Market Based Economy

The world’s changing and so is the modes of economy. Market-based economy is superior to the other alternatives that have been tried over the years. Commerce is close to a natural human instinct; the market has given us the basis for a common expression or language. Frankly, we have barely begun to experience the benefits of this remarkably binding concept. Over last few years, globalisation has been a by-word and the “spin” has been one of a new phenomenon.

The market is not unfettered. It is governed by a wide range of tax, labour, environmental, capital, customs, competition, etc; etc; laws, regulations, decrees, practices and other rules in every governmental jurisdiction it operates. In fact NO business person would tell you, “just open the market to trade and investment and we don’t care about the rest of the policy mosaic.”

Business people want to find sanity when they risk capital or establish distribution networks: the rule of law, property rights, intellectual property protection and lots of those other “fetters”. 

According to Mr. Inayat Khan, CEO of Wah-based software firm,” It’s regulatory quality that we seek. More often than not, quantity has won out over quality.”. And any business leader who has instituted Total Quality Management (TQM) in his or her firm will tell you that it is a journey not a program. Whether a company or a government, none of us has ever got quality right.  We can always do better and that means change.

But the other major requirement for a properly functioning market is competition, real competition. Are companies in Pakistan ready to compete with international players?