No power can compensate or equal economic strength. Whether it is an individual, society or a country, economic strength is a power tool for getting things done quickly. Well, most of the time. at least. Historically in Pakistan, whenever trade commerce or export, being the science of all economics, were mentioned the only name that cropped up defining the tenor was Export Promotion Bureau commonly known as EPB. For people working in there, the EPB was used as a term of endearment. Exports from Pakistan were almost synonymous with Export Promotion Bureau.
The Export Promotion Bureau was established on September 4, 1963 in a cabinet meeting presided over by President, Ayub Khan. The EBP's establishment was announced by his Finance Minister, Mohammad Shoaib. The standard operating procedure adopted by the Export Promotion Bureau was aimed at gaining market access in selected foreign markets, invest in resources of other organisations, encouraging export activities and covering a new field of activities to assist private enterprises. The Bureau combined trade promotion, tourism, commercial intelligence and exhibitions.
The Bureau was to be organised on the same principles as that of the Jute Board. It was never declared an autonomous body but was to function as an attached department under Ministry of Commerce. The formation of the Export Promotion Bureau was intended to enhance the role of exports as Pakistan's trade promotion organisation. Pakistan's movers and shakers at the time correctly gauged the dynamics of the world economy. They realised the need for the future boost needed for industrial development and vital export investments. They envisioned the EPB as a service-oriented export promotion department.
The adopted philosophy of the EPB can be summed up in the following three precepts which hold true even today:
1) Commerce and trade, especially exports, cannot be treated in seclusion and gauged in isolation.
2) Enhancing and promoting exports is a collective function through shared wisdom.
3) A TPO in essence must not indulge in trade itself, but facilitate all those who do.
Many times, EPB went beyond its mandate and integrated many facets of the economic currents of the time. The EPB aimed to focus on trade and matters relating to commerce within and outside Pakistan, specifically utilising some of the marketing tools for achieving possible targets and goals.
Of course, being one of the major export promotion organisations in Pakistan, many connecting assignments were combined with the EPB, directly or indirectly, including: study of different countries' import regimes, developing domestic commerce; encouraging the setting up of export-based industries, wherever possible, aligning to meet with export-oriented investment criteria; providing research-based analysis on products/markets; catering to and for dissemination of up-to-date information and requirements within and outside Pakistan and, finally, developing and promoting the services sector in Pakistan.
As can be witnessed achieving the above task was not easy. Much exertion must have been put in to collect a lot of data, background, historical evidence, adapting and adopting reasons for policy formulation, implementing an unchartered course while keeping an account of successes and failures, and, above all, putting all this in a descriptive order to understand international markets. Efforts had to be focused, interpreted while gaining the confidence of all stakeholders being the real value in increasing exports from Pakistan.
To provide real time service, an organisation connected with this task must give and, in order to give, it must know. Awareness, therefore, is an important tool in the right direction for any service oriented promotional organisation.
The EPB was truly a service-based progressive body, dependent solely on knowledge-based dependency either in assimilation or dissemination. The only organisation in the public sector with no such powers like the Customs, Income Tax and other departments, such as labour. The EPB was mandated to promote exports from Pakistan and possibly all other related requirements, tasks and disciplines.
Policymakers were forced to depend on according priority to some of the tools used in marketing techniques. So, through allocation provided by the Export Marketing Developing Fund (EMDF), the EPB undertook to participate in many international exhibitions, delegations and commodity based market development exercises and pretty much pampered in research and development of both markets and products. As a result, the EPB developed considerable expertise on the subject.
The EPB slowly and gradually began to tackle supply chain issues providing a desired edge to marketing, never failing to give importance to Pakistan's exportable commodities. The EPB provided complete product-based backup to marketing after research. The EPB came up with concepts based on traditional and non-traditional items, which helped in prioritising value for meeting export promotion objectives. Pakistani exports made some inroads, achieving success to certain extend due to a strong database of buyers, sellers, markets and products.
Those who mattered kept assigning the EPB with numerous different progressions which was helping Pakistan in the international markets. The EPB also became famous for maintaining the textile quota. The subject was technical and carried with it severe legal implications and repercussions. Effective working entailed total indulgence in details of each case. It needed practical knowledge on all commercial and legal procedures. Due to prior knowledge on international marketing, officers and staff in the EPB monitored the quota system and handled it effectively.
In the 1980s and the 1990s, the EPB became synonymous with international trade, exports and commerce. The EPB in a given year, it sometimes participated in more than 150 international exhibitions. As a matter of prestige, the EPB was also handling all trade delegations from and to nearly all over the world, which definitely played its part in increasing exports from Pakistan. The organisation also ventured out in many relevant commercial fields such as supply-chain management, and indulged in the technical aspects of trade formation regarding the WTO and acquired legal acumen after being assigned responsibilities of providing services to commercial courts in the country.
Similarly, the SMEs and women entrepreneurs were acknowledged and given their due. The EPB brand became known worldwide especially in the commercial international exhibition circles. The EPB truly became famous for applying conclusively its marketing tools to support marketing efforts from Pakistan. Many organisers of reputable exhibitions placed their agents in Pakistan, depending solely on the EPB as their client. Yet, the fast-changing business prospects were not accorded due consideration or merit by the EPB. The main issue here was that those who headed the EPB then had their own agendas to pursue. The majority of bureaucrats heading the EPB did so because it provided them opportunities to travel abroad.
From its inception in 1963, the world around the EPB underwent a change. New systems were effectually designed and implemented to speed up all business activities. This can well harness the change that occurred in IT alone. IT today does not only mean "Information Technology"; it now stands for "intellectual transfer of knowledge".
In spite of the mileage worked for and covered through marketing tools like exhibitions and delegations, Pakistan could not achieve the required success rate in increasing exports like other countries of similar importance in the world. There have been coherent political, international and domestic issues hindering in overall pace of export development in Pakistan.
First, EPB was an organisation dealing directly in international trade. Over a period of time international trade became very complex. Those who mattered should have made it obligatory that EPB must be headed by people who were knowledgeable in commerce and trade so that they could tackle all such activities comprehensively even rigorously. It did not happen so. In bureaucracy, one major group, mainly generalist in nature were made to head all major government-controlled organisations. EPB was no exception.
Secondly, in 1994 with the advent of the WTO as a forerunner of General Agreement on Tariffs and Trade (GATT) was overseeing the multilateral trading system as many complex/technical situations had developed. Adherence to the new world trade order paved way for success and profits linking with the United Nations and its subsidiaries including the WTO. Pakistan like any other developing country needed the right expertise to deal with changing international scenario. Trade in goods, Trade in services Intellectual property rights with other more heavier complexities became business success symbols and paved way for future business development. Even today, Pakistan needs to develop a suitable, successful way forward in this context.
Thirdly, no business could progress without assurance, security and credibility. New world order, pertaining to better business concepts is entwined in a complex legal/technical trade based system putting developing or lesser developed nations at a disadvantage. This meant survival was dependent on strong networking with a few developed countries. The new system meant fighting for rights under the rules of new world trade order - an only norm for survival.
What is now needed is a joint action plan to achieve the following results:
1. Through thorough R&D and out-of-the-box thinking, identify the number of projects which can help to increase exports from Pakistan.
2. Built upon that a strong, pragmatic and viable export strategy for implementation.
3. Put forth and implement a viable restructuring plan for the present TDAP in order to achieve above aims and objectives.
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