We feel that the directions issued by the PM for the ease of doing business were timely and almost indispensable. It is of course very sad that so many road blocks are erected for doing business and making investment in a country where investment, both from domestic and foreign sources, was badly needed to spur growth, create employment and reduce poverty. Even an ordinary shopkeeper could enumerate a lot of difficulties created by various agencies and departments to run his business. Such a situation damages the will to initiate a business and is also frustrating for the consumers who have to pay for such obstacles, corruption, etc, in the form of higher prices. This is also why Pakistan ranks as low as 144th in 190 countries in the World Bank's ease of doing business index. This could also be one reason why the level of foreign investment in the country is so low. Foreign investors would certainly like to invest in countries where it is easier to get the necessary permissions and undertake business without much hassle and interference from the government departments and other related organisations. Domestic investors would also avoid their own country and try to invest somewhere else, if possible. They may also like to speculate and invest in shares or properties rather than build and operate enterprises which could increase the productive capacity of the country. If the present environment of doing business was not improved, the present dismal investment rate is not likely to improve and this will have serious repercussions for the development of the country. However, while the PM's instructions would appear to be laudable in promoting a business-friendly sentiment in the country, we are not so sure about the extent of their implementation and their net impact. Our bureaucracy is notorious in preserving its turf and privileges and would not easily bend to the wishes of the PM. They could give all sorts of excuses for prescribing various types of conditions on fresh investment and try to defy the spirit of PM's directions. In our view, a better alternative would have been to ask the ministries and organisations to offer justifications for obtaining permissions, sanctions and licences from them to set up a new business and then retain only those conditions which were absolutely necessary for conducting businesses and undertaking investment. Since both the Finance Minister and the Prime Minister are fully aware about the subject, they are in very good position to do the needful.
We feel that the directions issued by the PM for the ease of doing business were timely and almost indispensable. It is of course very sad that so many road blocks are erected for doing business and making investment in a country where investment, both from domestic and foreign sources, was badly needed to spur growth, create employment and reduce poverty. Even an ordinary shopkeeper could enumerate a lot of difficulties created by various agencies and departments to run his business. Such a situation damages the will to initiate a business and is also frustrating for the consumers who have to pay for such obstacles, corruption, etc, in the form of higher prices. This is also why Pakistan ranks as low as 144th in 190 countries in the World Bank's ease of doing business index. This could also be one reason why the level of foreign investment in the country is so low. Foreign investors would certainly like to invest in countries where it is easier to get the necessary permissions and undertake business without much hassle and interference from the government departments and other related organisations. Domestic investors would also avoid their own country and try to invest somewhere else, if possible. They may also like to speculate and invest in shares or properties rather than build and operate enterprises which could increase the productive capacity of the country. If the present environment of doing business was not improved, the present dismal investment rate is not likely to improve and this will have serious repercussions for the development of the country. However, while the PM's instructions would appear to be laudable in promoting a business-friendly sentiment in the country, we are not so sure about the extent of their implementation and their net impact. Our bureaucracy is notorious in preserving its turf and privileges and would not easily bend to the wishes of the PM. They could give all sorts of excuses for prescribing various types of conditions on fresh investment and try to defy the spirit of PM's directions. In our view, a better alternative would have been to ask the ministries and organisations to offer justifications for obtaining permissions, sanctions and licences from them to set up a new business and then retain only those conditions which were absolutely necessary for conducting businesses and undertaking investment. Since both the Finance Minister and the Prime Minister are fully aware about the subject, they are in very good position to do the needful.