ISLAMABAD: The private sector is considered critical in putting a country’s economy on a sustainable growth trajectory, and Pakistan is no exception.
In this context, Pakistan desperately needs the private sector’s help to meet the Sustainable Development Goals set under the United Nations conventions, and turning around the economy.
The private sector is acknowledged as an important partner and stakeholder in economic development, providing incomes, jobs, goods and services, improving people’s lives and aiding efforts to end poverty. It also can provide the government with the fiscal room in the shape of tax revenues to meet basic infrastructure requirements and address wider development challenges.
Haroon Sharif, a former chairman Board of Investment, while talking to WealthPK underscored that Pakistan should establish a project development facility insulated from politics and the government sector and consisted of technical people, investment bankers, engineers and procurement specialists.
“Projects so developed should be given operational autonomy so that investors get encouraged to invest in Pakistan,” he said, adding that every effort should be made to bridge the trust deficit that exists between the public and private sectors. Moreover, Pakistan must also increase access to bank credit for the private sector, which he said is the least in the region.
He also underlined that Pakistan direly needs to attract investments in textiles, livestock, and information technology to increase exports for sustainable economic growth. “There is significant potential for boosting exports of textiles, livestock, and information technology products,” he said, pointing out that Pakistan has an investment opportunity of 100 billion US dollars in the three sectors.
“We need to boost trust of investors and send signals right away if we truly want to see the economy recover in dignity and create a respectable place among progressive nations. We must show that we are capable of doing something,” he stated.
According to him, the country’s persistent macroeconomic volatility has discouraged savings and investments, resulting in low aggregate investment and fluctuating output levels. “Now is the time for the country to make difficult decisions, such as restoring and sustaining macroeconomic stability, increasing tax base, and promoting investment by addressing structural and regulatory impediments.”
Ahsan Iqbal, the federal minister for planning, development and special initiatives, said that the government of Pakistan is eager to explore collaborations and find solutions with the private sector to meet the aims of the Sustainable Development Goals.
“Pakistan needs a big jump in exports to cope with economic challenges, and the business community has to play a role in this regard. The best strategy for Pakistan is to create an economic value proposition that provides incentives for financial markets and private investors to participate in sustainable development through a strategic partnership, and innovative financial instruments supported by a favourable policy framework,” the minister said.
-INP
