Pakistan's business sector faces challenges as production, operating expenses 34% higher than regional economies

Pakistan's business sector is confronting a mounting competitiveness challenge, with production and operating expenses now estimated to be 34% higher than those in neighboring regional economies. This disparity is attributed to several factors, including rising energy costs, inefficient infrastructure, and regulatory hurdles that have collectively strained the operational efficiency of businesses across the country. The increased expenses are putting pressure on local companies to either absorb the costs or pass them on to consumers, potentially affecting their market position both domestically and internationally. The higher cost structure is particularly concerning for industries that rely heavily on exports. With global markets becoming increasingly competitive, Pakistani exporters are finding it difficult to offer competitive pricing without sacrificing profit margins. Furthermore, the burden of additional costs is stifling innovation and expansion, as businesses are forced to allocate more resources to cover basic operational expenses rather than investing in growth or technology upgrades. This scenario poses a significant risk to the long-term sustainability of Pakistan's economic growth and its ability to attract foreign investment. In response to these challenges, industry leaders and economic analysts are urging the government to implement reforms aimed at reducing the cost of doing business in Pakistan. Suggested measures include investing in modernizing infrastructure, simplifying regulatory processes, and providing incentives for energy-efficient technologies. By addressing these issues, Pakistan could enhance its business environment, making it more attractive for both local entrepreneurs and international investors, ultimately fostering a more resilient and competitive economy.

— Authored by Next24 Live