For decades, Pakistan’s key economic sectors — from sugar and wheat to fertilizer, insurance, power, and automobiles — have remained caught in a web of government control, administrative price setting, and market interventions. While the intent may have been to ensure stability and protect the vulnerable, the outcomes have often been quite the opposite: chronic shortages, distorted incentives, poor quality of services, and price volatility. It’s time to ask the hard question: Should the government continue to act as a market player, or should it evolve into a market regulator? Pakistan urgently needs to effect transition from command-and-control economics to a system based on open markets and fair competition. In a country of over 240 million people, the real drivers of economic efficiency should be consumers — not bureaucratic price committees or import-export quotas. When markets are allowed to function freely, supply and demand find their natural equilibrium. This, in turn, encourages innovation, rewards efficiency, and improves service delivery. The cost of control Consider the sugar and wheat sectors, where administrative pricing and procurement policies have led to artificial shortages, rent-seeking behaviour, and black-market premiums. Fertilizer subsidies and quota allocations have created room for manipulation. In the automobile industry, import restrictions and protective policies have choked competition and kept prices high without improving product quality. The insurance and power sectors, too, suffer from outdated regulations and excessive red tape, discouraging innovation and limiting consumer choice. The state’s over-involvement in these sectors stifles private sector initiative and keeps foreign investors at bay. Consumer-first markets Open markets, when regulated transparently and fairly, are inherently pro-consumer. They compel companies to compete — not just on price, but on quality, service, and innovation. This competition leads to better products, lower costs, and more responsive customer service. In a free market, the consumer is king. In contrast, government-controlled markets disempower consumers. Choices are limited, quality is compromised, and prices are either artificially high or unsustainably low. The absence of competition creates complacency and waste — a burden that ultimately falls on the people. Regulation, not control This does not mean a deregulated free-for-all. The government still has a vital role to play — but as an impartial regulator ensuring a level playing field, protecting consumer rights, and preventing anti-competitive practices. Strong institutions like the Competition Commission of Pakistan (CCP) must be adequately empowered to enforce market rules and guard against monopolies, cartels, and abuse of dominance. The role of the government should shift from fixing prices to facilitating competition, from managing inventories to ensuring transparency, and from protecting incumbents to enabling new entrants. With over 200 million consumers, Pakistan has the scale to attract major global investments — but only if markets are open, predictable, and driven by merit. Foreign and domestic investors are drawn to systems where rules are clear, competition is fair, and policy does not change overnight. We stand at a crossroads. We can either continue down the path of market distortion and missed opportunities, or we can choose a future where vibrant, competitive, and consumer-led markets power economic growth. To build a stronger economy, we must first let our markets breathe. Copyright Business Recorder, 2025