- Advertisement -
LAHORE, Sep 14 (APP): Federal Tax Ombudsman (FTO) Coordinator Saif Ur Rehman has stressed that Pakistan must dismantle barriers within its economic system to unlock vast growth potential and effectively compete in the global market.
Addressing a seminar on “Unlocking Growth Potentials” here on Sunday, he said that despite holding considerable economic promise, Pakistan continues to lag behind regional peers on several socio-economic indicators. The country’s unpredictable and complex policy landscape, he noted, has weakened its competitiveness and limited investments in human capital development. “To achieve sustainable and inclusive growth, Pakistan needs to systematically remove structural barriers built into its business and economic climate,” he asserted. He underlined the need for comprehensive reforms, including right-sizing, regulatory simplification through a “guillotine” approach, transparency via digitisation, and fostering professionalism and competition.
Saif Ur Rehman emphasized that the economy must move away from dependence on subsidies, patronage, guaranteed returns, and prolonged tariff protection. He urged family businesses to adopt professional management, multinational firms to focus on exports, and all sectors to diversify products and markets.
Reflecting on Pakistan’s economic history, he said that while the country has seen periods
of progress, it has failed to sustain long-term momentum due to deep-rooted structural hurdles and high costs of doing business. Outdated colonial-era regulations, short-term planning, and heavy reliance on taxing sectors meant to drive investment, exports, and job creation, he added, continue to hinder meaningful advancement.
Citing the energy sector as an example, he noted that planning focused on increasing power generation with guaranteed returns rather than improving demand management and efficiency in transmission and distribution. He further observed that Foreign Direct Investment (FDI) in Pakistan has largely targeted fast-moving consumer goods (FMCG), which contributes little to exports while creating substantial outflows in the form of dividends and fees. Instead, he called for attracting both FDI and local investment into sectors that can boost exports, introduce new technologies, and build skills.
“Pakistan needs an industrial policy that channels investment into areas where we have a comparative advantage, leveraging our land, water, and human resources. Investors must also look beyond traditional industries,” he concluded.