There ate some institutions—private or government sponsored, which ate responsible for the cause and development of a country’s trade and industry. They are promoting the country’s internal as-well as external trade by redering services appropriate to requirement. The institutions are most important for every time. These may, however, be summarised as follows :
Private Institutions :
1. Market—Selling Organisation—Sales Bureau.
4. Trade Association.
5. Chamber of Commerce.
Government Institutions :
1. Government Sales Organisation—marketing Board.
4. Standard Institute.
5. Commercial Library and Commercial Museum.
6. Department of Commercial Intelligence and Statistics.
7. Trade Cornmissionet.
8. Consular Organisation.
9. Trade Mission and Trade Delegation.
Market—Selling Organisation—Sales Bureau. Goods produced must be carried to the market for sale. Selling Organisation and Sales Bureau are the individual units in the market. These remove personal hindrances and facilitate buying and selling of goods or services. These act as forum affording opportunities to the buyers-and sellers for free commercial intercourse. In absence of these institutes trade cannot take place for which every industrialist or businessman finds use in them and maintains his own sales organisation or sales bureau.
Government Self Emporium. A government sponsored Sales Emporium serves an important purpose for the cause and development of trade and industry of a country. It is the most effective medium of advertising the goods to the public. Customers have reasons to believe that the product as sold out by the state-owned shop are of good quality and lesser price. State-owned selling shops are found both within and outside a country. These usually deal in products of cottage and handicraft industries, since they require publicity by the Government in order to secure patronization of the high-ups of the society in particular.
The location of this type of shop is also vital and usually such shops are located on the confluence of two or more streets or at a place where people in large number gather round. In Pakistan Provincial Cooperative stores are suitable examples in this line. Marketing Board. Marketing Boards are often semi-government institutions dealing in goods of the major industries. These are almost similar to trade associations, in which the business community as well as the Government are interested. These are formed industry-wise so that concerted action and centralised planning are possible for the all round development of trade or industry under study. In Pakistan this type of enterprises are found in industries like tea, jute, cotton, etc. This type of institutions may again be privately owned concerns.
Fair. “A Fair is a large congregation of people, usually at a centrally situated place, following some religious festival or in connection with the celebration of something of historical importance.” It may last for several weeks or months. Usually fairs of local importance do not last long. But a fair of international importance may last for several months together-
A fair is a good source of advertisement. Manufactures can take good advantage of a fair. They find it a convenient source of sales and advertisement. A fair may be organised on private as well as government initiative. In 1956, an industrial fair named Pakistan International Industrial Fair (PIIF) was organised at Dacca. It was organised by both the government and the industrialists of the country.
Exhibition. An exhibition is almost similar to a Fair with this sight difference that it has little or no connection with any festivity or commemoration of any historical event. Again, the main purpose of an exhibition is to display or exhibit the product and not to make sales over the counter. Further, in an- exhibition the buyers have the opportunity to compare brands of different qualities in respect to colour, size, shape, durability, price etc. But a fair does not afford these opportunities, neither does it serve the purpose of displaying the goods alone. Rather a fair provides with a ready market for sale in the main.
From history we get the records that fairs and exhibitions can lender tremendous success towards achieving a country’s foreign exchange earnings. And the appropriate examples we may cite in this respect are :
The exhibition in London in 1851,
The exhibition in Chicago in 1843,
The exhibition in Stockholm in 1930,
The exhibition in Paris in 1937,
The exhibition in Brussels in 1958.
During the year 1968-69 some of the exhibitions of international ±epute are going ‘to be held in Tripoli, Frankfurt, Berlin, Nairobi, Joan berg, Brussels, Hanover, Gothenberg and Paris.
Pakistan’s participation in fairs and exhibitions has proved great success in boosting up its export earnings. Through fairs and exhibitions in foreign markets, Pakistani products particularly, jute products, leather products, sports materials, cottage and handicraft products have earned international reputation. The foreign exchange earnings through them is also considerable. During the last three years Pakistan participated in about 50 international fairs including fairs at Izmir, Tripoli, Frunkfurt, Berlin, Paris, Spoga, Nairobi, Utrecht, London, Network, Zagreb and Sweden, and it has earned foreign exchange to the tune of Rs 2-5 crores by spot sales.
In 1968 Pakistan organised two exhibitions, one in Kuwait and another in Jeddah. In the former, 16 Pakistani firms participated and earned foreign exchange over Es. 12 lakhs, and in the latter 30 fairs participated with a total earnings of Rs. 17 lakhs. And the exhibition Teheran as opened on 12th June, 1968 is the third of the series. This display includes Pakistan-made machinery and -consumer goods.
In international Trade Shows, Pakistani products, particularly its carpets, wooden products, brass and copperware, textiles, leather goods, Handicrafts, surgical instruments, sports goods, cutlery, electrical appliances, have earned tremendous reputation.
Trade Association and Chamber of Commerce. These two have been discussed in Chapter 26-
Standard Institutes. Grading and Standardisation of products are -of great importance in modern competitive markets. These are particularly required of a country like Pakistan which has got huge exportable surplus of raw materials. While grading is necessary for agricultural goods, standardisation is required of industrial goods. It is Accessary for goods which are durable and of high price.
