Interview with Mr Majyd Aziz, former President Employers’ Federation of Pakistan
PAGE: Tell me something about yourself and your organization, please:
Majyd Aziz: I am head of my Family Business Group that is involved in textiles, commodities, shipping, and cargo handling, etc. I am immediate Past President of Employers’ Federation of Pakistan and South Asian Forum of Employers (first elected President). I was Member of Board of Directors of the government-owned Zarai Taraqiati Bank Limited and former Chairman of the Board of Directors of the government-owned SME Bank Limited. I am former President of Karachi Chamber of Commerce and Industry, former Chairman of SITE Association of Industry, and ex Director of KESC and SITE Ltd. I am also Senior Advisor for Pakistan for Transnational Strategy Group, based in Washington. Besides these, I am Founding Governor of National Center for Dispute Resolution, Secretary General of English Speaking Union of Pakistan, and Founder of many Bilateral Business Forums. I attended the National Security Workshop-09 at National Defence University, Islamabad. I have the honor to represent Pakistan at 55 international forums and I am Honorary Citizen of Houston as well as Austin, Texas, USA.
PAGE: Your views on the importance and celebrations of Independence Day this year due to COVID-19?
Majyd Aziz: Undoubtedly, the Independence Day is not just a holiday, but it is a day to reaffirm a citizen’s commitment to the ideals of the Founders as well as to further demonstrate one’s dedication as a patriot of an independent state. Independence Day 2020 would be observed at a time when Pakistan, and in fact the global community, are faced by a pandemic crisis of gigantic proportions. Unfortunately, most of the Pakistanis displayed a cavalier attitude in complying with the prescribed social distancing and SOPs. This was blatantly evident while observing religious obligations and rituals. This led to an upsurge in the infected figures but, luckily, the government did enforce a smart lockdown, albeit taking a late decision. This year, 14th August is between Eidul Azha and Ashura, and the hope and prayer is that these two important dates in the Islamic calendar do not aggravate the toll on human lives. However, Pakistan has been able to significantly contain the spread of the virus and this gives the nation the confidence to celebrate Independence Day despite the severity wrought on employment, business losses, financial pressure and other ramifications of COVID-19. There is also an opportunity in this adversity.
The time has come for the policymakers to desist from blaming the crisis as the prime cause of formidable dip in the economy of the country. They must now do soul-searching and restructure the foundation base of the economy through pragmatic, innovative and realistic solutions in consultation with the private sector. August 14th 2020 could be the day when a new economic order can be initiated. The elephant in the room is the usual mindset of snail-pace implementation. This is where strong and forceful decisions should be taken by Prime Minister Imran Khan.
PAGE: How much change have you witnessed in Pakistan over the period of last two decades?
Majyd Aziz: Pakistan substantially matured as a nation in the last quarter century especially after General Pervez Musharraf took over the reins of power. The foundation of survivability as a country and, in fact, the sustainability of the economy was laid in the first half of his tenure. The nation witnessed growth in industrial activities, in direct foreign investment, in building up the foreign exchange reserves, and in an active foreign policy to highlight a few macro-structural initiatives. However, the momentum withered away when he colluded with spent democratic forces that resulted in the infamous NRO that brought in the same dynastic political families into power. Despite the tottering ways of governance by politicians, Pakistan was able to hold hands with China that ensued into encouraging economic scenario. The lifeline given by Beijing was the China Pakistan Economic Corridor (CPEC), which opened up channels of new investment, mega infrastructure projects, and, more importantly, the acceptance of the fact that Pakistan is now the linchpin of economic security, activity and progress in the region. Despite hiccups, despite strong opposition from some countries, especially the next door Eastern neighbour, and despite the displeasure of certain pseudo-nationalist forces, CPEC has become a reality and a manifestation of a formidable bond of Sino-Pak all-encompassing cooperation.
