Addressing deeply skewed policies
By Afshan Subohi
2025-07-08
n Pakistan, corporate lobbies and elite groups, often with direct access to the highest levels of power, may not formally draft economic policies but frequently influence them to serve their own interests, sometimes at the expense of broader societal needs.
While most observers acknowledge the influence of elite groups on policymaking, analysts often struggle to explain how these actors shape government preferences to suit their narrow interests at the cost of the economy and society. Despite evidence of policy shifts aligned with elite agendas, a comprehensive understanding of the full range of tools and tactics used by lobbyists in Pakistan remains largely unexplored and under-researched.
This may, in part, reflect the reality that Pakistan`s democratic system is still in its infancy and has yet to grow deep roots. Even so, when a government, despite being aware of hardships faced by the working population, enforces sharp increases in the prices of essentials like petrol and gas while continuing to subsidise rentiers, realtors, brokers, barons, traders and the agricultural elite, it underscores the urgent need for reforms.
For instance, over the past month, the government has raised the price of petrol by over Rs15 to Rs266.79 per litre. This increase comes despite a decline in global oil prices from around $72 to approximately $67 per barrel over the same period. A similar trend is seen in gas tariffs, which have been unilaterally doubled, without justification. The government made these decisions despite the potential political cost, even as the country faces high unemployment, an accelerating brain drain, and worsening poverty and inequality. According to the World Bank, nearly half of Pakistan`s population now lives below the poverty line.
Allowing such a deeply skewed policy structure not only undermines the welfare of citizens but also threatens the stability ofPakistan`s fragile democracy by further eroding public trust in the system. Unfortunately, the situation is no better in neighbouring countries.
Recognising the influence of powerful interest groups, whose agendas may not always align with broader democratic or economic objectives, most developed countries have adopted institutional mechanisms to oversee their activities. While the systems are far from perfect, there is at least a clear acknowledgement of the problem. Governments and societies are responding by making lobbyist registration mandatory and regulating campaign financing to promote transparency, ensure accountability and avoid conflict of interest among members of legislative bodies.
Several prominent businessmen, politicians and experts were approached for comments, but few responded. PPP Senator Quratul Ain Marri, one of the few willing to engage, remarked, `I would very much like to initiate adebate on this issue in the upper house. But, realistically, there`s little appetite for full disclosure, transparency, or for establishing and empowering oversight institutions. Currently, Pakistan lacks both an established mechanism and relevant legislation. Whatever happens, happens behind the scene,` she noted.
She further stated, `Personally, I believe we need to legitimise and institutionalise lobbying and pressure groups, similar to PACs [Political Action Committees] and Super PACs in the US.` In US campaign finance, PACs and Super PACs both raise and spend money to influence elections but differ in structure and rules; PACs can donate directly to candidates and parties, while Super PACs can only spend independently and cannot coordinate with candidates or parties.
Some civic organisations expressed interest in the issue but were unaware of any systematic study or evidence-based report on the functioning and influence of lobbyists.Salahuddin Safdar, a parliamentary affairs expert with the Free and Fair Election Network, observed: `Pakistan lacks a comprehensive federal law to address conflict of interest in legislation and policy-making. Although multiple attempts were made in previous National Assembly tenures Punjab and Khyber Pakhtunkhwa did pass such laws during the last PTl government none succeeded.
The National Assembly and Senate rules contain provisions barring members with personal or financial stakes from participating in related decisions, but these are rarely enforced. Many lawmakers and ministers are linked to powerful business groups in sectors like sugar, tobacco, energy, media, real estate and education, yet they continue to participate in policy-making on these issues, effectively acting both as legislators and lobbyists.` Ahmed Bilal Mehboob, founding president of the Pakistan Institute of Legislative Development and Transparency, noted that in addition to using sectoral business bodies to present demands and build relationships with policymakers, interest groups also leverage the media to advance their agendas. `Beyond projecting their demands through collective platforms and advertising in print and electronic media, they run subtle campaigns, often with the help of reporters and writers, to frame their interests as synonymous with those of the public and the economy,` he explained.
Discussing political financing by businesses, Ehsan Malik, out-going CEO of the Pakistan Business Council (PBC), once told this scribe that none of the PBC`s member companies support any party or candidate during elections.
In a candid private conversation, a prominent Karachi-based businessman admitted to supporting nearly all major parties and promising candidates he has personal ties with.
`It`s the hidden cost of doing business in this city,` he remarked. `To survive, we need allies in assemblies and the government.`m