PRIME Minister Imran Khan on Wednesday gave directions to ensure partnership of private sector in development projects, adding that existing laws should be reviewed to provide maximum facilitation besides removal of bottlenecks to guarantee overwhelming participation of the private sector. Presiding over a high-level meeting in Islamabad, he said the development process can be accelerated by facilitation of the private sector and utilizing least resources in various fields like energy, infrastructure, tourism and communication as projects worth billions of rupees can be initiated in this way.
There is no denying the fact that the private sector is the real engine of growth and development as it helps create jobs, increase trade, provide goods and services to the poor and generate tax revenue to fund basic public services such as health and education. Free-market approach favours giving a larger role to private sector enterprises with liberalization of markets, structural economic reforms to boost incentives for people and businesses and increased transparency and accountability for government. The Prime Minister has a point when he says projects worth billions of rupees can be initiated with the collaboration of private sector and this is already evident from impressive contribution that the private sector is making in advancing the cause of education and health. Private sector has invested billions of rupees in these two areas besides services sector including hoteling and telecommunication. However, increased participation of the private sector in nation building and development cannot be expected in a void as the Government will have to provide maximum incentives for the purpose which are not visible at the moment. The issues of ease of doing business and the rising input cost are major hurdles and despite repeated assurances there has been no worthwhile progress to realize the objective of genuine facilitation to businesses. It is also to be pointed out that there is growing recognition the world over that in pursuing a pro-poor agenda for private sector development what matters is the degree to which economic growth provides opportunities for the poor, and the extent to which poor men and women can take advantage of those opportunities. Instead of merely supporting the enterprises considered important for the poor, a more holistic approach should be adopted as individuals and households, from rich to poor, also operate as private economic actors when they consume goods and services, sell their labour, farm or produce goods and services.
