Country Private Sector Diagnostic

Creating Markets in Pakistan: Country Private Sector Diagnostic

May 25, 2021

Implementing the critical reforms necessary to catalyze private investments and create new market opportunities needs to be at the forefront of the Government of Pakistan agenda to promote economic recovery and private sector led growth, especially in the post-COVID context.

The Pakistan CPSD urges policymakers to increase private sector participation and investments by focusing on three broad policy objectives:

  1. enhancing institutional capacity and policy coordination;
  2. strengthening competition and level the playing field; and
  3. facilitating development of a diversified and inclusive financial sector.

This reform agenda would generate higher returns if complemented by other initiatives to address systemic macroeconomic fragilities and to increase both public and private investments in human capital. In addition, addressing the cross-cutting constraints can be transformative in unlocking sector specific investment opportunities as well, including in areas of renewable energy, agribusiness, port logistics, and fintech.