Moaaz Manzoor

Pakistan’s economic revival hinges on empowering small and medium enterprises (SMEs), maintaining fiscal discipline, and adopting coherent policies to unlock the private sector’s full potential.

Speaking with WealthPK, Dr. Sajid Amin Javed, Deputy Executive Director at the Sustainable Development Policy Institute (SDPI), highlighted the need to prioritize the sectors with immediate economic impact. “The focus should be on the manufacturing and SME sectors, which directly benefit the public,” he said. While foreign direct investment (FDI) from friendly nations is essential, he noted, it often involves delays due to lengthy feasibility studies.

“At this time, the government should focus on investments that are achievable in the short term, whether local or foreign, and channel them into productive sectors like the SME,” he suggested. Dr. Javed also highlighted the importance of aligning the government initiatives, such as Uraan Pakistan, with infrastructural and logistical realities. “If IT is a priority sector, reliable internet access and broader coverage are essential. Similarly, for SMEs to thrive, the banking sector must provide small and easy loans,” he said.

He identified 2024 as a year of stabilization, adding, “2025 must be the year of growth, driven by sustainable initiatives in SMEs, particularly those encouraging women’s participation. Such measures will create employment opportunities and attract long-term investments.” Muhammad Armughan, Senior Researcher at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), underscored the lack of policy consistency in Pakistan. “Initiatives like Uraan Pakistan often suffer from rebranding without substantive policy innovation,” he said.

Highlighting a critical flaw in the country’s approach, he explained, “Changing project names without altering implementation strategies or ensuring rigorous evaluation does little to foster economic transformation.” Armughan underscored how short-term, politically expedient projects hinder long-term progress. “Each government’s focus on quick wins wastes taxpayers’ money and undermines development. Without clear, actionable manifestos, economic policies frequently fall short,” he remarked.

He urged the government to adopt a disciplined and coherent approach to policymaking. Fiscal discipline and strategic frameworks are essential for achieving meaningful outcomes from initiatives like Uraan Pakistan, he added. Both experts agree that fostering the private sector’s growth requires bridging critical gaps in infrastructure, policy consistency, and access to financing. They emphasized that a sustainable economic growth should empower small businesses, promote inclusivity, and ensure accountability in policy execution.

Credit: INP-WealthPk