Ayesha Saba

Despite ongoing challenges, Pakistan’s economy is demonstrating resilience and steady progress, according to a recent report by the Overseas Investors Chamber of Commerce and Industry (OICCI).

The OICCI’s latest Business Confidence Index (BCI) survey, conducted in March-April 2025, shows a significant 16-point rise in business confidence, improving from -5% to +11%, following a meeting with Finance Minister Senator Muhammad Aurangzeb.

Talking to WealthPK on the condition of anonymity, an official from the Pakistan Business Council said Pakistan’s economic trajectory has long been marked by volatility, characterized by recurrent boom-and-bust cycles. These fluctuations pose significant obstacles to achieving sustained, inclusive, and long-term growth. The root causes lie in deep-seated structural weaknesses, which, if unaddressed, will continue to foster unsustainable economic patterns.

He said a key challenge is the country’s complex and inefficient regulatory framework. Despite some progress in improving the ease of doing business, bureaucratic hurdles and red tape remain prevalent. The process of securing permits, licenses, and regulatory compliance is often cumbersome and time-consuming, leading to delays and elevated operational costs.

He emphasized the need for a comprehensive economic revival strategy. This includes streamlining regulatory procedures through digitalization, enhancing transparency and accountability, and maintaining consistent efforts to improve the business environment.

He also urged the government to adopt consistent medium-term policy frameworks, rather than ad hoc measures tied to IMF review deadlines. There is also growing concern over the limited credit availability for the private sector, as government borrowing continues to crowd out investment.

Ahmed Qureshi, former advisor to the Rawalpindi Chamber of Commerce and Industry, underscored the importance of transitioning Pakistan towards an export-led growth model. He emphasized that enhancing competitiveness and productivity, supported by a dynamic private sector and improved investor confidence, is crucial to attracting both domestic and foreign investment.

Ahmed said that many Pakistani business leaders have voiced concerns over the persistent visa challenges they encounter when attempting to access major markets such as the European Union, North America, and even regional trading partners. Despite established trade relationships, the business visa application process remains complex and restrictive.

Citing examples, he noted that the United Arab Emirates (UAE) has significantly simplified its visa procedures for business travellers, leading to increased trade and investment flows. Likewise, China has adopted more flexible visa policies for entrepreneurs from key trade partners, which has played a vital role in supporting its rapid, export-led economic growth.

Credit: INP-WealthPk