ISLAMABAD, MAR 23 /DNA/ – The Pakistan Industrial and Traders Associations Front (PIAF) Chairman Fahimur Rehman Saigol has underscored the need for enhancing institutional frameworks and improving ease of doing business, as the government must address gaps in service provision, regulatory enforcement, and financial inclusion to ensure sustainable economic growth.

In a ceremony held here today, PIAF Chairman Fahimur Rehman Saigol, Senior Vice chairman Nasrullah Mughal and Vice chairman Tahirm Manzoor Chaudhry said that the business community in Pakistan has a crucial role to play in advocating for policy consistency, transparency, and regulatory streamlining. Bold and sustained policy interventions are necessary to overcome the economic challenges Pakistan faces.

Referring to the Business Ready 2024 report of the World Bank, Faheem Saigol said that adopting best practices like leading economies could help drive economic resurgence.

The PIAF chairman said that the recently released report by the World Bank highlights Pakistan’s low global ranking in business climate, emphasizing deficiencies in regulatory framework, public services, and operational efficiency.

Without significant reforms, the country risks deepening financial vulnerabilities, increasing its debt burden, and weakening its fiscal management. This could further complicate its ongoing engagement with the International Monetary Fund, making economic stability even more difficult to achieve.

The report said that unchecked fiscal deficits will make it challenging for the government to meet debt obligations, exacerbating economic instability and increasing reliance on foreign assistance. The urgency for structural economic reforms cannot be overstated. Delayed action will only worsen financial conditions, threatening long-term economic resilience and growth prospects. Addressing these structural issues through well-implemented policies is crucial to setting Pakistan on a path toward economic stability and sustainable development.

Nasrullah Mughal and Tahir Manzoor Chaudhry said that government is facing an urgent need for economic reforms as the country grapples with persistent fiscal deficits, rising inflation, and weak institutional frameworks. The economy remains under immense pressure due to heavy reliance on internal and external debts, a depreciating rupee, and increasing import costs, all of which have led to financial instability. Structural reforms in taxation and industrial development are critical for sustainable economic growth, yet progress remains sluggish.

Despite being the world’s fifth-most populous country, Pakistan lags behind smaller economies such as Singapore, Estonia, and Georgia in global business readiness. These nations have successfully implemented policies that facilitate business growth, while Pakistan struggles with 2bureaucratic inefficiencies, high costs of doing business, and inconsistent policy measures. Governance issues, including red tape and poor policy implementation, continue to obstruct economic progress. Political instability further hampers long-term economic planning, deterring both domestic and foreign investments.

Although the law-and-order situation has improved in recent years, sporadic security threats persist, particularly in border regions. The judicial system also faces significant challenges, with an overwhelming backlog of cases delaying justice for both individuals and businesses. Pakistan’s taxation system remains another major hurdle, characterized by a narrow tax base, high tax rates, and an overreliance on indirect taxes, discouraging compliance and investment. In contrast, Estonia has successfully digitized tax collection, leading to improved revenue generation, a model that Pakistan could adopt for better financial governance.

The recently released Business Ready 2024 report by the World Bank highlights Pakistan’s low global ranking in business climate, emphasizing deficiencies in regulatory framework, public services, and operational efficiency. The country’s regulatory framework scored 59.10, indicating only moderate adherence to international business standards, while public services, including infrastructure and digital services, received a score of 44.97, reflecting significant inefficiencies. Operational efficiency fared slightly better at 65.90 but still falls short of global benchmarks.

Countries such as Portugal and New Zealand have fostered business-friendly environments through policy consistency, transparency, and efficient service delivery, setting examples for Pakistan to follow.