Ayesha Saba

The regulatory modernization drive of the Board of Investment (BOI) marks a promising shift in the state's approach to economic facilitation. Experts agree that its success hinges on a strong political will, inter-institutional collaboration, and capacity-building. If effectively executed, these reforms can significantly improve Pakistan’s investment climate, optimize business environment, and unlock the potential of the private sector growth, reports WealthPK.

Ms Ambreen Iftikhar, Additional Secretary BOI, reaffirmed the government’s dedication to simplifying regulatory procedures, reducing compliance costs, and improving Pakistan’s ease of doing business rankings. She said reform has been prioritized as a key driver of economic growth and private sector development. The government is committed to creating an enabling environment where businesses can thrive without unnecessary bureaucratic hurdles, she emphasized.

The Board of Investment (BOI) and other key institutions have emphasized the need to reduce red tape, digitize processes, and create a more investor-friendly ecosystem. A recent example of this commitment was seen at the recent Regulatory Reforms Workshop held in Lahore, where the BOI brought together stakeholders to strengthen coordination and build institutional capacity for effective reform implementation.

Taking with WealthPK, eminent macroeconomist and Deputy Executive Director at Sustainable Development Policy Institute (SDPI) Sajid Amin Javed said Pakistan’s regulatory framework remains outdated, discouraging both local entrepreneurs and foreign investors. “Excessive paperwork, lengthy approval processes, and inconsistent enforcement of laws create unnecessary hurdles for businesses,” he explained.

"For instance, starting a business in Pakistan takes significantly longer than in regional competitors like India or Bangladesh." He suggested that the government should prioritize automation and single-window systems to cut processing times. He highlighted that industries such as manufacturing, IT, and export-oriented sectors face disproportionate regulatory burdens.

"Many regulations were designed decades ago and fail to reflect the realities of digital transformation or today’s global supply chain demands," he said. "In order to attract foreign direct investment (FDI) and encourage local startups, Pakistan must adopt flexible, modern policies that align with international best practices."

He points to success stories like Saudi Arabia’s Vision 2030 reforms, where regulatory simplification has played a key role in diversifying the economy. He also stressed the importance of stakeholder consultations, arguing that policymakers must engage with businesses to understand ground realities before drafting new laws. However, challenges remain.

Even well-designed policies often fail due to weak enforcement and lack of accountability, he said. "For regulatory modernization to work, Pakistan needs strong oversight mechanisms, such as independent regulatory bodies and transparent grievance redressal systems," he added.

Credit: INP-WealthPk