LAHORE: Economic inequality in Pakistan continues to widen, and much of the blame lies not with the private sector but with the chronic inefficiencies of the public sector. The state’s failure to deliver quality education, healthcare, and governance has created visible income disparities.
Yet, instead of fixing the system, public anger is too often directed at those who drive growth -- traders, financiers and successful entrepreneurs. The irony is that the very segment of society that generates employment, fuels innovation and contributes to tax revenues is being vilified. In media debates and political rhetoric, the rich are often portrayed as exploiters, subjected to humiliation and accusations without evidence or fair hearing.
If Pakistan genuinely wishes to progress, it must rebuild trust with its entrepreneurs and investors. Only then can the country turn from a culture of suspicion and stagnation to one of innovation and sustained growth.
Pakistan’s economic stagnation is not the result of a lack of human numbers but of a lack of human skills. Despite millions of unemployed youth entering the job market each year, industries continue to report critical shortages of trained manpower. The education system is outdated, technical training is neglected, and productivity remains low.
While regional economies are leveraging technology and innovation, Pakistan lags behind. The country’s entrepreneurs -- despite limited state support -- have kept pace with modern technology, often outperforming the public sector in efficiency and service delivery. Yet, their success stories are rarely celebrated.
The government frequently appeals for private investment, but investors -- domestic and foreign alike -- hesitate. The reason is simple: the fear of controversy. In Pakistan’s toxic political climate, even the most transparent business deals risk becoming targets of scandalous speculation.
Foreign investors, aware of this environment, prefer to stay away. Domestic investors too are reluctant to buy loss-making public sector companies, not because they lack confidence in their abilities, but because they fear reputational damage. This paralysis has left dozens of state-owned enterprises (SOEs) bleeding billions of rupees annually -- losses that are plugged through fresh government borrowing, adding to the fiscal deficit and inflationary pressures.
It is time to confront the hard truth: if a public sector company loses billions every year and drains national resources, would it not be wiser to hand it over -- even at minimal price -- to a private party willing to make it viable? The objective should not be to earn one-time proceeds but to stop recurring losses and improve efficiency.
Privatisation, if done transparently, is not a sell-out of national assets but a rescue of public wealth. Domestic investors should be given preference over foreign buyers, ensuring that profits remain within the country and local expertise develops. Transparent transactions and independent oversight can prevent misuse while restoring investor confidence.
Pakistan’s policymakers need to study successful international examples to find courage and direction. Some nations have transformed public services without raising their budgets. A South American country, for instance, reduced hospital waiting times by 80 per cent through efficient digital management. An Asian country brought down street crime by 35 per cent through transparent, technology-driven policing.
Punjab’s even-handed crackdown on criminals and terrorists brought a sharp reduction in extortion, kidnapping, and street crimes. These gains demonstrate that with political will, administrative neutrality, and use of technology, results can be achieved without extraordinary spending.
Pakistan’s urbanisation rate is among the highest in South Asia, yet the benefits of this transformation are undermined by weak institutions and an under-skilled labour force. To move forward, the state must shift from being a reluctant regulator to a facilitator of enterprise. It must stop punishing success and start rewarding productivity.
The natural process by which new technologies replace outdated ones is not a threat but a necessity. Policymakers must learn to manage it through prudent reforms and better service delivery. The path to equitable growth lies not in redistributing poverty but in unleashing private initiative within a fair, predictable and transparent framework.
