No matter how much force is behind the government’s attempts to entice foreign investment, it is still unrealistic to expect fresh funding to flow into Pakistan as long as talent and companies do not feel at home there. Indeed, the general concern these days seems to be that Pakistan would witness a migration of local investors to friendlier nations and markets that facilitate companies’ growth and prosperity by enabling their connection with the global economy. The number of Pakistani companies registering in the emirate increased by 17 percent from January to June of last year, according to figures released by the Dubai Chamber of Commerce. It appears that neither firms nor their employees want to stay in Pakistan if they have the opportunity to go, as the nation struggles with skyrocketing unemployment under slow economic growth and stagnate pay amid out-of-control inflation. It was concerning enough that skilled labor was leaving the country recently, but the possibility that entire companies are thinking of doing the same is extremely concerning and a direct reflection of the bad policies of the current government.
The opacity surrounding the recently implemented internet firewall has caused foreign clients to shy away from local enterprises, raising the possibility of “idle capacity” in the developing software sector of the country, according to the Pakistan Business Council. The country’s credibility as a trustworthy provider of IT/IT-enabled services could have been preserved and thousands of freelance software developers’ livelihoods could have been spared, it stated in response to the devastating disruption of internet connectivity services in Pakistan during the previous week while the disputed firewall was being installed. However, this merely serves as one illustration of the extent to which narrowly focused regulation can harm small and local firms. Similar to this, the current climate of fear and widespread lawlessness will have long-term effects on the economy that may not be immediately apparent. That was in response to the catastrophic disruption of internet connectivity services in Pakistan during the previous week while the disputed firewall was being installed. It stated that the livelihoods of thousands of freelance software developers could have been spared and the nation’s reputation as a reliable provider of IT/IT-enabled services could have been preserved. Still, this is but one example of how local and small businesses can be negatively impacted by regulations that are too narrowly focused. Likewise, the generalized fear and lawlessness that characterize the current situation will have long-term consequences on the economy that might not be evident right away.
