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Why Deregulation Works

Editor Isb by Editor Isb
May 13, 2025
in National
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Why Deregulation Works
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By: Shahzada Ahsan Ashraf

Deregulation and decentralized markets have proven to drive innovation, economic growth, and public empowerment, as highlighted by Nobel laureates North, Fogel, and Ostrom. Their research emphasized three key points:

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Writing this beautiful forward to all in gratitude of ALLAH Subhanahu Wa Taala

1. Excessive Control Stifles Growth: Heavy government regulations inhibit innovation, entrepreneurship, and freedoms critical to economic development.

2. Institutions Are Crucial: Economies thrive when institutions protect property rights and promote free markets and the rule of law.

3. Decentralization Encourages Progress: Decentralized governance fosters efficiency, adaptability, and local problem-solving, driving faster development.

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Writer

Historical examples like North/South Korea and East/West Germany illustrate how decentralized and inclusive institutions spur growth, while concentrated power and restrictive controls lead to stagnation.

In Pakistan, the absence of free-market policies is evident in the Pak Rupee’s constrained movements despite global market trends.

The Dollar Index has surged 5.8% in seven weeks, while the Rupee remains range-bound. Excessive control has impacted public trust, creativity, and innovation, signaling the need for deregulation to unlock Pakistan’s true potential.

(The writer is a Former Chairman and Managing Director PIA, Former Federal Minister of industries and production)

Disclaimer: The views expressed on this website are those of the individual authors and may not reflect the opinions of the site or its owners.

Tags: Deregulation WorksPakistan Economic GrowthShahzada Ahsan Ashraf
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