The government has set a target of $38 billion for exports of goods and services for the ongoing fiscal year, said Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood on Wednesday, expressing optimism that the number would register a nearly 40% year-on-year growth.

While addressing the first pharmaceutical export summit in Islamabad, Dawood said that the target was set after consultations with the prime minister and relevant ministries including finance, energy, industries, and others.

The advisor said that despite the stated target, the government would try to exceed it and reach $40 billion for FY22, expressing confidence that the industries and farmers will play their role in helping the government achieve it.

Talking about the tariff structure, he said that he has conveyed to the prime minister that setting tariffs for Pakistan's industries should not be the prerogative of the Federal Board of Revenue (FBR) and be shifted to the Ministry of Commerce.

“Tariff rationalisation is part of our 'Make in Pakistan' strategy,” he said. "Further tariff rationalisation will be done in the next budget in order to facilitate different industries including the farmers."

Dawood optimistic about $50bn export target prospects

Last month, Dawood expressed hope that by the last fiscal year of the current government's tenure, ie, 2023, the country's exports would reach $50 billion by following the policy of trade diversification in potential trade sectors and markets.

Export diversification, focus on non-traditional sectors, and increasing exports to new markets, including Africa, would not only enhance the volume of the country's exports but would also help to achieve the export targets, the adviser said.

"Geographical trade diversification and search for new markets will further increase our exports," he said.

Pakistan recorded exports of nearly $27 billion in FY21, higher than the previous year. However, many believe there is room for growth, especially as the rupee has depreciated to an all-time low against the US dollar, making the exports cheaper.