We have to look at how this private sector growth is occurring.
Most Pakistanis with free capital will put it into real-estate (for obvious reasons). That means we don't have a lot of free capital going into new industries. The folks in the new industries are definitely quite ambitious and visionary, but very little of our GDP (relatively speaking) comes from new industry right now.
Most of the private sector growth is probably still tied to old hands -- i.e., the same politicians, feudal lords and generals. So, the same silly mentality that we see in the state/institutions is prevalent in large portions of our economy. This might explain why things aren't taking off in a macro-economic sense. The private sector (outside of new industries) is suffering from the same old inefficiencies.
One example. Pakistan is one of the
biggest wasters of fresh food, especially produce. Why? The guys running the show between harvest and retail don't invest in refrigeration or flash freezing. Not only is the food waste affecting the domestic supply channel (i.e., contributing to scarcity and driving imports to offset shortfalls), but we're also missing out on the export market. This one example tells me that uncle mentality is rife, even in the private sector.
@SQ8 @JamD @Falcon26