Ayesha Saba
Pakistan needs immediate policy reforms to reverse the country's longstanding reliance on protectionist trade practices and shift its economic trajectory toward fostering export-led growth.
Talking to WealthPK, Malik Sohail Hussain, Chairman Coordination of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), highlighted the critical gap between Pakistan and globally competitive economies in terms of trade liberalisation and economic integration. He underscored that while other nations have actively reduced trade barriers and positioned themselves in global value chains, Pakistan has chosen a path of high tariffs and limited openness.
Hussain pointed out that Pakistan’s tariffs are at least twice the global average and three times higher than those implemented by successful East Asian economies, which have excelled in export-led development. He said that these protectionist measures had not only discouraged competitiveness but also limited the country's ability to expand its industrial base and diversify exports.
“The current approach isolates Pakistan in an increasingly interconnected global economy, where integration and trade liberalisation are driving growth for most nations,” he observed. Hussain further warned that the country’s reliance on foreign assistance to fix economic challenges is unsustainable. He said no country had achieved long-term economic stability or export-led growth without first addressing critical domestic inefficiencies and policy bottlenecks.
He stressed that Pakistan must recognise the importance of structural reforms that incentivise productivity, innovation, and investment across sectors. The FPCCI official emphasised that the hardships faced by Pakistan’s population, particularly rising inflation and stagnant incomes, demand immediate policy responses. “This is not merely about juggling with economic figures; it’s about addressing the daily struggles of millions of people.
The path to sustainable development lies in formulating investment-and-people-friendly policies that create opportunities for both businesses and citizens,” he stressed. Hussain urged the government to prioritise regulatory digitisation and operational cost reduction as part of a comprehensive strategy to improve Pakistan's business environment. “By addressing these issues, the country can unlock its economic potential, attract more investment and strengthen its competitiveness on the global stage.”
He proposed that consultations with all stakeholders, business leaders, chambers of commerce, and industry representatives are essential for crafting pragmatic solutions. He also advocated for a collaborative approach to policymaking, where the needs of the business community align with national development objectives. Such dialogue, he said, could lead to actionable policies that balance trade liberalisation with support for domestic industries.
Credit: INP-WealthPk