Background on the Memorandum of Understanding between Pakistan Business Council and Competitiveness Support Fund

CSF is a joint initiative of the Ministry of Finance, Government of Pakistan and the U.S. Agency for International Development (USAID). It provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.
PBC has been formed by sixteen of the country’s leading groups and companies, including multinationals that cover a diversity of business activity. PBC was formed last year to promote and facilitate the integration of businesses in Pakistan into the world economy and to encourage the development and growth of Pakistani multinationals.
The MoU between CSF and PBC will create a partnership to identify public policy initiatives to improve competitiveness of Pakistani businesses.

The MoU states that CSF and PBC will undertake joint initiatives in engaging the government, research institutes, academia and the private sector in developing evidence-based advice on changes in legislation relating to public policy initiatives. PBC will help CSF in achieving its objective of supporting Pakistan’s goal of a more competitive economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country.

PBC will also work closely with CSF in improving the overall position of Pakistan in the Global Competitiveness Index (GCI) of the World Economic Forum. The areas initially to be targeted include corporate governance, management and staff training, occupational health and safety, corporate social responsibility (CSR), supply chain efficiency and family business transitions. Both the organizations also recognize the importance of human resource development for the private sector. They have both agreed to encourage the private sector to create more internship programs for graduates.

In addition to working jointly on developing these programs, PBC will ensure support for these programs by ensuring stakeholder participation in these programs.

The PBC will also assist CSF as the partner institution of the World Economic Forum in Pakistan in collecting data from Pakistani companies to be used for compiling the annual Global Competitiveness Index of the World Economic Forum. CSF signed the country partnership agreement with the World Economic Forum in 2006 to improve the competitiveness of Pakistan’s economy.

According to the details of the MoU, CSF will involve the PBC in a consultative role in matters which affect the private sector in Pakistan. PBC will use its resources to assist CSF in getting the required policy measures accepted by the government.

Both the organizations have agreed to form a monitoring and evaluation system that shall be jointly developed and implemented by PBC and CSF to ensure successful and timely completion of selected projects and programs. In this regard, a Monitoring and Evaluation Committee (MEC) shall be set up, comprising of 8-10 members, including PBC, CSF, other private sector nominees and academia. As one of the main donors of CSF, USAID shall be an observer on the MEC. The MEC shall be jointly be chaired by PBC and the CSF, meeting at least twice a year to evaluate the progress achieved by the recipients and to discuss the upcoming initiatives.

Both the parties have set a bench mark for the next three years to achieve their desired objectives.

SALIENT FEATRURES OF THE 
MEMORANDUM OF UNDERSTANDING
Between 
Pakistan Business Council and Competitiveness Support Fund

This MOU is signed on the 20th day of August 2007 in Karachi between Pakistan Business Council (PBC) and the Competitiveness Support Fund (CSF).

3. a. Corporate Governance

   b. Management and Staff training

   c. Occupational Health and Safety

   d. Corporate Social Responsibility

   e. Supply Chain Efficiency, and

   f. Family Business Transitions

   g. Internship programs for graduates

In addition to working jointly on developing these programs, the PBC will ensure support for these programs by ensuring participation of concerned in these programs.