Full Breakdown
Pakistan's Task Force Calls for Reforms to Boost Exports and Avoid IMF Reliance
1/12/2026, 11:18:36 AM
Urgent Reforms Proposed to Enhance Export Competitiveness
A task force appointed by Prime Minister Shehbaz Sharif, led by Minister for Planning Ahsan Iqbal, has recommended significant reforms aimed at improving the ease of doing business in Pakistan. The committee's objective is to restructure tariffs and adjust energy prices to more than double the country's exports from the current $30-35 billion to over $60 billion within three years. This initiative comes in light of the need to avoid future reliance on the International Monetary Fund (IMF) as the current $8.4 billion arrangement is set to expire at the end of 2027.
The task force's findings, based on consultations with public and private sector stakeholders from January 5 to 9, 2026, highlighted persistent barriers affecting 20 priority export products, including textiles, agricultural goods, and IT services. The committee noted that high and volatile energy costs, which exceed regional benchmarks, significantly undermine export competitiveness.
Identified Barriers to Growth
The report identified several structural issues contributing to the high cost of doing business in Pakistan. These include fragmented taxation systems, inverted tariffs, delayed sales tax refunds, and working capital lockups, which disproportionately affect small and medium enterprises (SMEs). The task force emphasized that policy unpredictability, characterized by frequent changes in tax rates and export incentives, has weakened investor confidence and hindered long-term planning.
Additionally, logistical challenges such as high inland freight costs, port congestion, and inadequate cold-chain infrastructure were cited as critical barriers to scaling up exports. The lack of dedicated export terminals at Port Qasim and inefficient customs clearance processes further exacerbate these issues.
Financial Constraints and Infrastructure Gaps
The committee also pointed out the limited access to affordable finance for SMEs, noting that underdeveloped export credit facilities and high-interest rates restrict investment in technology and compliance. The report called for a more robust system to facilitate raw material sourcing and input acquisition to reduce operational delays.
Minister Iqbal stated, “The only way to break free from foreign crutches and avoid the next IMF programme is to rapidly increase our exports and build strong foreign exchange reserves.” He underscored that Pakistan's economic future hinges on transitioning to an export-led growth model.
Next Steps and Implementation
The Planning Commission is currently refining its proposals through a private-sector survey to develop a detailed roadmap for export expansion. The recommendations will be consolidated into a comprehensive strategy for submission to the Prime Minister, with the understanding that these reforms must align with the IMF's conditions for continued fiscal support.
The task force's findings reflect a critical juncture for Pakistan's economy, emphasizing the urgent need for structural reforms to enhance export competitiveness and ensure sustainable economic growth.
