Of late, the gulf between the government and the business community is found to be growing due to various developments. While certain new measures taken by the government are intended to serve the national economy positively, they have proven to be counter-productive and have reduced the government’s revenue earnings. A case in point is that businessmen are now heavily turning to hawala transactions, since issuance of cheques above a certain amount has high tax consequences, affecting the ease of doing business.
Another factor, which is negatively affecting business and the economy, is the continued harassment of businessmen by unscrupulous elements and the interference of unconcerned persons in purely business transactions for their own self-interests. It has been reported that unethical practices, such as strong arm tactics, threatening phone calls and use of paid outlaws for unwarranted actions are being adopted. It has also been observed that the law enforcement agencies, such as police officials, are taking advantage of businessmen to extort money. If such pressure tactics continue, and are not aggressively addressed, Pakistan should expect a deteriorating business environment and a significant reduction in the number of people willing to actively participate in the business community.