KARACHI, April 19: State Bank of Pakistan Governor Dr Ishrat Hussain urged Pakistani businessmen on Monday to look forward and explore global market opportunities in order to double country's exports in the next five years.
"For long the businessmen and managers in Pakistan remained inward looking," the SBP governor said while pointing out the opportunities available in the world market for Pakistan. Total export trade of the world, he estimates, is $7 trillion, of which Pakistan's share is hardly 0.15 per cent.
Dr Ishrat was speaking on Monday as main guest speaker at the inaugural session of a three-day convention of the Management Association of Pakistan here. His message was that degrees and certificates from any reputable institution do not matter "unless you have innovative ideas and are equipped with knowledge and skill." The SBP governor mentioned an example of Bill Gates, a college dropout and now a name in the dotcom world.
"Just look ahead and explore the world market when immense opportunities are waiting for you and prepare yourself for the challenges that come in the way," he said while urging them to take Pakistan's export earnings to $20 billion in the next five years and to $40 billion in the next ten years.
Dr Ishrat mentions examples of Japan, Korea and China, which were also once inward looking countries, but shed their introvert approach and are now big economic powers of the world.
The SBP governor particularly spoke about China that exported goods worth $10 billion in 1978 and was on a par with India. "China now export $400 billion worth of goods to the world and India's export are only $40 billion," he said.
He observed that Pakistani businessmen lacked innovation and initiatives and tread on footsteps of others. In this context, he mentioned the proliferation of spinning units, followed by cement factories and then huge investment in power generation plants.
"There was no comprehension of the market demand the capacities being created for yarn, cement and electricity," he said. "But now the time has come," he stressed to have a fresh look at the world market and take initiative to grab whatever opportunities that are available.
For this, he said, the businessmen needed financial, production and marketing management, knowledge and skill. Security Exchange Commission of Pakistan chairman Dr Tariq Hasan in his presentation announced that the setting up of an institute of corporate governance was in final stages.
The institute, he declared, would be an independent entity - owned by a balanced representation from public and private sectors. The SECP chairman said that prudent management remained sine qua non for the success of any enterprise no matter how much capital had been invested.
"Sound corporate governance practices help companies improve their performance and attract investment while enabling them realize their corporate objectives, protect shareholder rights, meet legal requirements, and demonstrate to a wider public how they are conducting their business."
Dr Tariq reminded the audience that the SECP enforced Code of Corporate Governance in March 2002 as a first step towards the systematic implementation of principles of good governance.
Earlier, MAP chairman Javed Iqbal recounted the efforts made by his association in developing sound management practices in Pakistan since 1964 when MAP was founded. He said over 1,000 seminars had been organized on management subjects and issues.
He announced names of the companies that had won corporate excellence awards 2002. He said Attock Refinery Limited had been given award in the business and industrial category, Askari Commercial Bank in financial category. Certificates have given to Colgate Palmolive, Unilever, Al Ghazi and International General Insurance.
