KARACHI, Sept 2: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and its 49 member chambers and 128 associations do not have required intellect and vision which could transform them into institutions that could face ‘knowledge based’ economies of the world.

Despite the fact that most of the countries of the world took some time before transforming into ‘knowledge based’ economies, but unfortunately in our country even today trade bodies extremely lack such abilities which could enable them to face such a situation.

The ailment is widespread and there is hardly any trade body in the country which could be taken as an institution backed by ‘knowledge’ or research work. With such a situation it could not be expected of the trade bodies to match or even come close to the abilities of the business communities of other nations.

But a big question arises that as to how this situation could be rectified, which has not only threatened the standing of these institutions but also of the country’s external trade in general and exports in particular.

It would be pertinent to say that the Indian counterpart trade body – Federation of Indian Chambers of Commerce and Industry (FICCI) – holds a pivotal position when it comes to framing of economic policies of India.

This could be gauged from the fact that FICCI with a huge budget of over Rs3 billion (previously Rs30 million) has around 250 research scholars of economics and IT. It runs over 20 research institutions for human resource development.

With such an extensive research and huge budget the Indian trade body is no match for FPCCI.

It is not only the FPCCI which holds such a deplorable and depressing level of abilities and capacities, it stands true for each and every private sector trade bodies. The premier chambers — Karachi Chamber of Commerce and Industry (KCCI) as well as Lahore chamber — fall in the same category.

Had they been provided national or international assistance for research and development, none of these trade bodies have the required infrastructure facilities or capacity to utilize it. Against this, FICCI which is run on self-financing holds such a position that even the Indian Prime Minister has to seek time and is also available on phone call to it.

This is only because of their standing and capacity to face economic issues of national and international magnitude and also suggests solution. But in Pakistan most of the trade bodies are bogged down in personal and petty issues for which they even spend huge amounts.

Unfortunately, the FPCCI does not have a declared budget and its income and expenditure is approved by successive managing committee after all the expenditures are accrued. This is only because the MC, most of the time, works like a rubber stamp for the ruling group.

September is the election month of trade bodies. Barring FPCCI, all other trade bodies, including chambers and associations have to hold elections before the end of the month.

In the last meeting of the Export Development Fund (EDF) Board, the representative of the FPCCI put up suggestion for Research and Development work and sought government assistance of Rs180 million. However, the Minister for Commerce Humayun Akhtar Khan who was chairing the meeting assured for more fund to FPCCI provided the apex body of trade and industry appoints PhD scholar in economic to head the research department.

This shows that the FPCCI even today does not have proper infrastructure and skilled human resource to ensure proper utilization of such funds. It is apathy that is equally stands true for almost all trade bodies of the country which in this world of ‘knowledge’ still base their differences on personalized interests, regional interest or even linguistic issues.

Each trade body has different groups with different interests. This could be healthy and democratic but what lacks is the direction and goals which strengthen institutions.

Currently a sort of election campaign is being carried out by different trade bodies and one could see their approach in their group gatherings held almost every day. Most of the speeches are directed against each other, and not for strengthening institutions.

The Director Trade Organization, Ministry of Commerce is reported to have told a leading business man that one quarter of his time is being wasted in the litigation of Rice Exporters Association of Pakistan (REAP). This is sufficient to indicate that who much we have matured and how much we think about developing institutions in the country.

When will we learn to live with honour and dignity and when will we realize that the world is getting difficult and only efficient, quick and competitive would survive. All these factors are related with ‘knowledge’ and there is no other way to success.