Ayesha Saba

Transforming Pakistan into a competitive business hub hinges on a strong partnership between the government and the private sector. This demands political will, mutual trust, accountability, and shared responsibility. Experts warn that without such collaboration, Pakistan may forfeit crucial opportunities for growth, job creation, and economic resilience.

In a conversation with WealthPK, Dr. Sajid Amin Javed, Deputy Executive Director of the Sustainable Development Policy Institute (SDPI), emphasised the pivotal role that private sector engagement plays in enhancing economic competitiveness.

According to him, the government alone cannot drive the reforms needed to stimulate growth. Instead, it must act as a facilitator, creating an enabling environment where businesses can thrive, innovate, and expand. This involves not only streamlining regulatory procedures and reducing bureaucratic red tape but also aligning policies with industry needs.

He argued that Pakistan’s current economic model, marked by inefficiencies, limited value addition, and a narrow export base, requires a shift in strategy. This shift entails harnessing the dynamism and innovation of the private sector through targeted incentives, public investment in infrastructure, and skill development initiatives.

He noted that while Pakistan has enormous untapped potential in sectors such as IT, agriculture, and manufacturing, unlocking that potential requires the government to create platforms where private stakeholders can voice their concerns and co-design solutions.

As Pakistan faces mounting economic challenges, including fiscal constraints, low productivity, and limited export diversification, he argued that no single sector or institution can overcome these obstacles in isolation. Cross-sector collaboration, particularly one that encourages innovation and streamlines processes, is increasingly being recognised as the path forward.

Talking to WealthPK on the condition of anonymity, an official from the Pakistan Business Council said Pakistan lags behind its regional competitors in key global rankings such as the Ease of Doing Business Index and the Global Competitiveness Index.

Despite improvements in digital registration and streamlining business procedures, investors continue to face challenges, including regulatory unpredictability, inconsistent tax policies, and a lack of coordination across government departments.

According to him, these hurdles “discourage not only foreign direct investment (FDI) but also undermine domestic investor confidence.” The official stressed that the government alone cannot drive reform without meaningful engagement from industry stakeholders.

“The countries that have excelled in attracting and retaining investment — like Vietnam and Bangladesh — have done so by building strong public-private partnerships (PPPs) and institutional accountability. Pakistan needs to follow suit by institutionalising dialogue with the business community at both the federal and provincial levels.”

He added that the private business community needs representation in policymaking bodies, feedback mechanisms in implementation phases, and clear timelines for resolving bottlenecks.

Credit: INP-WealthPk