The Pakistan CPSD urges policymakers to increase private sector participation and investments by focusing on three broad policy objectives:
enhancing institutional capacity and policy coordination;
strengthening competition and level the playing field; and
facilitating development of a diversified and inclusive financial sector.
This reform agenda would generate higher returns if complemented by other initiatives to address systemic macroeconomic fragilities and to increase both public and private investments in human capital. In addition, addressing the cross-cutting constraints can be transformative in unlocking sector specific investment opportunities as well, including in areas of renewable energy, agribusiness, port logistics, and fintech.