ISLAMABAD: Pakistan can ramp its exports by up to $12 billion by 2024, according to the International Trade Centre’s latest export potential assessment for Pakistan, prepared in collaboration with the World Bank.

Hit hard by the coronavirus and with about $10 billion in debt service costs in the coming financial year, Pakistan needs funds to stave off a balance of payments crisis.

In June, the World Bank projected a 0.2% economic contraction in 2020-21. The multilateral lender sees growth of -2.6% this fiscal year, ending June 30, while the government expects a 0.4% contraction.

“Better integration with the global value chain and increased exports are important for Pakistan’s economic development through job creation – especially for youth and women,” said the ITC report, entitled Pakistan: Invisible Barriers to Trade. “In fact, the country can potentially increase its exports by up to $12 billion by 2024 even taking into account disruptions caused due to COVID19.”

As much as $7 billion of Pakistan’s untapped export potential is at risk, the ITC said, due to market frictions such as lack of transparency and related non-tariff measures, especially for small businesses looking to trade more across borders. 

“Thus, identifying which non-tariff measures hinder Pakistani exports is critical for the Government to better formulate its trade policies,” the Centre recommended. “Supporting small businesses to achieve export success also requires a clear understanding of the challenges they face.”

“More than half of the exporters in Pakistan face difficulties with restrictive regulations or related trade obstacles,” the report added. “Among these are difficulties complying with technical requirements, lack of trade-related information and inadequate domestic infrastructure.”

Upgrading quality infrastructure and enforcing quality compliance are key to Pakistan’s export development, the ITC said, adding that adopting digitally oriented solutions such as an integrated trade portal is essential to give necessary guidance to exporters.