LAHORE: Pakistan does not lack well-designed policies; rather, it struggles with their effective implementation. Trade bodies and policymakers focus more on proposing new policies based on theoretical research than on identifying and addressing the obstacles that hinder enforcement.
Policy recommendations are often based on secondary research, highlighting successful global practices and suggesting reforms. However, they frequently overlook the country’s real challenge: weak implementation. Even the best policies fail when enforcement mechanisms are inadequate, institutions lack capacity and bureaucratic inefficiencies obstruct execution.
Many policies remain ineffective due to a lack of accountability. While laws exist on paper, regulatory bodies often lack the resources or the will to enforce them. Businesses and trade groups may advocate for policies that serve their interests but resist enforcement when stricter compliance is required. Political instability and short-term decision-making further exacerbate the problem, leading to frequent policy reversals before they can deliver results.
Pakistan’s reliance on international models often fails to account for the country’s unique challenges, such as informal markets, bureaucratic red tape, and inadequate infrastructure. Even when policies are well-structured, implementing agencies suffer from insufficient training, funding, and motivation.
Several policies have the potential to transform our economy but remain ineffective due to governance failures, corruption and inconsistent decision-making. One such example is the Competition Act, 2010, which aligns with global standards. The Competition Commission of Pakistan (CCP) was established to prevent anti-competitive practices such as price-fixing and cartels, similar to laws in the EU and the US. However, weak enforcement and political influence have allowed cartelisation to persist in industries such as sugar, cement, and pharmaceuticals. CCP fines are frequently challenged in courts, delaying action.
Similarly, special economic zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) were designed to replicate successful SEZ models in China, Malaysia and Vietnam. Pakistan offers tax breaks, infrastructure support and investment incentives. However, bureaucratic delays, inconsistent policies, difficulties in providing utilities (electricity, gas), and complex land acquisition processes have discouraged investors.
Pakistan’s tax reforms and documentation efforts by the Federal Board of Revenue (FBR) align with global best practices, including CNIC-based invoicing, digital tax filing, and the integration of point-of-sale (POS) systems. However, widespread tax evasion, weak enforcement, resistance from businesses, and a lack of political will to expand the tax net beyond salaried individuals and compliant corporations continue to hinder progress.
While Pakistan has updated its anti-money laundering laws to comply with Financial Action Task Force (FATF) standards, including monitoring suspicious transactions and enhancing financial transparency, the informal economy and hundi/hawala networks continue to thrive due to weak enforcement and corruption within regulatory agencies.
The government has also shown commitment to environmental protection and climate change, launching ambitious initiatives such as the 10 billion tree tsunami and pledging to reduce carbon emissions under the Paris Agreement. However, poor urban planning, weak enforcement of environmental laws, and industries bypassing regulations due to a lack of accountability threaten these targets.
Pakistan’s energy policies, including renewable energy initiatives and circular debt management, are aligned with international standards. The government has introduced net metering, feed-in tariffs for renewable energy, and measures to address circular debt. However, power theft, delayed payments to independent power producers (IPPs), policy inconsistencies, and the failure to reform distribution companies (Discos) have kept the energy sector in crisis.
Ultimately, Pakistan’s policy failures are not due to poor planning but rather a deep-rooted enforcement crisis that undermines economic progress and governance. Until implementation challenges are addressed, even the best policies will remain ineffective.
