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2. 2
large enterprises. Furthermore, it is hard to find new names in the list of existing exporters in
the country.
It is heartening to note that a structured series of public-
private dialogues has recently taken place on the
aforementioned issues. But to create an urgency for reform
in Pakistan, think tanks, business and consumer
associations, an independent media will need to work as a
coalition to engage Parliament, the judiciary and the civil
service for the removal of constraints to inclusive growth.
Dr. Vaqar Ahmed
All provinces should urgently conduct a regulatory impact assessment so provincial
governments can have a clear idea of the cost of the regulatory burden faced by businesses.
Based on this assessment, the provinces need to streamline what to regulate and how so
businesses are not overly burdened with municipal, labor, trade and environmental permits.
Second, the public sector needs to help SMEs financially and technically to achieve necessary
product compliance and standards certification. Pakistani enterprises are not optimally
benefiting from an advantageous entry of goods in the European Union region as products by
small manufacturers do not comply with the bloc’s minimum quality standards.
Third, tariff rates on imported industrial inputs, and the cost of electricity and gas faced by
SMEs, should be locked for the next five years. This will bring certainty in industrial and
trade policies, and give the Commerce Ministry some independence to manage export
promotion initiatives.
Finally, while CPEC provides a new narrative for Pakistan’s economy, there are certain pre-
requisites before it can become a game-changer. The special economic zones (SEZs) will
need to be integrated with value chains in China and other neighboring countries.
Furthermore, for Pakistan’s exports to increase, trade-facilitation measures (including
improvements in export and import processes, particularly customs) are required. As a
footnote, Pakistani SMEs can only benefit from free-trade agreements if the credit regime for
SME exporters is simplified, and a culture of startups and innovation is nurtured via public
policy.
It is heartening to note that a structured series of public-private dialogues has recently taken
place on the aforementioned issues. But to create an urgency for reform in Pakistan, think
tanks, business and consumer associations, an independent media will need to work as a
coalition to engage Parliament, the judiciary and the civil service for the removal of
constraints to inclusive growth.
• Dr. Vaqar Ahmed is associated with the Sustainable Development Policy Institute
(SDPI). Twitter: @vaqarahmed
http://www.arabnews.com/node/1252131