There is nothing new in what the economists and businesspersons say about the country’s economy and business at large. They only remind the government policymakers of problems persisting for long.
Experts appeal to the government to reduce the costs of doing business instead of providing cash assistance or subsidies. This deserves serious consideration.
On the challenges of diversification and structural transformation in the export sector, they say recently, the cost of various services, including gas and electricity, has increased by a large percentage and the interest rate of bank loans has increased.
The cost of goods transported per kilometer has reached almost the highest level. Without a reduction in the costs of doing business, we will not be able to stay competitive in the coming days. That is why we do not need any incentives or subsidies; please reduce the costs of doing business.
The government provides some incentives to traders against export-oriented products, which has recently decreased. However, if the cost of doing business is more than the amount of incentives, the businesspersons will not benefit at all.
We have seen in the past that some circles made a profit by selling fuel at a higher price in the domestic market even when the price had fallen in the global market.
This is both irrational and contrary to the claim of the government to be business-friendly. An increase in fuel prices increases the costs of production and transportation. Ultimately, the consumers bear everything.
Despite this progress, we are lagging far behind the competing countries lying in our region. Though the government has established many economic zones to attract local and foreign investment, the infrastructural and other service facilities are insufficient there.
We must remember that the international market has become fiercely competitive. We must increase our capacity in business to survive in this situation. The government must reduce bureaucratic complexities and red tape.
Businesspersons express concerns over the high interest rate of bank loans; however, the interest rate could be reduced only when the amount of defaulted loans comes down. It does not seem the government kept its eyes open when a section of businesspersons was embezzling billions of rupees taking loans from the banks using their political connections.
The cost of doing business will be reduced if the implementation of the government’s policy-support strategies takes place. In that case, the government will not have to provide any additional incentives to the businesses. However, bringing back good governance and order in the financial sector is among the priorities.
On March 25, 1948, Quaid-i-Azam set the tone for public servants, and in a single breath raised the bar for the quality of public service and public sector governance in Pakistan.
The young republic had barely become independent yet, in Quaid’s mind, the spirit of the moment called for a new purpose: “Maintain highest standards of honor, integrity, justice, and fair play,” he advised public officials.
As a citizen of Pakistan, you have a stake in the public funds’ management and spending. Good governance depends on effective and transparent public financial management to ensure the allocation and utilization of resources properly.
By strengthening key pillars like budget formulation, revenue collection, expenditure management, accounting, and auditing, Pakistan can work to eliminate waste and corruption.
With the increased availability of data and digital tools, citizens now have more opportunities to provide input and oversight into the spending of tax money.
By advocating for continued progress in public financial management reform and participating actively in the process, you can help achieve the goal of a prosperous Pakistan with a vibrant economy and high standards of living for all. Collective action can drive change.
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