Page 75 - CMA Journal (May-June 2025)

Focus Section

5) Digital Payments for Business Efficiency: Nepal’s investors with the security and financial
deployment of connectIPS and NEPALPAY predictability currently missing from Pakistan’s
QR—where QR payment volumes grew by 230% and short-tenure arrangements.
connectIPS transactions increased nearly 97 fold
from FY 2018–19 to FY 2023–24—underscores the Conclusion
power of digital finance. Pakistan could replicate this In today’s competitive South Asian landscape, Pakistan’s
success by rolling out seamless, interoperable 2.6% growth, volatile manufacturing output, and muted
payment systems across its industrial zones. Faster business sentiment highlight systemic weaknesses in
payments would reduce working-capital energy, policy, and investment frameworks. By adopting
bottlenecks, uplift monthly QIM figures, formalize proven regional reforms—centralized commissions,
transactions (thus raising its Business Sustainability hydropower incentives, robust digital payments, and
Index), and foster greater investor confidence, as long-term industrial leases—Pakistan can stabilize its
reflected in a higher World Sentiment Index rating. industrial base, lift its Business Sustainability Index, and

6) Creative Economy Fund & Innovation Hubs: The restore investor confidence. Implementing these
Maldives established a Creative Economy Fund of targeted steps can turn short-lived upticks into
MVR 100 million and innovation hubs focused on IP sustainable growth, paving the way for resilient,
protection, skills development, and technology export-led economic recovery.
adoption. References
Likewise, Pakistan can create similar incubators in • https://corporatemaldives.com/minister-saeed-announces-
STZs and industrial parks to support SMEs and mvr-100-million-fund-and-creative-economy-roadmap/
startups—particularly in tech, design, and • https://dps.psx.com.pk/company/FFC
agri-processing—thereby diversifying industrial • https://dps.psx.com.pk/company/NML
activity. Increased innovation and job creation would • https://dps.psx.com.pk/company/PSEL
help stabilize QIM and annual output, lift the
• https://thehimalayantimes.com/business/power-purchase-
Business Sustainability Index through broader agreement-signed-take-pay-basis
sectoral inclusion, and improve sentiment as visible
• https://trade.gov.mv/wp-content/uploads/2023/05/unsolicited-
success stories boost confidence across industries. proposals-policy-2019-en.pdf
7) Unsolicited Proposals Policy: Pakistan can enhance • https://www.ctlstrategies.com/latest/15th-amendment-to-
its industrial recovery and investment environment the-maldives-tourism-act/#:~:text=If%20the%20initial%20lease
%20period,to%20up%20to%2099%20years.
by adopting the Maldives' Unsolicited Proposals
Policy, which allows private-sector entities to • https://www.dailymirror.lk/business-news/Cabinet-greenlights-
Sri-Lanka-Economic-Commission--merging-BOI-and-EDB-functi
propose development projects directly to
ons/273-270812?utm
government bodies through a transparent, staged
• https://www.engrocorporation.com/overview/#consolidated-
evaluation process. This framework would attract
tab
innovative investments in renewable energy,
• https://www.invest.gov.pk/sez#gallery-1
industrial logistics, and smart manufacturing
hubs—reviving stagnating factory activity and • https://www.myrepublica.nagariknetwork.com/news/digital
-transactions-surge-at-210-annually-58-68.html
stabilizing the QIM of Large-Scale Manufacturing. By
fast-tracking technically robust projects, Pakistan • https://www.portcitycolombo.lk/port-city-perspectives/sri-
lankas-emerging-industries-beyond-tourism-tea/
could secure infrastructure that supports
uninterrupted industrial operations, increasing • https://www.srilankabusiness.com/news/edb-secures-links-
with-worlds-largest.html
annual industrial production growth.
• https://tradingeconomics.com/pakistan/government-debt-
8) Tourism-Inspired Leasing Model: The Maldives’ to-gdp
recent amendments to its Tourism Act allow foreign • https://propakistani.pk/2023/01/24/textile-companies-lost-
investors to lease islands for up to 99 years—initially rs-16-1-billion-in-recent-blackout/?utm_source=chatgpt.com#g
50 years—with extensions available through oogle_vignette
lump-sum payments or installment plans totaling • https://www.reuters.com/sustainability/land-use-biodiversi
USD 5 million per lease term. This longstanding lease ty/pakistans-plan-sharply-increase-growth-faces-headwinds-an
model gives investors long-term certainty and easier alysts-say-2025-06-11/?utm
access to international financing. Pakistan could • https://aptma.org.pk/2024/11/?utm
adopt a similar long-term lease approach for its
industrial zones, offering 50 to 99-year leases with (This article is prepared by Maiyra Ahmed, Assistant Director,
R&P, under the guidance of Shahid Anwar, Director R&P)
clear, time-bound fee structures. This would provide

ICMA’s Chartered Management Accountant, May-June 2025 73