Diagnostic and research study on policy reforms for Punjab's priority business sectors

Abstract

The Punjab Government is targeting growth of 8% by 2018, which will be necessary to absorb the one million people entering the workforce every year. In order to achieve this, it is aiming to facilitate significantly increased private sector investment. Business in Pakistan has been constrained by weaknesses in the investment climate. Between 2006 and 2017, Pakistan has fallen in the World Bank’s ‘Doing Business’ rankings, from 60 out of 155 countries to 144 out of 190 countries. The recent 18th Constitutional Amendment devolved responsibility for 4 out of 10 of the Doing Business indicators to the provincial government. The International Finance Corporation (IFC) has recently established the Investment Climate Reform Unit in the Planning and Development Department. The purpose of this research study is to identify the binding constraints within the business environment in selected priority sectors identified by the government on the basis of their economic significance: garments, automotive, footwear, agriculture and livestock. This research was funded under the Business Environment for Economic Development programme