Reforms for competitive markets in Pakistan

While Pakistan has taken several steps to promote competition in its markets, further reforms are required in improving domestic commerce, agricultural markets and industries. With increasing risks and cost of doing business due to deteriorating law and order situation as well as massive energy shortages, Pakistan needs to compensate its entrepreneurs and investors by enhancing its investment and business climate. By adopting certain administrative and legal reforms, Pakistan can considerably lessen the burden on its businessmen and help lower the costs of exogenous factors. The main reforms needed to promote competitive and vibrant markets need to be initiated at the domestic commerce level. For promoting domestic commerce, city zoning laws and building regulations should be reformed to allow land to respond to market demand. The legal framework must also be strengthened to support the complex needs of diverse markets. Moreover, there is a need to push for openness and competition to bring international quality goods to the market and promote innovation. For agricultural markets, the Agricultural Produce Markets Act 1939 must be reformed to introduce competition such that private sector involvement is encouraged. Government involvement in storage and transport facilities, especially for agricultural produce, needs to be reconsidered so space can open up for private sector involvement. For reforms in the industries, consistency in policy is required along with reduction in government involvement in certain areas. It is only through minimising the heavy government footprint from markets that the private sector can be allowed to function competitively and efficiently, emphasising the role of markets as a major driving force behind economic growth.