High cost of doing business is a major economic obstacle.
Tariq Khattak
Islamabad:
Business leader and former president of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said that despite decades of trying different economic policies, public incomes continue to fall. With per capita income staying around $1,500, true prosperity remains out of reach for most people.
He said policymakers often declare GDP growth as a success, but real development is about the income and quality of life of ordinary citizens. Pakistan’s economic progress has been limited by rapid population growth, low productivity, and other structural problems, which leave people burdened by rising inflation.
Shahid Rasheed Butt explained that economic growth and economic development are different. GDP shows how large the economy is but does not indicate how income is shared among people. He noted that rising prices for food, transportation, and energy have added to public hardships, while rural and underdeveloped areas still lack enough healthcare, education, and basic services. A large part of the population lives below the poverty line.
Using examples from Vietnam, Bangladesh, India, and Turkey, he said these countries increased incomes significantly through export-driven industry, technological progress, and higher productivity. Similarly, Qatar and Saudi Arabia made progress by diversifying their economies and making good use of natural resources.
He said that in Pakistan, energy costs, complicated regulations, poor infrastructure, and inconsistent policies are major barriers to doing business. At the same time, the shortage of skilled workers remains a serious problem.
He called on the government to prioritize boosting exports, industrial growth, investment in technology, and human capital development. He added that without good governance, transparency, and accountability, economic policies would not benefit the public. Butt warned that unless economic growth leads to real income gains and public prosperity, Pakistan will stay far from achieving per capita prosperity.
