THERE is no dearth of success stories in corporate Pakistan. Enterprising and shrewd businessmen have created a niche for themselves in the local market and are doing very well. On the face of their balance sheets they may show losses, but quite a majority has amassed wealth, earned or unearned, in their own lifetime.
Many of the old time 22 richest family dynasties may have died down but new faces have emerged, though it would be improper to name names here, considering the sensitivities of this class of people.
Besides traditional sectors of trade in Pakistan such as textiles, leather, etc., the big conglomerates have branched out in many new areas in services sector and have successfully multiplied their capital many times over the last two decades or so.
But the trouble is that their enviable individual insight and performance, is not reflected in their conduct as a class. This definitely is undermining their potential and crippling their capability to challenge their counterparts in the world and also in the region operating on strength of their respective class organizations.
Observers of market believe that Pakistani business class now has reached a stage where they posses financial power to target stakes in key sectors at world level. No one, however, was able to quantify the riches of the rich.
In absence of transparency and fool proof tax structures, it is difficult even to get information on the declared net worth of individuals. If one can hold of this information it can be multiplied with a certain number to arrive at a more realistic figure that accounts for their mis-declaration of assets. All we know is that people have more wealth than they are believed to posses. How much more is anybody’s guess? A sample of which was witnessed recently, when a Pakistani businessman, someone by the name of Ali Riaz paid Rs2.8 million in Mumbai for a tea with an Indian actress in a programme of fund raising for Tsunami victims. That just gives a glimpse of type of command that our class of big boys enjoy over monies.
Despite their privileged position monetarily, their collective forums do not fare as well when compared to such organizations elsewhere. Be it Federation of Pakistan Chamber of Commerce and Industry, local chambers or sector specific trade bodies there is not much to show as far as their contribution in promoting the interests of this class in a meaningful way is concerned.
Trade bodies the world over operate as a watchdogs of interests of the class they represent. Across the border the Federation of Indian Chamber of Commerce and Industry runs its own research department. This cell equips Indian businessmen with market research in all possible areas. They provide guidance based on in-depth scientific research. The FICCI then post their findings on their websites for the benefit of all those interested.
A senior bureaucrat, who asked not to be named, was bitterly sore with the business people: “They want easy money. They hardly ever do any homework. Look at their forums that are used more to settle private scores than to do anything constructive. Every time you invite them over they ask for some favour for themselves in form of more rebate or protection or concession. They lack grace. They are too pampered never willing to act responsibly by paying back to the society what is due from them. They evade taxes, default on bank loans and are not ready to make long term investment in industry”, said he.
Agreeing with the notion that the potential of private sector has yet to be channelized to the optimal level Arshad Alam representative of the Chinnoti community that has huge stakes in businesses held that being part of society the business class behave in much the same way as other classes in the country. Turning the blame round on bureaucracy, he said they were the ones who were fanning differences amongst business community to keep it engaged in petty issues.
“Our bodies operate under Trade Organization Act and Directorate of trade organization controls these forums. If they are not operating in a fashion desirable, the controller cannot be absolved of the responsibility”, he asserted.
“The impression that the private sector of the country is not responsible is not correct. It is this class that has helped the country achieve so many milestones in the economic sphere. Be it export or modernizing textile or assisting the government to achieve economic targets businessmen have not failed the nation”, Alam said.
When his attention was drawn to low pace of investment in industry he counted several reasons, the foremost being the comparatively high cost and high risk nature of industrial investment for lacklustre activity in this particular sector. He did not find bickering in common forums to be alarming.
“Disagreement is part of dialogue. In all democratic forums there is ruckus at the time of elections but everything settles down with time”, he said.
“These forums are used as launching pad by ambitious people to come in the limelight to use their position to pursue their own personal agenda and claim favours from the government”, said Tariq Mir criticizing the movers and shakers in these forums.
A leading economist Mr A R Kemal felt that industrial class being weaker, most of business forums are controlled by the traders who because of their conflict of interest are not primarily interested in broadening the industrial base in the country.
“Their thrust is to get tax credit, concessions and tax amnesty. They are spoon fed by the government in the country and they just cannot let it go”, he said commenting on lack of maturity of the business class in conducting their affairs.
“Besides businessmen with interest in broadening the industrial base in this country, may be, with have to take pains on their own to articulate their interests and than to seek ways to pursue them at national level”, he felt.
One thing, may be, that business class needs to do is to come out of shadow and in the open. Let the government take away what is due under the law of the land they sure will still be left with a lot. But why should they bear this pain?
By doing so one thing is for sure that many will make it to the Forbes’ billionaire list. There were reported to be nine Indians who found place in Forbes’ billionaires list but not a single Pakistani. The list this year was topped for the eighth consecutive year by Microsoft founder Bill Gates who is now estimated to be worth slightly over $50 billion. The investment guru Warren Buffet turned a close runner up.
On a more serious note it sure will give the local entrepreneurs’ confidence, relieve them of a torturous tension of spending time and money on keeping tax and agency men off their back. May be they will have more time to attend to their straight formal business interests.
As for their conduct in their forums there are no short cuts. However, a conscious effort by more serious elements to promote market research may be a good start. Much, however, will depend on how the formal legal and efficient activities are promoted. That would not just go to uplift moral values but would also turn out to be commercially more profitable in the long run.
