IMPROVING governance has emerged as a key national issue because of the multiple crises facing the economy and the country.

While most countries cite market failure as the reason behind inefficiencies, government failure in Pakistan seems to be a bigger problem.

Through corruption and complicated procedures, the government has hurt more than helped the markets. An average of 10 procedures is required just to set up a business spanning an average of 21 days, whereas in Singapore three procedures are required spanning three days.

Given such time and monetary costs of starting a business, a large number of businesses operate informally (i.e. most of the time illegally) which results in lower tax collections, requiring drastic measures such as the RGST that create public uproar.

With its new growth strategy, the Planning Commission (PC) is trying to reinforce the policy to minimise government involvement in the functioning of the market and allow it to function on its own.

The experiment with privatisation and deregulation has been quite successful, notwithstanding some notable failures. PTCL's privatisation has helped reduce costs by almost 65 per cent on facilitation of communication, trade and contract enforcements. How about trying the same for other important business-related industries and transportation agents, such as PIA and Pakistan Railways? Not only are these the hubs of overstaffing, and underperforming, they are monopolies in their sectors and aggregating losses of Rs76.6 billion and Rs86.7 billion, respectively.

The private sector is capable of handling things on its own. Sialkot is an example of a city that has shown that it don't need a lot of government intervention by showing initiative and taking over the projects that are traditionally government-owned and operated.

Sialkot entrepreneurs made their mark not only in the country but in the region by constructing the first-ever private-sector dry port in Asia in 1984 followed by the first private-sector airport (Sialkot International Airport) in South Asia in 2003.

Sialkot also boasts of a private sector export processing zone and the Sialkot businessmen under the Sialkot Chamber of Commerce are also collaborating with the federal and provincial governments in improving the roads by providing half the needed funds.

These entrepreneurs realised that they are the main beneficiaries of such projects and decided to take matters into their own hands rather than wait for government to help them. Why can't entrepreneurs in other cities follow the example and collaborate with their chambers of commerce to minimise government intervention and carry out projects on their own?

The regulations have failed to give the needed development and growth. The government- run companies are seen as the most corrupt and the public sector has made a reputation for itself in being slow and inefficient.

It is time to further develop the emerging market and let it function on its own. The businesses also need to show some drive and try to take initiative themselves rather than waiting for government assistance as demonstrated by their enlightened peers in the case of Sialkot.

Given the current environment, the new development approach of the Planning Commission is seeking to build a synergy between better markets and better governance to deliver productivity, growth and better public service to the people. The approach is meant to help cities, markets and communities to acquire efficiency and increase productivity. —The writer is an economic consultant in the Planning Commission.