MFN: Getting Indo-Pak Workers United

MFN: Getting Indo-Pak Workers United

Majyd Aziz, Zeenat Hisham and Farhat Fatima

Preamble:

Nearly five decades after Pakistan unilaterally withdrew the Most Favored Nation status to India, events have conjured up a scenario where Islamabad did some rethinking after obtaining formidable and direct encouragement from the business and industry leadership and decided to authorize the Commerce Ministry to consider granting MFN to India. However, due to ignorance on the part of the Information Minister and due to sudden outbursts of some religious parties, who obviously have vested interests supporting them, the government suddenly developed cold feet and tried to wriggle out of a very judicious and pragmatic initiative.

The government would probably have its stand bolstered if there had been substantial support from the leadership of the Workers’ Federations and Councils. It has been established that MFN status to India and the removal of Non-Tariff Trade Barriers by New Delhi would result in enhancement of exports to India and at the same time would, in the future, attract Indian investment in many sectors. It has also been established that while there would be some industries that may face a negative impact on their production, their viability, and their sales, the prognosis is evidently clear that there would be an upsurge in exports from Pakistan and a positive bilateral trade regime with India would re-activate closed down industries as well as create more employment opportunities in many crucial industrial sectors.

The lack of support from the Worker’s leadership or maybe their indifference has been a cause of concern for the private sector captains. The only ray of hope emanated from Pakistan Institute for Labor Research and Education (PILER) and that too in the form of a Press Conference in November 2011. Sad to state, this initiative was not capitalized by other stakeholders in the Workers’ movement and thus it has to be ascertained what is really the thinking of mainstream labor leadership.

The idealistic mode should have been the convening of a conference or a seminar, where the labor leadership representing all schools of thought from India as well as Pakistan, should have put their heads together and come out with a strategic response that would have created the desired ambience as well as enabled the governments to undertake the steps that are imperative in achieving a doable bilateral trade and investment regime.

It is noteworthy to appreciate that the Pakistani and Indian Workers’ organizations have for many decades maintained close cooperation, healthy working relationship, affinity, and harmony across the border. It is, therefore, difficult to fathom why there has not been a vociferous demand for action on MFN and for bringing trade and industry of both the countries on the same page through trust and optimism.

Access to Markets and Technology:

India has the world’s largest middle-class market and is right next door. No country can proudly claim that it has the capability and the capacity to produce everything. That is why countries take support of bilateral trade so that the citizens as well as the goods producers are able to easily obtain their requirements. It is thus ironical that Pakistan is deprived of such a monumental marketplace just because the hearts and souls do not coincide with the created contentious issues and machinations. This is where the Workers’ leadership can play a defining role and help build up the confidence factor and the desired environment so that Pakistan can enhance the exportable items from 426 in 2010 to atleast 600 items and in the process increase exports from US$ 275 million to about US$ 600 million. This extra US$ 325 million would generate thousands of jobs and pave the way for a substantial demand for Pakistani products in the years to come.

The unanimity of views and the solidarity among the workforce in both the countries could generate the right consensus and enable this affinity to become the catalyst in significantly reducing and eventually removing NTBs that are negatively impacting the smooth and easy inflow of Pakistani products into India. What is also of paramount importance is the fact that these NTBs are creations of a chauvinistic mindset, fine-tuned by six decades of hostile attitudes and belligerent nationalistic moods. A strong and effective representation by the Workers would provide the impetus needed by policymakers to end this tacit action of declaring all Pakistani goods as intrusion of enemy into the motherland.

Another overriding advantage for Pakistan is the possibility of the availability of new and practical technology from India, especially for the small and medium enterprises of Pakistan. Apart from savings in transportation costs, the very fact that the installers of the machinery from India would be able to converse in Hindi or Urdu with the labor in Pakistan would better enable them to transfer technical knowledge as well as explain the operational systems and procedures.

It is imperative that the Workers’ organizations in Pakistan enter into a meaningful dialog with their counterparts in India and impress upon them the rationale behind the proposal to attract Pakistani products into India in a hassle-free and bias-free environment, They have to ensure that the Indian counterparts positively understand the fact that if Pakistani products are assured a favorable status then the overall gain would also accrue to the large number of unemployed and frustrated workforce, especially the young workers who need to start their livelihood career with quality employment and emoluments. The ensuing result would definitely be a major reduction in crime, extremism, terrorism, and eventually in jingoistic outbursts churning out from both sides of the border.

The Roadmap:

In view of the trust deficit and political enmity that have existed between the two countries and prejudiced the public opinion on matters impacting on the lives of common people, it is imperative that efforts be made to facilitate the workers for an informed understanding of the role of bilateral trade between Pakistan and India. An amiable relationship would improve the security climate for investment and economic development in both countries. Increased trade can be the starting point for this objective. PILER and Workers Employers Bilateral Council of Pakistan (WEBCOP) propose to initiate informed public debates on the issue with active engagement of concerned stakeholders, industry, trade and commerce, labor and trade unions, academia, state, civil society, media and citizens at large. The objective is to bring together the stakeholders who hold different and conflicting opinions on bilateral trade across the border, revisit the international and regional agreements that Pakistan has committed to over the years, discuss technical, economic, political and social aspects, and build a consensus on the need to move towards a fair, open and trustful bilateral relationship between the two countries.

The mutually-profitable thinking amongst the working class is that the time is opportune for the Workers’ representatives to vigorously lobby for free movement of labor across the border for purposes of training, apprenticeship, and learning new methods and processes, lobbying to streamline Workers’ emoluments, benefits, facilities, among SAARC countries, especially Pakistan and India, so that there is a pragmatic level playing field, uniting to impress upon both governments to have a common strategy if decisions of third countries or blocs affect both India and Pakistan, and joining together to protect Intellectual Property Rights.
It is proposed that the first such seminar should be a joint effort of Karachi Chamber of Commerce and Industry, WEBCOP, and PILER and should be held in KCCI in the month of January 2012. The format would be in a debate mode and the resource persons would initiate the debate and discussion. It is envisaged that a few resource persons from India should also be invited so that the viewpoint and opinion of the Indian side is also presented and contemplated during the program. The proceedings of the seminar would be recorded and compiled by the PILER team and these would be disseminated to concerned stakeholders in Pakistan as well as in India.

Looking at the Sky:

Karamat Ali, Chief of PILER, recently stated that “labor representatives should adopt and support the idea to enhance trade relationship with India. The groups that are against trade between India and Pakistan do not have any logical basis of denigration. They are religious groups, Jihadis, or even having extremist ideology and destructive aggression as their business. However, the trade groups, industrialists and businessmen are supporting this idea of MFN and therefore the working class should also raise their voice with them for their benefit and mutual interest.”

Zafar Mahmood, the Federal Commerce Secretary, has been assuring all stakeholders that pragmatic factors would be considered in placing any item in the Negative List so that the domestic industry has reasonable protection and able to sustain viability. He stated that there should be no discrimination against India vis-à-vis other countries that have been accorded MFN status by Pakistan. He said that India’s export data to other SAARC countries would be seriously studied too. He added that the landed cost for Indian goods would be minutely scrutinized and if the Indian cost is lower, then Pakistan would resort to increasing the tariff as well as imposing trade defensive measures.

The Workers of India as well as Pakistan must understand that India will always have an edge and its exports and future investment would be greater than Pakistani exports or investment. At this moment, for every dollar earned by Pakistan from exports to India, the figure is eight dollars from Indian exports to Pakistan.

Notwithstanding all concerns, bottlenecks, distrust, and jingoism, it is incumbent upon the Workers to take the initiative and resolve to work in solidarity with one another to attain the following:
• Promotion of peace, brotherhood, and friendship thru trade and investment
• Lobbying to respective governments to resolve contentious issues affecting both the countries
• Lobbying to liberalize visas for Workers, allowing free movement thru multi-city travel facilitation, and eliminating police reporting
• Lobbying for providing scholarships to Workers’ children to study in prestigious educational and technical institutions in each other’s country
• Promoting culture, arts, and culinary
• Strengthening Workers’ organizations and enabling them to work for more trade liberalization, investment, Workers rights, decent work, and freedom of association
• Working together to achieve Millennium Development Goals

Hina Ka Rang Hoon Mein Hathon Pe To Aaoonga
Utar Gaya To Mehak Apni Chhor Jaon Ga

(Majyd Aziz is Former President of Karachi Chamber of Commerce and Industry, Zeenat Hisham is Manager Research and Farhat Fatima is Program Associate at Pakistan Institute of Labor Education & Research)

