Provinces urged to initiate road map to empower district economies

KARACHI: Pakistan Business Forum (PBF) urged the provincial governments to initiate the road map to empower district economies. Chief Organiser PBF, Ch Ahmad Jawad said in recent years, the development of Pakistan’s national economy has been a top priority for policymakers, but the focus has largely been on macroeconomic indicators such as GDP growth, inflation rates, and fiscal deficits.

While these factors are undeniably important, there is an increasing realization that focusing on the district-level economy could lead to more sustainable and inclusive growth, ensuring that no region or community is left behind.

By shifting emphasis to district economies, Pakistan can address the unique challenges faced by various regions, create more equitable opportunities, and improve overall development outcomes.

Jawad said a district economy refers to the economic activities and resources within a specific district, which can be urban, rural, or a mix of both. This includes local industries, agricultural production, trade, services, and labour markets.

Unlike national economic strategies, a district economy targets the needs, strengths, and challenges unique to each region, offering solutions tailored to the local context.

By investing in district-level initiatives, Pakistan could unlock the potential of its diverse regions, including urban centers, rural areas, and marginalized regions, ensuring that every area contributes meaningfully to the country’s growth. The idea is to foster economic self-sufficiency within each district, create jobs locally, and ensure that resources are used efficiently at a granular level.

Pakistan is an agricultural country, with a significant portion of its population dependent on farming for livelihood. However, the agricultural sector faces challenges such as outdated farming techniques, low productivity, water scarcity, and a lack of access to modern technology.

To strengthen district economies, Pakistan should focus on improving agricultural productivity through technology adoption, better irrigation methods, and crop diversification. This would not only raise farmers’ incomes but also reduce rural poverty and improve food security.

In addition, enhancing rural infrastructure, such as roads, storage facilities, and markets, can help farmers reach larger markets and increase their profits. Similarly, SMEs are often the backbone of district-level economies, as they create jobs and stimulate local economic growth.

However, many districts in Pakistan lack access to financing, business development services, and market connections that are critical for SMEs to thrive. Government and private sector efforts to promote entrepreneurship and improve the business environment for SMEs can be highly effective.

By facilitating access to low-cost credit, providing technical training, and fostering networking opportunities, Pakistan can empower small businesses and contribute to the creation of job opportunities in districts.

Infrastructure plays a central role in economic development. Many districts in Pakistan suffer from inadequate infrastructure, including poor roads, unreliable electricity supply, and limited access to the internet.

These deficits hinder economic growth, particularly in rural and remote areas. Pakistan must invest in improving connectivity between districts through better road networks, communication infrastructure, and energy supplies.

With improved infrastructure, businesses can flourish, and the movement of goods and services can become more efficient. Additionally, enhanced digital connectivity can open up access to global markets and online business opportunities, benefiting local entrepreneurs.

PBF official further told Pakistan is home to a rich cultural heritage, beautiful landscapes, and diverse ecosystems. District economies can benefit greatly from tourism, which can boost local businesses and create jobs.

From historical sites in Lahore and Multan to the scenic mountains of Gilgit-Baltistan and Swat, each district has its unique attractions.

Local industries such as handicrafts, food products, and traditional garments can also be promoted for district-level economic growth. By supporting these industries and capitalizing on tourism, Pakistan can create a more diverse and sustainable local economy, reducing dependency on a few key sectors.

For district-level economic development to succeed, Pakistan must adopt a more decentralized approach to governance. Currently, most decision-making is concentrated at the national and provincial levels, leaving local authorities with limited autonomy and resources.

By empowering local governments and administrative bodies with greater decision-making power and financial autonomy, Pakistan can ensure that development strategies are more aligned with the needs of each district.

This would enable local leaders to prioritize projects that reflect the unique economic strengths and challenges of their communities. In addition, decentralizing power would ensure better resource allocation. Funds earmarked for development could be channeled directly to the districts, allowing for more targeted and efficient spending on infrastructure, education, health services, and other critical areas.

One of the biggest constraints on economic development in districts is the lack of a skilled workforce.

The education system in many parts of Pakistan, especially in rural areas, suffers from outdated curricula, insufficient facilities, and a lack of vocational training opportunities.

To address this, Pakistan needs to invest in education and skill development at the district level, ensuring that youth are equipped with the skills needed to participate in the modern economy. District governments could collaborate with local businesses, universities, and vocational training institutes to design programs that meet the demands of local industries, whether in agriculture, manufacturing, or services.

The government alone cannot drive the growth of district economies. Public-Private Partnerships (PPPs) are essential for bringing together government resources and private sector expertise. Local entrepreneurs, businesses, and NGOs can work with the government to implement projects that drive economic development at the district level.

For example, public-private partnerships could facilitate the construction of industrial parks, the development of agricultural value chains, or the improvement of local infrastructure. By aligning the interests of both sectors, Pakistan can leverage private sector investment to complement government-led initiatives.

For district economies to thrive, it is crucial to ensure that development is inclusive and that all segments of society, particularly women and marginalized communities, have equal access to opportunities.

District-focused policies can be tailored to remove barriers to participation and empower local populations to take part in the economic process. For example, supporting women entrepreneurs with microfinance loans, establishing women-only markets, and promoting gender-inclusive policies in local governance can contribute to more equitable development.

Similarly, special focus on the inclusion of minority groups and underrepresented communities can foster harmony and support for local economic initiatives.

Jawad also told we must understand to focus on district-level economies presents Pakistan with an opportunity to create a more inclusive, balanced, and sustainable approach to economic development.

By recognizing and supporting the unique strengths and challenges of each district, Pakistan can ensure that all regions contribute to the national economy, fostering shared prosperity.

Through targeted investments in agriculture, SMEs, infrastructure, education, and inclusive policies, Pakistan can create local economies that empower communities, reduce regional disparities, and pave the way for long-term national growth.

Copyright Business Recorder, 2025