March 19, 2007
Renewed focus on economic diplomacy
By Sultan Ahmad
OUR ambassadors to major countries have been asked to focus on economic diplomacy. Their task is not easy. They have to counteract the Indian envoys who have far larger resources. Our ambassadors are also handicapped by the inhibitions in what they can serve at their lunches and dinners and other forms of entertainment and have also to sell our Kashmir policy, and counter many forms of propaganda against Pakistan which are increasing now.
At a two-way exchange of views in Islamabad last week for two days, the envoys heard what the leaders in Islamabad wanted, and the leaders heard the envoysââ¬â¢ suggestions which are to be formally presented now.
Asking the envoys to focus on economic diplomacy is not something altogether new. The same had been suggested before as well by Islamabad officials, but not so forcefully and with a sense of urgency. The $8.89 billion trade deficit in the first eight months of the financial year and the new target of $40-45 billion for exports by 2013 from $16.5 billion last year has necessitated it now.
In addition, the government is trying to open up world markets to Pakistani goods through Free Trade Area arrangements. It is also negotiating with many countries in this regard such as China, the US, the European Union and the Gulf Cooperation Council region. It is also negotiating with smaller markets of Bangladesh, Malaysia and Thailand. An agreement with Sri Lanka has already been reached and is operational.
Once these agreements are signed, it is for the ambassadors and their staff to help Pakistani businessmen make full use of these markets, and for the latter to grab the opportunity and step up trade.
Prime Minister Shaukat Aziz, who promotes the FTA deal, wants that the market potential he creates should be fully utilised by Pakistani businessmen. Otherwise we may see a tragic picture of plenty of foreign goods flooding our markets. In such a situation Pakistan will be a great loser.
The FTA is a double-edged weapon. Unless it is used properly, it can inflict heavy losses. We should have no misgivings about this.
In the past, when trade with major countries was sluggish, commercial attaches, who were mostly government officials, were held responsible for their lack of initiative and bureaucratic approach. They were then retrained but without any major success.
It was then decided to recruit young businessmen as trade commissioners or commercial secretaries, but that experiment too did not yield the desired results.
Secondly, the private sector trade commissioners found that with their limited financial resources they could not carry weight with foreign businessmen they had to deal with.
Some such commercial secretaries were later blamed for promoting their family business abroad instead of working for larger national interests. The experiment was largely a failure.
In recent years, western ambassadors were expected to undertake two extra tasks-- to become super-PROs of their country as well as promoters of trade. Britain was in the lead in this regard.
Now there is no need for recruiting young businessmen as trade commissioners and find them eventually wanting. The government should, instead, recruit some of the brighter business graduates from reputed business schools, train them and put them on the job in our missions abroad. But they should be paid well, with better allowances, particularly entertainment allowance.
In their earlier days, Indian business executives visiting Kuwait for business deals used to be given a fat sartorial allowance with a Rolex watch. Now, I suppose, the practice is applicable to anyone going on a business mission to the Gulf area as a whole.
Young commercial secretaries, who have to deal with top executives of the region, have to present a picture of affluence for their success. The same applies to Pakistanis posted abroad on economic missions in the Gulf region.
Trade promotion should cover both exports to the country of their posting and imports there from. Pakistan may be able to get goods from some countries cheaper than it imports from others. In such cases, imports from the countries of the ambassadorsââ¬â¢ postings should be encouraged. The embassy has to keep an eye on the prices of both key imports and exports.
The trade commissioners should also attract foreign investment from countries of their posting and from neighbouring states. To achieve this they have to go far beyond the surface and explore investment opportunities.
The third dimension of their work should be to persuade Pakistanis in their region to send their remittances through banks and not through hawala. The ambassadors should encourage them to make investments in Pakistan instead of squandering their hard- earned money. The rapport between the missions abroad and overseas Pakistanis should be far better and contacts much closer than it is now.
Officers posted in missions abroad where there are no labour attaches` should explore the market for employment of Pakistanis
There should be regular contacts between the commercial secretaries abroad and the federation of chamber of commerce and industry or the relevant chamber and copies of their reports should be available to the chambers.
