Slow approvals, denied access to credit, and corruption at the local level continue to vex many small businesses
Sohail Khan
Being a businessperson in Pakistan has never been straightforward. For years, Pakistani entrepreneurs, shopkeepers, and producers have encountered red tape, volatile policies, and lengthy approval delays. But recently, the government has begun encouraging long-overdue reforms to simplify doing business. These reforms are not flawless, but they are in the right direction—toward creating a more favorable climate for domestic enterprises to develop, generate employment, and add to the nation’s economy.
Simplifying the registration of businesses has been one of the key reforms. Opening a small business used to entail going to several government offices, completing lengthy forms, and waiting for weeks for approval. Now, most of these processes have become online. Now, one can register a business in a matter of days, without having to pay “additional charges” or go around searching for signatures. This is particularly beneficial for young individuals and small business owners who wish to work honestly and legally.
The government has also made strides in tax procedures. Earlier, tax payment was a confusing and infuriating experience for most businessmen. The tax payment system was full of complicated rules, and small shopkeepers felt they were being picked on while the big guns escaped detection. Efforts have now been made to alter that by making tax payments digital and spreading the tax net wider. Mobile portals and apps have simplified the filing of returns, and the government is now attempting to ensure that everyone—particularly high-income categories such as real estate and retail—share proportionately.
Energy reforms are another sector where the government is attempting to help local businesses. Excessive electricity charges have been a constraining factor for industries, particularly manufacturers. In April this year, the government cut electricity prices for households and industries. The step may not address all issues, but it provides some respite to the industry facing increasing costs and thin profit margins. If the cuts are sustained, this could make factories more competitive, both domestically and in export markets.
Trade reforms have also begun to bear fruit. The Pakistan Single Window has simplified the process of importing and exporting products. This online system enables companies to present all the documents required at one location, rather than going to various offices and customs points. This not only saves time but also decreases the possibility of corruption and miscommunication. For small exporters, who work under the pressure of deadlines, this reform is a saviour.
But even with all these positive reforms, all is not well. Slow approvals, denied access to credit, and corruption at the local level continue to vex many small businesses. The federal government can pass good laws, but their implementation is left in the hands of provincial departments that continue to operate in unchanging ways. This gap between policy and practice frequently frustrates entrepreneurs who desire growth but are trapped in an environment that does not always help them.
Another problem is the requirement for clear and stable policies. Companies prosper when they can make long-term plans, but constant changes in regulations—particularly taxes and imports—do not allow companies to invest with confidence. The government needs to concentrate on long-term planning and refrain from abrupt policy changes that cause panic in the market.
In the end, domestic business reforms are not just about improving the economy on paper—they’re about making real changes in people’s lives. Whether it’s a tailor in Multan, a factory owner in Faisalabad, or a freelancer in Islamabad, everyone benefits when the system becomes more fair, transparent, and supportive.
Pakistan has a long way to go, but if the government keeps listening to its business sector, acts transparently, and remains committed to actual solutions, these changes may become a platform for sustainable growth. To the average Pakistani businessman, it means increased opportunities, fewer headaches, and a better future.
Read: Stalled Progress, Stalled Economy
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Sohail Khan is a student at the School of Economics, Quaid-i-Azam University Islamabad