Pakistan faces and superbly defends the constant belligerent actions of India, the credit which is rightly given to the valiant Armed Forces. Pakistan still maintains a fragile relationship with Afghanistan but the recent deal between USA and the Taliban proved that without Pakistan, there would not be peace in this part of the region. Pakistan has ventured towards normalization of relationship with Iran even though USA and Saudi Arabia are hell-bent on keeping Pakistan at a precipice. The recent China-Iran economic deal will surely embolden Pakistan’s avowed policy of good relations with neighbors, including Iran.
Pakistan, unfortunately, is still in not out of the woods in the export regime, although gradually showing positive figures, and is losing the battle in domestic industrialization and large scale employment. This downslide must be stemmed immediately at whatever the cost. Dependence on external financing with strict conditionalities would continue to be disastrous and costly, ensuing into a huge debt trap, decrease in the value of the currency, high inflation, and loss in the confidence of citizens. Unfortunately, the people in the corridors of power have not been able to fathom this reality. Instead, there is incessant political instability, widespread corruption, mammoth non-development expenses, lethargic attitude in approving projects, total disregard of the requirements of the private sector, and disorganized priorities. This scenario has not changed since the day General Musharraf handed over power to these politicians. Sad to state, even the present political dispensation is still dangling from the trees instead of addressing these core issues.
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PAGE: How would you comment on Pakistan’s trade with its neighboring countries?
Majyd Aziz: Regional trade, and even investment, must and should be the pivotal part of global trade. Barring China, and even here the exports are not something to write home about, Pakistan has never been able to make her mark in the region. The UN economic sanctions imposed on Iran, has put a damper on enhancing bilateral trade between the two countries. The bilateral trade with Sri Lanka is positive but the magical figure of $1 billion is still way off in the future. Official trade with Afghanistan has been overshadowed by informal trade, something that must be blocked as soon as possible. The decision by India to impose 200% duties on imports from Pakistan and the retaliatory measures by Pakistan to ban Indian imports has put on the back burner any illusions of substantial bilateral trade. Hence, there is nothing much to write home about any immediate increase in regional bilateral trade for Pakistan. However, the only silver lining is the hope that sanity will prevail and Pakistan may be able to gain the grounds lost during this recent difficult environment.
PAGE: Where do you see Pakistan in next decades?
Majyd Aziz: Notwithstanding the pandemic crisis, notwithstanding the regional tense environment, and notwithstanding the full focus on national economy, the prognosis is that Pakistan is highly likely to come out of this dreary situation, although at a steep cost to the citizens and the nation as a whole. One of the important requirements at this time of international economic crisis is to ensure that the sectors that are adversely affected do not suffer damage of a permanent sort.
Pakistan should be prepared for the future. More importantly, Pakistan must get out of the present mindset of blaming everything on external forces rather than excelling from inside. There is an imperative need to broad base the export regime. It is high time efforts are made to promote exports of minerals, fruits and meat, information technology, value-added textiles, rather than just relying on the usual ten export items. Moreover, technology has to be introduced in agriculture to enhance productivity. In the services sector, Pakistan now must promote well-trained doctors, nurses and other para-medical professions. Pakistan has a shortfall of 1.30 million nurses and para-medical staff while among the 14,000 doctors that graduate every year, the quality of atleast 75% is, to say the least, pathetic.
Academic institutions must revamp their curricula and concentrate on degrees in Artificial Intelligence, minerals technology, environmental engineering, construction and telecommunication. None of the Pakistani universities are considered Global Parity Universities. Pakistan does not need ordinary MBAs but world class managers. If Pakistan has to progress, the politicians must shed their squabbling and blame throwing atleast on the economic front. They must unite to agree on a Charter of Economy despite their rivalries and despite NAB actions. If they can gather together to be on the same page for Zarb-e-Azb because of national security reasons, why cannot they agree on economic security for the sake of the motherland? This highly pragmatic unity would ensure whether Pakistan would be a prominent player in the global marketplace, as well as ensure an affordable quality of life for the denizens. This is the recipe for a better future for the incoming generations. Andy Warhol, the iconic American artist, once stated that, “They always say that time changes things, but you actually have to change them yourself”.