Why sustainable growth demands a new government-business compact

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Lahore: Permanent economic growth is not just about the number-this is about vision, confidence and long-term commitment. When governments and the private sector work primarily to achieve the short -term or narrow interests, economic change remains vague.

We need a common national purpose to advance long -term development. This one that calls for cooperation and integrated reforms. Without it, development is scattered and delicate. Economic relations between the state and the business harm investment, innovation and institutional capacity.

No country has been able to develop permanently while its institutions are weak and its stakeholders are divided. Governments that offer small interests face many disadvantages. When political is driven – as almost every government has been in Pakistan – structural reforms are delayed, such as taxes, energy pricing, privatization and legal framework. These governments prefer more public policies than economic performance, and enable corruption and elite arrest through weak implementation. Self -serving rulers fill government institutions with ineffective or politics appointments.

As a result, the standard of governance is reduced, public funds are wasted, investors’ confidence is lost, and institutionalism leads to ineffective government and poor service.

The private sector’s low -minded behavior is equally harmful. In the acquisition of short -term profits, many avoid taxes or work informally. Created to stop the cartel competition. Innovation and welfare are ignored, eventually damaging productivity. A very skilled labor force alone cannot provide performance. The welfare of the workers, safe working conditions, medical care, and subsidized food are just as important for global competition.

Instead of advancing global standards, a selfish private sector often lobbies for protectionist policies. These efforts are often able to affect government decisions in their favor, and weaken the country’s industrial base. The job standard is damaged, exports stagnation, and faces reforms such as digitalization and compliance.

This creates a vicious cycle of distrust. The government tighten control of the business, and the business, as a result, hides the government out of distrust of the government. The result is over -the -counter, harassment and non -cooperation on critical reforms. This dynamic fuel informs the economy informally, as is currently the case in Pakistan. Disagreement creates an informal breed, and informally limits scale, productivity and growth.

To address the deep root challenges that hurt our economy, the government should ensure the rule of law, prioritize structural reforms, improve service supply, contribute to rewards and professionalism and industry. The private sector, in return, should adopt documents, invest in R&D and human resources, comply with labor and environmental standards, avoid renting and compete in fair and transparently.

Both sectors have to jointly create export capacity, invest in skills and technology, promote industrial zones and logistics, and promote formal and financial inclusion.

It is time to shift mentality. Sustainable growth needs to take action towards a change of transaction. If both the government and the private sector stop chasing short-term victory and start investing in national power, development will not only be possible-it will be inevitable.

Let us replace the distrust with small interests with contributions and national priorities. Only then can a permanent economic growth become a shared national reality.