Meaning of Business Environment Environment of a business means the external forces influencing the business dec isions.

They can be forces of economic, social, political and technological fact ors. These factors are outside the control of the business. The business can do little to change them. The economic prosperity of any country is largely due to the initiatives of the private sector and fully supported by the government thru demand-oriented facili ties. In Pakistan, there has always been a yo-yo style relationship between the govern ment and the business community. The over-employment in the government bureaucra cy has led to abnormal increase in governmental interference, harassment, and co rruption. This has come to a point where about half of the industrialist s time is wasted on government matters such as inspections, audits, correspondence, repor ts, filling forms, and visits to government offices. The government must reduce the plethora of taxes, must minimize punitive measures, must lessen the visits o f petty officers of myriad agencies, and must slash the tax rates if there has t o be increased investment in the country. A better and more enabling environment could be created if the government is ser ious about controlling the rampant under-invoicing, smuggling, and mis-declarati on. The solution lies in seriously and sincerely taking the industrial and business community on board. Policy making without intensive deliberations and without as certaining the needs and demands of the industrialists and businessmen would be just another ad hoc measure. The time to change is now. The global marketplace i s already becoming saturated with competitors from other nations. Pakistan canno t be a bystander or an isolated soloist in the world today.