Federal Minister for Planning and Development Ahsan Iqbal has said Pakistan is being affected by changes in the global economic environment, particularly fluctuations in international petroleum prices, while reporting changes in IT exports, remittances and Federal Board of Revenue (FBR) collections.

Speaking to the media in Islamabad during the release of the monthly development report, Iqbal said global developments had contributed to renewed inflationary pressure in Pakistan over the past six months. He noted that changes in international energy prices continue to create economic challenges and said Pakistan needs to increase domestic production and exports.

US$ 100 billion export target

Iqbal said Pakistan needs to expand its exports and outlined a long-term target of US$ 100 billion. He said domestic economic activity should be connected with international markets. According to Iqbal, higher exports can help Pakistan generate foreign exchange and reduce dependence on external financing. He also emphasised improving domestic production so locally manufactured goods can compete in international markets.

The minister said Pakistan must continue developing productive capacity and connecting local industries with international markets through an export-oriented economic strategy.

New auto policy expected

Iqbal said the government is preparing to announce a new auto policy soon, which is expected to set out the future direction of Pakistan's automotive sector and address industrial development.

The automotive industry forms part of Pakistan's manufacturing base, with localisation and export potential among the areas being considered. The government's priorities for the sector were outlined by Coordinator to the Prime Minister for Commerce and Industries Rana Ihsan Afzal Khan during the PAAPAM Symposium on the second day of the Pakistan International Auto Show 2026 at the Lahore International Expo Centre.

Organised by the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), the symposium was held under the theme "Competitiveness-Localisation and Electric Mobility".

Before addressing the event, Rana Ihsan Afzal Khan visited exhibition stalls featuring local and international automotive companies, met industry representatives and reviewed displays from automotive parts manufacturers and emerging electric vehicle companies. He discussed the industry's contribution to manufacturing, innovation and economic activity in Pakistan.

Localisation and global standards

Rana Ihsan Afzal Khan said localisation should not be limited to increasing domestic component production and that local manufacturing must meet international standards for quality, affordability, reliability and competitiveness.

He said a domestic supply chain could provide consumers with more vehicle choices while allowing manufacturers to improve efficiency and technological capabilities. He also noted that each locally produced vehicle involves manufacturers, vendors, engineers, technicians and other workers across the supply chain. The automotive industry contributes nearly four per cent to Pakistan's GDP and supports employment for millions of people across its associated value chain.

Electric mobility and technology adoption

The government is seeking to increase electric vehicle adoption as part of changes to Pakistan's automotive industry. The sector has been encouraged to increase investment in new technologies while maintaining competitiveness.

The government has stated that it intends to work with industry stakeholders on policies concerning investment and long-term industry development. The PAAPAM Symposium covered localisation, innovation and electric mobility as areas relevant to the development of Pakistan's automotive industry.

IT exports and remittances rise

Iqbal said Pakistan's IT exports surpassed US$ 800 million during July and August, while remittances reached US$ 7.3 billion during the same period. FBR collections increased by 3.75%. The developments come as Pakistan continues to face external economic pressures, including fluctuations in international petroleum prices. The government is seeking to increase domestic production and exports, improve industrial competitiveness and connect local industries with international markets.