Overcoming decision fatigue for good

Pakistan has lost a business deal worth $940 million

Lethargy or decision fatigue is the infernal noose that is usually found around the necks of businessmen and government officials in developing countries and elsewhere too. The consequences are pretty devastating: failure is costly and can bring instant death for those who procrastinate and are just unable to close a deal in time. In fact the ability to grow as quickly and easily is what separates the boys from the men.

There have been a number of such lapses on the part of government, particularly in the past. It is hardly surprising to see the present government tumbling over the same due to decision fatigue. Pakistan had to pay the price for this unfortunately — losing a business deal worth $940 million.

A Malaysian provider of telecommunication infrastructure services stepped back from an agreement under which it was to acquire 23,00 communication towers. The deal didn’t go through because of delays in getting regulatory approvals from the Pakistan Telecommunication Authority (PTA). What could have ended the stalemate was the timely appointment of a full-time or acting head of the PTA.

Like many other failings this one should be blamed on the previous government led by Pakistan Muslim League-Nawaz. Considering the size of the proposed investment — up to Rs17.45 billion — it was remarkably stupid not to have named a telecom regulatory body chief earlier. The PML-N sat on the matter for months on end.

Not only did the 10-month delay in naming the PTA chairman cost the state dearly, it spooked potential investors and single-handedly ruined the climate for investment in the country. And if we moan about low Foreign Direct Investment who do we have to blame but ourselves? Far from attracting FDI we are effectively driving it away from the country. It is high time we began punishing all those individuals responsible for this state of affairs.

In future, our governments must do all they can for consummation of favourable transactions and try harder to remove bottlenecks that threaten to derail those agreements. We must also assess the impact of delays in regulatory approvals and find all the possible ways that could smoothen future transactions. 

Published in The Express Tribune, September 19^th, 2018.

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