20000326

Amateurish practices

of exporters erode Pak

image in world market

RECORDER REPORT

KARACHI: Non professional business practices of Pakistani exporters are undermining Pakistan's international image and competitiveness, according to a market survey undertaken by the Commercial Secretary at the Embassy of Pakistan in Jakarta.

The survey was undertaken to solicit views on problems/hurdles of doing business with Pakistan, faced by some Indonesian importers, traders, and brokers. They raised some very important issues which have a critical bearing on Pakistan's export trade and its international competitiveness.

The survey says that the complaints are not specific to Indonesia alone, but reflect the overall unprofessional business dealings with rest of the world. It has been suggested that Ministry of Commerce, State Bank of Pakistan, Export Promotion Bureau, Chambers of Commerce, Trade and Industry, Associations and Customs Department constitute specialised committees to look into these complaints and non-professional business practices and recommend administrative, suitable legislative measures, having legal sanction so that the country's business practices and overall image could be improved.

The issues raised and problems identified are as follows: One of the most common complaints of Indonesian firms is about the frequent delays in shipment of consignments beyond agreed schedule. The Indonesian importers feel that has become a routine of Pakistani companies.

Brokers complained that whenever they make a deal with a Pakistani company, they do not feel assured about whether and when they will receive their commission. Frequently, their commission is unduly held up and in some cases not received at all. This needs to be seriously attended to, because brokers are an important distribution channel in commodities like cotton and sugar, and due to their past adverse experience they prefer to book from other countries even when Pakistan's prices are more competitive.

Another issue raised by trading companies was the unreliability of Pakistani firms in honouring their contractual commitment. In case of price fluctuation to their disadvantage, Pakistani suppliers often back out from their commitments.

The consignments are often short in terms of number of units and also in terms of weight of units. The shortages are often said to have occurred at various stages, including the pre-shipment and the customs inspection stages.

Inconsistent government policies regarding investment, foreign exchange, import and export regimes in Pakistan are also of serious concern to Indonesian businessmen.