Lessons from Indian Army for Indo-Pak Businessmen

Majyd Aziz

I was being chauffeured to ITC Maurya Hotel in New Delhi after attending a meeting as part of the 80-member Pakistan Business Delegation led by Pakistan’s Commerce Minister Makhdoom Amin Fahim in September 2011. As we traversed the Cantonment area, I saw strategically placed billboards of the Indian Army. Each billboard had a touching and significant slogan as it depicted the vision of the Indian Army.
Next day, I made sure I wrote down these motivating slogans. As I was writing these, I suddenly realized that although these three slogans were illustrating the Indian Army, they were remarkably applicable to businessmen of India and Pakistan, especially with the prevalent “feel good” environment.
The first slogan is “Empower your dreams”. For so many decades, the Indo-Pak businessmen, as well as their business organizations, have been demanding the normalization of bilateral trade regime and increase in trade and, hopefully, in investment. The desire has always been unhindered movement of businessmen across the border as well as longer duration, multiple visas without any limitations and restrictions. They want to see the day when there would be substantial bilateral trade ensuing very soon into a favorable and mutually beneficial Free Trade Agreement. This has been the vision for many years and now the time has come for a formidable and sincere campaign to achieve this objective. The visit of the Pakistan Business Delegation in September and the expected 200-members Indian Business Delegation led by Indian Commerce Minister Shri Anand Sharma in February of 2012 would surely be the way in which the dreams would really be empowered.
The second slogan is “They march with melodious precision”. Businessmen and industrialists on both sides of Pakistan’s eastern borders have been on the same page and not only have the yearning to undertake extensive bilateral trade but are passionate about their patriotism and their demand for joint ventures, technical transfers, and a common approach to trading with third countries. They have unanimity of views and are willing to support each other on an individual level and even at international forums. This is imperative as the time has come for them to accept that lot of water has flowed under the bridge while the hardliners and negative forces in both the countries have created a state of despondency, misery, and hatred for far too long. That is one reason why it is important for entrepreneurs as well as workers and employees that the anti-business forces must be silenced and sidelined and that the advancement on the avenue of prosperity, progress and peace is largely dependent if they make headway with their own mind-set of trust, purpose, and strength. This would then truly be a harmonious march.
The third slogan is “Poised for victory”. Fifteen years after India granted Most Favored Nation status to Pakistan, a decision has been taken in Islamabad to reciprocate. Thirty five years passed by before any Pakistani Commerce Minister took a trip to New Delhi. After initially erecting unnecessary roadblocks at WTO against the GSP+ incentives for 75 textile items announced by European Union to assist Pakistan, the Indian government unilaterally decided not only to withdraw objections but also to support Pakistan’s case. Recently, India wholeheartedly assisted Pakistan at the United Nations enabling Pakistan to obtain the mandatory two-third votes essential for becoming member of the Security Council. Inspite of its own infrastructure shortages, India proposed to sell 500 mw of electricity to meet shortages this side of the border. Moreover, Premier Dr Manmohan Singh categorically assured Pakistan’s Commerce Minister that India would honor the Indus Water Treaty. India also is spending billions to upgrade the infrastructure at the Wagah border and this would result in the movement of over 1000 trucks every day.
Pakistan too has moved forward. The frequent meetings of the two Prime Ministers at the sidelines of high profile global forums has thawed the ice and enabled the Ministers and officials to make positive moves for the better. Recently, when an Indian Air Force helicopter entered Pakistan’s territory, the military did not take action but honorably allowed them to return to their base in India. Pakistan needs cheaper oil and favorably priced raw material for domestic industries. Pakistan also requires comparably priced machinery for upgrading its local industries. All these are possible from India. Pakistan understands that India and China have done wonders in bilateral trade and are expected to cross $ 100 billion by 2013 and that the possibility of Pakistan taking advantage of trilateral trade and investment is apparent. Pakistan knows that in the global trade scenario, stagnation and isolation are not prudent because the water is rising and it has to be plugged otherwise there would be the threat of drowning in the global deluge. Thus the only way to plug it is to think global and trade openly.
Yes, businessmen of India and Pakistan must pay heed to the messages on the billboards in the cantonment area of New Delhi. The messages are loud and clear. There is no turning back. At the same time, governments of both the countries must shed their paranoia, atleast with regards to facilitation of bilateral trade and investment. India must recognize that a stable Pakistan is also in her own interest. India must also take the lead in accepting that billions spent on defence and security matters means that millions of human beings are kept in perpetual poverty, suffering, and deprivation. Jobs and quality of life should be the paramount priority. And, for the Indian Army, a short and sweet advice, with truly a sincere hope. The next time I am in New Delhi, the third slogan would have been amended from “poised for victory” to “poised for peace” because the two business communities would, by that time, have ensured that for sure.

MFN TO INDIA BROUHAHA

MFN TO INDIA BROUHAHA

Majyd Aziz

The recent trip made by a large 80 plus delegation of Pakistani businessmen and government officials led by Commerce Minister Makhdoom Amin Faheem to India, the Foreign Minister Hina Rabbani Khar’s visit to New Delhi to hold wide-ranging talks with her Indian counterpart, the upcoming second round of negotiations between the two Commerce Secretaries, and the unequivocal announcement by the Foreign Minister on the floor of the National Assembly, all combined to bring up for intense debate the issue of granting of Most Favored Nation status to India. It should be noted that India unilaterally granted MFN to Pakistan over 15 years ago.
What is this sacrosanct clause that is really not being accepted nor understood by hawks and naysayers in Pakistan. The Most Favored Nation Clause stipulates that “with respect to custom duties and charges of any kind imposed on, or in connection with, importation or exportation, or imposed on the international transfer of payments for import or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with the importation and exportation, any advantage, favor, privilege or immunity granted by any contracting party to any product originating in, or destined for, any other country shall be accorded immediately and conditionally to the like product originating in, or destined for, the territories for all contracting parties.” It may sound mumbo-jumbo or confusing to read this but all it says is equal treatment for all countries.
I was a member of the Pakistan delegation to India, and at the meeting with CEOs in Mumbai, I posed a direct question to them. I asked them what do the Indian CEOs want from Pakistan and one gentleman straightaway remarked “MFN”! The Pakistani delegation did not respond to this immediately but during the tea break, I nonchalantly mentioned to Ms Meera Sanyal, Country Head of Royal Bank of Scotland and the leader of the Indian side, that Pakistan has already accorded MFN to Indians decades ago. I stated that over $ 2.50 to $ 3.00 billion worth of Indian goods make their way into Pakistan through undocumented sources.
The point I am trying to make is that on the one hand, Pakistan’s policymakers are dilly-dallying on the granting of MFN on the contention that India resorts to Pakistan specific Non-Tariff Trade Barriers. This is a justifiably correct argument and it has been a sharp thorn in bettering Pakistan’s export performance across the eastern border. It is also safe to assume that there is a distinctive bias against Pakistani products in Indian officialdom. Moreover, the advantage of economies of scale that Indian manufacturers have due to a burgeoning and vibrant middle class assures them of a strong market and enables them to produce more at a comfortable price.
Of course, whenever Pakistani businessmen or even government officials attempt to promote trade concessions to India, the vocal anti-business elements loudly proclaim that it would seriously affect Pakistan’s avowed position on Kashmir and that all this talk about cordial and bilateral relations between the two SAARC nations is directly aimed at diluting the intensity of the Kashmir cause. The anti-MFN lobby counter with the argument that since India has formidable engineering, computers, petro-chemicals, and heavy metal industries, etc, it would be difficult for the Pakistani enterprises to compete on an equal footing. The concept of two religions also is a motivating force for the anti-MFN lobby. They also refer to the concentrated campaign on Kashmir by the government, not only within the country but also among the Islamic nations. They state that on the one hand, the government is highlighting the Kashmir cause and on the other hand, there are no qualms about granting preferential trade privileges. They do not appreciate the idea of a negative trade balance as they feel that the Indian importers will not reciprocate in the same spirit.
One must then also acknowledge that even though Pakistan does not recognize Taiwan, yet there is a beeline of Pakistani traders conducting business with Taiwanese businessmen. This is one solid case of doing business with those whom Pakistan’s “all-weather” friend does not recognize or accept. Here, trade took precedence over political compulsions. Then why not unshackle the Indo-Pak trade regime?
Pakistan must at all costs talk about regional peace, regional trade, and regional interaction. The country must take the lead to bring about an enabling environment to achieve these objectives. All efforts must be made to increase economic activities because deliverance only lies through massive industrialization and commercial activities. The policy to club all polemical issues between Pakistan and India and demanding their resolution first has not worked but, in the process, has resulted in sacrificing profitable economic contacts and damaging the one chance to stimulate economic activity in the present recessionary scene.
Pakistani and Indian leadership must stop this ego-trip and blatant propaganda. The leaders must put the welfare of people paramount. Efforts such as Amn ki Asha are commendable initiatives. The political hierarchy must work for the prosperity of the region. Only through trade and industry could this roadmap be achieved. The destiny of millions depends on how the national leaders in India and Pakistan weave their decisions and actions. As the bard rightly mused:
Bain-ul-Najoom kay faasalay kum ho chukay hain bahut
Bain-ul-Quloob kay liye idraq chaiay

Caravan in Motion: Indo-Pak Trade

Caravan in Motion: Indo-Pak Trade

Majyd Aziz

Preamble:

26 November 2008: Ajmal Kasab goes on a rampage and by the time the guns go off, 257 people lose their lives in and around Taj Mahal Palace Hotel in Mumbai. Probably every Pakistani became persona non grata in this landmark hotel.
26 September 2011: 70 Pakistani businessmen led by Commerce Minister, Makhdoom Amin Fahim accompanied by a team of government officials arrive on a historic visit to India. They are transported to this very Hotel where charming ladies, clad in colorful saris, welcome them with a captivating smile, a cool beverage, and an aromatic garland.

This symbolism of positive change is awesome. Three years ago, the two nations were on a high alert, ready to settle scores once and for all. And now, in less than three years, the hotel personnel accorded amazing hospitality and bent backwards to make the delegation’s stay a memorable one.

It is in continuation of this feel-good environment that Mr Anand Sharma, the Indian Commerce Minister, invited his Pakistani counterpart, Makhdoom Amin Fahim, to Mumbai and New Delhi with a vision to upgrade the present status of trade and investment. Pakistan’s Commerce Minister while accepting this historic invitation conveyed the message that he wanted a strong delegation of Pakistani businessmen to accompany him as the new thinking in Islamabad is to involve the private sector in crucial decision making process.

When PIA flight PK 278 left Karachi for a short flight to Mumbai, the delegation was optimistic but there was this uneasiness that it might just be a goodwill tour, even though it was after 35 years that a Commerce Minister led such a delegation, and that the road towards liberalization of bilateral trade and investment was still meandering, was full of potholes, and there were many blind spots ahead. But there was a ray of hope.

