“For to everyone who has, more shall be given,” a phrase from the Gospel of Matthew, has transformed from a spiritual teaching into a harsh societal reality in Pakistan. Known as the “Matthew Effect,” sociologist Robert K. Merton used this concept to explain how wealth and power accumulate among a privileged few—a pattern that is glaringly evident in Pakistan’s regulatory system. Originally designed during colonial times to serve the interests of the British Empire, these structures have since evolved to perpetuate the dominance of a small elite. Instead of fostering progress, they maintain an environment that stifles innovation, discourages competition, and excludes the general population from economic and political opportunities.
In habit, Pakistan’s regulators seem more concerned with wielding “absolute control” than facilitating growth. With 122 federal regulatory authorities, as reported by the Pakistan Institute of Development Economics (PIDE), and a multilayered system spanning federal, provincial, and local levels, regulations overlap and burden the economy. Regulatory costs now account for an astonishing 39% of GDP. Rather than serving the public, many authorities operate within a “control-obsessed” society, creating barriers that discourage entrepreneurship. Public sector jobs remain more appealing than starting a business, as each step of the regulatory process comes with a price—monetary or otherwise—reinforcing a system of rent-seeking behavior and bureaucratic capture.
This capture is most visible in the redundant, inefficient procedures regulatory bodies impose. A glaring example is the Pakistan Standards and Quality Control Authority (PSQCA) and the Petroleum Regulatory Authority, both test the same fuel samples, adding unnecessary costs. Similarly, the overlap between the Cabinet Committee on State-Owned Enterprises (CCoSOEs) and the Cabinet Committee on Privatization (CCoP) illustrates how political motivations, rather than good governance, drive the creation of such bodies. This ineffectiveness, combined with a government that controls over 67% of the economy, chokes investment and economic dynamism.
The roots of this problem run deep into Pakistan’s colonial past, where bureaucratic institutions were designed to serve imperial interests. Today, those same institutions serve a new class of gatekeeping elites, maintaining their power while excluding others from entering the system. Regulatory positions, especially, have become instruments of control and revenue, not mechanisms for ensuring fair competition or innovation. Our deeply ingrained regulatory framework differs greatly from other nations’ contemporary governance models. For instance, the United States has an Office of Regulatory Affairs (ORA) that rigorously evaluates the necessity and impact of regulations before they are enacted. In Pakistan, a similar concept, the Regulation Impact Evaluation (RIE), remains only at a training level, highlighting the need for serious reform.
One key aspect of addressing this problem is overhauling Pakistan’s civil service. Current bureaucrats operate under the tenet of being “a mile wide and an inch deep,” handling a wide range of issues with limited knowledge. A merit-based system, however, would prioritize specialized training for newly inducted civil servants, ensuring that they develop sector-specific knowledge. This approach would encourage competition within the bureaucracy, where promotions are based on performance rather than seniority or connections. It would also help craft more effective regulations that promote economic growth, reduce inefficiencies, and serve the public interest.
Another essential reform is to end the outdated practice of appointing retired bureaucrats or defense personnel to regulatory positions, replacing it with merit-based appointments and clear performance indicators. Many regulators resist modernization, clinging to personal comfort and institutional inertia, but successful initiatives like the Pakistan Single Window—boosting the country’s Trade Facilitation Score from 57% to 71% in two years—show that reform is possible. Moreover, streamlining the current system by eliminating unnecessary licenses, permits, and certifications (RLCOs) would also help reduce red tape and curb elite control. Only essential regulations on health, safety, and the environment should remain, evaluated for cost-effectiveness.
A more ambitious approach would be to create a U.S.-style Office of Management and Budget and propose the Paperwork Reduction Act to reduce the amount of unnecessary documentation. Mandatory Regulation Impact Analysis (RIA) for all new regulations is essential to ensure that future laws are grounded in sound economic reasoning. Existing regulations should also be regularly reviewed to confirm their continued relevance and new regulatory proposals should be rigorously vetted by the Planning Commission before reaching the Cabinet for approval. This structured, merit-based approach would help dismantle bureaucratic barriers, promote transparency, and help Pakistan build a more inclusive, efficient governance system.
Ultimately, Pakistan’s path to stability and economic growth lies in breaking free from the Matthew Effect. Regulatory reform is essential to dismantle the power of entrenched elites who have long used these institutions as tools of control. By adopting modern bureaucratic practices, promoting competition within the civil service, and reducing government involvement in business operations, Pakistan can truly create an environment where innovation thrives and oppurtunities are accessible. If the country is to truly move forward, it must tear down this system of elite gatekeeping and replace it with one based on merit, where bureaucracy serve the common good and allow the nation’s full potential to be realized.
Sidra Charles
The writer is an academic, researcher and a freelance columnist. She can be reached at charlessidraa@gmail.com