June 08, 2006

“For a proper entry into the global village we need to work on our engineering and service sectors. We as a nation are very fond of planning. The time is upon us to implement our plans with vigour and missionary zeal. We must free ourselves from our internal domestic wrangles if we are to make an impact upon the international scene,” says Zahid Hussain.

It’s been a long and invigorating journey for Zahid Hussain. The rise from multinational management trainee to flying the Pakistan flag as ambassador to Kenya. Along the way he has stimulated many public sector enterprises with the mindset of the private sector, and brought back to life, as it were, ‘terminally’ sick business units as Chairman of the Pakistan Industrial Development Corporation.

The present regime, in its bid to ‘rock and roll’ a lethargic and often rogue government sector, has undertaken the induction of proven talent from the private sector. These are people given wholeheartedly to the pursuit of excellence and the deliverance of results, as opposed to intriguing and conspiring within a lifetime employment shelter that a career government job ensures.

Zahid Hussain is ready to take the leap into self-employment, fresh and completely reinvigorated after serving a two years term as Pakistan’s ambassador to East Africa. During his tenure Hussain also served as Pakistan’s permanent representative to the United Nations Environment Programme (UNEP), the United Nations Human Settlement Programme (UN-HABITAT), and the African Union Commission.

Zahid Hussain had occupied the chairmanship of the Group of 77 and China for the year 2004. “The Bali Strategic Plan for Technology Support and Capacity Building was perhaps the single most strategic achievement of the G-77 Nairobi Chapter in the year 2004.” The Group of 77 has a current membership of 133 countries, representing four-fifth of the world population, and a major concern of the G-77 is environmental policy and sustainable development through a strengthening of capacity.

It was an eventful stint in Nairobi that saw Hussain negotiate a trade war with Kenya, Uganda and Tanzania over rice and tea, the reintroduction of PIA flights into Nairobi after a seven years break, and the relaxation of visa restrictions for Pakistanis that Kenya had imposed in the aftermath of the Nairobi and Mombasa bomb blasts of 1998 because amongst the suspects a Pakistani was also featured.

“It was a decision taken by the Kenyan cabinet, and they accepted my arguments in favour of relaxation. Now Pakistanis are getting visas on arrival. There are 200 to 300 Pakistani arrivals every week in Nairobi. Kenya is the hub and entry point to Africa. Hopefully the visa restrictions in Tanzania will also be eased.”

Up to 1998, our national carrier was a leading player in Africa, says Hussain. “Its subsequent decline was due to a non-serious attitude of the airlines staff posted in Kenya, who in fact were assisting another airline establish itself there. There was corruption and bad administration.” Then came the visa restrictions after the bomb blasts. This was the final straw and the national carrier discontinued its flights to Africa.

“I pursued the restitution of the service through the ministry of Foreign Affairs, and after seven years the airline resumed flying to Nairobi at the behest of the current chairman, making it the only destination that the airline flies to out of the 53 countries in the entire African continent.” Unfortunately the skyrocketing fuel costs have caused the national carrier to defer its flights to Nairobi until the situation settles. “There is serious competition within the passenger aviation industry, and other airlines are working with the high fuel costs as well.”

The trade war related to the Irri-6 variety of Pakistani rice upon which the Kenyan, Ugandan and Tanzanian common tariff imposed an additional duty. Pakistan has an 80 per cent share of the Kenyan market of Irri-6 ‘tota’ rice. The other players are India, Vietnam and Indonesia. Pakistan dominates with Pakistanis being both exporters from Pakistan and importers into Kenya, but the competition is always manoeuvering for an edge.

“One fine morning we came to know that the import duty has been increased from 35 per cent to 75 per cent. There was a big stock on the high seas and the port worth over US$4.5 million. Pakistani traders stood to suffer a huge loss. It was a joint decision of the three countries. The only way we could react, after our pleadings went unheard, was to retaliate by stopping the export of tea from Kenya to Pakistan, which was substantial. Pakistan is a major importer, accounting for almost 45 per cent of the East African tea exports.

“I really jammed up the works by going through each and every tea invoice that was prepared by the embassy, and checking all the consignments from a health point of view to ensure there was no adulteration. For 20 days this continued, the tea exports came to a near standstill, and the price of tea crashed at the Mombasa auctions. Finally, the Kenyan Foreign Affairs and Finance ministries asked for a meeting with me, which was followed by a meeting with the President of Kenya. They agreed to clear the stocks already in the pipeline at the old rates. I wanted a two years guarantee that the tax would not be increased, and assurances that demurrage would not be charged. Fortunately I got my way, and the Tanzanians went along also, but Uganda deferred a review. It was a calculated risk that I took. I had taken into confidence the rice and tea traders, and was in constant touch with them during the crisis, as well as the minister and secretary of the Commerce Ministry of Pakistan, and the Foreign Office.”

