Induction of private sector into policy-making processes advocated

HYDERABAD: President of Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), Muhammad Saleem Memon, has said that the root cause of rising poverty in Pakistan is the failure to translate national resources into public welfare.

He emphasized that the devastating floods of 2022 and 2025 displaced millions of families and destroyed standing crops and agricultural lands, pushing countless households deeper into poverty.

He noted that another major factor is the large segment of the population employed in the informal sector, where low-paid and insecure jobs lack the potential to lift families out of poverty. In addition, the absence of quality education and skills has deprived the youth of better employment opportunities. Agriculture, which is considered the backbone of Pakistan’s economy, is also failing to deliver its true potential due to weak value chains, limited processing facilities, poor storage infrastructure, and restricted market access, leaving farmers unable to receive fair returns for their hard work.

Saleem Memon proposed that a reasonable portion of Benazir Income Support Programme (BISP) funds should be redirected toward productive “graduation-style” or income-generating pilot programs. For instance, if even 5% of the BISP disbursements are allocated to such initiatives, nearly Rs. 36 billion would become available to establish small-scale units that could generate sustainable employment. He highlighted that BISP disburse approximately Rs. 722 billion in 2025-26, meaning even a fraction of this could bring meaningful change if invested in productive pathways.

He further stressed that microfinance should not be limited to loans alone but should be integrated with training and market access. Interest-free financing models could support small-scale dairy, poultry, home-based food processing, and women-led enterprises, enabling them to directly connect with markets. Similarly, rural industries and livestock-based small units should be supported with subsidies or angel funding, creating skills, jobs, and value addition at the grassroots level.

HCSTSI President suggested linking technical colleges with the private sector to introduce demand-driven courses, while expanding IT skilling, freelancing, and incubation opportunities for youth in both urban and rural areas. This, he said, would allow young Pakistanis to contribute to the economy through modern digital avenues. To ensure transparency, he called for the establishment of digital targeting systems, mutual audits, and independent monitoring and evaluation units so that these programs remain free from political misuse.

He urged the federal government to immediately establish a BISP Reform Pilot Committee that includes federal and provincial representatives alongside the private sector, microfinance institutions, and civil society stakeholders. Digital transparency and independent monitoring must be made mandatory to safeguard records and ensure accountability.

Copyright Business Recorder, 2025