Demand for Overhaul Amid Economic Concerns in Pakistan

Pakistan's business leaders are calling for comprehensive reforms to address economic challenges, arguing that minor adjustments are insufficient. Concerns include bureaucratic hurdles, poor export performance, and low female labor participation. Experts stress the need for consistent policies and a gradual transition to a documented economy.

In Pakistan, growing anxiety over the economy's weak expansion, declining investments, and eroding competitiveness has ignited calls from business leaders for drastic reforms. These leaders argue that piecemeal adjustments are no longer viable solutions for achieving economic stability.

According to recent consultations within trade and industry circles, as reported by The Express Tribune, there is mounting frustration despite episodes of temporary stabilization. Discussions reveal that the fundamental business environment remains uncertain, plagued by complex procedures, frequent policy reversals, and a persistently narrow tax base, all of which continue to erode confidence.

Muddasir Masood Chaudhry, a former official of the Lahore Chamber of Commerce and Industry, asserts that the current structure needs a comprehensive redesign. He highlights that bureaucratic obstacles disproportionately affect small and medium enterprises, preventing them from scaling. Meanwhile, the magnitude of undocumented economic activity remains a significant concern, keeping the tax-to-GDP ratio below that of similar economies.

Despite improved export performance, Pakistan lags behind regional competitors due to inconsistent industrial priorities. Experts urge policymakers to maintain steady support for selected sectors instead of frequently shifting directions. Additionally, low female labor participation is seen as a missed opportunity that could be corrected with targeted training, safer workplaces, and flexible arrangements.

(With inputs from agencies.)