THESE are challenging times for the national leaders and diplomats. It would be unrealistic to expect wonders from them in the realm of economic diplomacy when earlier performance left much to be desired.

To close the yawning trade gap it is time to give a look at the way commercial affairs have been managed thus far. Some business leaders had suggested appointment of international trade experts as commercial attaches at the five most important Pakistani missions- New York, Brussels, Beijing, Delhi and Tokyo. It has not happened.

The task is probably too challenging for the foot- dragging public servants. To build a merit-based, result-oriented framework and to ensure monitoring of the performance of economic diplomats at the key missions, costs may be shared by the private sector through their trade bodies.

The trade deficit widening over the years hit the $20.7 billion mark in fiscal 2008. The opening up of the economy and spur in aggregate demand, it seems, worked better for our trading partners. They capitalised on easy access to our market and moved in to cater to the demand generated by an expanding urban population.

The exports crossed the high point of $19 billion in FY08 but even this level is below the potential and less than half the value of imports. Opinions of the government, development partners and the private sector converge on this point. Every year the government pledges to diversify the export of commodities and markets but the walk fails to match the talk at the end of the day.

Whether it was the market access to EU or the proposed special industrial zones in the war torn tribal belt, the bilateral investment treaty (BIT) with the US, Pakistan-Iran gas pipeline, Pakistan-China gas pipeline, Central Asian gas pipeline project, exports to China, Middle East, Far East, Japan, Africa or neighbours, the progress is slow, if not stunted altogether.

The time was ripe in Islamabad and Lahore for closer, more favourable economic relations with China. But this has been a one sided affair of investment and trade that is growing at an astonishing pace. China has agreed to invest more. But what about Pakistan’s share in the gigantic Chinese consumer market? It is almost a miniscule and there seems very little knowledge about possibilities or space for Pakistani products in any part of China.

Over the past eight years, India despite the baggage of strained relations with China, has been able to significantly increase trade with its neighbours. Imports from China are about eight times our exports. In contrast Indian trade with China has crossed $13 billion and is expected to touch $15 billion by 2010. Why has Pakistan not been able to succeed in economic diplomacy?

“The success of economic diplomacy depends on the quality of market research and understanding of the intricacies of international trade and global market trends. But the quality of the proposals sets the tone of trade negotiations. The significance of timing of making a move is also extremely important. Pakistan unfortunately still sits across the table with its partners to strike economic deals unprepared”, a trade expert privy to many high level meetings told Dawn.

“We lack capacity and have entrusted people with a job for which neither they are oriented, nor equipped”, he said referring to appointees in foreign missions and officers of commerce and foreign ministries. “All they are interested in is to manipulate for the next plump posting outside the country. They believe that playing generous hosts to VVIPs from Pakistan can earn them their dream posting.”

“As for private sector input, it is insignificant in most cases as businessmen perceive inclusion in a delegation as an opportunity to cultivate their links with those in the government. The more enterprising utilise the trip for exploring their private business interest in foreign lands. There is no collective thinking, articulation of corporate agenda vis a vis trade,”, the gentleman who has represented the country at many multilateral forums, told Dawn from Brussels.

“Call back all economic ministers and commercial officers to save dollars and it would not affect the trade a bit. Spend money saved on market research”, said a business tycoon from Karachi.

“We should have hit the iron while it was hot to get access to the western markets for supporting the war on terror immediately after 9/11. We were not able then to promote our long-term interests,”, said Dr Hafiz Pasha who heads the team of economists devising policy recommendations for the democratic government.

“In 2006 Brussels turned down the request for market access on the grounds that Pakistan was under an autocratic rule. Why has the issue not been taken up with the EU after the revival of democracy in the country”, a retired officer who accompanied ex-prime minister Shaukat Aziz to EU trade talks asked.

Makhdom Amin Fahim, minister of commerce and Secretary Commerce Asif Ali Shah were not accessible. Secretary Industries Khawaja Shahab, however, told Dawn that marketing of the brand Pakistan has been weak. “Perception is the major issue. We need to improve the way the country is perceived internationally to be able to make a major breakthrough”, he said.

Shamim A Shamsi ex president KCCI told Dawn over the phone that both the public and the private sector of Pakistan have failed to meet the demands of a changing world. He urged the private sector to adopt professionalism instead of seeking patrons.

“You need to have exportable surpluses to be able to perform well in international trade. If Pakistan wants its external trade to perform well, it will have to make its industry and agriculture become competitive through investment and restructuring,” concluded an economist.