Addressing Pakistan’s economic challenges requires a multi-pronged approach. The first entails leveraging the potential sectors identified by the World Economic Forum’s Global Competitiveness Report and rankings, ensuring resources are effectively deployed
In a bold stride toward economic growth and development, Pakistan’s federal government announced the Economic Revival Plan. Introduced at the inaugural meeting of the newly formed Special Investment Facilitation Council (SIFC), this plan targets untapped sectors like defense production, agriculture, livestock, minerals, mining, IT, and energy, aiming to propel the country’s global competitiveness.
The initiative, which served as the first meeting of the Special Investment Facilitation Council (SIFC), was chaired by Prime Minister Shehbaz Sharif and attended by the Chief of Army Staff (COAS) General Syed Asim Munir, chief ministers, federal and provincial ministers, and senior government officials. Showcasing the seriousness of its true north for economic revival.
The prime minister observed that the expected investments would create jobs and livelihoods for the youth and women and the focus should be on empowering young and females to realize their full potential.
General Syed Asim Munir expressed his sentiments and emphasized the role of economic councils like SIFC. The COAS, as the custodian of the national security of Pakistan, made clear the link between economic stability and national security. He emphasized the importance of SIFC as an instrument for fostering economic growth, enhancing global competitiveness, attracting foreign direct investment (FDI), and stimulating job creation – all of which contribute to overall national stability and security.
Furthermore, the COAS highlighted the military’s support for such initiatives that drive economic growth and development, expressing willingness to provide security, logistical, and knowledge support where necessary. He draws attention to the role of the SIFC in creating a favorable environment for investment by improving the ease of doing business, ensuring policy continuity, and facilitating infrastructure development.
Rising to the Challenge with the World Economic Forum’s Guidance
Addressing Pakistan’s economic challenges requires a multi-pronged approach. The first entails leveraging the potential sectors identified by the World Economic Forum’s Global Competitiveness Report and rankings, ensuring resources are effectively deployed. The second involves building momentum and excitement among the local and international business community and investors, fostering an environment of trust and optimism.
The concept of competitiveness has evolved over time. It is now defined in terms of the “ability of a country (region, location) to deliver beyond-GDP goals for its citizens today and tomorrow”. Competitiveness requires a set of viable firms and industries that can compete internationally, embedded in the structure of an economy and driven by capabilities developed privately or by the government. Investments in the social and ecological systems that increase an economy’s productivity are considered an important part of competitiveness.
Building an economic narrative, unique to Pakistan is not an easy task. Unfortunately, the country has relied more on advertising agencies and paid communication in the past. That proved neither to be effective nor successful. The approach requires a more advanced form of communication and thinking. This would require strategic communication (strat-com) approach. Strategic communications encompass multiple elements of public diplomacy, political marketing, persuasion, international relations, military strategy, and many other factors that leverage Pakistan’s soft and hard power both. Pakistan needs to improve its information rigor and social intelligence capabilities for business opportunities to be explored at a regional and global level.
The World Economic Forum’s recent “Markets of Tomorrow Report 2023” provides valuable insights into how these challenges can be transformed into opportunities. With competitive advantages such as a young, tech-savvy population and emerging sectors like the ‘Orange Economy or Creative Economy’ – economic activities centered on knowledge and information generation – Pakistan is well-positioned to play a significant role in the global digital economy.
The Role of the SIFC Informed by World Economic Forum Insights: Drawing on insights from the World Economic Forum, the SIFC can play a pivotal role in promoting Pakistan as a desired investment destination and transforming it into a market of the future:
Addressing the Infrastructure Gap: Based on the World Economic Forum’s recommendations, improving both physical and institutional infrastructure is a key priority. The SIFC should foster collaboration with both domestic and international entities to secure investment in these areas.
Talent Development and Retention: The World Economic Forum’s report identifies a clear gap in the availability of necessary skills and talent in Pakistan. To counteract this, the SIFC should collaborate with educational institutions and businesses to develop training programs in strategic sectors like IT services, agriculture technologies, and healthcare services.
Promoting Innovation: The World Economic Forum acknowledges the crucial role of innovation in future growth. Therefore, the SIFC should facilitate an ecosystem that encourages research and development, supports startups, and enables the adoption of new technologies.
A comparative table between the key areas highlighted by the World Economic Forum & the strategic directions set by the SIFC:
| World Economic Forum (WEF) | Special Investment Facilitation Council (SIFC) | |
| Infrastructure | Emphasizes on the need for improved physical and institutional infrastructure | Plans to facilitate investments in these areas and collaborate with both domestic and international entities |
| Talent Development | Identifies a gap in the availability of necessary skills and talent in Pakistan | Plans to work with educational institutions and businesses to develop programs that nurture talent in strategic sectors |
| Innovation | Recognizes the importance of capacity for innovation as a crucial driver of future growth | Aims to foster an ecosystem that promotes research and development, supports startups, and encourages the adoption of new technologies |
| Trust and Confidence | Highlights the need for confidence in Pakistan’s economic stability and growth prospects | Aims to build confidence through transparency in government processes and maintaining a steady dialogue with the business community and potential investors |
| Business Environment | Highlights the importance of a conducive business environment | Plans to make Pakistan an attractive destination for global investors by reducing red tape, simplifying tax systems, and ensuring the speedy resolution of business disputes |
| Strategic Marketing | Indicates the need for effective communication of Pakistan’s economic potential to the world. | Plans to develop a compelling economic narrative that showcases the country’s strengths and opportunities |
| Strategic Narrative | Build the country’s own economic narrative around the current realities and future potential by considering, set of institutions, policies, and factors that determine the level of productivity of a country. | Needs to be included. |
| Policy Stability | Emphasizes the importance of policy stability and continuity | Aims to ensure policy continuity and stability, regardless of political changes |
These comparisons show how the SIFC’s strategies align with the key areas highlighted by the World Economic Forum, indicating a proactive approach toward improving Pakistan’s global competitiveness.
Building Trust and Confidence: Confidence-building measures, such as transparency in government processes and a steady dialogue with the business community and potential investors, can enhance trust in Pakistan’s economic stability and growth prospects.
Creating a Conducive Business Environment: To make Pakistan an attractive destination for global investors, the SIFC should focus on simplifying bureaucratic procedures, reducing red tape, and ensuring swift resolution of business disputes.
Strategic Marketing: Effective communication of Pakistan’s economic potential to the world is essential. Using insights from the World Economic Forum, the SIFC should develop a compelling economic narrative that showcases the country’s strengths and opportunities.
Strategic Narrative: Adopt the strategic communication approach in cultivating Pakistan’s interests and managing its relationship based on stakeholders’ interests.
Policy Continuity and Stability: The World Economic Forum emphasizes the importance of policy consistency, regardless of political shifts, in providing the predictability and security investors require for long-term commitments.
The Road Ahead: The tasks ahead for the SIFC are substantial, but the promise of successful implementation is exciting. Drawing on the guidance of the World Economic Forum, the SIFC is in a strong position to bridge the infrastructure gap, nurture talent, foster innovation, build trust, create a conducive business environment, strategize effective marketing, create strategic narratives, and maintain policy stability. With these focus areas addressed, Pakistan has the potential to emerge as a competitive global market, reflecting its unique cultural identity and dynamic economic vision on the global stage.
