M RAFIQUE GORAYA

LAHORE: As the Pakistan Muslim League-N’s ten year rule in Punjab is coming to an end in about ten weeks, Business Recorder talked with Chairman Planning and Development Punjab Muhammad Jehanzeb Khan about Government of Punjab’s program of multi-sectoral reforms focused on improving competitiveness in Punjab as the business environment is a crucial determinant of the competitiveness of the private sector which depends on a well-functioning investment climate.

BR: What is the Public-Private Dialogue mechanism?

Public Private Dialogue (PPD) is a core function of ICRU. It provides a mechanism for a structured dialogue comprising of the PPD Council and several thematic Working Groups. It institutionalizes private sector’s participation in reform efforts by the Government related to policies, legislation, regulations, processes and procedures, which at present create impediments to businesses.

BR: There is a lot of talk about Investment Climate Reforms. What is the role of the PPD Council in bringing about these reforms?

The PPD Council is the apex decision making body empowered to steer matters pertaining to all business related reforms and enabling investment environment interventions in Punjab. These include but are not limited to Increased Access to Finance for SME’s, enhanced Access to Skilled Labor, Women Enterprise Empowerment and improved Access to Information. The decision making process is a two way mechanism which can either be based on Working Group discussions on business enabling interventions or recommendations from members of the PPD Council in light of their expertise in their respective fields. The implementation of the decisions taken by the Council will be driven by the ICRU and Planning & Development (P&D) Department, Government of the Punjab (GoPb).

BR: What role in your opinion does ICRU have to play in establishing the PPD mechanism?

The Investment Climate Reform Unit (ICRU) is an investment facilitation agency which is an integral part of P&D Department, GoPb. ICRU has been authorized to create an enabling business environment for local and foreign investors who are already in operation or are planning to invest in Punjab. An important part of ICRU’s mandate is to recommend and help implement business enabling reforms that will be instrumental for institutional change geared towards achieving a business-enabling-environment in the Province.

ICRU in its capacity as the Secretariat to the PPD Council is responsible for coordinating and facilitating overall PPD initiatives in the Province. The Secretariat takes forward recommendations to the Council based on the outcomes of working group dialogue.

BR: How do working groups operate and what is their purpose? Working groups can either be thematic or sectoral. They are comprised of sector specialists and practioners ranging from various industries and sectors and have balanced representation from the public and private sectors to develop a meaningful dialogue process.

Working Groups meetings discuss relevant issues and provide recommendations that relates to either policy, laws, regulations or direct operational impediments confronted by the private sector. These recommendations are then forwarded to the Council for approval or further deliberation

BR: How in your opinion does the mechanism benefit the private sector?

Dialogue between the public and private sector has been a prominent feature for decades in a number of countries and is considered as an important means for promoting private sector led economic development. It has also become an important part of the private sector reform process and has led directly to policy reforms around the world. For example: In Malawi, the National Action Group has been instrumental in tax reforms and measures to improve electricity supply. In Vietnam, the Private Sector Forum led to the elimination of a dual-pricing system to level the playing field for domestic and foreign companies.

PPD also facilitates Investment Climate Reforms by supporting champions for reform, creating momentum, and accelerating the reform process. This is in line with the vision of the Punjab Growth Strategy 2018 – the official policy document of GoPb with regards to economic growth and sustainability.

BR: Does Public-Private Dialogue mechanism build an atmosphere of mutual trust between the Government and the Private sectors?

PPD mechanism provides a common platform to the public and private sector by building consensus, trust and understanding. This proximity results in taking substantial steps for improving the investment climate. It also plays a role in improving social cohesion and civil society. Less readily quantifiable, but no less significant, are the effects sustained engagement between the government and private sectors have had in numerous locations in creating improved levels of trust, understanding, and cooperation. In many countries, mistrust and misunderstanding between the public and private sectors needlessly hampers reform efforts.

BR: How is this mutual trust beneficial?

Governments that listen to the constraints of the private sector are more likely to devise sensible prioritization plans and workable reforms. This in turn can encourage investors and business owners to take a longer view and cooperate with laws and regulations. When governments and businesses are mutually mistrustful and uncommunicative, investors lack confidence and are disproportionately drawn to short-term returns and the informal sector. When entrepreneurs understand what a government is trying to achieve with a reform package, they are more likely to accept and work with the reforms in practice. Additionally, PPD can help to ensure that reforms actually take effect on the ground by helping disseminate awareness of the changes, feed information back, and keep up the pressure for necessary action.