15 August 2004	Sunday	28 Jamadi-us-Saani 1425

KARACHI, Aug 14: In developed markets, entrepreneurs who build great business outfits, serve as role models. Their success stories get media coverage. Books written about business visionaries attract millions of readers.

Entrepreneurship unfolded by information packed corporate profile facilitates trade and investment worldwide. Local businessmen feel more comfortable in trading with Western or Japanese firms whose track record is posted at their websites, rather than with their brethren in faith in Afghanistan, whose credentials are little known outside their national frontiers.

In emerging markets like Pakistan, industrial houses tend to be shy to share quite a bit of information about their business operations. No doubt, listed companies now make more disclosures as prescribed by law. They also have to present a corporate profile and credit rating to raise funds from capital market for business expansion and project financing. But only a handful of companies are being listed at the stock exchanges. Bulk of the businesses are run by private firms and partnerships which are out of public focus.

In the background of "22 families" coined by Dr Mahboobul Haq in the 1960s and the nationalization in the 1970s, the companies do not look upon transparency as a great virtue.

Maligned as crony capitalists, the country's pioneers of industrialization did not seek much public recognition. In their own way, these entrepreneurs were also great philanthropists, who did their bit for promotion of education, health and setting up organizations for the welfare of the poor. And to quote an eminent member of erstwhile 22 families, they were never hauled up for tax evasion.

Yet, much of their business operations and their egalitarian activities were kept close to their chest. Big industrial groups were more like today's informal sector where "the balance sheet" of small firm is recorded in the entrepreneur's mind. Later, these groups were enormously damaged by country's split and nationalization of 1970s. It was like a dream that went sour.

Now, things are changing in the current economic scenario. A new generation of entrepreneurs and policy makers, educated abroad and exposed to the working of developed markets is takingover. They recognize the need for the government and the companies/groups to be more transparent in an emerging market to help businesses take decisions on basis of adequate and accurate data.

It cannot be denied that trade bodies have tried to project corporate image. For the past several years, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has given various awards focused on export performance. The Management Association of Pakistan has instituted Corporate Excellence Awards for which both domestic and multinational companies compete.

To encourage dividend payments, the Karachi Stock Exchange has also its particular range of awards. The best company reports (annual accounts) are recognized jointly by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan for sharing a wide range of information. And the Pakistan Marketing Association, says its president Rafiq Rangoonwala, is a forum where leading corporate executives are invited to enlighten an audience of professionals on the latest business trends and strategies as well as for networking.

Now, the projection of outstanding corporate performance is being tackled by the 21st Century Business Club. It is publishing books on "Business Visionaries of Pakistan." It is a brain-child of executives with global exposure who are back home and in business.

The chairman of publications committee says that the club's second book on Tariq Kirmani, managing director, PSO, would be launched on August 16. The first one was on Saifuddin Zoomkawala, chairman, Eastern Federal Union Group. The next book would be on Aftab Tapal whose firm has developed its own branded tea that competes with foreign varieties.

Though the move to project corporate visionaries and role models is a requirement of an the emerging market, the publishers have to ensure that the selection of individuals is purely on merit and the academic standards are adhered to. Otherwise, the whole exercise may prove counter-productive.