INP-WealthPk

Traders urge close liaison between entrepreneurs, govt to achieve sustainable growth

April 24, 2025

Muhammad Saleem

In a country grappling with economic instability and rising unemployment, the real enemy of progress isn’t a lack of resources—it’s red tape. The solution lies in close coordination between entrepreneurs and the government to achieve sustainable growth. Former Central Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Haji Salamat Ali, told WealthPK that the bureaucracy is turning every opportunity into an uphill battle.

He stressed that only effective coordination between the government and the private sector can pave the way for real growth and prosperity. He emphasized that even bureaucrats are well aware that mutual collaboration is the key to development and the only way to put the economy on a firm footing. However, they continue to turn a blind eye to this fact and are dragging their feet instead of playing a constructive role in strengthening coordination.

He said that a strong connection between the government and the private sector would accelerate progress and yield positive results. Unfortunately, red-tapism still plagues the entire system, primarily due to the unnecessary hurdles created by a complex bureaucratic setup. Whenever a project begins to produce results, government departments start interfering without solid justification, stalling the much-needed momentum of the projects, he claimed.

He said that government offices often toss businessmen around like a shuttlecock between departments. Instead of focusing on the project itself, investors end up wasting their energy trying to steer clear of bureaucratic obstacles, he remarked. Every departmental officer tries to assert control over private institutions—for reasons best known to them. However, this mindset slows progress and shatters investor confidence.

Haji Salamat said that if the government truly wants to grow alongside private enterprise, it must reduce bureaucratic interference and allow private players to operate freely using their own resources and expertise. This will not only improve coordination but also enhance systems, speed up project completion, and open the door to sustainable economic growth.

Citing a case of bureaucratic hurdles, he said that the recent reduction in electricity prices, announced by Prime Minister Shahbaz Sharif, is a textbook example of bureaucratic interference. He said the decision was long overdue, and every segment of society had been requesting the government to slash prices to avoid financial losses and rescue the fragile economy. However, he claimed that the much-needed relief was delayed owing to bureaucratic red tape.

It was imperative for the government to cut electricity prices in response to unbridled inflation, but those at the helm chose to do otherwise, he added. “In my opinion, the revised electricity rates will not move the needle in boosting the economy or curbing unemployment," he said. Muhammad Ahmed, a knitwear exporter, told WealthPK that despite the knitwear industry bringing in billions of dollars in foreign exchange, the bureaucracy allegedly did not give it representation on the newly formed committee reviewing the Export Facilitation Scheme (EFS).

He said that PMHA Senior Vice Chairman Hazar Khan raised concerns in an official letter about the composition of the EFS Review Committee, pointing out that the association, as the leading trade organization representing the hosiery and knitwear industry, was not included. The record clearly shows that this association has played a vital role in generating employment, driving economic growth, and supporting national self-reliance.

However, it’s ironic that instead of acknowledging these contributions, the bureaucracy appears to be siding with a powerful lobby—allegedly to serve personal interests. He emphasized that the knitwear sector currently employs thousands of people, and with proper government support, it could significantly boost export volume and create widespread employment opportunities.

Credit: INP-WealthPk