Vested groups have come into action following the election announcement schedule by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to elect its managing committee and the office-bearers for the two-year term ie 2005-2006.
The information and documents which the FPCCI president wants the chambers and the associations to submit before October 15 for the renewal of their registration has unnerved these vested interests. They seem to have accelerated their efforts to pressurise the FPCCI chief to show his leniency in recommending their renewals to the Director Trade Organisations and the Commerce Ministry for issuance of licences to perpetuate their hold on the country's apex trade body.
For the next three months starting October 1 up to December 30, the FPCCI would remain the 'hunting' rendezvous for these groups, who thrive on the 'windfall' the FPCCI election promise for them. They may be short-time operators, but do influence the outcome of results, thanks mainly to the existence of a large number of fake associations and chambers, which are 'created' only for the purpose of winning the elections.
While the genuine members of the business community keep themselves away from this 'rut', the professionals thrive and make hay while the sunshines.
A few members of the business community, who like to remain anonymous when asked to give their views on the forthcoming FPCCI elections, said unfortunately, the trade bodies in Pakistan are not being run as elected democratic institutions, but as fiefdoms catering for personal whims and pleasures.
Instead of having the benefit of the business community as their first priority, the policies and day-to-day working of the chambers and the trade associations revolve round nominating relations and friends to various committees that allows them to come into contact with important government dignitaries, squandering precious financial resources on useless and wasteful ceremonies, sending inept people on business delegations to places that have absolutely no economic status.
The post-WTO international trade has given the private sector around the world an immensely important role. With the role of the government now becoming more of a facilitator from that of active nation building, the private sector has essentially assumed the role in stimulating economic and national growth, including job creation, attracting foreign investment, and devising new and creative ways of enhancing exports. The private sector and the business leadership is expected to accept that role, for which they don't seem to be ready, they said.
The dynamism of the private sector is essentially reflected in the leadership in its trade bodies. The office-bearers of the apex trade body are hardly an example of dynamism, intelligence, and corporate success. Similarly, other chambers and the trade bodies can hardly be praised for any outstanding contribution to the national economy, they viewed.
The government has been purging the national politics of corrupt politicians, who not only plundered the national wealth, but also remained a hindrance to national economic recovery. The similar people hang around the FPCCI. It is common knowledge among people conversant with FPCCI affairs that a good number of seats of the managing committee are on sale and go to the highest bidder.
This degeneration in the governance of trade bodies, particularly the FPCCI, has forced genuine businessmen and entrepreneurs to simply shun the FPCCI and other trade bodies.
Here the role of the Director Trade Organisations (DTO) that overseas the proper functioning of trade bodies come into focus. The motive of the DTO, which is explicitly responsible to make sure that trade bodies are run in a transparent manner, and that genuine trade bodies get permission and function for the improvement in economy has all but forgotten.
Last year, the DTO had picked up a few fake associations, and conducted a thorough investigation to establish their genuineness or otherwise. He had personally visited the offices of these associations on the addresses given by them, and found out that they did not meet the criteria laid down for obtaining the license to function as a trade body. In fact, some of the associations gave fake addresses, and the DTO found out that at no stage did these bodies function from there.
He served show-cause notices on them, which till to date have remained unanswered. Then abruptly investigations were stopped. Obviously, the promoters of these fake bodies, fearing that their modus operandi might be exposed, brought pressure on the commerce ministry, and the exercise was suspended.
The trade body like FPCCI through its unique apex position is suited ideally to evolve new business opportunities and create new sectors of business and economy. It is high time the government should take a very serious and disapproving look at the working of trade bodies which instead of becoming engines of growth are retarding its take off. The government has to give FPCCI strict and measurable objectives to increase exports, improve quality and productivity, nurture of new businesses, and above all being the catalyst for bringing foreign investment in the country.
The onus of clean-up is on the regulator ie the government, leaving it to the same people for improvement will take it nowhere.
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