FPCCI picked apart for passive trade diplomacy

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has regrettably distanced itself from its national duty of projecting Pakistan’s potential at international trade, investment, and economic events, an economist said on Saturday.

“[All over the world] the responsibility of economic diplomacy and development has largely been shifted from governments to private sector institutions,” Dr Ayub Mehar, a leading economist and former head of research and development at the FPCCI, said in a statement.

“Such relations and development determine the ultimate political relations and alliances.”

He said, alas, the apex chamber is not playing its role in improving the economic and trade diplomacy and it is painful to mention that the role of the FPCCI in economic diplomacy has been totally removed.

“It does not participate in the programs and meetings of World Economic Forum, World Trade Organization, Common Wealth Organization, International Chamber of Commerce, and other such important international bodies,” he said.

He said in the current state of affairs the participation of trade bodies in world events is critical as sometimes governments encourage formation of bilateral and multilateral chambers of commerce. “These regional trade associations promote economic diplomacy,” he said. Mehar said it has become a global trend to utilise the strength and capacity of such private sector representative bodies for economic and political diplomacy. “Consequently, Pakistan has failed to raise its voice and advocate its economic policies at the international platforms,” he added.

Mehar said in the absence of Pakistan, India has become the leader of those powerful international organisations, while the FPCCI has not even tried to open its offices abroad.

He informed that the FPCCI had established a department of international relations. “The role of this is limited to event management and providing the logistic facilitation,” the institution economist said.

Mehar added that as opposed to FPCCI, the Federation of Indian Chambers of Commerce and Industry (FICCI), has played a significant role in the success of Indian foreign policy.

“The FICCI participates in Indian foreign policy through its significant intellectual contribution and its international relations department has published more than 100 reports/surveys in 2015 and 2016,” he said.

Maher said after a long time the serious efforts to revive its role in economic progress and policies were initiated in 2013 when the then top management had decided to focus on playing an active and leading role in boosting the economic diplomacy of Pakistan through private sector.

“Then the FPCCI participated in various international forums to oppose the Indian move in World Trade Organization for permission of subsidies on agricultural products.”

He continued that the FPCCI had opposed the Indian move arguing that it was against the philosophy of free trade and would affect the competitiveness and share of the developing countries in international trade.

“The FPCCI had shown serious apprehension that the exports of rice, textile and clothing products, sugar, fruits, vegetables, tobacco, and cigarettes would be affected by Indian policy. Later on this apprehension was verified by declining exports from Pakistan”, Mehar informed.

He said the FPCCI’s role in international economic diplomacy became even more important in 2014 when the presidency of Economic Coordination Organization’s Chamber of Commerce and Industries was handed over to Pakistan.

The economist added that the FPCCI played an effective and leading role in revamping of the Economic Cooperation Organization (ECO) and D8-CCI in 2015.

“The year 2016 was an important year in the history of the FPCCI when extremely important steps were taken in the international economic diplomacy,” he said giving the details of the chamber’s past efforts.

“However, these efforts were not sustainable because of the lack of institutionalisation. Also, a change of office bearers always brought a shift in the perspectives, priorities, and activities of the trade body,” Mehar added.

He said though some of the FPCCI officials have made remarkable contributions in their individual capacity, but overall the role of FPCCI remains questionable in the given circumstances.