Paradigm Shift:

This first ray of hope in the long drawn process of normalization and progress of bilateral trade and investment relations between Pakistan and India was the issuance of the Joint Statement at the conclusion of the 5th round of talks on commercial and economic cooperation held in Islamabad on April 27 and 28, 2011 by the Commerce Secretaries of the two neighboring nations. Both Dr Rahul Khullar of India and Mr Zafar Mahmood of Pakistan were buoyant and bullish from the onset and as Dr Khullar told some of us businessmen in Islamabad, “a successful Commerce Secretary should think and act like a businessman”.

Inspite of the roadblocks erected by vested interests, such as smugglers, extremist forces, myopic-vision hardliners, and those who do not desire a peaceful environment in the sub-continent, the fact of the matter is that there is now a positive karma hovering around those who are in a position to introduce a new thinking in bilateral trade relations as well as in formulating a fundamental change in the trade and investment regime that has impeded and deterred meaningful progress.

The prime decision agreed by both the officials desired sensible confidence building measures, removal of distrust and misunderstanding, and appreciating the concept of business-friendly environment in its truer and broader sense.

The Joint Statement has highlighted all the issues that need positive consideration so that a win-win situation is achieved. It is recognized that India’s exports and investment, if any, would generally dwarf Pakistan’s exports across the border. However, if this eventuality is taken as a reason for Indian dominance of trade and investment, then it would be fruitless to talk about trade enhancement. The solution lies not in indiscriminate and frivolous imports but in essential needs of the country, like oil and petroleum products, machinery, industrial raw material, alternate energy, processes for recycling, processes for productivity increase of agricultural products, information technology, and even joint ventures

The contentious issue of Non-Tariff Trade Barriers has also been a point of focus. There is an apparent shift in the thinking in New Delhi. It would provide a much-needed fillip to the trade regime if NTBs are sincerely addressed and are not made a subject of scoring points.

The issue of facilitation of trade, e.g. at the Wagah-Attari route, the shipping protocols, the easy and quick issuance of business visas, the opening of branches of banks, the decision of Manmohan Singh government to withdraw objections in WTO against the granting of short-term EU incentives to Pakistan, the people-to-people contacts thru initiatives like Aman Ki Asha, etc have also been helpful and are aimed towards progress. At the same time, SAFTA should be an achievable goal and the time-frame for its approval should be shortened.

The modalities for the visit were worked out between the two Ministries and other government officials with the cooperation of FICCI and FPCCI, the two apex bodies representing trade and industry of their respective countries. A fast-paced agenda was chalked out so that significant progress could be made.

The way forward was to highlight, deliberate, and find amicable and mutually beneficial solutions to trade and investment related areas with the desired optimism that these would transcend contentious issues and that trade and investment would not be hostage to these concerns and misunderstandings.

Evening in Mumbai:

It was late in the evening by the time the delegation completed the Hotel formalities and got down to business. Some delegates had pre-arranged meetings and were engrossed in what they do best. Doing business. However, the TDAP official incharge of logistics suddenly announced that a high level Roundtable meeting had been arranged with CEOs of various Indian and multinational banks and finance companies and that we had to accompany the Minister. The Indian side was coordinated by Ms Meera Sanyal, Country Executive (India) of Royal Bank of Scotland. Both sides articulated their opinions in a professional manner and there was a consensus that it was high time both countries allowed banks to open branches across the border.

The Pakistani delegation advocated the removal of Pakistan from the Reserve Bank of India’s negative list of countries where Indian investment was not allowed. Both sides agreed that the restricted visa system was a major impediment and must be addressed on a fast track. In my short speech, I emphasized the need for India to remove more cobwebs than Pakistan if there was to be an enhancement in bilateral trade. I also asked the CEOs what the Indian businessman wants from Pakistan. They had only one demand – Most Favored Nation status! After the meeting, I remarked half in jest to Ms Sanyal and others that even though India has officially given Pakistan MFN about 15 years ago, Pakistan has accorded an unofficial MFN status so many moons ago thanks to those involved in undocumented trade.

At night, FICCI President Harsh Mariwala hosted a well-attended dinner in honor of the Pakistani Commerce Minister and the delegation. This provided businessmen a wonderful opportunity to interact and discuss trade, cricket, and the health of Pakistan’s top singer Mehdi Hasan. Before dinner the host and Chief Guest made the usual speeches and then we were served a lavish dinner.

Exploring Business Between Neighbors (Mumbai Conclave):

The second day in Mumbai began with a filling breakfast where I was fortunate to have the company of the charming and energetic Deputy Secretary General of FICCI, Ms Ambika Sharma, who was deputing for Secretary General Dr Rajiv Kumar who was in Washington and was scheduled to meet us in New Delhi.

The prime program of the day was the India Pakistan Business Conclave and the theme was Exploring Business Between Neighbors. The FICCI President, Mr Harsh Mariwala, in his Welcome Address highlighted the wish list of Indian businessmen regarding more trade between both the nations. He dwelt upon the need for MFN, bank branches, raw cotton exports to Pakistan, etc. He informed that FICCI would be sponsoring a document identifying the relevant issues and offer practical solutions. He also disclosed that FICCI would soon send a large business delegation to Pakistan. He was also very optimistic about the outcome of the November meeting in New Delhi between the two Commerce Secretaries.

Senator Haji Ghulam Ali, the FPCCI President, in his very inimitable style very forcefully stated that the 21st Century is the Century of trade and not war. In a speech laced with touching observations, he stated that there are ample opportunities in both the nations for investment, human resources, and natural resources but leaders of both the countries have their fingers on the nuclear button and are pre-occupied with defense matters rather than trade and investment. He very emphatically declared that “Indian and Pakistani businessmen must take the lead and break all barriers and then both governments will have to accede to the wishes of the business community.” He lamented the fact that even though Pakistan and India had 20% of the world’s population, the trade between the neighbors was less than $ 2 billion. He wondered why businessmen were not allowed to drive across the border in their own vehicles. He very poetically added that it is time that the businessmen broke the shackles of distrust and forgot the past as there was a desire for love, peace, and progress.

Business leader S M Muneer, popularly known by his moniker ‘Bhai Jan’ is at present the President of India Pakistan Chamber of Commerce and Industry. He stated that when today globalization dominates the world, over 45 million people in India and Pakistan are living below the poverty level and in the last sixty five years, serious efforts have never been made to eliminate poverty, disease, and unemployment. It is the opportune time to think trade, trade, and trade. He advocated the opening of trade facilities thru Munabao and Khokrapar instead of concentrating total land trade through Wagah. He wondered why Indian private airlines do not have any strategy to tap the Indo-Pak air passenger traffic.

Minister Makhdoom in his remarks said that “regional trade is most important and is more effective in bringing progress in any country.” He compared SAARC with EU, NAFTA, and ASEAN. He advocated a non-restrictive trade regime and advised the two Commerce Secretaries to prepare a comprehensive road map to encourage trade and investment. He requested the Indians to support Pakistan’s case of EU benefits at present stuck up at the WTO. He said he has brought a large delegation representing 28 to 30 sectors and each one of them means business.
There were four prime presentations after the formal speeches and then there was animated interaction between the businessmen from both the countries. Adil Malia, Group President of Essar Group showed a five minute video on the Essar Group. He disclosed that Essar Power was the first private sector power plant set up in India with a capacity of 1600 mw. He gave some relevant take-home quotes that are very pertinent in how companies grow and prosper. He stated that “every achievement is not an end but the beginning of a journey.” He added that “crucial difference in his Group and others lies in our people.” And then he ended his presentation by stating that “of over 70,000 employees worldwide, only those who will risk going far will realize how far to go.”

The next speaker was Ramesh Natarajan who is the VP (South Asia) DHL Express. He is a regular visitor to Pakistan and he moaned that for him, visa was the main issue and due to various visa restrictions, the cost of doing business and the cost of logistics increase. He brought up the real issues at hand and questioned how trade would increase if four issues were not tackled. This point of his was echoed at all meetings by businessmen from both countries. He said that the four issues are visa, communication (cell phones and Blackberry do not work in each other’s country), road network, and a reduced negative list. He ended his comments by stating that “let’s move beyond the rhetoric.”

Rizwan Shaffi, CEO Crescent Bahuman, a leading denim manufacturer of Pakistan, gave an analytical comparison of India’s trade with various SAARC nations and highlighted the scope of potential in enhancing trade. He enumerated various sectors and products that should be focused on for improving Pakistan’s export figures to India.

Farid Fazal is the Director of Marketing and Sales DG Cement owned by the Nishat Group. He had a very detailed and pertinent presentation with latest figures about the cement industry. He criticized the attitude of officers of Bureau of Indian Standards who were not willing to come to Pakistan to certify atleast four cement mills on the pretext of volatile conditions in Pakistan. He said that his company had offered to fly the officials direct from the airport to the mills in their personal aircraft but still these officials refused to come. He termed it as a blatant and obvious non-tariff trade barrier. He also advised the Indian cement importers to increase their imports from Pakistan since the cement mills in Pakistan had ample production capacity and India was facing a cement shortage due to massive construction activity going on in India. He said that Pakistan had 29 cement mills producing over 45 million tons per annum and this would rise to nearly 52 million tons in this fiscal year. Most of the mills have the latest dried technology and Pakistan is a major player in global exports of cement.

There was a lively interactive session after the presentations. Prominent business leader Tariq Sayeed initiated the session with his comments that SAARC visa stickers are only limited to 100 people from Pakistan for only one year and for some reason, this facility has been reduced to three months. He remarked that when institutions and organizations are created, these should be allowed to function and the facilities or privileges given to them must be honored.

