NO matter how much power is arrayed behind the state’s efforts to bring more investment into the country, the fact remains that till businesses and talent do not feel comfortable in Pakistan, no new money can be expected to pour in. In fact, the prevailing fear now seems to be that Pakistan may see an exodus of local investors to more welcoming countries and markets that enable businesses to grow and prosper by facilitating their integration with the global economy. According to recent data put out by the Dubai Chamber of Commerce, there has been a 17pc year-over-year increase over the months of January to June in the number of Pakistani companies registering in the emirate. With Pakistan grappling with surging unemployment amid sluggish economic growth, as well as stagnating wages amid runaway inflation, it seems that neither businesses nor their employees want to continue living in the country if they have the option to leave. The recent surge in emigration of skilled labour was already worrying, but to note that entire businesses may be considering the same is a deeply alarming sign and a damning indictment of the current regime’s poor policies.

The Pakistan Business Council recently raised the prospect of ‘idle capacity’ in the country’s budding software sector due to foreign clients turning away from local businesses due to the opacity around the recently rolled-out internet firewall. “Trials could have saved the livelihoods of thousands of freelance software developers and avoided damage to Pakistan’s credibility as a reliable supplier of IT/IT-enabled services,” it pointed out in response to the crippling of internet connectivity services in the country over the past week while the firewall in question was being implemented. But this is just one example of how badly local businesses can be hurt by tunnel-visioned policymaking. Likewise, the prevailing environment of fear and general lawlessness will also have consequences for the economy that may be less obvious immediately but could prove equally devastating in the long run. No enterprise can flourish in a market where rules and laws are bent or broken by the authorities on a whim. Such destructive tendencies invariably trickle down to the lowest rungs of the state, making it impossible for businesses to survive while keeping within lawful limits. If Pakistan is to prosper, the attitude of those in power must change.

Published in Dawn, August 19th, 2024