The country's apex trade body, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has planned to launch 'Business Index' to describe the trend and direction of business environment in the country.
Sources in FPCCI told Business Recorder that there was no such index available in the country and, unfortunately, the stock market index was indicated to measure the business sector performance in a particular period.
The stock market index can not represent or replace the business index, sources said, adding that there was a requirement to develop an index which should be authentic, impartial and reliable, and available publicly.
Sources said that to measure inflation in the country, indexes (consumer price index and sensitive price index) built by public sector organisations are applied. But these indexes have lost their reliability because of political influence and 'engineered methodologies' to calculate the indexes.
Therefore, the FPCCI has decided to launch its 'business index' and 'cost of living index' this year, they said. Construction of indexes is part of a bouquet of research projects being launched in the current year, they said.
The apex trade body's Research Cell has prepared short-term projects for redefining the research in FPCCI and creating an environment conducive for business community.
Since the country is facing trade hurdles with other countries after free trade regime, the FPCCI's vision is to conduct research to provide information about latest trends to the business community. The newly defined slogan to set the direction of activities for the current year is 'let us develop a knowledge-based economy', sources said.
It is necessary that the business community should know about their trade with other countries and volume of imports to compete in the world market. Presently, the major hurdle for the business community in the country is high cost of production, which makes it uncompetitive. Therefore, the aim is to create an environment of competitiveness for growth and survival in current global scenario, sources said.
It is also planned to find out ways for the growth in trade and industry for socio-economic development of the country. About other projects, sources said that FPCCI was preparing 'Macro Model for Industrial Economy of Pakistan', which would not only provide quantification of the shares of various industrial components in the economic development but would also update the previous estimations in the context of contemporary environment.
Exports, employment, GDP, balance of payment, fiscal deficit, inflation and social development are the specifically targeted variables to identify how they are affected by the industrial, fiscal, monetary and trade policies and by the patterns of investment.
FPCCI's Research Cell has also planned to conduct a detailed study on 'Quantification of the Social Contribution of Industries in Pakistan'. The study can also be used to create a good image of the industrialists by mentioning how different kinds of industries are contributing in the employment generating (direct and indirect), poverty reduction, community development, regional development and women empowerment activities.
A study on cost of doing business in Pakistan and cost-benefit analysis of large-scale units to provide an authentic and impartial estimation and data base in international comparison is being conducted.
The issue of image building of Pakistan's products in international markets is also under consideration, which should be accomplished on outsourcing basis.
'Journal of Industrial Policy' on bi-annual or quarterly basis is planned by FPCCI, which would deal specifically policy related issues and recommendations.
Sources said that another important requirement in the contemporary environment is setting up of meaningful linkages between the institutions of higher education and industry.
The industry provides employment opportunities, internships, data for research and the initial knowledge on the debatable issues. In return, industry expects the meaningful and practicable solutions of the micro and macro level problems through research and knowledge creating activities, innovative ideas, new marketable inventions and trained human resources. The linkages between the industry and the higher education require multiple types of relations and models, sources said.