In my remarks, I brought up the issue of cement exports by trucks thru the Wagah border. In this context, I proposed that since there would be a heavy demand for Pakistani cement, and since the Pakistani cement is accepted and utilized by building contractors, and since Indian cement industry is unable to cope up with domestic demand, it is imperative that both the countries should allow movement of cement cargo by trucks so that the objectives mentioned above are achieved. I added that 5 to 7% less Pakistani cement is required as compared to Indian cement. I also highlighted the importance of including minerals in bilateral trade as both countries can meet their needs from each other’s mineral base. I also echoed the contention of most of the businessmen that both the governments must allow roaming facility of mobile phones in each other’s countries.
Commerce Secretary Zafar Mahmood disclosed that a Working Group has been formed to ascertain the feasibility of an oil pipeline across the border. He also said that warehousing facilities at the Wagah border are being upgraded. He also did not appreciate the clause in Indian visa application forms where Pakistani businessmen are asked an irrelevant question, “When did Indian businessman open the L/C in your company’s favor?”

At the conclusion of the first session, Manojj Patodia of FICCI presented the Vote of Thanks and ended with a comment that “a small step taken by Indian and Pakistani businessmen would be a giant leap for other Southeast Asian countries.”

After a superb lunch, the B2B meetings commenced. A large number of Indian businessmen gathered in the hall and waited to interact with the Pakistani businessmen. I was one of those very few Pakistani businessmen with whom most of the Indians wanted to meet. In fact, I was the first to take my position and the last to leave the hall. I was able to sign a few MOUs under which my company would represent some Indian companies and vice versa. I was able to conclude in principal three deals that would be operative from November 2011. These related to chickpeas, millet, soybean meal, etc from India while chrome ore and rice for third countries from Pakistan by Indian businessmen were also agreed.

Late in the evening the delegation got into the buses for the long trip to the airport for our flight to New Delhi. The sore point in the stay in Mumbai was that delegation members like me were not able to see anything in Mumbai except for the Gateway to India Memorial and that too since it was opposite the Hotel.

Doings in Delhi Darbar:

Morning in Delhi on a warm Wednesday morning began at ITC Maurya Hotel in the cantonment and secured area of New Delhi. The organizers had planned a B2B event during the day. I was being assisted by Dr Mandip Sharma, Founder President of Association of Women Entrepreneurs and Career Women of India (AWECWI) that I helped set up in 2007 when I was KCCI President and of which I am the Global Patron. Here too my plate of appointments was chock-a-full and here too I was the first to be in the Hall ready for action. I had meetings with some of the Indian businessmen with whom my company already does bilateral trade. I was also able to get new reliable and well known future contacts as they fit into our company’s scheme of things.

Later I attended a meeting where CEOs of different Indian organizations met the Minister and a group among the delegation. Various points were brought up and discussed. There was plenty of camaraderie and the CEOs also displayed lot of enthusiasm and sincerity.

Mr Anand Sharma had arranged a sumptuous dinner and a scintillating cultural show for the delegation. Among the distinguished guests were Chief Minister of New Delhi, Mrs Sheila Dikshit, and Minister of State for External Affairs, Mrs Preteen Kaur, who is also the Maharani of Patiala.

Exploring Business Between Neighbors (New Delhi Conclave):

The fourth day of the program was superb. The format of the conclave was changed after mutual discussions. The conclave was conducted by Mr Arvind Mehta, the Joint Secretary, Indian Ministry of Commerce and Industry. To answer the various issues, especially the Non-Tariff Trade Barriers, that were hampering Pakistan’s exports to India, FICCI had asked certain government officials to be present at the conclave. Mr C K Maheswari, Chief (Certification) Bureau of Indian Standards, and his colleague Mr U K Kher, Mr S K Reddy, Director Department of Revenue, Ministry of Finance, and E Reddy, ADCI, Central Drug Standards Control, Department of Health, were present.

Mr Arvind Mehta, in his opening remarks stated that NTBs are more of a perception than reality since the exporters compare the standards of their own country with standards in vogue in the importing country. Thus it leads them to consider these standards as NTBs. He challenged the Pakistani delegation to highlight even one Pakistan-specific NTB and said “this is the mental mindset” of the exporters from Pakistan. He referred to the BIS certification for Pakistan’s cement mills and said that BIS usually gives one or two year certification to Pakistani cement mills after fulfillment of the mandatory procedures.

Moving ahead, he said that “our objective is not just trade normalization but also to move forward. We have lost the opportunity of SAARC intra-trade and thus we are late with SAPTA and SAFTA.” He added that India has accorded duty free access to all the other SAARC countries and if relations between India and Pakistan were normal, India would also consider the same facility for Pakistan but he complained that it is Pakistan that has not moved forward in normalization of trade relations. He disclosed that India would bring down peak tariffs to 8% and by December 2012 to 5% on over 90% of the items. He further said that India will continue the liberalization policy even if Pakistan is slow to reciprocate. He rejected the fear that Indian goods will swamp the Pakistani markets if MFN is given to India.

Mr Tariq Puri, CEO TDAP, had a very focused and well-prepared presentation for the benefit of the Indian businessmen. He said that “preferential treatment in Indo-Pak trade is imperative and not just the process of liberalization of trade.” He commended the decision announced by Mr Anand Sharma that India would withdraw its opposition in WTO against the EU decision of providing preferential treatment to 75 textile items from Pakistan. He appreciated the fact that promotion of Indo-Pak trade will now become “official in tandem with FICCI/FPCCI/SAARC-CCI. He offered the facilities of Expo Centers of Karachi and Lahore for Indian businessmen. He said that the target of US$ 6 billion set by the two Ministers would become a reality and he hoped that multiple-entry, one-year, many-cities visas to businessmen would give a tremendous boost to enhancing trade and investment.

Mr Tariq Puri also presented some relevant facts and figures. He said Pakistan’s exports of 426 tariff lines (6 digit level HS Code) amounted to $ 275 million in 2010; however India imports $ 37 billion worth of these 426 items from other countries and these make up 17% of India’s total imports. Pakistan’s share comes to a meager 0.75%. He wondered whether Pakistan could capture 5% of the market since that would be around $ 2 billion. The potential is there and requires Pakistani exporters to gear up and capture their share of the Indian market. He lamented the fact that Pakistani businessmen were not aware of the prospects. He added that on the other hand, India exports 943 items to Pakistan (6 digit level HS Code) worth $ 1.60 billion. These 943 items make up over 50% of Pakistan’s total imports and India’s share is about 10%.

Mr Tariq Puri also disclosed that TDAP would organize Pakistan Lifestyle exhibition in India in March 2012. The night before, at the Sharma dinner, I had introduced Mr Puri to Ms Neelam Kapur, Principal Director General, Press Information Bureau, Ministry of Information and Broadcasting. It was decided there and then that at the Lifestyle, Pakistani movies would be shown continuously for the duration of the exhibition.

After his presentation, the Pakistani delegation raised the anecdotal and procedural issues related to NTBs. Mr Maheswari justified the process of certification by stating that BIS is not a regulator but its mandate is to grant licenses. With regards to cement, he said that it takes four months to grant license to a domestic cement mill and about six months for foreign cement mill. He added that policies are made by the government and his Bureau just implements it. On a complaint that renewal takes a longer time, he maintained that renewal was based on past performance, quality assurance, and on-time payment of prescribed fees. He disclosed that 14 Pakistani cement mills have been certified and that one more was certified just 24 hours ago.

Mr Reddy informed the conclave that every two months a joint meeting would be held at Wagah border to discuss and decide issues related to cross-border trade. On a complaint regarding the discriminatory attitude of Indian Customs, especially for those who participate in exhibitions in India, he assured that he himself would be the focal person and facilitator for Pakistani exhibitors for all matters concerning Customs.

There was a spirited interaction with business representatives from both the countries taking active part. I explained the difficulties faced by Pakistan’s cement manufacturers and proposed that India allow cement to be transported by trucks. I called for opening up all four channels of transportation. i.e. land, air, sea, and train for movement of goods, especially cement, minerals, and other bulk products. I also criticized the
Regulatory Duty on Pakistani cement. I also advocated the idea that all SAARC countries should have a unified stance when negotiations for EU’s GSP Plus is decided in 2014. I also asked for suggestions on how to reduce freight cost for Pakistani mineral exports to India.

The second session was attended by both the Ministers and relevant office bearers of FICCI and FPCCI. In his Welcome Address, Dr Rajiv Kumar, the affable and knowledgeable Secretary General of FICCI, said at the outset that the joint decision of the two Ministers on the Indo-Pak trade was “uninterruptible and irreversible” and that the avenue of bilateral trade is now easily navigable. He presented, on behalf of FICCI, a “Green Certificate” to those on the stage and said that FICCI would plant a tree in the name of the recipients of this certificate.

Mr Arvind Mehta presented a summary of the morning session and termed the visit as a “game changer” and said that all relevant issues were thoroughly discussed and debated. Rajan Bharti Mittal, Chairman of Airtel and a former FICCI President said that India’s exports to Pakistan rose from $ 300 million to nearly $ 2 billion in the past decade. He said that “the political hierarchies of both the countries must provide the facilitation and that the concerned officials must also understand that the trade relationship has to be moved into a different trajectory.”

Senator Haji Ghulam Ali again made a highly convincing speech and it was a thrill to hear his observations and opinions. He said that “the balance of scales has tilted towards more trade and that the Pakistani business community is overwhelmingly in favor of granting MFN to India.” He hoped that the two governments would soon abolish the policy of issuing city-specific visas and instead country-specific visas would become a routine very soon. He also demanded that the condition of Police Reporting should also end since businessmen are not criminals or felons. He invited Mr Anand Sharma to lead a 200-member strong delegation to Pakistan soon as guests of FPCCI.

Mr Anand Sharma stated that the visit of the Pakistani delegation is truly a “defining one and that we have talked in an environment of freshness and frankness. Let us resolve to change the paradigm. Our relations are historic with centuries of partnership in food, culture, arts, and even Sufism.” He further added that “ASEAN has become a region of vibrant economic activity and growth and is emerging as the largest integrated economic force. My question then is, why not then SAARC?” He very frankly said that “India and Pakistan’s relationship has been turbulent and marked by events that should never have happened. We are neighbors and we have to co-exist in peace, love, and harmony. We have not overcome the baggage of history, of deprivation, of poverty, etc. The benefits of progress should percolate down to all citizens, especially the youth. This is the guiding and motivating principle. The world is watching what is happening in New Delhi and Islamabad and whatever happens would resonant not only here but in capitals in many countries of the world.”

