Karachi, Sayed M Irfan, an industrial economic expert and former associate professor at NED University, has stressed the necessity for Pakistan’s economy to transition from a manufacturing and construction focus to a service-oriented approach to significantly increase disposable incomes and improve living standards.
According to Pasban Democratic Party, Irfan elaborated on the benefits of transitioning to a tertiary economic phase, noting that such a shift typically leads to higher family incomes and enhances the value placed on services such as education, healthcare, and professional consulting. This economic shift also influences societal values and the prioritization of social progress.
Irfan highlighted the extensive role of Pakistan’s informal economy, which accounts for about 35% of the formal sector and is a vital employment source. He pointed out that the entrepreneurial ventures within this sector, while providing essential services and livelihoods, often circumvent the standards of professionalism and integrity, contributing to a cycle of low productivity and informal employment practices.
The professor also touched on the broader implications of these economic practices, such as perpetuating a culture of corruption and affecting the overall quality and productivity of goods and services. He expressed concern over the long-term sustainability of relying heavily on an informal economy, especially in a global context that increasingly values formal education and regulated business environments.
Ultimately, Irfan called for a reevaluation of economic strategies and governmental policies to foster a more regulated and inclusive economic environment that can leverage emerging global opportunities and improve the societal welfare of Pakistan’s populace.