan are the only two countries where the virus still exists, and stressing the urgency of ensuring safety for vaccination teams.