Mr Sharma moreover said that “we would ensure that Indian GDP would grow at a substantial rate and that we have the largest middle-class population. India desires that the entire region should grow with us and there should be no delay. The time lines must be made shorter just like we desire a much shorter negative list in our bilateral trade. I am sanguine that a time will come soon when we would not have the need to talk of any negative list.” He assured the delegation that India will address the visa issue very soon and would also undertake an early review of the investment policy regarding Indian investment in Pakistan. He disclosed that “some of the largest mergers and investments made today in USA and Europe are by Indian companies.” He ended his speech by stating that “we have been patient too long and now we are impatient.”

Makhdoom Amin Fahim began his speech by stating that “I am finding it difficult to differentiate between the Indian and Pakistani businessmen sitting here.” He said that in his opinion, “composite dialogue has resumed and that trade will influence politics as trade flourishes in times of peace and cooperation.” He further stated that “we lost the semi-final in Mohali but we won the friendship match since the atmosphere of fear and distrust has reduced considerably.”

Vikranjit Singh Sahney, the FICCI Vice President, who had regaled us with Bulley Shah’s poetry the night before at the Sharma dinner, presented the Vote of Thanx and invited all to join the Ministers at lunch.

Visiting the Associations:

The afternoon program was visits to strong and effective trade Associations. The first stop was at the Shangri-la Hotel where a jam-packed hall consisting of members of ASSOCHAM INDIA (The Associated Chambers of Commerce and Industry of India) welcomed the Minister and the delegation. Mr Dilip Modi, the young and energetic President, in his Welcome Address expressed satisfaction at the momentum of confidence building measures undertaken by both the countries. He raised the issue of MFN and disclosed that he would be leading a delegation of ASSOCHAM members to Pakistan soon.

Mr Ravi Wig, who was the President of PHD Chamber and who is actively involved in FICCI and is now the Chairman of SAARC Committee of ASSOCHAM was the person who had invited the delegation by calling me in Pakistan and was adamant that we accept their invitation. He is a great friend of Pakistan and wants to bring the businessmen of both the neighbors together. He started off his speech by stating that “if we want to talk among ourselves, in confidence, then we should talk in our own language.” He added that “both the flags of India and Pakistan have green and white, so atleast there is 67% similarity.” He advocated joint ventures and exchange of lists of products that could easily be imported or exported among both the countries. Subash Aggarwal, a senior ASSOCHAM member then gave a short speech on the potential of trade and investment in the future.

The highlight of the interactive session was the presence of Mr Arun Jaitley, the leader of the Opposition in Rajya Sabha and former Commerce and Industry Minister, who had shown exemplary courage and strong negotiation skills and had played a pivotal role at the WTO conference in Cancun in 2003. He gave the keynote address and it was a treat to listen to him. He said that “no country in the world produces or can produce every product and the search is always for availability at competitive rates. Trade is done all the time and we do it in the midst of many barriers.” He called for “accelerated efforts by India and Pakistan to export the potential of trade and investment because at present the potential of trade and investment between both the countries cannot be realized due to certain factors.” He said that “one of the strength of India is its large number of entrepreneurs and this has given an edge and the result has been over 8% growth in GDP.” He complained that WTO is not functioning at the pace it should and that due to the inadequate movement of the WTO Doha Round, emphasis is now on regional or bilateral trade agreements. He proposed that developing countries should also concentrate on low-cost products and services because these are more in demand.

Mr Jaitley also griped about the volume of indirect trade between the two countries and said that it is more than direct trade and adds to the cost and inefficiencies. He hoped that the land route for trade would soon commence once the infrastructure is in place and was of the view that it would be cost effective and would result in increased trade. He ended his speech by advising businessmen to “reform and be competitive and play the role of sheet anchor in ushering peace and prosperity in the region.”

Makhdoom Amin Fahim in his impromptu remarks said that “Indians are very reciprocal to the views of the Pakistani delegation. We are taking one forward step while the Indians are taking two forward steps. This is a good augury. I would also mention that on the issue of common interests, all politicians are on the same page.”

The meeting ended with Vote of Thanx by Mr P K Jain and then a short meeting was held in an adjacent room between the Minister, Mr Jaitley, and some of us over a cup of coffee.

The next stop was again at the Taj Palace Hotel where the members of Confederation of Indian Industry were waiting for us. We were escorted by Ms Supriya Banerji, Deputy Director General with a smile and a Namaste.

In the absence of Director General Mr Chandrajit Banerjee who was on an official trip to Japan, the Co-Chairman CII Agriculture Counsel Mr Salil Singhal presented the Welcome Address. He dwelt at length on the wish list that would enhance bilateral trade. He mentioned, MFN, the negative list, the land route facility, the problems related to visas, communication, NTBs, etc and proposed that efforts must be initiated for a Free Trade Agreement like the India-Sri Lankan FTA. He advocated the need for “promoting confidence building measures especially through the effective use of media and that a platform be created for economic media to interact on a regular basis.” He offered the services of Indians for sharing technical and managerial skills and developing the IT industry in Pakistan. He also offered the services of Indian experts in fields such as medical, agri-chemicals, and skill development. More importantly, he proposed the setting up of a Trade Facilitation Center at the Wagah border.

Commerce Secretary Mr Zafar Mahmood began his comments by mentioning that “trade, investment, and economic cooperation between Pakistan and India have had a chequered history.” He said that “Pakistani consignments to India are thoroughly checked and this is the prime reason why many Indian importers are reluctant to do trade with Pakistan.” He appreciated the decision of India to support the EU initiatives for Pakistan that India had previously challenged in WTO. He informed the audience that “Pakistan is not a protective economy and even though we have a FTA with China, we have nothing to be afraid of.”

Mr Tariq Puri commented that “I am the most excited person in this whole exercise as events are moving in the right direction and I see a strong role for TDAP as a trade facilitator, supporter, and hand-holder for businessmen of both the countries.”

Later, Makhdoom Amin Fahim performed the launching of the CII Study Report “India-Pakistan Partnering For Prosperity” which is an excellent study consisting of facts, figures, strategies, and pictures of various events related to Indo-Pak trade. I took the opportunity of requesting all those on the stage to autograph my copy of this Report.
An enthusiastic interaction then ensued with representatives from both sides taking keen interest and participating with their opinions. I commented on the need for a Pan-Asia approach with linkages between SAARC and ASEAN and the need for a common strategy for trade and investment with EU and North America. On my remarks on SME sector and the need to promote SMEs, Mr Singhal informed us that out of 9300 CII members, over 6000 members are SMEs. Ms Neesha Taneja, a well known research specialist who has conducted a detailed study on Indo-Pak trade, said that “breaking the wall is easier while building it is a tedious process.” Nazir Vaid and Khalil Sattar of K&N proposed the setting up of a food processing zone in Munabao as it would be of great help in getting food items from both the countries processed there. Vaid also called for sub-contracting software to Pakistan’s IT firms. Mr Zafar Mahmood made a very arousing final comment. He said, “Yes, we will definitely do more.”

At night, the Chief Minister of New Delhi, Mrs Sheila Dikshit, hosted a gala dinner at her residence. The cultural program was fabulously managed and the coordinator was a Sindhi lady whose family had migrated from Shikarpur Sindh. I introduced her to Makhdoom Sahib and it was pleasing to the ears to hear Sindhi being spoken in New Delhi. The food was so excellent that every guest probably over ate. This, being the last official event, there were good-byes with the pledges of Phir Milainge.

Taking A Break:

The Indian High Commission had given eight-cities, ten-days, non-police-reporting visa to the delegates. I took the opportunity to do some sightseeing in Delhi and then taking the train to see for myself what Emperor Shahjehan had done with state resources by building the Taj Mahal. It was a fabulous experience travelling by train to Agra. Kudos to national political leaders like Laloo Prasad Yadav, the erstwhile Railways Minister, who had provided leadership and vision with the result that today Indian Railways makes oodles of money and has huge monetary reserves while Pakistan Railways is ready to be scrapped and sent to the junkyard.

On Monday October 03, Makhdoom Amin Fahim met the Indian Prime Minister Mr Manmohan Singh where he was assured by the Indian leader that all obstacles to trade would be removed, India would honor the Indus Water Treaty, and that India desires a strong and stable Pakistan. The journey back home from New Delhi to Karachi by PIA was smooth and comfortable and the mood of the delegates was upbeat, because after all, the business community had smoked the first peace pipe.

Pragmatism Desired In The Roadmap:

The success of the delegation, the announcement of Foreign Minister Hina Rabbani Khar that MFN would be accorded to India, the flurry of activities at the Ministry of Commerce, and the feeling of anxiety among some sectors has led to a debate on the merits and challenges of granting MFN. The pharmaceutical industry led the opposition and their apprehensions were echoed by the automotive vendors, the farmers’ representatives, and now the rice people have joined the chorus. Each sector and industry has its genuine complaints and is not comfortable with the composition of the negative list. However, now that the MFN would be granted and the negative list prepared and finalized, there is this imperative need to understand the dynamics of Indo-Pak bilateral trade scenario. What has been done and what must be done requires serious consideration.

Opening the Routes:

Although there are four means of transportation of goods, there are still prescribed restrictions in the movement of such goods and products. Trade by air is one mode while movements by trains, by trucks, and by sea are more effective and competitive. However, even in this respect, there are barriers that impact on the freight cost, on timely delivery, and on the quantum of the goods that could be traded.

