When reached by phone for comment, NPO CEO Abdul Ghaffar Khattak shared his doubts about WEF findings. In a long message, he stated: “Since Pakistan does not have a dedicated data centre for providing information to international rating agencies, the information... can be manoeuvred... the showing of others can also alter a nation’s ranking.”
He also blamed the economic slowdown and confrontational politics for the poor ranking. “The lack of a congenial environment in legislative assemblies could not yield productive economic policies.
“Similarly, the executive branch needs professional training or changes in the administrative system to accommodate professionals in decision-making. Moreover, the general attitude is to shift responsibility… the legislative and executive branches need to sit around and not across the table to improve the ranking.”
The CCP promised to send comments, but did not get back to Dawn until the filing of this report.
Zubair Tufail, former president of the Federation of Pakistan Chambers of Commerce and Industry, shared his opinion from China. In his message, he said: “The private sector is responsible, but the situation is beyond its control. The economy is slowing down owing to the Federal Board of Revenue (FBR) regulations, especially the CNIC condition for sales of more than Rs50,000, delayed refund payments, high interest rates and low investment in manufacturing.
“Several firms have not been able to sell owing to the customers’ refusal to give CNICs. The auto sector is operating at 50 per cent of its capacity. Who will invest to improve productivity in such an environment?” he asserted.
Amir Jehangir, CEO of Mishal Pakistan, which is the WEF partner in Pakistan, said that the private sector could not be absolved of its share of responsibility. “They need to anticipate the emerging challenges to guide their long-term thinking. For better outcomes, public and private sectors need to evolve a collective thinking,” he said.
“For the most part, businesses in Pakistan tend to look up to the government for leadership and inspiration, which poses limits to their imagination. The risk-averse attitude of the business leadership in Pakistan and a lack of focus on innovation limit business growth beyond a certain point,” he wrote in response to Dawn’s query.
Dr Nadeem Ul Haque, former deputy chairman of the Planning Commission, sounded bitter as he believed that the archaic mindset was too deep-rooted in society to support advancement. Talking over the phone from Lahore, he was harsh not just towards the government but also the private sector that, he said, acted more like a mafia.
He termed government officers ‘control freaks’ choking investment and named brokers and property tycoons who, he said, were playing the market. He lamented a lack of seriousness in the policymaking circles. “Wherever some semblance of market existed, the current government is bent on destroying even that,” he said, mentioning Jodia Bazaar, the oldest wholesale market of Karachi.
“When the majority is struggling for the bare sustenance, the need for a productivity-enhancing growth strategy is absolutely critical,” noted an analyst.
Published in Dawn, The Business and Finance Weekly, October 14th, 2019