Business community is considered a very strong and potent force anywhere in the world. The opinions, views, and concerns of business/industry community are taken with all merit. A united community can do wonders and boost up the nation’s economy. The sad fact is that despite all the announcements coming out of Pakistani trade organizations, the ground reality is that private sector is in turbulent seas and rudderless. What has been the real time achievement of business community in the last decade? Has it done any soul-searching to grasp the reality? It professes thru bombastic statements, TV talk shows and press releases that it has done wonders whereas it is seldom taken into confidence in real time by policymakers and powers that be.
Moreover, the business community has, primarily due to its own fault, been divided like never before. Those forces who wanted this situation have succeeded beyond any doubt. It has been relegated to making Welcome Addresses, presenting plaques, and singing high praises of people who are guests of various trade organizations. Lunches and dinners, laudatory phrases, photo-ops, and making irrelevant statements are the tools used to lobby with people who matter. Dr Ishrat Hussain once very candidly warned the business community about the perils of this approach. He has been proven right many times over.
Even now, the right message has not been seriously conveyed to the decision makers. Superficial protest meetings, low key press conferences, and subdued sit in tactics will not result in pragmatic solutions. There is no critical mass in the protest strategy of the private sector. In 1986, during the draconian days of Gen Zia, the then CBR came up with a so-called “Simplification of Excise Rules” opera. The actual conspiracy was to stab the industrialists deeper in the back. SITE Association of Industry, led by the dynamic and bold Mian Ejaz Shaffi, got its act together and mobilized the industrialists. For nine days, the affected factories remained shut and 500-600 industrialists from all over Karachi were present in the Association office daily. Despite threats of all kinds, Ejaz Shaffi and his colleagues held their ground. The protest was front-page news in all newspapers every day. Prime Minister Muhammad Khan Junejo had to fly to Karachi and meet the protestors. This is real power. Alas, those were the days and there was a strong business leader, Ejaz Shaffi.
Why cannot this be done today? Federal Budgets are routinely approved by a Parliament that does not understand the ABC of finance and taxation. Business leaders make a beeline to Islamabad and come back either empty-handed or with hollow assurances. What has been the end result? Exports at a standstill, taxes increased, non-filers still out of the tax net, anomalies not yet addressed or keep cropping up, genuine taxpayers routinely hounded, wealth being diverted to real estate rather than productive areas such as in industries, and despite all firewalls, capital continues to shift to safer lands. And there are more such negative signals that one can keep on enumerating.
The time has come to take stock of the situation. And time is running out. There are very positive opportunities on the highway to economic progress but there are still dangerous roadblocks along the way. CPEC is a golden opportunity if it is shielded from political and parochial attacks. Gwadar Port and Thar Coal are avenues of prosperity if pragmatically managed. Reduced Discount Rate, attractive Construction Policy, government efforts to get out of FATF grey list, and national social protection initiatives, are some achievements and are signs of reassurance. Corruption elimination is talked about but not attacked seriously. This is eating away the nation’s moral fabric. Political instability is on the rise once again. Another negative signal. Deterioration of civic amenities and infrastructure are impacting on economic progress. Export culture is just a mirage while there is still official enthusiasm for imports. Foreign Exchange Reserves are nothing to write home about.
A very disheartening environment is being created on the political scene. Although every political party has the right to express its concerns, the fact is that does political expediency supersedes the myriad difficulties faced by the nation? The COVID pandemic crisis, alarming high inflation, belligerence at the border, fluid situation in the Middle East, reverse migration of Pakistani workers from foreign lands, increase in rates of electricity and gas, continuous rise in cost of production, no substantial ease of doing business, and other looming internal and external complexities are impacting negatively. Therefore, the business and industry leaders have to come out of the cocoon and get their act in shape. This is the time for assertiveness. This is the time to forge real unity. This is the time to restrain from submissiveness and sluggishness. This is the time to show the strength and formidable power of the engine of economic growth – – – the business and industrial community. It is now or never. The decision lies with the leadership. Walt Disney very rightly said, “The way to get started is to quit talking and begin doing”
Business community is considered a very strong and potent force anywhere in the world. The opinions, views, and concerns of business/industry community are taken with all merit. A united community can do wonders and boost up the nation’s economy. The sad fact is that despite all the announcements coming out of Pakistani trade organizations, the ground reality is that private sector is in turbulent seas and rudderless. What has been the real time achievement of business community in the last decade? Has it done any soul-searching to grasp the reality? It professes thru bombastic statements, TV talk shows and press releases that it has done wonders whereas it is seldom taken into confidence in real time by policymakers and powers that be.