The Joint Statement appreciated the “significant progress made in developing physical infrastructure for trade through the Wagah-Attari land route.” At the same time efforts would be made to increase the trading hours, fast-mode clearance of goods, and facilitating large vehicles and containerized traffic.
There is substantial demand for imported chrome ore by ferro-chrome plants based in the eastern provinces of India. Feedback received at various international conferences and seminars indicate a demand between 100,000 to 125,000 tons of chrome ore per annum. This is inspite of domestic mining as well as exports of chrome ore by India. The biggest deterrent in Pakistan’s exports to India is the exorbitant freight cost by sea amounting to $ 22 to 25 per ton while the freight cost to China is around $5 per ton only.

There is a need to develop a mechanism under which both the countries can facilitate bilateral trade if the product or commodity is beneficial both to the supplier as well as to the buyer. This would encourage healthy competition and would enable businessmen to deal in products that would otherwise be not feasible.

Non-Tariff Trade Barriers:

A major deterrent in global trade has been the imposition of non-tariff trade barriers apparently to protect domestic industry, especially the low end product. Apart from industrial products or raw material, the NTBs are also biased in favor of the country’s agriculture sector. At the same time, NTBs shield inefficiency as well as providing indirect incentives to these products.

There is one school of thought that maintains that even though NTBs are meant to protect local sectors, the fact is that indirectly they affect the cost of production as foreign inputs get front-loaded and become expensive. The facility of high protection to inefficient domestic producers also enables them to earn higher profits and thus investment in essential exporting sectors is diverted to the protected sectors.

Once again, the example of cement can be mentioned here. There is a formidable demand for Pakistani cement in India as Pakistani cement is of superior quality and meets the various rigorous quality specifications and requirements. Moreover, this enables the Indian customers to use less cement than the Indian cement. There is a potential demand for atleast six million tons of cement from Pakistan every year. Unfortunately, Pakistani cement mills have never been able to supply even 800,000 tons in any given year. One prime reason is that Bureau of Indian Standards issues licenses to Pakistani cement exporters after its officials come to Pakistan to inspect plants and then certifying that cement being produced conforms to BIS quality standards. The licenses are issued for one or two years and then renewal takes place after another mandatory inspection of the factory premises by BIS representatives. This is a tedious and long process and it impacts negatively on the production plans of the cement mills.

It is proposed that the BIS license should have a validity of five years and the conditionality of visiting the mills to ascertain whether the mills is functioning or not must be removed. BIS can also use the services of international inspection and certification companies to take on this responsibility. In fact, Pakistani commercial exporters should also be allowed to export cement to the buyers in India under their own brand name with the stipulation that the name of the manufacturing cement mills must be mentioned on the packing.

SAARC countries have to make a paradigm shift if there has to be substantial enhancement in intra-SAARC trade. The lead will have to be provided by India followed by Pakistan. NTBs would thwart even long-term investment within SAARC countries as the investors would face an uphill task exporting to even their country of origin.

Infrastructure Collaboration:

Electricity, gas, and water are essential utilities for any country to prosper. Today, SAARC countries are suffering from endemic shortage of these utilities. It is time that SAARC nations plan out a comprehensive arrangement of becoming self-sufficient in these utilities. A commonality of views and realistic decision making would enable them to channelize resources towards this objective. India and Pakistan should spearhead this process. Indian investment in Thar Coal, for example, could be attracted. At the same time, India must rejoin Pakistan and Iran so that the gas pipeline from Iran becomes a tripartite reality soon.

India is strategically placed to cater to Pakistan’s petroleum needs and it could supply these from the refineries based near Pakistan. Of course, once a pipeline from Bhatinda Refinery all the way through Wagah is laid between the two countries, Pakistan would save fabulous amount of foreign exchange in transportation costs alone. There may be an argument in opposition to this deal that it would substantially increase the balance of trade in favor of India, but the plain reality is that Pakistan would correspondingly procure less from the present suppliers in the Middle East.

Cooperation Galore:

The feel-good factor present between the businessmen of both the countries could be the stimulus for further cooperation in other critical sectors too. Information Technology, especially software development and call centers, can be a solid start with Indian entrepreneurs and technical wizards taking advantage of the pool of excellent graduates in Pakistan. Agriculture, livestock, dairy farming, and induction of new processes, better seed development, enhancing yield per acre, and agri-based industries are another sector that could make this sub-continent the world’s bread basket.

One area of very close cooperation between India and Pakistan should be at international arena. At times, some countries or some trading blocs change the rules and regulation, or withdraw incentives, such as GSP+, or bracket certain countries together and discriminate against their products or goods. In times like these, it is imperative that both countries should have a joint strategy to counter these moves. If other SAARC members are affected or could face the same situation, then these countries should also be part of the joint strategy.

In 2014, European Union would decide on the new GSP+ policy. It is proposed that SAARC countries must institute a joint strategy so that no SAARC nation is discriminated vis-à-vis another SAARC nation.

Pakistani people must understand that trade between the two nations would not dilute Pakistan’s influence nor make it dependent on its big neighbor. On the contrary, Pakistan can rightly benefit from its proximity to India. Pakistan is one of the world’s largest consumers of tea while India is one of the largest growers of tea. Pakistan needs industrial machinery especially to develop its small and medium enterprises and India has tried and tested machinery and equipment that bring about a mini renaissance in SME sector. Pakistan’s rice industry can go value-added once it gets out of the mindset of exporting just the basic staple instead of enhancing value through various processes. Pakistan’s textile industry can remarkably benefit from procurement of raw cotton, from textile machinery, from textile dyes and chemicals, and from designs and technical collaboration in apparel and made-ups.

To enhance trade, it has been decided to allow designated banks to open branches in each other’s country. This should be further liberalized so that Pakistani private banks can open branches in some of the major business-oriented cities of India.

Liberalized Environment:

It is high time both India and Pakistan liberalize their strict visa policy so that there is a favorable people-to-people relationship through unshackled movement from one country to another. In the first instance, multiple, one-year visas for genuine businessmen should be issued in a faster mode and restrictions on visiting more cities must be removed. Furthermore, the limit on issuance of SAARC visas be liberalized and each country should allow upto 500 such visas every year.

Cross-border trade is ideal if there is uninhibited movement of people, goods, and investments. Too much security paraphernalia or even security phobia would retard cross-border trade and would discourage businessmen. Interrogation and undue harassment of genuine businessmen visiting each other’s High Commissions should also be discouraged and relaxed.

If and when Pakistan allows transit trade for Indian goods to Afghanistan, the prudent method would be adequate security and safeguards so that goods destined for Afghanistan do not detour to warehouses in Pakistan.

It is incumbent upon both India and Pakistan to discourage and tackle undocumented or informal trade with a heavy stick. At this moment in time, Pakistan is open market for over $ 2 to 3 billion worth of Indian goods through non-reportable channels. This is a serious blow to Pakistan’s domestic industry, such as value-added suiting and shirting fabrics that come through Dubai. A voluminous amount of consumer goods, such as soap, cosmetics, medicines, tobacco and different concoctions of betel nuts and mixtures also make their way into Pakistan. Some of these are health hazards and people have become addicted to these products.

There is a need to decide on a negative list of imports from one another rather than beefing up the positive list. Both the countries must ensure that a pragmatic list be agreed upon, one that would not seriously affect the viability of an existing industry in any of the two countries. It is proposed that the automotive vending industry, the polyester filament industry, the pharmaceutical industry, the PET industry, etc must have a level playing field since these sectors have a massive investment structure and viability must be maintained for a certain number of years. Most of Pakistan’s industries do not enjoy economies of scale compared to Indian counterparts and the prime reason being the huge market in India than in Pakistan.

India has accorded the Most Favored Nation status to Pakistan over fifteen years ago while Pakistan has been hesitant in responding positively to the Indian demand to reciprocate. Pakistan has successfully countered this by insisting upon India to ease up on NTBs. However, one paramount confidence building measure announced by Pakistan has been an indication that the MFN status would be accorded to India probably in November 2011. The high-profile Foreign Ministers meeting in India recently, which was a debut for Pakistan’s youthful lady Foreign Minister also paved the way for this status to become a reality.

Optimism and Hope:

After over six decades of intense hostility, of wars and incursions, of lack of trust and orchestrated hype of jingoism, of accusations and point-scoring at international forums, of brandishing nuclear superiority and neglecting social responsibilities, and unduly restricting people-to-people contacts, hindering families to be with one another, and holding trade and investment as a pawn in the chess game of brinkmanship, the new thinking is that it is time that the needs and aspirations of the millions who call the Indian sub-continent their home are held paramount and scarce resources are channelized to make life better for them.

It is primarily through trade and investment that the objectives can be achieved. It is for sure that only through a progressive economy that both the countries can bring about peace and prosperity in the whole region. It is definitely a fact that the Pakistani and the Indian businessmen, industrialists, technologists, service providers, and entrepreneurs can and will make the difference. This is the optimism. This is the hope. This is the prayer.

Fasilah-e-shehr mein paida kiye sub darr mein ne
Kisi bhi bab-e-riyaat se mein nahin aya

October 26, 2011

Death in Defence

LETTER TO EDITOR

September 19, 2011

Death in Defence

A suicide bomb attack at the residence of a top Police Officer in Defence Karachi on September 19 resulted in the death of eight precious lives including a mother and her child who were on their way to school. The Police Officer has blamed Tehrik-e-Taliban Pakistan for the dastardly attack.

If this is true, I would like to ask TTP hierarchy some questions. Whether your cause is justified or not, what right do you have to take lives of innocent people? What was the fault of the mother and child whom you killed so horrifically? If you wanted to attack the Officer then whose lives you destroyed? Do you have the decency to answer the husband and father of the two victims? Are you so alone in this world that you do not have mothers, sisters, wives, and children? Are you answerable to no one? What kind of Islam do you preach or follow? I say, shame on you for your contemptible, despicable, and monstrous activities and shame on your cohorts who share your sinful thinking and malevolent actions.

