Ayesha Saba

The Sectoral Mapping and Regulatory Transformation (SMART) Project, initiated under the Pakistan Regulatory Modernization Initiative (PRMI), represents a strategic endeavor by the Board of Investment (BOI) to advance regulatory reforms. It aims to reduce compliance burdens, improve ease of doing business, and create a more investment-friendly environment in Pakistan.

Talking to WealthPK, an official who wished to remain anonymous, noted that the BOI’s reform strategy was aligned with the global best practices that emphasize reducing bureaucratic red tape, simplifying regulations, and enhancing investor facilitation. The official emphasized that digital facilitation mechanisms were crucial for fostering investor confidence.

“When investors see transparency and efficiency in the system, they are more likely to make long-term commitments. It’s not just about incentives; it’s about creating a predictable and investor-friendly environment,” he added. The BOI is also introducing 150 reforms to attract both local and international investors, with a particular focus on China.

These reforms will be implemented in the Special Economic Zones (SEZs) following an environment-friendly model, which will be branded as the ‘Green Pakistan Investment’ initiative. He believed aligning SEZ policies with broader industrial and trade strategies was critical. “These zones need to be more than just tax havens. They should be hubs of productivity and innovation, and the current reforms seem to recognize that.”

Talking with WealthPK, Majid Shabbir, former advisor, Islamabad Chamber of Commerce and Industries, said that Pakistan’s business-friendly environment had played a pivotal role in promoting industrial growth, which positively impacted the country’s export performance. Investors consistently seek not only clear and transparent policies but also stability and consistency in the business environment.

He emphasized that the private sector served as the primary engine of economic growth. He noted that a significant number of investors had left Pakistan due to over-regulation – a challenge they did not encounter in other countries. According to him, “The role of the state is not to run businesses, but rather to create an enabling environment by offering ownership, incentives, and support to the private sector.”

He underscored the urgent need to address governance challenges, establish effective mechanisms for dispute resolution, and provide robust assurances to investors regarding the security of their investments and no unwarranted governmental interference.

Mr. Shabbir further highlighted the importance of supporting the small and medium-sized enterprises (SMEs) through tailored policy frameworks, streamlined regulatory processes, capacity-building initiatives, and enhanced market access programs. He concluded by emphasizing that local investment could not be significantly increased unless the longstanding challenges faced by industries were systematically addressed.

Credit: INP-WealthPk