Page 44 - CMA Journal (Sep-Oct 2025)

Focus Section

The government has been conducting reforms for almost Civil Service Reforms
every institution—be it FBR, which has remained under
constant reformation for the last over 20 years, or the Civil servants are the main regulators of business affairs
police department, yet efficiency and elimination of and are apparently the main bottlenecks in the
corruption remain a big challenge, as no noticeable development of industry. Many reforms have been
improvement is perceived in the most important key introduced time and again, but mostly these dealt with
indicators, viz. total debt, corruption, and governance. service matters, not providing support to industry or
Nonetheless, some procedural improvements are visible trade. There are mainly two important issues: one,
in view of new technology adoption. Generally, reforms manipulation and interpretation of regulations, and two,
are recommended by committees or consultants who delay in decision making. Therefore, it is necessary that
prepare voluminous reports. Just a few officials read these regulations be simplified and the decision-making
reports, which tell what to do but hardly how to do it. process be linked with a time frame, remember time is
money. Delayed decisions not only breed corruption but
Ease of Doing Business also add to cost. Almost every project in the public sector
has suffered inordinate delays with colossal cost overruns.
Any potential investor, local or foreign, is interested in
investment safety, official formalities, decision-making Governance and Anti-Corruption Reforms
processes, input costs, corruption levels, and tariff
policies, etc. The list is not complete, but these are a few Good governance is a matter of leadership involving
important questions one would like to know before honor and efficiency. Honor inculcates commitment,
making an investment. Unfortunately, answers to most of putting public interests before personal longings, and
these queries may not be encouraging, as even the efficiency is brought by the writ of law. Anti-corruption is
existing business community is mostly not comfortable. a byproduct of good governance. Under the present
Many international companies are closing down or precarious financial situation, some immediate measures
selling major shares and leaving Pakistan. Obviously, are unavoidable, like only regular appointments through
there cannot be a complete laissez-faire system, but due selection processes, no contract appointments after
government interference should be kept to a minimum the age of 60 years, and timely decision-making. There is
and, above all, be business-friendly. no good governance without good people. This may
sound harsh, but such special actions are necessary
The most developed countries like Singapore, under the prevailing special circumstances where every
Switzerland, Norway, Denmark, and New Zealand face citizen is indebted by Rs. 350,000 for no fault of his.
minimal government interference. Arguments for
government interference are to safeguard consumers, Promoting Local Production to
promote social welfare, encourage competition, and Replace Imports
ensure security. On the other hand, arguments against
government interference are that it discourages research The customer is king. He goes by the product, not the
and development, causes inefficiency, obstructs producer. He goes for quality vis-à-vis the price tag. Just
competition, discourages investment, and promotes go around the local market; one is shocked to see the
corruption. Many reforms have been introduced in market overloaded with “Made in China”—be it a car or a
Pakistan for ease of doing business, including online bathroom bucket. During FY 2025, Pakistan imported
registration systems, speeding up construction permits, goods worth USD 20.2 billion and exported merely USD
property registration, digitalization of regulatory 2.5 billion to China. To combat the trade deficit, Pakistan
processes, simplification of procedures, one-window created 20 new trade posts in China during November
facilitation, tax reforms, and specialized courts. 2024 to boost exports to and investments from China.
Countries adopt different industrial and trade policies
with different approaches. For example, China is
generally price-conscious, keeping prices low, whereas
Germany prefers quality irrespective of price. Both are
doing very well, as the world has buyers of both low and
high-priced products. The industry in Pakistan is not in a
position at present to provide sufficient import
substitution due to high production costs and
inefficiencies, shortage and costly energy, lack of
research work, labor issues, inconsistent policies, poor
infrastructure, and corruption.

42 ICMA’s Chartered Management Accountant, Sep-Oct 2025