What lessons has Zahid Hussain drawn for Pakistan from his East African safari? “Tea and horticulture are the leading East African exports, and tourism at number three. Kenya is the world’s second largest exporter of flowers. This is something I very seriously recommended that we, in Pakistan, look into. It requires scientific and intensive investment. Unfortunately, in Pakistan investors are more interested in trading and short-term profit making.”

The Kenyan lesson in tourism is that freedom of movement and security, along with an infrastructure of beautiful resorts with high standards of service, are a pre-requisite for tourism. Unfortunately Pakistan does not meet any of these criteria. “We do not have a budget for tourism development, only for its administration at current inconsequential levels, and that too gets consumed in the facilitation and projection of VVIP visits.”

Systems, processes, continuity of policy are in Zahid Hussain’s view the cornerstones upon which can be built a vibrant economy, with law and order and efficient infrastructure as prerequisites. “We have to overcome adhocism, corruption, bad governance, and the quick money mind-set to make progress. We are very optimistic people, and often ignore the ground reality in our planning. Industry needs to be established in far-flung areas to generate employment and reverse the rural to urban migration that is putting Pakistani cities under severe stress,” says Hussain, pointing out that the Pakistan Industrial Development Corporation put up manufacturing facilities in places like Dir and Harnai.

During his tenure as chairman PIDC, he established public-private joint ventures and partnerships, and introduced one-window operations to facilitate investors. Industrial Parks and Textile Cities were also envisaged and promoted. “Our implementation is very weak, and successive governments do not continue with a good thing started by their predecessors, insisting on re-inventing the wheel each time. Politicians do not play their role of ensuring justice in society, as well as the appreciation and recognition of merit.”

The maturity and selflessness of the leadership has a big hand to play in the development of any society, says Zahid Hussain, with the adoption of an honest approach backed by firm decisions in place of compromises. “When we have 32 government agencies that investors must face, and delays of over one year or more in getting permission to set up industry, it is a rare breed of investor that will venture forth.”

Born in Lahore, Hussain attended the Government High School in Hyderabad, and the Government College Nazimabad in Karachi, after which he attended S.M. Law College. Like they say, the proof of the pudding lies in the eating, and Hussain is a fine testimonial to the government education system of yore that delivered quality education and produced quality human resource.

“Our teachers were dedicated and enjoyed the status of our parents in academia. Today we are witnessing an excessive commercialisation of education and that missionary zeal so necessary for an educator has gone missing,” Zahid Hussain says citing the example of Prof Dr Aslam Farrukhi, his mentor in college who brought about many changes in his life, and proved to be a great motivator.

Hussain is married with four daughters and eight grandchildren. With a Pakhtun for a father, a Punjabi for a mother, and a Sindhi for a wife, he considers himself to be a mainstream Pakistani settled in and identified with Karachi.

On the international front he is impressed with Nelson Mandela and Mao Tse Tung, as also Mahatir Mohammad and Lee Kwan Yu. His most memorable moment was his encounter with a concerned General Zia-ul-Haq when as a young general manager of Pak-Suzuki he was sent to explain why there was a premium being charged on cars. Keeping his presence of mind he told the General that the cars were being financed on interest by moneylenders, and hence the premium. The General then got into a detailed discussion with him on the scourge of interest, and the problem with premium was forgotten.

Hussain achieved the senior most position on the bureaucratic ladder at grade 22, and opted for the ambassadorial assignment in favour of a federal secretary’s job. He has absolutely no regrets as he prepares for life as a self-employed consultant leading a team of high-powered professionals in aid of national economic growth. His new enterprise in the service sector, aptly titled Management Associates International, will have as its mandate trading and investment, networking, outsourcing, and the revamping and restructuring of tottering enterprises.

“We need to change our mindsets from reactive to proactive. The WTO is a major challenge for Pakistan, and in the global village only the fittest will survive. For a proper entry into the global village we need to work on our engineering and service sectors. We as a nation are very fond of planning. The time is upon us to implement our plans with vigour and missionary zeal. We must free ourselves from our internal domestic wrangles if we are to make an impact upon the international scene.” Indeed.

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