Moreover, the business community has, primarily due to its own fault, been divided like never before. Those forces who wanted this situation have succeeded beyond any doubt. It has been relegated to making Welcome Addresses, presenting plaques, and singing high praises of people who are guests of various trade organizations. Lunches and dinners, laudatory phrases, photo-ops, and making irrelevant statements are the tools used to lobby with people who matter. Dr Ishrat Hussain once very candidly warned the business community about the perils of this approach. He has been proven right many times over.
Even now, the right message has not been seriously conveyed to the decision makers. Superficial protest meetings, low key press conferences, and subdued sit in tactics will not result in pragmatic solutions. There is no critical mass in the protest strategy of the private sector. In 1986, during the draconian days of Gen Zia, the then CBR came up with a so-called “Simplification of Excise Rules” opera. The actual conspiracy was to stab the industrialists deeper in the back. SITE Association of Industry, led by the dynamic and bold Mian Ejaz Shaffi, got its act together and mobilized the industrialists. For nine days, the affected factories remained shut and 500-600 industrialists from all over Karachi were present in the Association office daily. Despite threats of all kinds, Ejaz Shaffi and his colleagues held their ground. The protest was front-page news in all newspapers every day. Prime Minister Muhammad Khan Junejo had to fly to Karachi and meet the protestors. This is real power. Alas, those were the days and there was a strong business leader, Ejaz Shaffi.
Why cannot this be done today? Federal Budgets are routinely approved by a Parliament that does not understand the ABC of finance and taxation. Business leaders make a beeline to Islamabad and come back either empty-handed or with hollow assurances. What has been the end result? Exports at a standstill, taxes increased, non-filers still out of the tax net, anomalies not yet addressed or keep cropping up, genuine taxpayers routinely hounded, wealth being diverted to real estate rather than productive areas such as in industries, and despite all firewalls, capital continues to shift to safer lands. And there are more such negative signals that one can keep on enumerating.
The time has come to take stock of the situation. And time is running out. There are very positive opportunities on the highway to economic progress but there are still dangerous roadblocks along the way. CPEC is a golden opportunity if it is shielded from political and parochial attacks. Gwadar Port and Thar Coal are avenues of prosperity if pragmatically managed. Reduced Discount Rate, attractive Construction Policy, government efforts to get out of FATF grey list, and national social protection initiatives, are some achievements and are signs of reassurance. Corruption elimination is talked about but not attacked seriously. This is eating away the nation’s moral fabric. Political instability is on the rise once again. Another negative signal. Deterioration of civic amenities and infrastructure are impacting on economic progress. Export culture is just a mirage while there is still official enthusiasm for imports. Foreign Exchange Reserves are nothing to write home about.
A very disheartening environment is being created on the political scene. Although every political party has the right to express its concerns, the fact is that does political expediency supersedes the myriad difficulties faced by the nation? The COVID pandemic crisis, alarming high inflation, belligerence at the border, fluid situation in the Middle East, reverse migration of Pakistani workers from foreign lands, increase in rates of electricity and gas, continuous rise in cost of production, no substantial ease of doing business, and other looming internal and external complexities are impacting negatively. Therefore, the business and industry leaders have to come out of the cocoon and get their act in shape. This is the time for assertiveness. This is the time to forge real unity. This is the time to restrain from submissiveness and sluggishness. This is the time to show the strength and formidable power of the engine of economic growth – – – the business and industrial community. It is now or never. The decision lies with the leadership. Walt Disney very rightly said, “The way to get started is to quit talking and begin doing”
