SUMMARY of the Article “Poor Business Clime,” Dawn, August 11th, 2024
Prime Minister Shehbaz Sharif’s announcement of launching Pakistan’s first digital registry of business laws and rules is presented as the country’s largest reform initiative aimed at improving the ease of doing business and attracting investment. While this is a commendable step, the article raises concerns about how this digital registry will tangibly improve the business environment, as details about the initiative remain vague. The government appears to be seeking international funding to implement the program, which echoes similar promises made by previous administrations to create a business-friendly environment. However, the reality is that the business climate in Pakistan has deteriorated over time, with the investment-to-GDP ratio falling to a 50-year low of 13.1%. Despite the formation of the army-backed Special Investment Facilitation Council (SIFC) by the previous government to address the concerns of Gulf investors, the situation has not improved, and even powerful multinational companies are either leaving Pakistan or reducing their operations. The article argues that merely digitizing business laws is insufficient to enhance the business environment. It emphasizes the need for comprehensive reforms across economic, financial, judicial, policy, and civil service sectors. Additionally, it stresses that investors require political and economic stability, which has » Read More…