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A representational image showing Pakistani youth using laptops in an office. — AFP/File
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LAHORE: Pakistan’s corporate sector has not achieved global expansion like India due to economic policies, which has limited the development of a strong industrial base needed for global competitiveness.
An important factor in India’s success has been its dosage, which has played a significant role in economic growth through direct foreign investment, transfer of technology and access to international markets. Although Pakistan is influential, it has not participated in the corporate global expansion on the same scale.
The private sector of India has developed as a dynamic and competitive force, driving innovation and international integration and acquisition. On the contrary, Pakistan’s private sector has struggled to achieve similar development and global integration.
The joint business of Pakistan’s leading multinational companies is significantly lower than that of India’s corporate giants. For example, Reliance Industries, one of India’s largest parties, reported revenue of about $ 110.86 billion.
In comparison, Pakistan’s largest companies generate relatively modest income. Even when jointly, the total income of Pakistan’s top 10 multinationals is much lower than a single leading Indian corporation such as Reliance Industries, which has highlighted widespread discrepancy in the corporate scale.
To compete globally, Pakistani companies need better access to the capital, increase innovation, improve governance and improve infrastructure. Strategic investment in diversity in technology, branding and exports can help them expand them internationally.
Many challenges are a hindrance to the growth of Pakistani corporations. High Rate interest – significantly higher than India – business extension is expensive. Unlike India’s deep and liquid equity markets, Pakistani firms are struggling to raise large funds through stock offerings. Startup and SME environmental systems also lack the sources of financing for innovation and growth.
To solve these issues, Pakistan will have to prepare strong financial markets, direct foreign investment (FDI), and businesses have to improve banking sector loans. The low average income in Pakistan weakens domestic demand for high -cost products in Pakistan compared to the increasingly expanding consumer base of India.
Diversity and investment in export technologies that enhancing productivity are very important to reduce costs and improve global competitiveness. Pakistani companies allocate minimal funds for R&D, while Indian firms invest in technology, automation and development of products. Although industries like textile, cement, and banking are dominated in Pakistan, there is little diversity in high -value sectors, pharmaceuticals and electronics. R&D tax can help run private sector innovation, such as tax credit and university industry contributions.
Many major Pakistani firms are under family control, limiting professional management and effective decision -making. Poor corporate governance discourages investors’ confidence and bans access to international markets. To improve transparency and attract foreign investment, the government will have to promote corporate reorganization and independent board surveillance.
Political instability and contradictory policies also prevent long -term investment. Incredible electricity, high supply costs, and weak infrastructure increase production costs, while the burden regulatory framework discourage the business of formal and growth. These problems should be resolved immediately.
India’s global recognized brands – such as Tata, Infosys and Mahindra – lack the strong international brands to compete globally in Pakistan. Pakistani companies face challenges in recognizing global sales and brands, limiting their ability to establish strong presence in international markets.
