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Prime Minister Imran Khan while chairing a meeting last Wednesday on how to increase country's exports, directed the concerned officials to set targets for officers posted in Pakistani embassies and missions abroad, saying the performance of these officers should be evaluated accordingly.

The desire of the Prime Minister is not out of line as from late 80s the foreign missions, notably those of European countries, the US, South Korea and Japan, diversified their role. They became business door openers and promoters as an extended arm to their corporate sector, business chambers/entities in their respective countries and those in the countries of their deputation. In countries where political diplomacy was not demanding, ambassadors together with their commercial counselors functioned as 'business ambassadors', whereas in politically active countries dedicated business setups, manned by people well-versed in investment and commodity supply and demand dynamics accomplished this task.

This change of mindset in an otherwise conventional diplomacy was driven by business lobbies in the face of growing stiff competition among exporting countries where apart from business considerations diplomatic interventions were necessary. The legislators under pressure from business lobbies and taxpayers made it almost mandatory for foreign missions to diversify their engagements in business facilitation in addition to conventional diplomacy.

Furthermore, the leading exporting countries moved the on-ground functions of business-to-business (B2B) business development, specially for Small and Medium Enterprises (SMEs) export promotion, from the public sector to an entity in the private sector. The system is elaborate and has proved to be a sustainable success model for B2B business development free from any government intervention. The government only manages the export policies and regulations and oversees the export development at arm's length.

Pakistan is still stuck in the obsolete regime of first line foreign investment and export development through Board of Investment (BoI) and Trade Development Authority of Pakistan (TDAP). Our foreign missions continue to remain engaged only in conventional diplomacy - barring some foreign missions which are deeply engaged in delicate and demanding political diplomacy.

The PM's decision that the officials of our missions abroad should be engaged in export promotion will translate into adding another layer of bureaucracy to our foreign investment and export promotion regime of governance.

Given the poor state of competencies, skills and knowledge available at our foreign missions and back offices at home, this model is not likely to deliver. Fixing targets and binding our diplomats and commercial counselors to own them is a complicated matter as it demands management skills and experience. It involves realistic market intelligence, market potential analyses, market segmentation, customer segmentation, competitor segmentation and dynamics of supply and demand in the market. This all is not a one-time exercise but a constant ongoing regimen as the market is dynamic. In the absence of such an exercise, realistic targets cannot be fixed nor expected to be owned.

The incumbent government needs to realistically compare its prevalent setup at home and at its foreign missions that would be entrusted with the responsibility to mobilise foreign investment and enhance exports to the model of success practiced by the mature and emerging markets around the globe. The difference would be transparent and reveal as to what needs to be done apparent.

(The writer former President, Overseas Investors Chamber of Commerce and Industry)

Copyright Business Recorder, 2021

Farhat Ali

The writer is a former President, Overseas Investors Chamber of Commerce and Industry

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