AS the election season approaches its climax, anticipation grows for the creation of a new government. Even before the new government is formed, there arises a need from all political parties to forge a cooperative arrangement to tackle the nation’s economic challenges within the confines of our resources. However, the path to achieving this unity poses a formidable question that demands careful consideration, pragmatic planning and navigating the complexities of governance and economic management. Once the new government takes office, it must prioritize building consensus and finding common ground among diverse stakeholders to address the pressing economic issues facing the nation. Only through concerted efforts and inclusive decision-making can Pakistan overcome its challenges and chart a path towards sustainable economic development.
In a scenario where stakeholders hold firmly to entrenched biases, it becomes imperative for them to shed outdated stereotypes and prejudices. In doing so, leaders must cultivate an environment of inclusivity, tolerance and mutual respect to address the headwinds. The presence of political instability further exacerbates the issue, leading to inconsistency in policies and hindering long-term development planning and investment. Overcoming political instability necessitates initiatives aimed at fostering political inclusivity, strengthening democratic institutions and nurturing a culture of dialogue and compromise among political actors. Given that instability undermines both investor confidence and economic growth, it becomes imperative to adopt a comprehensive approach that integrates security measures with efforts to address underlying socio-economic grievances and promote harmony. Even today, access to quality services remains limited, particularly in rural and underserved areas. Improving social service delivery requires investment in infrastructure, human resources and governance systems, as well as measures to enhance equity and access.
Pakistan currently faces infrastructure deficits which encompass inadequate transportation networks, energy shortages and limited access to basic utilities, all of which impede economic productivity and citizens’ quality of life. Resolving these infrastructure challenges demands substantial investment in capacity building and reforms aimed at enhancing infrastructure planning and public spending management. Facilitating an enabling environment for private sector enterprises, both domestic and foreign, is crucial for instilling confidence in their ability to flourish and generate profits. The new government’s top priority should be ensuring good governance, with a particular focus on development governance, while also exploring opportunities for national, regional and global connectivity and market access.
Furthermore, the task of addressing security challenges, which encompass terrorism and internal political conflicts, poses significant barriers to attracting investment. The perceived risk associated with these issues has the potential to dissuade investors, regardless of the actual occurrence of incidents. Overcoming this perception of risk necessitates sustained efforts aimed at mitigating security threats and instilling confidence among investors. SIFC and the Board of Investment are crucial in crafting a comprehensive strategy to attract foreign investment. Essential measures include streamlining bureaucratic procedures, establishing transparent legal frameworks and prioritizing infrastructure projects such as those outlined in the China-Pakistan Economic Corridor (CPEC) Phase-II which includes Special Economic Zones (SEZs). Additionally, ongoing initiatives like the regulatory guillotine should persist, with a specific focus on facilitating investment at the provincial level. Offering targeted incentives tailored to specific industries or sectors, in alignment with strategic priorities and comparative advantages, can further enhance investment prospects. Finally, it is imperative for the incoming government to declare an “Industrial Emergency,” with a primary focus on eradicating poverty and fostering an environment conducive to innovation and economic growth.
We hope that the political leadership will utilize its creativity to address extreme poverty by fostering employment opportunities for all. Pakistan possesses competitive advantages in its skilled and hardworking human resources as well as abundant raw material, hydrocarbons and agricultural products. However, there is also a pressing need for rapid industrialization and the promotion of new industries which have the potential to create employment opportunities and drive exports. Moreover, there is an opportunity to unlock the potential of the burgeoning IT sector by addressing bottlenecks and facilitating its growth. It is imperative to draw lessons from neighbouring countries, like China and Bangladesh, and identify strategic interventions in key priority sectors that can be promoted to create greater forward and backward linkage effects.
Lastly, by shedding obsolete practices and embracing sustainable and inclusive methodologies, the new Pakistani government can harness our natural resources and comparative strengths to mitigate poverty and fortify security and resilience amidst adversities and as they chart a course forward, we hope they remain steadfast in their commitment to serving the people with humility and compassion.
—The writer is a faculty member of the Projects Management Depts at various institutes/universities and has also served as CEO KP BOIT.
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views expressed are writer’s own.
