Resistance to change

#Resistance #change

Lahore: Pakistan has strong resistance to economic reforms, as many leading business groups in the country have collected their wealth during the state -controlled industrial era. During this period, there was a feature of licensing, permits, protection policies and government privileges.

Most of these businesses have long benefited from import barriers, subsidies and preferred treatment. Even today, instead of adopting an open market competition, they lobby the protection policies. Since many of these businesses run family, decision making is often conservative. The second and third generations have inherited wealth and business empires, but in many cases, their strategic methods have not been significantly changed.

The transition to more competitive and illegal than a closed economy has been slow, as these business groups resist policies that will promote competitiveness, such as tax reforms, trade liberalization and strict implementation of economic documents. In important industries like cement, sugar, automobiles and banking, they prefer to work as cartel rather than compete through business performance and innovation. This strategy ensures a high profit margin but prevents wider economic progress.

Although there are exceptions – some new business leaders are adopting modern corporate governance, global competition and innovation. It limits economic dynamics and contributes to stagnation in key fields.

This mentality is clear in the policies that the business today demands from the government. Instead of advocating for more competitive and open economy, many established business groups emphasize measures that protect their interests, often at the expense of broader economic development.

For example, businesses in industries such as automobiles, cement, sugar and textiles often lobby for non -tariff barriers to protect themselves from more imported revenue and foreign competition. For example, the auto sector has enjoyed decades of protection, but has still failed to develop a global competitive industry. Textile exporters often seek subsidies and special incentives rather than focusing on improving productivity and innovation.

Despite the major benefit of economic policies, major business groups resist efforts to increase the tax net. Many industrialists and traders oppose measures such as digital invoices, taxation and bank transaction documents, fearing that more transparency will restrict their ability to avoid taxes. The retail and wholesale sector, despite their significant growth, continue to work on a large scale outside the tax system and resist the government efforts to document their sales and profit.

Cartel -like behavior allows some industries, such as sugar, cement and flour milling, to maintain high prices without real competitive pressure. For example, the sugar industry permanently lobbying for high support prices for sugarcane, while simultaneously looking for subsidies for sugar exports. Similarly, the fertilizer industry receives official subsidy on gas for urea production but is selling at higher prices domestic.

Independent power generators (IPP) benefit from long -term contracts that guarantee return, even when high energy costs put burden on the economy. The banking sector enjoys borrowing from a risk -free government at high interest rates, which bans credit availability for private sector businesses.

The country’s elite businesses oppose the unlucky and competitive reforms, fearing the loss of their dominant position. Large business groups resist privatization efforts when they feel threatened by their monopoly benefits. In addition, many people are reluctant to accept e -commerce and digital transactions because of these concerns, which will expose more transparency.

Since profit is protected by protection rather than performance, businesses have little incentive to invest in technology, research and development, or increased skills. As a result, Pakistan’s economy relies heavily on some sectors, such as textiles, while industries need innovation and global integration – such as engineering, electronics and IT -development struggle. Large business houses also stop small businesses by controlling access to supply chains, distribution networks, and financing. Instead of promoting self -sufficiency, businesses continue to rely on public rights, bailouts and subsidies.

Although some new generation traders are trying to separate from these outdated ways, the overall business scenario is dominated by a strong conservative mentality.