IN the new trade world of the WTO with its intense competition, quality is of the utmost importance — quality of the goods exported, quality of the business practices and above all, the quality of the business organisations in a country.

If in such a context the new Trade Organisations Ordinance can eliminate fake and phoney trade bodies and pocket organisations it will be a very welcome step. We need trade bodies which can truly serve exports and the country and plan ahead for the future.

Tariq Sayeed, former chairman of the Federation of Chambers of Commerce and Industry is in favour of unfettered number of trade bodies as in Hongkong, Japan and India. That was in the old trade age, not in the WTO world, with its heavy demand on exporters.

In Pakistan various moves have been made to set up a confederation of industries to serve the cause of industrialisation as in Britain and India but the traders who dominate the FPCCI have stood in the way and prevailed. Industrial development has suffered on that score.

Of course, administering the trade bodies is the business of businessmen. Since they have not been able to do that successfully the old trade organisations ordinance 1961 could not be amended for the last 45 years. That is too long a gap in the modern commercial age. But businessmen have to blame themselves for that.

There was no real consensus on the amendments despite the need for them was very clear so the government had ultimately come up with the TOO-2006 but its claim would be assessed only after the rules and regulations under it have been framed and announced. It is hoped that too will be done in real consultation with the real businessmen.

The new ordinance requires a trade body to have a minimum number of 350 members to qualify for registration. That is not too large a number. If it stands in the way of genuine trade bodies for registration that should be brought down.

In the world of WTO, the FPCCI and the provincial chambers have been functioning without proper research cells. The research cells they earlier had have been abandoned in favour of entertaining ministers at lunches and dinners in return for favours sought and secured.

The FPCCI even gave a dinner in honour of the Sindh governor for performing Hajj.

The government should now move the FPCCI and the provincial chambers to set up proper research units and offer to share half the cost. The R&D fund of the government should be used for that purpose.

The existing trade organisations have to apply to the director general of trade bodies for registration. That can help eliminate a number of fake and pocket trade organisations and the smaller ones in small towns and cities.

Before the trade organisation ordinance of 1961, the term of the president of FPCCI used to be for one year. Since the presidents were not quitting at the end of the year and delaying the elections one way or another, Mr Ghulam Ishaq Khan, the then commerce minister extended the term to two years. But many presidents did not quit after two years and instead tried to prolong their term.

It is said that one year is not enough for a FPCCI president to become familiar with the problems of trade and work effectively for possible solutions. It is maintained that it takes more than six months to understand the problems and then to work to resolve them. The Indians have solved this problem effectively by making the vice- president succeed the president and have a very comfortable sailing.

The excitement for forming trade bodies has increased after Pakistan’s trade delegations began visiting India. Too many trade leaders want to be in the limelight in India and Pakistan. Now, the existing trade bodies have to seek fresh registration within three months, the number of fake bodies are expected to vanish.

Ghulam Ishaq Khan also introduced a system of rotation of the FPCCI president every two years among the various provinces. The result was more than half the time those from the Punjab became president of the FPCCI. Even Azad Kashmir was given a representation and Raja Abdul Rehman became the president of the FPCCI.

It is for the businessmen to put their house in order instead of seeking the intervention of the government. If in the past the director of trade organisations used such powers arbitrarily, the director general under the new ordinance may also use his sweeping powers arbitrarily. So , the businessmen should put their house in order instead of forming groups like the businessmen’s group and campaigning as if they are political parties.

Now that businessmen are contesting the national elections more and more and becoming ministers as well in sizeable numbers, traders with political ambitions should seek the political arena instead of trying to misuse the trade bodies.

The fact that it has taken 45 years for the trade organizations ordinance 1961 to be amended shows how slowly things move in the commercial sector. If the government is too slow to do a good thing in this area, the businessmen have been primarily responsible for that. Free enterprise should show real enterprise and not be asking the government to give one favour or another for them in the face of strong opposition from others.