Afghan equation in Pakistani economy

Traditionally, Afghanistan, a land-locked country with no access to the
open sea, has depended on Pakistan for its imports and exports. The
most important single item that goes to Kabul via Peshawar is POL
(petroleum oil & lubricants). Edibles particularly wheat flour,
textiles and other merchandise form the rest.

Much of the goods (including POL) going to Kabul or Qandahar originate
in Pakistan. The reverse is also true. Afghan goods (mainly fresh or
dried fruits) end up in Pakistani markets.

However, there is
sinister element at work in this trade. Goods in transit to Afghanistan
do not incur any customs duty or other taxes in Pakistan. But, the
porous border with Afghanistan affords an opportunity for some of the
goods, (once having crossed the border to enter Afghan territory) to be
routed back by unscrupulous operators, into Pakistan.

DUTY FREE: The
distortions in market prices created by these phenomena, can be readily
imagined. Conversely, some food items and other essentials meant for
domestic consumption here, are smuggled to Afghanistan, creating local
shortages and a hike in prices locally.

Pakistan’s attempts to
seal the border by putting up barbed wire fences even on some selected
points of the Pak-Afghan frontier are decried by the same people, who
accuse Pakistan of harbouring terrorists. Then there are immigrants or
refugees from Afghanistan, who have settled in various localities of
Pakistan, established businesses and raised families over a period.

Most
of them display no intention of moving back to their homeland, under
any circumstances. Some have acquired property, or Pakistani
nationality even, and masquerade around the world, holding the green
passport.

The cumulative disastrous effect of the foregoing on
Pakistan’s economy in particular is tremendous, and cannot be counted
in terms of money alone. Bound as they are by cultural, lingual and
family ties, people in both the countries have to learn to live
together and find a ‘modus vivendi’, to exist without hurting each
other, financially or otherwise. After all, we are brotherly countries
and neighbours.

There is no reason why, we cannot be friends and
solve mutual problems to every one’s satisfaction. There is a saying
that “you can choose friends, but you cannot choose your neighbours.”
Nevertheless, there is nothing to prevent good neighbours also becoming
good friends and learn to live together, in amity.

Absence of
hostilities and establishment of good relations can pave the way for a
very prosperous future for both countries. Afghanistan happens to be in
the middle of the fabulous ‘Silk Road’, and a favoured transit route
for travellers and merchandise between Europe, Central Asia, Middle
East, the sub-continent and the Far East.

This strategic
situation is slated to grow in importance even further, following the
globalisation of trade under WTO. A further impetus is to be provided
by the opportunities of energy supplies from Central Asian Republics
(former USSR territories) overland to Eastern power-hungry and fast
developing or fully developed economies – like China, India, Japan,
South Korea, Sri Lanka, Bangladesh etc.

These supplies can be
effected by road or rail transport, or through pipelines, all the way
through to the ultimate destinations. The other and far cheaper
alternative is by land routes via Pakistan (to Karachi and Gwadar
ports) and onwards by sea. In fact, Karachi now, and Gwadar in near
future, possess a great potential as hubs for global 2-way trade and
commerce between the land-locked states in Central Asia and rest of the
world.

Given peace and security, the opening up of these routes
for trade and tourism will have an enormous impact on the economies of
both Afghanistan and Pakistan as the transit stage-ports for the world.

Further,
the so far an almost untouched domain of tourism attractions in the two
countries (as also some neighbours in the region) both in the historic
and natural beauty sense, can attract visitors equal in numbers to
those visiting, Egypt, Greece, Spain or Switzerland. Business
travellers can also spend some time in such spots, if necessary
facilities are put in place, by the respective administrations.

Short URL: http://www.daily.pk/?p=2428

on Feb 13 2008. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry