Latest news with #PIDE
Business Recorder
6 days ago
- Business
- Business Recorder
Regulating to the brink
The strike being planned by Pakistan's business community and industrialists says a lot about the current state of the economy. It is not just about taxes—it is about the growing sense that those who follow the rules are the ones being punished. At a time when the formal sector needs to lead the charge toward economic recovery, it finds itself raising alarm over policies that further penalize those already within the tax net. Despite years of talk about improving the ease of doing business, the reality on the ground tells a different story. Businesses that are registered, documented, and paying taxes are weighed down by layer upon layer of regulation. There is nothing wrong with having rules—markets need structure to function—but the way rules are made and applied in Pakistan often feels arbitrary, duplicative, and counterproductive. PIDE's study 'Regulatory Bodies: Hurting Growth and Investment' puts a number on what many businesses have been saying for years: the regulatory burden is massive—over 67 percent of GDP. With more than 100 regulatory bodies operating at the federal level alone, it is no surprise that companies face constant hurdles. In some sectors, just meeting compliance requirements costs nearly 40 percent of GDP. What makes it worse is that many regulations do not actually solve real problems. Instead, they are used to serve narrow interests or to maintain control, rather than to create a level playing field. The institutions meant to oversee these markets often lack the necessary expertise. Many are led by retired officials who may have long experience in bureaucracy, but little understanding of how businesses or markets actually work today. The grievances raised by business chambers ahead of the strike centre on similar issues—particularly the tax measures and provisions introduced in the latest Finance Act. These include a sharp increase in withholding taxes on turnover, a heavier minimum tax burden, and controversial provisions granting FBR officials arrest powers in cases of alleged tax fraud. Businesses also point to a clear policy bias that appears to favour retailers and traders over the documented industrial sector. In contrast, comparable economies like Malaysia and Vietnam offer lessons in how regulatory frameworks can enable, rather than hinder, growth. Malaysia's single-window digital portal for business registration and its digitized tax system have slashed red tape and built taxpayer confidence. Vietnam has introduced a National Single Window integrating trade compliance across ministries, and its stable tax regime has earned investor trust. Both countries have also empowered investment agencies to actively assist businesses. For Pakistan, the way forward lies not in more regulation, but in smarter regulation. This requires a dual approach: first, consolidating and modernizing the regulatory landscape by eliminating outdated, rigid, and redundant rules; and second, institutionalizing reforms with strong political will and competent leadership. A structured system for introducing new regulations—based on evidence, impact assessments, and stakeholder input—must replace ad-hoc policymaking. Equally important is the need to strengthen institutional capacity through skilled personnel, process reform, and strategic planning. If meaningful reform does not happen soon, the country could push its formal sector further to the sidelines—just when the country needs it the most to steer the economy back on track.
Business Recorder
14-07-2025
- Business
- Business Recorder
Chinese experts' report: Minister reviews finalisation of sectoral action plan
ISLAMABAD: Federal Minister for Planning, Development & Special Initiatives, Ahsan Iqbal, chaired a high-level meeting in Islamabad to review the implementation and finalisation of the sectoral action plan based on the Chinese experts' Report. The meeting was attended by Secretary Planning Awais Manzur Sumra, Vice Chancellor PIDE, Chief Economist, Project Director CPEC Secretariat, and senior officials from various ministries and divisions. The report shared by the Chinese Embassy was prepared by Chinese Working Teams following their visit to Pakistan to assess potential areas of enhanced economic cooperation. The report outlined key observations and recommendations in different sectors such as connectivity, the development of a national agricultural plan, Gwadar Port linkages, IT collaboration, and other strategic areas. Ministries were requested to review the report and provide feedback. In line with the directions of Prime Minister Shehbaz Sharif, 10 federal focal groups were constituted to develop sector-specific action plans in response to the technical assessments presented by the Chinese expert teams. Since then, the Ministry of Planning under the chairmanship of Minister Ahsan Iqbal has held multiple rounds of meetings to shape the final action plan and has consistently encouraged the ministries to align their inputs with Chinese recommendations and outline a clear path forward. During the meeting, all relevant ministries discussed the sectoral suggestions made by the Chinese teams and presented updates on their respective projects. Minister Ahsan Iqbal directed that each ministry must prepare a comprehensive response based on the Chinese Experts' Report so that the CPEC Secretariat can compile and submit a unified, detailed reply to the Chinese side. He also directed that China should be formally informed about the progress made by Pakistan on the recommendations, and efforts should be made to fully capitalize on the areas and projects for which China has already expressed willingness to cooperate. The meeting marks a significant step towards deepening Pakistan-China economic cooperation and ensuring that both sides move forward with a shared understanding and commitment to mutual development goals. Copyright Business Recorder, 2025
Business Recorder
09-07-2025
- Business
- Business Recorder
Nationwide poverty explosion: PIDE challenges widely circulated narrative
ISLAMABAD: The Pakistan Institute of Development Economics (PIDE), while debunking the claims regarding a sharp increase in poverty in the country has clarified the situation, saying the rise in poverty statistics is primarily due to global metric recalibration rather than a sudden economic collapse. The Economic Think Tank with its latest report titled, 'The Poverty Illusion: When Numbers Distort Reality' has challenged the widely circulated narrative of a nationwide poverty explosion. The report, authored by Dr Nasir Iqbal, PIDE's registrar and associate professor, critically examines the World Bank's revised global poverty lines. The new $4.20 per day threshold, replacing the previous $3.20, has led to an increase in poverty statistics from 39.8 percent to 44.7percent. However, Dr Iqbal points out that more than 80percent of this increase is the result of shifting global poverty benchmarks, not a collapse in household conditions. Inflation and other factors account for just 18percent of the increase. As per the report, the extreme poverty, measured at $3 per day, has soared from 4.9 percent to 16.5 percent. The sharp uptick in poverty rates is largely the result of the World Bank's upward revision of global poverty lines. For lower-middle-income countries like Pakistan, the general poverty threshold has been increased from $3.20 to $4.20 per day. Likewise, the extreme poverty line has been revised upward from $2.15 to $3 per day. These changes represent a substantial recalibration of the baseline used to assess poverty. When the bar is raised, more people fall below it — not because their lives have deteriorated, but because the measurement standard has shifted. Dr Nadeem Javaid, vice chancellor (VC) of PIDE and member of the Planning Commission of Pakistan, stated, 'Policymaking must be grounded in facts, not fear. These revised figures reflect changes in how poverty is measured globally, not a dramatic decline in the livelihoods of Pakistanis.' Key insights from PIDE's analysis include the strength of the informal economy, which supports over 60 percent of Pakistan's workforce, absorbing economic shocks and offering resilience during crises. Social protection programmes such as the Ehsaas Programme and the Benazir Income Support Program (BISP) have played significant roles in mitigating poverty. Additionally, remittances from overseas Pakistanis continue to provide vital support, cushioning households and bolstering the economy during times of distress. Even amid major economic shocks such as the COVID-19 pandemic and the 2022 floods, PIDE estimates the poverty rate in 2025 to be between 23 percent and 25 percent, with food-based poverty pegged at just 6.2 percent, signalling consistent, long-term improvement. In light of these findings, PIDE has proposed a series of actions to address poverty with a data-driven approach. These include reinstating the Household Integrated Economic Survey (HIES) to update data, refining BISP to link cash transfers with measurable outcomes like education, employment, and asset growth, and developing a National Poverty Reduction Strategy integrated with the Sustainable Development Goals (SDGs) to ensure inclusive economic reforms. Additionally, PIDE calls for leveraging the informal economy through the creation of Village Economic Zones (VEZs) to boost rural employment and productivity via local value chains and agri-tech innovations. The VC PIDE emphasised, 'This is not a time for panic, but for rational, evidence-based policymaking that can turn perceived crises into opportunities for structural economic reform.' Copyright Business Recorder, 2025
Business Recorder
28-05-2025
- Health
- Business Recorder
Infrastructure must also safeguard health of people: Ahsan
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal addressed a high-level event jointly organised by the Asian Infrastructure Investment Bank (AIIB) and the Pakistan Institute of Development Economics (PIDE), marking the launch of AIIB's flagship report, Asian Infrastructure Finance 2025: Infrastructure for Planetary Health, said a press release. The minister stated that the launch of this report is both timely and deeply relevant to Pakistan's national and global development goals. Speaking to a distinguished audience comprising experts from PIDE, representatives of AIIB, development partners, and leaders from across sectors, the minister emphasised that Pakistan is standing at a critical moment, a point where infrastructure must not only support economic growth but also safeguard the health of its people and the health of the planet. Iqbal underlined that infrastructure today encompasses much more than roads, buildings, or power plants. It is equally about the air quality, the water nation drinks, and the healthcare systems that protect its people. He said this broader definition of infrastructure touches the idea of planetary health, where human health is intrinsically linked to the health of nature and the planet. Iqbal made clear that the Government of Pakistan is not allowing any infrastructure project to move forward unless it takes into account climate resilience, public health, and environmental protection. He affirmed that working in silos has ended, as every sector and system, be it hospitals, schools, transport systems, sewage networks, or electricity grids, must be integrated and climate-ready to remain functional and safe during natural disasters. The minister added that the government recognises the need to reduce dependence on fossil fuels and is actively investing in solar, wind, and green hydrogen technologies as part of its transition to cleaner energy. He stated that Pakistan is embracing nature-based solutions, highlighting ongoing initiatives such as planting mangroves along the country's coastal areas and developing green parks in cities, calling these smart, cost-effective, and equitable methods to enhance resilience. Iqbal pointed out that the data in the AIIB report echoes Pakistan's lived reality, diseases are rising due to floods and substandard water systems, food insecurity is worsening due to changing rainfall patterns, erratic rains are contributing to higher infant mortality, and lead pollution from industries and batteries is damaging children's health and brain development. He stressed that these phenomena are not abstract projections but are unfolding across Pakistan in real time. From floods and heatwaves to smog and water shortages, the impacts of climate inaction have become embedded in daily life. Iqbal assured that Pakistan is not beginning from scratch. The government has already started aligning national plans with the concept of planetary health. He specifically cited the 'Uraan Pakistan' initiative and the government's Five Es Framework as part of a comprehensive national agenda to promote climate-smart, health-responsive, and inclusive infrastructure. Under Uraan Pakistan, the government has begun transitioning to zero-emission electric buses in public transport, restoring riverbanks and wetlands to reduce flooding risks and promote green tourism, and upgrading healthcare centres to make them energy-efficient and resilient in the face of disasters. He highlighted that these efforts are well-aligned with the principles highlighted in AIIB's report, which promotes a transformative model of infrastructure that links sustainability with biodiversity conservation, public health outcomes, and climate resilience. Citing findings from the Global Commission on Adaptation, Prof Iqbal noted that every dollar invested in climate-resilient infrastructure can generate a fourfold return by avoiding future losses. He said Pakistan is incorporating urban green infrastructure solutions, including green belts, permeable surfaces, and climate-sensitive zoning regulations, which are proven to reduce urban temperatures by up to 4°C and mitigate extreme heat, particularly in cities like Jacobabad and Lahore. He added that the restoration of mangroves in coastal areas, already underway in Pakistan, is reducing storm damage by up to 30 to 50 percent while simultaneously improving fish livelihoods. Concluding his address, Prof Iqbal stated that historically, infrastructure planning in Pakistan has prioritized quantity over quality and expansion over resilience. He affirmed that the government is turning this page decisively and is committed to a new era of planning grounded in the principles of climate-smart, health-protective, inclusive, and sustainable infrastructure development. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
Three-year strategic roadmap unveiled by PIDE Senate
ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, as Chancellor, chaired the 18th meeting of the Senate of the Pakistan Institute of Development Economics (PIDE) Friday, where the Institute unveiled its comprehensive three-year strategic roadmap aimed at transforming into a globally recognised think tank, said a press release. Welcoming the newly-constituted Senate, Vice Chancellor Dr Nadeem Javaid outlined a forward-looking agenda focused on strengthening research capacity, expanding policy impact, modernising academic programmes, accelerating digital transformation, building strategic partnerships, and ensuring financial sustainability. 'We are shaping a future-ready PIDE—one that leads with relevance, research, and results,' he noted. A key highlight was the proposed overhaul of the institute's salary structure to attract and retain top talent. Minister Iqbal directed benchmarking against leading institutions like IBA and LUMS and tasked a committee, to be chaired by Dr Shamshad Akhtar, with designing a competitive and sustainable compensation framework. In line with its academic renewal, PIDE announced the launch of domain-specific 8 new research centres and set a target of increasing research output by 3 times high-quality publications over five years. The minister urged PIDE scholars to move beyond conventional paradigms and inject bold, realistic perspectives into development discourse—especially in redefining rural development through diversified economic opportunities, not just agriculture. To bridge research with policy, a new academic programme in Public Policy and Governance was introduced: PhD candidates who complete coursework will be attached to government ministries for hands-on public policy training under work-study programme. Minister Iqbal also proposed initiating semester exchange programs with international universities to enhance student exposure. Reinforcing PIDE's accountability framework, the Senate resolved to conduct an institutional performance review every year. Additionally, a committee will be formed to craft and seek Senate approval for priority research themes aligned with national needs. 'The time for incremental change is over. We need exponential thinking,' said Minister Iqbal. 'PIDE must lead by identifying strategic opportunities in global supply chains where Pakistan can gain a competitive edge.' Senate members actively shared ideas to ensure PIDE remains adaptive, visionary, and responsive to Pakistan's evolving development landscape. Copyright Business Recorder, 2025
