Commercial Diplomacy: Private-Public Partnership

Majyd Aziz

                                                                                                        

There have been many instances where Pakistan lost out on opportunities to establish a formidable presence in the global marketplace. More often than not, it was, and still is, the lackadaisical mindset of the private sector, especially the well-set entrepreneurs who have not positioned themselves to be latter-day adventurers seeking new markets, new products, new ideas and new channels. At the same time, government’s economic managers and representatives in distant lands have also displayed a lethargic and nonchalant approach whenever economic initiatives have come their way. Notwithstanding the hyperbole spewing out of corridors of power or from the cubicles of Press Information Department, the bare fact is that national leaders have rarely been instrumental in ushering a long-term vision of economic affairs that must be truly implemented.

The prime reason for this sorry state of affairs is the blatant disconnect between private sector and the government when it comes to international trade and investment. The scorecard of common government-private sector initiatives is remarkably pathetic. The government negotiators usually prefer to go solo and, in case it is imperative to solicit private sector opinion, a perfunctory exercise is undertaken at the eleventh hour to consult trade and industry leaders. However, this is merely a charade perpetrated by these officials and, as expected, the agreements have nearly always been negative or insignificant for Pakistani private sector.

It is important to note here that the various Bilateral Investment Treaties, the Free Trade Agreements, the Preferential Trade Agreements, or even the plethora of MOUs that government officials negotiate, agree and sign have generally never enhanced trade and investment in the manner and spirit in which these were negotiated in the first place. Though accusations should not be made here, but, as has been so often witnessed, the caliber and skills of the Pakistani officials in economic affairs have been sadly wanting.

This attitude also does not absolve the private sector from this cheerless position. The Pakistani situation has its own complex set of dynamics.  The game starts with these well-set entrepreneurs who have created a byzantine grid to keep themselves insulated from policies that would upset their apple cart. Their stranglehold of essential sectors in Pakistan’s economy, whether financial, industrial or mercantile enables them to be exclusive as well as to design the framework that would be first and foremost, beneficial to them. Therefore, power is achieved and sustained through linkages with the military, bureaucracy and politicians. Money makes the mare go, and this is magnificently manifested in perpetuating strong bonds through open-ended funding whenever required. However, this is where transparency ends and a monopolistic grip is ensured because these comparatively few players have intensive and remunerative contacts and relationships with diplomats, foreign corporations and financial institutions, and more importantly, they have influence over the media.

It is imperative that Pakistan’s commercial and economic representatives in Embassies and Consulates must be from trade and industry and must be proficient in their fields of activity. The disregard for meritocracy and the heavy influence of political parties has vitiated the environment and so, in most cases, the Commercial Consuls have been disasters from day one. Most of them have, during their tenure at a foreign post, become protocol officers rather than dedicated commercial officers. Many of them have limited contacts with important business leaders, with prominent members of media, and with high government officials. That is why it is important to send trained, competent and knowledgeable Commercial Consuls who would not be mere public relation gofers with more knowledge of restaurants and plane timings and less information about the host country’s economic policies.

The Federation of Pakistan Chambers of Commerce and Industry, Karachi Chamber of Commerce and Industry, or for that matter any of the other Chambers and major trade Associations, should undertake a study to determine the golden opportunities lost by Pakistan due to the government and private sector not singing the same song in a harmonious tone. Did Pakistan truly benefit from the emergence of Central Asian Republic when these nascent nations opened themselves for business? The trade figures are nothing to write home about. These five countries have a trade regime of $ 180 billion while the Pakistan-Central Asian Republics bilateral trade in 2012 was a measly $ 35 million. When rebuilding of Iraq commenced, where was Pakistan? Except for some individual private sector efforts, nothing much came out because Pakistan was fixated on USA, Europe and China. If the Commercial Consul or even the Ambassador in Baghdad had done some research and had been up to date with information, maybe, just maybe, a joint venture could have been done with Chinese oil exploration firms who were not able to penetrate Iraq but through the diplomatic position Pakistan had at that moment in time, a breakthrough could have been achieved and the ensuing profits would have been substantial.

Today, Pakistani and USA leaders are talking of a long-term, mutually beneficial economic, diplomatic and military relationship but then there is no word out on the Bilateral Investment Treaty that is supposedly ready for signing. Most of what was heard during Premier Nawaz Sharif’s visit to Washington was the mantra of drones, drones, and drones. Was any headway achieved on the economic front.? Did Congress give some positive indication of legislation that would economically benefit Pakistan? How much spadework was done by the commercial officers in the Embassy and at various Consulates in advance preparation of the trip? Was the Prime Minister apprised of the pitfalls and bottlenecks prevalent in Washington? And what happened to the Most Favored Nation status to India? Why is the inevitable being deferred and for what reason? Is it economic or does it has to do with the border skirmishes? Has there been realistic feedback from the High Commission in New Delhi? Or is the government getting cold feet, like in the decision to remove ban on YouTube?

Therefore, for the future of Pakistan’s economic prosperity, it is crucial that a joint private-public approach is institutionalized if Pakistan has to become a noteworthy global player. It is the private sector that can provide current and reliable market intelligence, that can effectively attain beneficial networking with foreign counterparts, than can pragmatically promote the nation’s image internationally, and at the same time that can forcefully support and reinforce the government’s economic strategy and national concerns far much better than the bureaucracy. Private sector is the major stakeholder in any country and this is the critical mass that is so essential to navigate the outreach that is so desperately missing in the commercial diplomacy sphere of Pakistan’s leaders, planners and implementers. For Pakistan, Economic Diplomacy as well as its component Commercial Diplomacy, are both akin to passengers of a rudderless ship on high seas on a stormy and moon-less night. For Pakistan, the present “business as usual” approach must be replaced by the “business with determination” resolution.