Time to focus on regional trade, sustainable policies

Regional trade and cooperation is the need of the hour and the essence. PHOTO: FILE

KARACHI: 

The importance of regional trade realised by developed countries gave birth to the European Union. In spite of all the resources, the EU countries understood that their survival is only possible by enhancement of regional trade and full cooperation between member neighbouring countries. EU has emerged as a full economic force in the world.

Regional trade and cooperation is the need of the hour and the essence. But unfortunately, weaker countries like Pakistan succumb to external pressures falling into the trap where instead of their own benefits and priorities kept foremost, have to follow the whims and desires of the policemen of the world.

Pakistan today faces multi-faceted challenges. Terrorism, political uncertainty, lawlessness and all this leads to one point where a major main cause can be attributed to the economic health of the country. Unfortunately, there is a very big trust deficit between Pakistan and all its neighbours, friends and foes alike.

Rest of the world offers opportunities where the environment is most conducive for investment ie no terror issues, political stability and most of all stable and sound long-term policies irrespective of the changes in the politics of such countries. Why then should major global investors opt for Pakistan?

Uncertainty prevails, Reko Diq is one of the most recent examples and an important test case for Pakistan eyed by the global investor community. The project can become or maybe has already become a quagmire for Balochistan and the Government of Pakistan.

It is informed that very recently one of the key lawyers defending the case expressed to Balochistan parliamentarians the likelihood of the matter in the international courts favouring TCC.

The time has come where politics should be kept on the back burner and to think of brand building and bringing a turnaround to the country’s economy.

Trade with Iran

Ironically, Pakistan’s inability to bargain and utilise its competitive edge and its strategic geographical location has caused and is causing under-investment in the country.

Instead, trying to be the good guy benefitting neighbouring countries like India and Afghanistan by allowing transit trade between these two countries, before allowing this transit trade, Pakistan should have negotiated with Afghanistan to allow connecting Pakistan with the Central Asian countries with the construction of a 40km road from Tirich Mir to the Tajik border.

Instead of remaining pursuant towards India, it should bargain with the masters for allowing free trade with Iran and transit trade between Iraq-Turkey-Europe through Iran into Pakistan.

In this case, the end-beneficiary would be Pakistan and could become a lifeline for the Gwadar Port in Balochistan. In the latter case, allowing transit trade between Afghanistan and India brings no cognizable benefits to Pakistan.

Benefits

The time has come where it is imperative that undaunted efforts should ensue by working towards improvement of relations and trade with Iran. This step can benefit both Pakistan and Iran in a very big way. Some of the needs and benefits are as follows:

1. Will facilitate commercial activity and trade between the two countries.

2.Will facilitate seafood industry at Gwadar and in Iran.

3. Will facilitate direct interaction between the Gwadar Chamber of Commerce and Chabahar Chamber of Commerce.

4. Will facilitate people of border areas to travel across the borders legally and enable them to travel to other parts of the country with a proper visa made available between Gabd-Remdan and Mand-Pishin border points.

5. The development of zero points at the two new borders at Mand-Pishin and Gabd-Remdan, same as that at Taftan border, can have a very positive socio-economic impact on the people of both sides.

6.Since Pakistan is already getting power from Iran and intends to enhance the capacity in the near future, it would be imperative for the operators from both sides to travel freely across the border as a necessity for interaction/meetings.

7. Since Iran being under sanctions, banking with the country is impossible. Legal money exchanges should be established within the boundary of the zero points where businessmen from both sides should have easy access. These exchange companies can act as a guarantee for the commodities traded between Iran and Pakistan.

8. It can enhance tourism between Iran and Pakistan with emphasis on the coastal belt.

9. Once Gwadar starts developing, the facility can invite Iranian business houses to invest in various projects in this port city.

10. It would become necessary for both the countries to establish their consulates at Chabahar and Gwadar.

11. Gwadar Port will be activated after Gabd border is opened for transit trade that can facilitate Iran to export its goods by road from Gwadar to China and vis-à-vis through the Silk Route.

12. While India can buy crude by paying Iran in Indian rupees, why can’t Pakistan?

13. Both the countries should enforce trading in their local currencies.

Therefore, rather than the government begging for good relations with the country towards the eastern border, must turn its face and look towards the western border where the benefits can be innumerable.

The writer is the former project director and deputy managing director of Saindak Copper Gold Project, Chagai district, Balochistan