“Does anybody have a problem with me making provably false accusations about honourable people, just so my side can win?” -Alan Shore, from the television serial Boston Legal. ‘Provably false accusations’ is an aptly coined phrase to categorise heated exchanges in political entanglements; the question is, which side is everyone on? Most likely, taking a short cut and avoiding the hassle of a survey, the response that everyone is on Pakistan’s side will have universal acceptance. That being said, if this condition precedent is kept in the forefront always, debates on most issues become irrelevant. Hence, charged political scenarios are indeed mysterious. Serendipitously, the only time there can be a disagreement on fundamental national issues is when one of the parties is misinformed about the facts; this essentially suggests that as nations mature, a single party system might be more efficient. This conclusion is supported by the observation that there is an apparent continuity of policies within mature democracies that have a two party system. Electoral arguments mostly centre around same sex marriage, abortion and similar key issues, while a consensus is always and quickly achieved on trivial matters like foreign policy. Perhaps someday Pakistan will also achieve this nirvana but for the moment let us focus on the economic side of the equation. The prevailing conventional wisdom, irrespective of certain contrarian views, recognises that the private sector plays a primary role in the growth and maintenance of the national economy. The public sector is deemed inefficient in running businesses mostly due to political interference, hence privatisation of all state owned enterprises is propagated as a wise course of action. But whom do you sell to? While foreign direct investment is useful for technology transfer, even in the west there are concerns about handing over national corporations to foreigners, especially of Chinese origin. Even if this paradigm is ignored, foreigners loathe investing in a country where domestic entrepreneurs are moving their investments abroad, or practice self-exile. Additionally, security concerns and continuing political noise combine to adversely impact investor perception of risk. At high country risk, foreigners inadvertently look for a higher return and a shorter payback period. The net result is that cash starts flowing out of the country faster than it comes in. It is not, therefore, rocket science to conclude that domestic businessmen play an indispensable role in a free market economy. Keeping this in view, close cooperation between those who represent the domestic private sector, the businessmen and the political elite, appears prescient. The current perception created due to ‘provably false accusations’ from each side is however quite the opposite. Since everyone loves to imitate the west, lessons therefrom indicate that cajoling and providing seamless and unflinching support to businessmen is a wise strategy for creating employment and enhancing capital investment. Even when the private sector makes a mess of things, the policy is to provide direct assistance from taxpayers’ money, under the pretext of corporations being too big to be allowed to fail. Politicians even go as far as modifying century-old legislation considered problematic for private business, notwithstanding the eventual consequences to the national economy. While the conspiracy theorist will quickly point out that this is because of the campaign funds doled out by the private sector to every party in power, this view essentially ignores the underlying parameters. If businessmen are responsible for the health of the economy and by default the nation, it is imperative that they have a say in the political edifice. Trust perhaps is the key ingredient for this, perhaps uncomfortable, partnership. In successful free market economies the private sector, relatively or at least in theory, enjoys a free hand, largely shielded from the activism of politicians and the bureaucracy, and for these services or absence of services, takes charge of the social construct of society. Investment in projects, creation of employment, ensuring provision of necessities to the poor at affordable prices, supporting art and literature through corporate social responsibility, active philanthropy, grants for universities and beautification of the communities are all costs in a corporation’s financial statement. The thing is — there is no written contract for this arrangement; it is all about trust. Frankly, the west is currently on uncertain tides; regulatory activism is hardly beneficial for maintaining this trust. Perhaps their private sector defaulted on the trust and should pay the price. However, there is a thin line between over and under regulation and private investment is a fair weather friend. Stricter controls on currency flow, which are coming back into fashion, may keep the currency home, but rather than productive investment it will move towards bubbles. The older generations will recall a similar culture in Pakistan up until the 1970s. Back in those days, most universities were funded and a host of schools were trusts owned by leading business houses, investments in new technologies and projects were a regular feature and so on. What were the causes behind the distrust thereafter is not relevant but what is critical is that the majority of the business houses has, over time, dissipated or has not grown to requisite levels. The west has its Gates, Buffett, Bezos and many more; even the next door neighbours have a bunch of famous business houses. Pakistan comparatively lags behind. If the domestic private sector had flourished uninterrupted, would things be different today? If the answer is yes, then perhaps there is a need to revisit provably false accusations. The current narrative is that all businessmen are cheats who evade taxes, indulge in bribery for gaining monopoly rights and bending rules, exploit labour, act contrary to national interests in a crisis and overall keep their selfish interests at the forefront. No wonder most businessmen shy away from investment opportunities with a long term horizon, subject to regulatory oversight. In the light of this narrative, policy decisions dependent upon the magnanimity of the business community are rather confusing. If businessmen are categorised as tax evaders, why is a reduction in corporate tax expected to bring about desired results? The expectation that the business community will play, after decades of marginalisation, a larger role in the much needed economic kick off, may be slightly misconstrued. If entrepreneurs have restricted movement and limited input in policy matters, it would be highly unlikely that they will rise. If the public sector is categorised as inefficient or corrupt and the private sector is deemed selfish and dishonest, then the only option left to operate and manage all businesses is foreigners, which can hardly be in the best interest of the nation! By default, the rational choice is between the domestic private sector and the domestic public sector, and indications are that the current leadership is tilted towards the former. Without deliberating on the appropriateness of the choice, which rightly is the domain of the elected representatives, expectations from the private sector need to be accompanied by credible actions that facilitate businessmen across the board. At the very outset, the narrative has to be revisited in line with the policy direction. Businessmen are honest, pay all their taxes, facilitate employment and employees and are sincerely committed to investing in Pakistan, which is necessary for its economic growth and stability. Minus this change, the policy initiative will not translate into legislation and regulatory actions and the environment will remain hostile for domestic investment. The dream will remain just a dream. Barring views on strategic assets, one has always believed in the veracity of the trickledown theory, which supports the view that businessmen, risk takers and entrepreneurs are crucial for the health of a nation and need to be given this recognition. For Pakistan to come out of its economic doldrums, everything must be done to facilitate the business community to rise. The only way the ability to play golf can rise is a miracle. The writer is a chartered accountant based in Islamabad. He can be reached at syed.bakhtiyarkazmi@gmail.com and on twitter @leaccountant