Majyd Aziz

After a decade of Global War On Terror

After a decade of Global War On Terror
--- Economic, social, political impact on Pakistan

Majyd Aziz

The exodus of Russians from Afghanistan, the megalomania of Iraq’s Saddam, the spread of Islam in the West, the domestic and external pressure on the American economy, the 9/11 historical event, and the voluminous studies of latter-day Dr Strangelove’s clones nurtured and financed by massively-funded American think tanks were all contributing factors in a series of initiatives undertaken by Washington that came to be known as the Global War On Terror.

The rise of neo-Christian fundamentalists to counter the upsurge in militant Islamic forces gave strong support to the hype created by President Bush advisors and analysts that Saddam possessed weapons of mass destruction and enabled him to put in motion the grand plan to globally spread American influence.

Pakistan got caught in this tornado for some understandable reasons. The only Islamic nation possessing the bomb, bordering Afghanistan, controlling supply lines to Kabul, with ethnic and religious camaraderie transcending the border, largely dependant on Washington-controlled financing agencies, with a ballooning population under 25 years old that may be swayed by extremist elements, and the docility of it’s political and military leadership to United States’ dictation. Thus the loud threat of “you with us or you against us” worked pronto and Pakistan was touted as the frontline state in GWOT.

The decade of this GWOT has made Pakistan front-page news day in and day out. Every week some American high-up or some Congressional delegation comes to Islamabad and, while breathing down the neck of the political and military leadership, proclaims the mantra of “Do More”. This has put Pakistan in a precarious position and its impact has been widespread all across the country.

Over this eventful and volatile decade, Pakistan has faced situations that have fundamentally changed its political, economic, and social landscape. The GWOT enabled the democratic forces to unite against a government controlled by President General Pervez Musharraf and negotiate a new political order thru the notorious National Reconciliation Order. This paved the way for Benazir Bhutto and Nawaz Sharif to end their self-imposed and forced exiles. The assassination of Benazir Bhutto has been blamed on the terrorists and extremists that are the legacy of GWOT. The Liaquat Bagh Rawalpindi tragedy created a wave of sympathy and her party came into power with her tainted husband anointing himself as President. “Democracy is the best revenge” became the rallying slogan, but political instability, political expediency, and political distrust cast a glooming shadow on all imperative and crucial national decisions. The government hid its weaknesses, its insensitivity, and its inability to undertake decisions by camouflaging it as outcome of its fulltime concentration and determination to weed out terrorism and extremism.

On the social side, the nation has been horrendously affected by the ten years of intense involvement in the GWOT. The most sad and tragic outcome has been the death of over 35,000 citizens and military personnel. Scarce financial resources have been diverted to fighting this war at the cost of neglecting social sectors such as education and health. The track record of various governments has always been pathetic when it came to allocation for social sectors. No government has spent more that 3% of GDP on health and education and the GWOT also encroached on this allocation too. The rehabilitation and rebuilding of war-torn areas put a huge dent in the Treasury. Moreover, biased ethnicity, tribal rivalry, and parochial mindset all gained strength from the after-effects of this war and impacted on the decision making process of the government and the administration.

Pakistan has been the worst sufferer in economic terms because of the GWOT. The Finance Ministry has estimated that the nation spent over US$ 68 billion during the past decade in fighting this war. This amount equals the combined 2010-11 import and export figure. In the past couple of years, the government has drastically cut down essential projects under the Pakistan Social Development Program while also arbitrarily raising electricity and gas rates. The GWOT, coupled with the annual floods, have also messed up the GDP rate which is less than 3% with scant chance of it crossing the 3.50% mark in the current fiscal year. Asian Development Bank has estimated an annual 7% growth rate to absorb the burgeoning labor force that is looking for meaningful employment. This is a tall order and there is no window of opportunity on the horizon.

Pakistan’s image has been seriously tarnished due to the GWOT. This has put pressure on the development of new export markets and affected the comfort zone that importers of Pakistani products had in dealing with their suppliers. The law and order imbroglio, especially in Karachi, has also been detrimental to the progress of Pakistan’s economy. Notwithstanding the highest-ever exports in 2010-11, the fact is that it was more due to increase in world prices rather than additional increase in quantity. Today, unemployment is a major issue and it naturally induces the unemployed to succumb to the “sales pitch” of terrorist and extremist organizations. Pakistan’s defence bill is tremendously increasing inspite of the efforts of the military hierarchy not to open new military operation theatres to fight terrorism.

Pakistan is not being timely compensated by America for the huge expenses incurred by the defence forces. Moreover, the Kerry-Luger-Bremen Act under which development aid would be forthcoming has also been a victim of the change in Washington’s perception of the Pakistan’s efforts. Even the International Financing Institutions, primarily IMF, also get their signals from Washington. Now, Pakistan is compelled to announce that it is abandoning the IMF program and not applying for a new initiative to tackle its economic requirements.

All in all, with a limited financial base, with only about $200 billion GDP, with 185 million people, with tremendous competition in the global export market, with obvious political instability, with rise of extremist Islamic militants, with no signs of cessation of hostilities at the border, and with United States wanting Pakistan to “Do More”, Pakistan will not be the ultimate beneficiary of the Global War on Terror.

"US" and "THEY" opera

Majyd Aziz

Political and religious personalities in Pakistan become all-powerful because of the support of state terrorism. They do not reach that exalted stage overnight. Some political leaders have reached the superior position thru a systematic encashment of their acquired status and thus consider themselves as invincible. Revolutionary poet Habib Jalib very aptly said:

Is Se Pehlay Wo Jo Ik Shaks Yahan Takht Nashin Tha
Usko Bhi Apnay Khuda Honay Pe Itna Hi Yaqeen Tha

If an ethno-political party or an off-shoot of an organized party is branded as "terrorists", then one can rightly state that they have full support of bureaucracy, political hierarchy, law-enforcing agencies, external financiers, and roguish elements of society to reach that plateau.

The fact is that all the political parties have an unwritten pact. As in the game of Bridge, they are "us" and the citizens are "they". The establishment, the media, and the feudal and industrial aristocracies are all hand in gloves with them. They go to extremes to protect their self-interests while political polarization or verbal attacks or threats to quit government or organize long marches are just to divert people's attention from contentious issues like the shattered economy, foreign affairs failure, endemic corruption, or misuse of constitutional powers.

None of them want National Accounting Bureau; none of them want a government to fall; none of them want to be on the wrong side of the Armed Forces; none of them want to alienate Uncle Sam. All of them are covertly and unabashedly together in this macabre plot from Day One. The recent events on the political horizon vividly prove this nauseating set-up.

Meray Watan Ki Siyasat Ka Haal Mut Poocho
Ghiri Hui Hai Tawaif Tamaash Beeno Mein

Why does MQM keep coming back to the Cabinet? Why is PML-N tip-toeing instead of an organized onslaught against PPP? What made major leaders of PML-Q join the government? Why is Maulana Fazlur Rehman silent over the activities of the present government? Why is Jamaat-e-Islami not serious about its opposition? Where are people like Mahmood Achakzai, Asghar Khan, Maulana Sami ul Haq? Why does Pir Pagaro play both sides of the net? When people like Zulfiqar Mirza have a beef against MQM, why as Home Minister he allowed all facilities to 90? Altaf Hussain routinely addresses his followers from UK. Why were phone lines not jammed to prevent people from listening to demagoguery from Edgeware?

The answers are not that difficult. Sway the boat but do not rock it. The judiciary will be given a defined space to operate under a "controlled" freedom of justice scenario. The officialdom will have to work in "on-your-mark, get-set, go" environment. The police would as usual be the hand maidens while the industrial and business leadership will be subtly "advised" to behave. All in all, the political top leadership will "manage" in a keep-everyone happy system. The Armed Forces obey the Constitution and will impress upon the citizens that their duty is to defend the country and not indulging in petty politicking or rattling the democratic order. But, behind closed doors, they will "guide" as the actual rulers and every politician accepts this stark reality. The citizens, as always, are the lambs.

Ameer-e-Shehr Ne Kaghaz Ki Kishhtiaan De Kar
Khulay Samandaron Ke Safar Per Kya Rawaanah Humain

When the going gets rough and tough for the government, or the economy is in dire straits, or leaders start developing megalomania or getting too big for their britches, or try to trespass into forbidden territory, then the brass has no option but to pack up the "democratic" set up and take charge. The citizens joyously welcome this and a new musical chairs game commences albeit with music from a marching band. However, in a few years time, the "Administrator" is labeled as usurper, dictator, and Caesar while the band starts playing the new song of freedom and liberty.

Our Karachi --- citadel of peace

Majyd Aziz


HOLY QURAN: 6:123 - And thus We have placed within every city the greatest of its criminals to conspire therein. But they conspire not except against themselves, and they perceive [it] not.

The escalating volatile situation in Karachi has exposed the law enforcing agencies’ lack of expertise in controlling crime and terrorism. At the same time, the failure of the politicians to evolve a workable solution has also showed their lack of will and command in persuading the warring factions to come to terms. Moreover, the protagonists in Karachi’s own “War of Terror” have exhibited no desire to encourage a truce among them nor have they displayed any serious and sincere remorse in the multitude of deaths and injuries.

Daikho Gay To Mil Jayen Gi Har Mor Pe Laashain
Dhoondo Gay To Is Shehr Mein Qatil Na Milay Ga

In the mayhem and anarchic condition of Karachi, the brunt of all these have been borne by the innocent 20 million denizens who have no say whatsoever in this whole sordid affair. The dead victims of this mindless war have been transformed from faces and names to just numbers. The media just highlights the number of killed and, except for the victims’ families and friends, no one knows who these victims really are. For everyone else, they are just numbers. Period.

