ISLAMABAD - Planning Commission of Pakistans report of Task Force on Private Sector Development has identified the security crisis and extremism, domestic resources mobilisation, realistic exchange rate constraints inflation and narrow industry base, the top most challenges faced by the country. Meanwhile, on macro side challenges like saving -investment gap, external shocks like security situation, inadequate public policy changes in the current scenario were underlined in the report, compiled by the Task Force on Private Sector Development, which was formed on the direction of Deputy Chairman Planning Commission, as a forum of Public-Private dialogue consisting of 29 leaders from government, business, civil society and academia. Shahid Javed Burki and Razak Dawood were designated as co-chairmen of the task force. According to the report, the key binding constraints to private sector led growth including low domestic savings and vulnerability to external shocks, low skills and absence of a competitive human resource base, poor quality of infrastructure, inward orientation of firms and low technology content and poor governance, deteriorating institutions, opaque legal and regulatory frameworks. A total of 5 meetings took place in this connection under the umbrella of the Private Sector Task Force Development. The proceedings of the Task Force were concluded during 5th meeting on 28th-29th October 2010; where in findings of Task Force in seven areas were finalised. According to the findings of the report, rationalisation and expansion of the fiscal base with the goal to increase tax to GDP ratio from the current 9 per cent to 17 per cent over a period of 5 years, developing an institutional and analytic framework to guide the process of fiscal decentralisation, removing the anti export bias in the management of the economy and move towards export led growth and developing the Pakistani firm by rationalising the regulatory system by providing it with better access to institutional finances and improving technological base. Meanwhile, its finding also included, implementing a well-financed programme to improve and develop the infrastructure base of the economy, improving educational and skill base for the economy and setting up institutional mechanism for the implementing the recommendation of the Task Force in overseeing the process of implementation. The report emphasises that in order to take action based on the agenda developed by the Task Force the government with the help of the donor community should undertake the following initiatives as next steps included review of the trade policy with a view to placing greater focus on export-led growth, inventory of subsidies granted to the private sector with a view to their rationalisation, inventory of available physical infrastructure, determining development priorities and mechanisms for financing them, review of economic laws on the books with a view to rationalise them, the government to develop an implementation mechanism for the Task Force recommendations, improving the functioning of the government by reforming the civil service structure and launch of a public awareness programme to create a constituency for reforms leading to a new social compact for the country. Dr Nadeem-ul-Haq, Deputy Chairman, Planning Commission stressed on transformation of economy from state managed to private sector driven growth strategy, with market reforms, privatisation and institutional restructuring in order to redirect economy toward a fast growing economy during the Task Force deliberations. He also emphasised the role of state, in future, to be a facilitator rather than a regulator. Fact remains that private sector without right set of public policies human capital and improved governance, cannot bring efficiency and growth in the era of global competitiveness, he said as well. Hence, Deputy Chairman expressed that a paradigm shift is required from project based approach in the bureaucratic and political circles to reform based approach so as to enhance productivity and accelerate GDP. Likewise, he observed that an intellectual movement led by forward looking think tank is essential to develop consensus for reforms among all stake holders in order to put Pakistan economy on sustained growth trajectory.