Business confidence is eroding due to lawsuits and harassment. Entrepreneurs are refraining from making new investments and are instead worried about sustaining their existing ones. Vandalism and damages are disrupting supply chains and increasing financial costs. As a result, employment is stagnating, with many firms reducing recruitment or refraining from hiring new workers.
This impact is directly reflected in growth and the labor market.
The biggest barrier is the crisis of confidence. Often, there is no policy continuity, leaving entrepreneurs uncertain about whether they can operate safely. Without restoring trust, other initiatives will yield little result.
Job creation has stalled under these circumstances. Many firms are either not hiring or are cutting back on their workforce. This is directly affecting the country’s growth and labor market. Consequently, targets like boosting production, expanding exports, and creating new businesses have all become uncertain.
Three key steps are crucial:
Lawsuits and harassment must end, with a transparent and speedy settlement process introduced.
Tax and tariff policies must be predictable—sudden changes cannot be made.
Stability in fuel and electricity supply must be ensured so that production is not disrupted.
Without a business-friendly environment, the investment-to-GDP ratio will stagnate, leading to slower growth. Job creation will not occur, unemployment will rise, and if growth slows while inflation remains high, people will face mounting pressure. Restoring entrepreneurial confidence is therefore essential for revitalizing the economy.
At the same time, the government and policymakers should establish regular dialogue with entrepreneurs, ensure security in industrial zones, and provide effective incentives. These measures will restore confidence, encourage new investments, and keep employment and growth active.
The private sector is the main driving force of the economy. Without restoring the security and confidence of entrepreneurs, it will be impossible to revive industries and employment. Now is the time to take urgent steps so that entrepreneurs invest domestically, increase production and exports, and bring vibrancy back to the economy.
Author: Executive Director, Centre for Policy Dialogue (CPD)
