ISLAMABAD, May 19: The government is likely to set next year's export target at around $13.5 billion, anticipating an increase of 11.57 per cent over the target of the current fiscal year.

Well-placed sources told Dawn on Tuesday that the commerce ministry was actively working on incentives to be announced in the up-coming trade policy of 2004-05 for achieving the export target.

According to the sources, if the export target of $12.1 billion for the current year was achieved, it would be possible to enhance the projected target. The government has projected the export target on the assumption that the exchange rate will remain stable, there will be greater access to export finance, and that the domestic and external environment will not face any new challenges, the sources added.

Talking to Dawn on Tuesday, Federal Minister for Commerce, Humayun Akhtar Khan claimed that this year the export target of $12.1 billion would be surpassed.

He said that the statistics showed that the country's exports were higher by 13.1 per cent during the 10 months of the current fiscal year over the same period of last year.

Mr Khan said that in case the export target of over $2 billion set for the months of May and June was not achieved even then the annual target would be achieved easily.

"For sustaining the export growth rate, we have to work still harder, using all our resources and exploiting our full potential to avail new opportunities and meet new challenges," the minister remarked.

The minister said that in the up-coming trade policy major incentives would be announced for meeting the social compliance issues, improving quality and standards of goods to make them competitive in international market.

He said that a scheme would be announced in the trade policy to fund the private sector to install private laboratories for checking the quality and standards of goods. The minister said the other incentives would focus on diversifying the country's export base and exploring new markets for new products.