Dawn Editorials 14th October 2025

Business matters

PRIME Minister Shehbaz Sharif recently reaffirmed his government’s ‘commitment’ to improving the ease of doing business in the country. He told top executives of an Asia-focused venture capital firm, before the conclusion of his Malaysian visit last week, that the SIFC was endeavouring to provide foreign investors with all possible facilities. He also repeated his resolve to mobilise investment at home and abroad to build a sustainable startup environment. His remarks have come at a time when MNCs are pulling back from Pakistan. Very recently, global consumer goods firm Procter & Gamble announced it was shutting down its manufacturing businesses in Pakistan after nearly 45 years. P&G’s decision was preceded by the exit of several other MNCs including Shell, Pfizer, Telenor, Eni and Total in recent years. Until only a few years ago, P&G had been confident about its growth prospects in Pakistan, whose large young population offered enormous business potential. What changed to compel it to wind up?

Indeed, P&G’s decision has been driven mostly by its global strategy, like that of some other foreign investors, to restructure its global operations. But the fact remains that foreign investors enter or exit a market based on their assessment of the local business clime and growth opportunities. Whatever their global strategies, had they viewed the business environment in the country in a positive light, many would not have exited within just a few years. Unfortunately, Pakistan’s already challenging business environment has worsened sharply in recent years, undermining investor confidence. Unfair tax policies that disproportionately burden compliant firms, excessive and overlapping regulations, unaffordable energy and recurring balance-of-payments crises top the list. These factors have tilted the playing field against documented companies when compared to the informal sector, rendered manufacturing unviable, drastically reduced profits — in some cases pushing companies into losses — and made it difficult for foreign entities to repatriate profits. More troubling for foreign investors is the diminishing hope of any real improvement.

Pakistan has long struggled to attract foreign investment, particularly in export-oriented sectors. Now that even market-seeking investors are exiting, there should be a realisation that all is not well. The situation will not improve merely by making declarations of commitment to an improved business climate. Nor will the creation of investment bodies change this reality as is evident from stagnating investment inflows and the exit of foreign companies. Even new foreign entrants have not brought any significant amount of investment, created jobs or increased productivity and exports. In most cases, these have only bought out existing businesses. The political leadership must realise that the time for speeches and pledges has passed, and that the government must now walk the talk.

Published in Dawn, October 14th, 2025

New KP CM

THE PTI has managed to get its way. At least for now, it has succeeded in having its man installed in the office of the provincial chief executive in KP.

There had been warnings aplenty following Sohail Afridi’s nomination. Almost as soon as his name was announced, a stream of regime-aligned personalities from both politics and the media had levelled a series of allegations against him, ranging from corruption to outright facilitation of terrorists. Some had gone so far as to claim he would never be elected.

This level of confidence appeared at odds with the fact that the PTI enjoys an overwhelming majority in the KP Assembly, even with its lawmakers technically rendered ‘independents’ by the Election Commission. There were also questions why a politician considered dangerous had been operating unchallenged by the state so far and why his alleged misdoings came to light only after Mr Afridi was named as a replacement for the chief minister preceding him. In other words, why did the centre appear keen on preventing him from taking office?

Even now, though some 90 members of the KP Assembly have voted him in, Mr Afridi’s future hangs in the balance. The PPP-appointed governor of the province, Faisal Karim Kundi, had ‘returned’ the resignation of the erstwhile chief minister, Ali Amin Gandapur, seeking confirmation from him in person on Wednesday evening. This was criticised as an undemocratic attempt to block the KP legislature from appointing a new chief executive. And though the voting went ahead anyway, Mr Kundi is still required to administer the oath to Mr Afridi. As they say, there is many a slip ’twixt the cup and the lip.

Regardless of how the KP Assembly has voted, there are some important people who seem to feel differently about Mr Afridi. In fact, the pattern has been seen in other instances as well: laws, rules and procedures can be set aside very swiftly once a decision has been made. On its part, the PTI could have shown greater maturity by not rushing the matter.

Mr Afridi is known for his confrontational rhetoric against what he sees as state excesses. The party seems to have been sending a deliberate message by installing him in the most important office that it controls. The message has been received. One wonders how it will be responded to.

Published in Dawn, October 14th, 2025

Arshad’s challenge

BESET by injuries and a dip in performance, Pakistan’s javelin superstar Arshad Nadeem faces a new challenge: his career has to move forward without his mentor and coach, Salman Butt. On Sunday, Mr Butt was slapped with a lifetime ban by the Athletics Federation of Pakistan for violating the constitution during the controversial elections of the Punjab Athletics Association. The notice of the ban came a day after Mr Butt, who had been the Olympic champion’s coach since the Tokyo Games in 2021, had submitted a reply to the AFP regarding Arshad’s sub-par performance at last month’s world championships in the Japanese capital. Having won Olympic gold in Paris last year in record-breaking fashion, Arshad has seen very limited international action, with most of his time since spent recuperating from an injury and subsequent surgery to treat a lingering calf issue ahead of the championships, where he finished a lowly 10th. His only previous international assignment since the Olympics was at the Asian Athletics Championship in South Korea, where he won gold. In his explanation to the AFP, Mr Butt blamed the heat and humidity in Tokyo, as well as the recurring pain in Arshad’s operated calf as reasons for a best throw of 82.75m, a far cry from his 92.97m Olympic effort. At that time, Arshad had spoken about breaching the 100m-barrier in future but since then, he has regressed and now will be without the man he called his ‘spiritual father’.

Since becoming his coach, Mr Butt is reported to have exercised undue control over Arshad, including his media engagements. Everything had to go through Mr Butt, who had constantly been by Arshad’s side since the athlete’s rise to stardom. Mr Butt had spoken about being attached with Arshad until the latter wanted him to continue. With this change, the AFP, which has banned Mr Butt, must appoint a coach who can help Arshad rediscover his lost form.

Published in Dawn, October 14th, 2025