Media coverage influences the public perception. Besides business fundamentals, public sentiments factor high in risk calculation for investors. Pakistan, tycoons believe, is way better than its image. So are journalists the culprits? Can they be absolved of the blame for shooing the investors away?

“Most foreign visitors are pleasantly surprised when they arrive in Pakistan. They are intrigued by the development, diversity and the drive to succeed in the people of this country. Many are keen to return back here given a chance. My American business partner made time, ignored the travel advice and came to Pakistan a few years back to attend my daughter’s wedding,” said a business leader.

There is no structured study that analysed the slant in stories and the choice of words to report the rise and fall of the market/sector/company over the years. Executive circles, however, complain of an inherent bias in the community of journalists.

“In Pakistan for some reason, negative headlines are the norm. Dirty linen is washed in public. Sadly, in the business sphere, negatives are overplayed and populism takes precedence over objectivity.

“The bias is so pronounced that firms are scared to showcase their success for fear of a media backlash. People are not ready even to receive performance awards to escape the media spotlight,” said a frustrated executive narrating the details of how several companies missed a recent award event in Lahore.

‘Even when the private sector succeeds in convincing the government to make favourable policy adjustments, the media subverts all progress’

He mentioned the issue of medicine pricing that in his view is sensationalised by the media to the chagrin of drug companies. “Even when the private sector succeeds in convincing the government to make policy adjustment in their favour, the media campaign subverts the progress. Reporters fail to appreciate the fact that if margins are squeezed too much, drug companies will stop production. In case of inelastic demand, customers will be forced to buy either highly expensive imported drug or its low-quality, cheaper version,” he added.

Senior media professionals were ready to strike back. They resented bringing the media credibility in question and shared multiple examples of socially irresponsible behaviour of the business community. “Why are companies fixated on margins instead of scales in a fairly populous poor country?” a senior journalist asked. “Yes, we view issues from a different lens. Is this not what we are supposed to be doing — analysing issues from the people’s perspective?

“It’s up to sociologists to explore reasons. Yes, probably negatives in the market fall excite me more than the positives of scaling up the market, but the corporate sector could have leveraged its position as advertisers to promote objectivity and enlightenment in the media. Instead, it chose to look the other way as long its commercial message is put across to the maximum number of people.

“Serious journalism in Pakistan is under stress also because the corporate sector failed to lend support. These companies never hesitate to throw their weight around when it comes down to their own interest,” he said while hinting at the content dropped under the pressure of marketing departments or incorporated on their advice.

“Foreign companies in Pakistan are doing well despite all odds. Many multinationals are actually performing better than anywhere else in South Asia. If not the bad media, how else can the low rate of foreign direct investment be explained?” the CEO of a fast-moving consumer goods (FMCG) multinational remarked during a session with a select group of economic editors sometime back.

“There was a time when the law and order situation was the biggest deterrent, but that’s not the case anymore. The inconsistency in policies, corruption, unfair tax burden, weak dispute resolution structures, inflows of undeclared goods and infringement of intellectual property rights pose challenges. Many other peer economies, however, with similar problems attract significantly higher investment. It’s the media conduct that explains the variation,” he argued.

The investment-to-GDP ratio has consistently been low in Pakistan. In 2019-20, it was 15.4 per cent. In comparison, it was at a 17-year-low of 28pc in India. It was 32pc in Bangladesh and 28pc in Sri Lanka. The rate of foreign direct investment in Pakistan also compares poorly with others.

None of the business platforms that were approached shared their position on the issue after promising a response. M Abdul Aleem, a media consultant working for a corporate collective, shared his personal view: “Except a few, most business journalists lack capacity and try to cover their weakness by adopting an aggressive tone and alarmist position. The local bosses of multinationals are reluctant as they require clearance from head offices. Often journalists become judgmental and executives not trained in media handling are flustered by the stream of questions. Training for both journalists and executives can help close the gap. The frequent informal interactions can also reduce tension.”

The trust deficit between the media and the corporate sector is said to be a reason for scant coverage of boardroom discussions. The inside debates of business circles can offer a better insight into the currents at play. Greater interaction between businessmen and the media can help reduce the mistrust, improve the level of understanding and promote professionalism on either side of the divide.

Published in Dawn, The Business and Finance Weekly, October 12th, 2020