Some reasons among the many First, failure of the government to provide an environment conducive to investment ranging from law and order problems to nepotism in bank lending to legal and procedural bottlenecks in establishing new factories; second, inadequate infrastructure facilities that continue to act as an impediment to private sector activity.
Shaukat Aziz added that the government will move out of productivity and focus on infrastructure development. This is a good first step and it is hoped that he can minimise state involvement, or that of any state agency including the armed forces, in the production process. And, finally, Pakistan has a parallel illegal economy that encourages capital flight.
Unless these factors are resolved it is difficult to conceive of a private sector that can even begin to hope to play its role as a catalyst in national development.
The Prime Minister claimed that the government had already turned the economy around and cited a high growth rate indicative of sustainable development as his government's main achievements. There is little doubt that the growth rate is targeted to rise this year however it is widely viewed as dependent on the present political set-up in the country.
Since the whole edifice is so personality centric it often raises the spectre of the shape of things to come after Musharraf. After all there is no dispute about the change in the attitude of the developed countries after President Musharraf's decision to support President Bush's war on terror.
While there have been obvious economic benefits associated with this decision, benefits that have upped the growth rate, yet the uncertainty about a system that revolves around a mortal with regard to the continuance of policies and functioning of the constitution in post-Musharraf scenario have begun to haunt all and sundry.
Unless these qualms are addressed, increasing the level of investment manifold would remain an elusive dream. Thus prior to putting the onus on the private sector it maybe advisable for the Prime Minister to revisit the environment that they operate in.
The Prime Minister also pointed out in his address that a bumper cotton crop this year will go a long way in improving the country's exports, as cotton is a major export item for the country, and exhorted the textile mill-owners to try to have good relations with the growers. It is unfortunate that our exports remain dependent on weather conditions and there is an urgent need to change such reliance.
However, considering that the Prime Minister was addressing Aptma such a comment has validity. Others may consider his comment on improving relations between the growers and mill-owners as rather naïve yet it is pertinent to note that there is a need for better relations between the two.
Traditionally growers and textile mill-owners have often been at odds with each other specifically about the exports that are to be allowed by the growers in any given year, as higher cotton or yarn exports translate into lower input for the textile mill-owners.
Shaukat Aziz's comment that the government would be willing to support training of skilled workers is essentially a good one, however, he has to first announce the nature and details of such support before anyone is going to take his offer seriously.