Government policy, business reality at odds

‘Pakistan market over-regulated and under-developed’.

LAHORE: Pakistan’s economy is like a five-year-old and it canned be regulated like an adult, said Hussain Dawood, the chairman of the Dawood group of companies.

“Pakistan needs regulation that encourages maturation and development and as markets mature you adjust regulation. Right now, the country is racing ahead with regulation, ahead of market, thus creating disconnect,” he added.

Dawood was speaking at a private sector-driven book launch and seminar titled ‘Towards Responsible Business: Time for Action’ on Thursday. The seminar was organised by the Association of Chartered Certified Accountants, in partnership with the Centre for International Private Enterprise (CIPE), which is a non-profit affiliate of the US Chamber of Commerce, and the Responsible Business Initiative.

The seminar held discussions on the newly released book ‘Responsible Business Guide: A Toolkit for Winning Companies’. It concluded that better and more progressive business practices were necessary to enhance private economy.

Dawood said Pakistan’s economy is worth only $180 billion which is equal to Walmart’s turnover. Dawood explained that by increasing business regulations the government was following western government policies despite understanding that the country’s economy was far smaller in comparison. Referring to the newly released book, Dr John Sullivan, the executive director of CIPE, said the book was a guide and should not be used as regulation.

He said it is not the role of the government to give charity and the role of businesses was to create business and help the community through improving supply chains and providing opportunity for women.

Published in The Express Tribune, November 12^th, 2010.