In view of earning reputation in the international market the Government of Pakistan decided upon a scheme for compulsory standardisation and grading for her exportable products. The scheme is introduced in successive phases with an advance notice to the manufacture or producer so that they may adjust their production to meet the required specifications. The cases of standardisation of products are administered by the Pakistan Standards Institute which was formed in 1961. This institute offers standard mark on the product after which such product become eligible for export. In the :first phase of the scheme which was introduced on 1st June, 1966, standard mark on the following goods was necessary before they -could be exported to foreign markets. These were : electric fans, wet batteries, dry cells and batteries, cement, and induction motors.
Agricultural goods for grading were administered by the Agricultural Produce (Grading and Marking) Act, 1937.
Further, to advise our manufacturers and producers on design, .quality and standard, two’ design centers (Karachi, Dacca) named .Pakistan Council of Industrial Design have been established. This has further facilitated the work of the Pakistan Standards Institute.
Commercial Library and Commercial Museum. These act in co-operation with the department of Commercial Intelligence and Statistics. These are often maintained by the Government. Sometimes they are owned and managed by corporate bodies. The Federation of Pakistan Chambers of Commerce and its other affiliate bodies-maintain Commercial Libraries and Commercial Museums. While the Library is fully equipped with books, journals and other published materials of commercial interest, the museum retains the species of agricultural, industrial and mineral products of Pakistart and affording opportunities for study and research. Department of Commercial Intelligence and Statistics. This department is maintained both by the Central and the Provincial Government within their respective jurisdiction. Whether as a department of the Provincial or Central Government, it collects and compiles information regarding trade, commerce and industry of the country and maintain and publish them in various forms to suit the requirement of various purposes. This is but a feeding department: providing necessary information to any person or body corporate.
Trade Commissioner. A Trade Commissioner, as appointed by his Government is posted in a foreign land in order to maintain,, promote and develop trade relationship of his country with such-foreign land. He studies whether there is any change in the demand for his home-made goods in the country where he is posted or whether such changes are for increasing demands or decreasing^ demands. If there is really a decrease in demand, he further studies how to regain the lost market and advises his home-manufacturers accordingly. The commissioner is also in a position to supply necessary information to the foreign importer or home exporter-He may also advise them on any point confusing to them.
Consular Organisation. Like a Trade Commissioner, a Consul i& also appointed by his government and posted in a foreign country. His function is to watch over the commercial development of his country with the country where he is posted. He is to collect: information and study problems faced by the products of his country. He suggests the home-manufacturers or producers any change or adjustments to be made in production in respect of price, quality, quantity etc.
Apparently the functions performed by the Consuls are almost identical with those of the Trade Commissioners. The only difference: “between these two lies in. the status and relationship subsisting the two countries involved. Every independent nation may maintain a Consular Service or Consulate in each foreign country with which it has political relation. In a country of importance there may be a Consul-General with a number of consuls are Vice-Consuls working under him.
Trade Delegation and Trade Mission. These institutions have also the same end in extending the horizon of trade of a country. These are also the effective measures for promoting the export trade of a country.
“Trade Delegation comparess a group of Industrialists, traders •and business magnates of one country, who collectively go abroad on their own initiative to foreign countries to make personal contact with their counterparts in the countries they visit with a view to exploring possibilities of developing and expanding the trade between the two countries in their mutual interest.” This also provides ample opportunity for studying the foreign market. It brings the foreign buyers and sellers in close touch, exchange of mutual ideas and thought, feeling and sentiment foe which cordial but lasting -relationship is established between them.
A Trade Mission has also the same objects and purposes as those of a Trade Delegation. The difference between these two lies in the fact that while a trade delegation is being a privately organised and privately sponsored institution, a trade mission is A government organised and government sponsored institution. Again, -a Trade Delegation has always a commercial purpose, while a Trade Mission may have a diplomatic purpose, in addition.
The importance of Trade Delegation and Trade Mission has received -due attention since the second World War. In Pakistan the importance of the same in boosting up our export earning received due attention only after October, 1958. The present regime has undertaken a lot of promotional measures including initiating and organising trade delegations and trade missions. The Export Promotion Bureau organises Pakistani trade Missions to foreign lands. Our Trade Missions are of two types : General Trade Missions and Specialised Commodity Sales Missions. Since the inception of the Export Promotion Bureau, as many as 30 general Trade Missions and Specialised Commodity Sales Missions have been organised covering; practically the whole of middle East, Africa,’ Western and Eastern Europe, USSR, Far East, China, Australia, New Zealand etc. More than 230 businessmen representing a very large number of export interests,, both in manufactured and primary goods accompanied these delegations. They secured large export orders, established personal contact with their counterparts, gather new ideas, introduced many new-items in foreign markets and studied the consumer habits there.
Trade Missions sponsored by the Bureau are also successful in. effecting spot sales in the foreign market in considerable volume. The Trade Mission which started on October, 1967, visited Malaysia, Singapore, Indonesia, Thailand, Hongkong etc. and sold out goods-worth many lakhs of rupees.
The Bureau is also alive to the fact that prospective customers-of Pakistan are invited to visit our country and to see for themselves our economic progress in general. During past few months, the Bureau hosted businessmen delegation from China, Italy, Jordan, Libya, Spain, Japan, USSR etc. These visits resulted in substantial gains in our export business and goodwill for our goods. Pakistan,, during this decade, achieved a major bieak-through on the export: front. The total export earnings in 1959-60 was Rs. 184 crores, but this figure rose to Rs. 292 crores in 1966-67. This is evident that impressive gains have been achieved by the country during this-decade, and we believe that a substantial part of the gains has been? attributed to the salesmanship of our businessmen and industrialist around the world.