S. M. Tanveer, a prominent leader of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for a fundamental shift in Pakistan’s economic governance through the adoption of the organization’s “District Economy” model. Speaking on Wednesday, Tanveer emphasized that this approach could lay the foundation for a more inclusive, decentralized, and sustainable growth path by empowering local communities and strengthening regional economies.
The FPCCI’s District Economy model aims to devolve economic decision-making from the federal and provincial levels to district administrations, enabling local governments to define their economic priorities and drive development from the ground up. Tanveer argued that Pakistan’s current centralized economic structure has limited innovation, restricted entrepreneurship, and widened regional disparities. He maintained that giving greater economic autonomy to districts would stimulate business activity, generate jobs, and reduce income inequality.
“By doing so, we can unlock the true potential of our nation and build a more prosperous and equitable society for all citizens,” Tanveer stated. He explained that the model encourages local governments to work closely with businesses and communities to create favorable conditions for investment, innovation, and entrepreneurship at the grassroots level.
Tanveer further drew attention to the structural gaps within the country’s economic framework, pointing out that Pakistan’s GDP stands at around $411 billion, a figure dwarfed by the personal wealth of some of the world’s top entrepreneurs. Citing Elon Musk, whose projected net worth in 2025 is around $500 billion, he highlighted how centralization has held back the country’s economic potential compared to global benchmarks.
“Over-centralisation of powers and resources has left local economies underdeveloped and dependent,” he said. “The District Economy model is a way to reverse this imbalance and create opportunities in every region rather than concentrating economic activity in a few urban centers.”
The FPCCI leader outlined how devolving powers to districts could lead to more efficient fiscal management, increased tax collection, and stronger public-private collaboration. According to him, empowering districts would allow local administrations to develop targeted economic strategies aligned with their unique resources and industries, making growth more inclusive and sustainable.
“The District Economy concept is a game-changer for Pakistan,” Tanveer stressed. “It can encourage innovation, expand the tax base, reduce regional disparities, and position local economies as active contributors to national growth.”
The FPCCI has been advocating for this model as part of a broader push to modernize Pakistan’s economic governance, with an emphasis on sustainable development and inclusive policymaking. By decentralizing authority, the organization envisions an economic structure where prosperity is shared across all regions rather than concentrated in a few economic hubs.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.