However, the real stakeholders of Karachi cannot claim genuine concern if they show apathy or complacency. In fact, Karachi’s stakeholders are not just residents of Karachi or those who venture into the city looking for employment or earning opportunities. The stakeholders of Karachi are 180 million people known as Pakistanis living in this country or for that matter those who are the Pakistani Diaspora.

The Karachi Wars have become an albatross around the neck of the business community since this explosive and dangerous situation has compelled foreign buyers to revisit their business relationship with Pakistani businessmen. The hardhearted intransigence of political parties (including ethnic and religious oriented) has outshone whatever flicker of hope the businessmen had that better sense will prevail.

The reason for the businessmen’s frustration and exasperation is that it is Karachi that is the prime contributor to the nation’s Treasury and is the major source of meaningful employment. Karachi is also a two-port city as well as having the most literate population among all cities of Pakistan. Moreover, Pakistan is known because of Karachi and thus, net-net, Pakistan suffers if Karachi breaks down.

Thus the time has come for Karachi’s businessmen, spearheaded by Karachi Chamber of Commerce and Industry, to initiate a campaign for peace. When the going was tough in Karachi many years ago, KCCI organized the My Karachi --- an oasis of harmony Exhibition that has now become an iconic annual event. It is time to initiate another such campaign that should be called Our Karachi --- citadel of peace.

The salient features of the campaign would be:

1. Letter campaign. Millions of letters (someone should draft in English and Urdu) addressed to COAS General Pervez Ashfaque Kayani and Chief Justice Supreme Court Justice Iftikhar Chaudary.

2. SMS campaign. Millions of sms to one another, to ministers, to judges, to media, to uniformed people, and to politicians.

3. Diaspora campaign: Pakistanis living in alien lands be encouraged to join the campaign and also bombard Pakistani embassies, high commissions, and honorary consulates with emails and letters.

4. Disclosure campaign: Difficult but doable. People should come forward and relate to a central hotline, thru sms, emails, and letters, how much and to whom they paid graft.

5. Media campaign: Concerned citizens, chambers, associations, and NGOs must issue advertisements appealing for sanity and stability.

6. Neighborhood campaign: Social activist residents must organize corner meetings and get-togethers where residents would assemble and formulate concerns and consequences.

More importantly, instead of inviting Interior Minister Rehman Malik every week, KCCI should organize an All-Parties Conference and come heavy on the hierarchies of these parties that if they do not bring about peace and harmony in Karachi, these politicians might as well let non-democratic forces, with full support and cooperation of the business community, take over command for a real long time.

Cosa Nostra in Karachi

Majyd Aziz


“This is a moment of choice for everybody, for politicians, and for people right the way down through every part of the community.” Peter Hain (British MP from Wales)

Although Hain was talking about the situation in Ireland, the fact of the matter is that if Hain was a MNA from Karachi, he would be expressing the same sentiments about his metropolitan city. At this time, it is the month of Ramadan, when the faithful perform their ordained religious obligations of fasting, praying, and distributing charity and Zakat. This is the month when retailers and suppliers rake in most of their yearly profits and reduce their held up inventory. This is the month when social welfare organizations bombard citizens with pleas for donations and contributions. This is the month where children look forward to new clothes, new shoes, and new gifts on the occasion of Eid-ul-Fitr, the Muslim day of feast.

Come Ramadan 2011 and Karachi has been transformed into a city where streets have become rivers of blood, where the candles of happiness have been extinguished in hundreds of households, where the citizens, no matter how brave, walk or drive to their places of worship in fear and apprehension, and where there are no signs of security or sanity. This is the city where, instead of religious sermons and religious poetry heard from loudspeakers, one hears the rat-a-tat of gunfire by snipers and even desperadoes brazenly roaming around the city streets and lanes.

There is talk of thousands of policemen, Rangers, and other para-military forces devotedly performing their assigned tasks of maintaining peace and providing security to citizens. This claim is assiduously proclaimed by President Zardari’s Interior Minister Rehman “Baba” Malik as well as by newcomer Sindh Home Minister Manzoor Wassan. Unfortunately, one is a publicity-freak who ensures that he comes up with a new weekly theory, however preposterous, while the other professes to have “dreams” on every subject except how to usher in peace.

The main causes for this bloodshed, for this deteriorating law and order, for this breakdown in Karachi are not something that arose overnight. These are the outcome of the past decade of buildup of brutal power, manipulation, and control by new and old political and religious organizations.

In USA, especially in New York City, there was a time when five Families of Italian-American origin made life hell for the people and the government. In everyday terms they were known as The Mafia. Among themselves, their operations were known as Cosa Nostra, which meant “Our Thing”. They were also referred to as The National Crime Syndicate and today they have an informal set up known as The Commission. The five main Mafia Families are known as the Gambino, Lucchese, Genovese, Bonanno and Colombo Families. They are all independent but nationwide coordination is thru The Commission consisting of the heads of each Family.

These Families have branched out into various legal and illegal activities but one fact still remains. They are hoodlums and they have a penchant for muscle power. They are ethnic based, they deal in drugs, they deal in land grabbing, they deal in extortion, and they have learnt how to influence the political environment. As Mario Puzo’s Godfather Don Corleone would say, “Make an offer you can’t refuse”. The five Families have faced legal challenges and a lot of laws were used to break them but inspite of all social and governmental pressure, the Mafia is still strong, powerful, and can create havoc.

The Karachi of today is also under the control of five Families. They are also primarily ethnic-based, have well-trained militants, display and use arms openly, have been accused of extortion, murders, bombings, and political muscle. Some are major players in drugs supply, land grabbing and encroachments, extortion, and can even make or break the democratically elected government. These five Families are Pakistan People’s Party, Muthaidda Quomi Movement, Awami National Party, Sunni Tehrik, and Tehrik-e-Taliban Pakistan.

The sad fact is that gradually over the past many years all these Families have enhanced their influence over the city and have carved out their own turfs. Three of these Families are basically political parties while the last two are more oriented towards their religious manifestations. They masquerade as religious entities but in effect they too indulge in many illegal operations such as extortion, taking over of mosques, bank robberies, etc. The PPP uses the paraphernalia of a Lyari-based radical organization, euphemistically known as Amn Committee (Peace Committee). This organization has been propped up with official backing of PPP leadership to counter the influence of MQM. The Amn Committee indulges in blatant extortion, gang-wars, drugs, and protection rackets.

The business community is faced with constant threats and demands from all those forces that are on the warpath against one another. The leaders of various markets in Karachi have devised a system where they collect a fixed amount from every shop in a particular market and the money is divided between various extortionists. The government announced the disbandment of the Amn Committee but that was just for public consumption. The Amn Committee is very much active and the chits for extortion are routinely sent to businessmen. The market gossip is that an erstwhile Sindh Home Minister who has a penchant for verbal diarrhea wants to be the Don of Karachi thru this Amn Committee.

The business community has to become strong and fight back. Enough is enough. The task is difficult but when push comes to shove then drastic steps must be taken. The businessmen are tired of being coddled by Rehman Malik. He comes up with his reassuring statements and gets live coverage on the electronic media courtesy the Chamber or the Associations. As always, his bombastic proclamations turn out to be nothing but hot air. Even the police do not take him seriously. One micro example: Few days ago at SITE Association of Industry, the industrialists questioned the procedure of parading alleged criminals by making them wear a hood so that their faces are not seen. Malik assured the meeting that this would be ended immediately. As always, the police hierarchy is all deaf-ears and the old system continues. It is time the business leaders refrain from inviting him at business forums. Business organizations do not need this grotesque publicity.

Businessmen must now have their own armed militia a la the notorious Blackwater of Eric Prince. They should not demand guns for themselves because this is not a doable or advisable step as the soldiers of some of the Families have, according to Malik, latest Israeli guns. Instead, they should obtain the services of counter-terrorism experts who have retired from Pakistan Army to train an elite force. In the short term, retired Army personnel should be hired as mercenaries. Karachi businesses need atleast 300 such commandos. The modus operandi would be that whenever a market or a company receives the demand for extortion, the militia hotline would be informed. The collector would be asked to come and receive the money at a mutually agreed time, and on his arrival he would be caught, hanged upside down, and submitted to third degree torture to extract information from him. Then, gasoline would be poured over him and he should be burned to death. The CD of the whole event would be dispatched to the media, the Supreme Court, and to the Family that sent the collector. This is the pragmatic approach rather than succumbing to pressure from the extortionists and also rather than handing over the collector to the police. All that is needed are four or five such actions and the extortionists would flee the city. The ludicrous step taken by the Sindh government and Malik to “mildly warn” the extortionists to leave the city is proof positive that they have no desire to control this menace.

The other steps that businessmen should take are to compel Karachi Chamber to organize a non-violent, non-cooperation protest where all members would stop depositing their taxes and utilities bills and instead would submit these with pay orders to KCCI so that the government is forced to listen to the cries of the Karachi citizens. At the same time, KCCI must get the top hierarchy of the five Families to come to KCCI where an ultimatum would be issued to all of them to stop their nefarious activities and allow the City to flourish and live in peace. They should also be given a warning to desist from calling protest days and strikes. They should also be told in no uncertain terms that these Families should voluntarily surrender their illegal arms and ammunition, not to the police but to the Pakistan Army. They should also be categorically warned that land grabbing and drugs supplies should end immediately and all such persons within their organizations should be expelled from membership and not provided any political support.

Yes, this is a tall order and as always, the Families will not pay heed. Thus it would then be a desperate call to GHQ and Supreme Court to honor their obligations under the Constitution and help save Pakistan by purging Karachi, the City of Lights, from roguish elements.

As my friend Anwar-ul-Haq, a senior officer of Federal Board of Revenue writes:

In Bastion Ke Baasi Khudaya Teray Supurd
Toofan Uth Rahe Hain Kinaron Ke Saath Saath
Dono Ki Ik Misaal Hai, Dono Hain Khokhlay
Insan Phat Rahe Hain Gubaaro Ke Saath Saath