There should also be a centre in Pakistan to receive complaints from importers of Pakistani goods abroad and redress their grievances. The ambassadors have a significant role to play in this regard. But we have to choose the right men and women and not too many cocksure officials with their rigidities and inflexibilities.
http://www.dawn.com/2007/03/19/ebr16.htm
Renewed focus on economic diplomacy
By Sultan Ahmad
OUR ambassadors to major countries have been asked to focus on economic diplomacy. Their task is not easy. They have to counteract the Indian envoys who have far larger resources. Our ambassadors are also handicapped by the inhibitions in what they can serve at their lunches and dinners and other forms of entertainment and have also to sell our Kashmir policy, and counter many forms of propaganda against Pakistan which are increasing now.
At a two-way exchange of views in Islamabad last week for two days, the envoys heard what the leaders in Islamabad wanted, and the leaders heard the envoysââ¬â¢ suggestions which are to be formally presented now.
Asking the envoys to focus on economic diplomacy is not something altogether new. The same had been suggested before as well by Islamabad officials, but not so forcefully and with a sense of urgency. The $8.89 billion trade deficit in the first eight months of the financial year and the new target of $40-45 billion for exports by 2013 from $16.5 billion last year has necessitated it now.
In addition, the government is trying to open up world markets to Pakistani goods through Free Trade Area arrangements. It is also negotiating with many countries in this regard such as China, the US, the European Union and the Gulf Cooperation Council region. It is also negotiating with smaller markets of Bangladesh, Malaysia and Thailand. An agreement with Sri Lanka has already been reached and is operational.
Once these agreements are signed, it is for the ambassadors and their staff to help Pakistani businessmen make full use of these markets, and for the latter to grab the opportunity and step up trade.
Prime Minister Shaukat Aziz, who promotes the FTA deal, wants that the market potential he creates should be fully utilised by Pakistani businessmen. Otherwise we may see a tragic picture of plenty of foreign goods flooding our markets. In such a situation Pakistan will be a great loser.
The FTA is a double-edged weapon. Unless it is used properly, it can inflict heavy losses. We should have no misgivings about this.
In the past, when trade with major countries was sluggish, commercial attaches, who were mostly government officials, were held responsible for their lack of initiative and bureaucratic approach. They were then retrained but without any major success.
It was then decided to recruit young businessmen as trade commissioners or commercial secretaries, but that experiment too did not yield the desired results.
Secondly, the private sector trade commissioners found that with their limited financial resources they could not carry weight with foreign businessmen they had to deal with.
Some such commercial secretaries were later blamed for promoting their family business abroad instead of working for larger national interests. The experiment was largely a failure.
In recent years, western ambassadors were expected to undertake two extra tasks-- to become super-PROs of their country as well as promoters of trade. Britain was in the lead in this regard.
Now there is no need for recruiting young businessmen as trade commissioners and find them eventually wanting. The government should, instead, recruit some of the brighter business graduates from reputed business schools, train them and put them on the job in our missions abroad. But they should be paid well, with better allowances, particularly entertainment allowance.
In their earlier days, Indian business executives visiting Kuwait for business deals used to be given a fat sartorial allowance with a Rolex watch. Now, I suppose, the practice is applicable to anyone going on a business mission to the Gulf area as a whole.
Young commercial secretaries, who have to deal with top executives of the region, have to present a picture of affluence for their success. The same applies to Pakistanis posted abroad on economic missions in the Gulf region.
Trade promotion should cover both exports to the country of their posting and imports there from. Pakistan may be able to get goods from some countries cheaper than it imports from others. In such cases, imports from the countries of the ambassadorsââ¬â¢ postings should be encouraged. The embassy has to keep an eye on the prices of both key imports and exports.
The trade commissioners should also attract foreign investment from countries of their posting and from neighbouring states. To achieve this they have to go far beyond the surface and explore investment opportunities.
The third dimension of their work should be to persuade Pakistanis in their region to send their remittances through banks and not through hawala. The ambassadors should encourage them to make investments in Pakistan instead of squandering their hard- earned money. The rapport between the missions abroad and overseas Pakistanis should be far better and contacts much closer than it is now.
Officers posted in missions abroad where there are no labour attaches` should explore the market for employment of Pakistanis
There should be regular contacts between the commercial secretaries abroad and the federation of chamber of commerce and industry or the relevant chamber and copies of their reports should be available to the chambers.
There should also be a centre in Pakistan to receive complaints from importers of Pakistani goods abroad and redress their grievances. The ambassadors have a significant role to play in this regard. But we have to choose the right men and women and not too many cocksure officials with their rigidities and inflexibilities.
http://www.dawn.com/2007/03/19/ebr16.htm
