Nadeem Naqvi

Enterprise - - Cover Story -

Naqvi pro­vided many in­sights about how to make the ‘Pri­vate Sec­tor’ more vi­brant. He made it very clear that it will not be pos­si­ble to have a ro­bust strat­egy to turn around the pri­vate sec­tor with­out an in­sti­tu­tional/or­ga­ni­za­tional struc­ture ca­pa­ble of im­ple­ment­ing it. He went on to elab­o­rate that a so­cioe­co­nomic in­sti­tu­tional struc­ture is vi­tal to de­liv­er­ing growth in the fol­low­ing con­text: 1. Do­mes­tic and In­ter­na­tional se­cu­rity in­fra­struc­ture and environment. 2. Ef­fec­tive and eq­ui­table ju­di­cial sys­tem, prop­erty rights and con­tract en­force­ment ca­pa­bil­ity. 3. Sta­ble macroe­co­nomic poli­cies

and environment. 4. In­fra­struc­ture and re­lated ser­vices. 5. Good gov­er­nance, trans­parency and level play­ing field for en­ter­prise. 6. Macro risk man­age­ment: min­i­mum so­cial se­cu­rity, health care, re­tire­ment pen­sion, dis­as­ter man­age­ment ca­pa­bil­ity. Other in­ter­est­ing points Naqvi made were: 1. It is es­sen­tial to iden­tify the re­sources that will drive eco­nomic growth. Will it be nat­u­ral re­sources, hu­man re­sources, cap­i­tal re­sources or tech­nol­ogy? We need an in­sti­tu­tional and or­ga­ni­za­tional struc­ture to drive this or no growth will be pos­si­ble. 2. There is a high cor­re­la­tion be­tween ex­ter­nal fund­ing and eco­nomic growth in Pak­istan’s his­tory. 3. Pri­vate sec­tor growth in the pe­riod from the 50s to the - 80s was driven by 5-year plans and FDI and from the 80s on­wards by dereg­u­la­tion and pri­va­ti­za­tion. One key is­sue con­tin­ues to cre­ate hur­dles is pri­or­i­tiz­ing of the pub­lic sec­tor over the pri­vate sec­tor. He of­fered the fol­low­ing con­clud­ing sug­ges­tions: 1. Cor­po­ra­ti­za­tion – This will al­low SMEs to pro­vide agri­cul­ture prospects and em­power busi­nesses with do­mes­tic and global reach. 2. Go­ing Pub­lic – Ob­tain long term cap­i­tal and im­prove trans­parency to ob­tain greater buyer recog­ni­tion and in­vestor con­fi­dence. 3. Joint Ven­tures – En­ter into joint ven­tures with em­pha­sis on tech­nol­ogy trans­fer, man­age­ment, tech­ni­cal de­vel­op­ment and man­power train­ing. 4. Tar­get­ing IFI – Ex­plore fund­ing op­tions from var­i­ous in­ter­na­tional ex­port pro­mo­tion fa­cil­i­ties. 5. Look to­wards global pri­vate eq­uity – Bring in in­ter­na­tional pri­vate eq­uity play­ers

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