ISO Warns of Pakistan's Membership Suspension: Impact on Exports and Reputation

Introduction

Pakistan is facing potential suspension of its membership in the International Organisation for Standardisation (ISO) due to unpaid annual subscriptions to the Pakistan Quality Standards Control Authority (PSQCA) since 2022. This warning has raised concerns within the business community as it could have far-reaching consequences for Pakistani goods and services in terms of reputation and exports. If Pakistan's ISO membership is suspended, it may lead to serious image issues for all products originating from the country.

Business Community Concerns

The business community, represented by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), has expressed its apprehensions regarding the ISO's warning. The Vice President of FPCCI's capital office, Aminullah Beg, highlighted the gravity of the situation, emphasizing that such negligence on the part of authorities should be considered a serious offense. He pointed out that not only would exports suffer, but if Pakistan's ISO membership were suspended even for a day, it could affect the reception of Pakistani goods by foreign buyers.

Mr. Beg also raised concerns about the bureaucratic system in Pakistan, asserting that it had become too powerful and lacked accountability for mismanagement or inefficiency.

ISO's Warning and Consequences

The ISO issued a warning to Pakistan regarding the unpaid annual subscription fee for 2022, which has led to the threat of suspending PSQCA's membership. If the suspension occurs, PSQCA will lose its voting rights within the ISO, and its access to free publications and documents from the organization will be restricted. The ISO has outlined a complex process for restoring membership after suspension.

The PSQCA, established under the PSQCA Act 1996, serves as the local agency of ISO in Pakistan, responsible for enforcing and implementing quality and environmental management systems. This includes ISO:9001-2000 and ISO:14000 certifications. The authority also assists local industries in obtaining certifications for these systems.

Resolution and Denial of Crisis

While there is concern within the business community, PSQCA's acting director general, Dr. H.U. Khan, has denied the existence of a crisis. He explained that the delay in payment was due to recent foreign exchange restrictions resulting from a dollar crisis. Dr. Khan assured that the matter would be resolved in the coming week, indicating that the government had responded to the ISO's warning in a timely manner.

However, stakeholders have criticized the situation within PSQCA, noting that there has been no regular director general since September 2021. Various key officers are also holding acting positions, affecting the agency's efficiency. Critics argue that PSQCA's inefficiencies not only jeopardize the reputation of local manufacturing units but also hinder international trade and investment.

Conclusion

The ISO's warning of potential membership suspension highlights the need for timely payments and efficient governance within PSQCA. Pakistan's reputation in international markets and its ability to export goods may be at risk if the issue is not promptly addressed. The business community and relevant authorities must work together to ensure the continuation of Pakistan's ISO membership and maintain the quality standards of the country's products and services.