Majyd Aziz
“A creative man is motivated by the
desire to achieve, not by the desire to beat others” ~ Ayn Rand
I
was in New Delhi during the weekend prior to the landmark day when all
expectations and anticipations were directed at the next leader of the 1.237
billion Indians. On May 26, billions watched the swearing-in ceremony held at
the imposing Rashtrapati Bhavan. Among those present at this momentous occasion,
another state leader was also getting special attention. When the oath-taking
ended, this personality walked up towards the former and, as the world
witnessed, these two leaders warmly shook hands. This historic moment was the
real time contact between two Corporate Prime Ministers - - Narendra Damodardas Modi of
India and Muhammad Nawaz Sharif of Pakistan. This handshake reflected hopes,
aspirations, and optimism. This handshake also had its vociferous detractors
who floated their negative vibrations in more ways than one. More prominently,
this handshake infused new enthusiasm into the advocacy process that has been
jointly undertaken by trade and industry leadership of both the countries.
The
May 27 meeting between the two leaders was eagerly awaited. A timeline of 35
minutes was allocated, 10 minutes more than granted to other SAARC leaders. I
had jokingly remarked to my hosts and fellow participants that the meeting
would cross the allotted time by 10 minutes or more because Modi would offer
another glass of Lassi to his esteemed guest. The tété-e-tété took up 50
minutes. This denoted seriousness as well as urgency and both leaders
understood it quite well. What is the next phase? Would trade and investment
continue to be hostage to other contentious issues that have plagued both
neighbors, because, as Sushma Swaraj, the first woman to become External
Affairs Minister who alongwith Secretary Sujatha
Singh, incidentally a woman, proclaimed that normalization progress is
difficult when bombs are bursting in air.
Notwithstanding the braggadocio
that has always been the hallmark of spokespersons in Foreign Ministries of
both India and Pakistan, notwithstanding the rhetorical outbursts regurgitated
by hawkish elements within BJP or by its fundamentalism-oriented allies in
India, notwithstanding the vitriolic warnings espoused by self-proclaimed
extremists under the banner of pseudo-religious organizations in Pakistan, and
notwithstanding the bubbling hype against any thaw in bilateral relations, I am
bullish about a Modi Administration and I am of the firm opinion that India has
a pragmatic, corporate-minded, focused leader who will not sacrifice the
economy at the altar of parochial or dynastic politics. I would venture further
and add that the Sharif economic team would also emulate the same vision and,
thus, there would be favorable breakthroughs in the coming months regarding
more liberalization of trade and removing major roadblocks in the investment
scenario in each other’s territory. Modi understands the dynamics of regional
economic integration and it was superbly manifested by his invitation to SAARC
leaders to attend his swearing-in ceremony. A small step for diplomacy but a
giant leap for SAARC trade and investment process.
So how should the course of trade and
investment liberalization proceed, now that there are business-oriented heads
of government installed, and inspite of the inflammatory slogan mongering or
inspite of the venomous balderdash emanating out of the naysayers? Remarkably,
various political parties are in harmony with the governments and this has
given impetus to the business communities in both the countries to forge ahead
and not lose traction.
Both the Prime Ministers should
immediately set up a Joint Task Force to address trade and investment related
issues. This body should be alternatively chaired by the Commerce Secretaries
and should meet once every month for a two-day caucus in each country’s
capital. The members of the Task Force should have a predominant private sector
representation as well as from the legal community, customs, and banking
sector. Since a composite decision encompassing all issues is not possible in
an immediate mode, it is recommended that whatever is mutually agreed should be
implemented on a priority basis.
It is imperative that Pakistan grant
Non Discriminatory Market Access, a bureaucrat-conjured euphemism for Most
Favored Nation status. This is unnecessarily a thorn in the side and
dilly-dallying by Islamabad is reinforcing any point scoring by New Delhi. The
granting of NDMA would also enable the business community to demand withdrawal
of some of the irritating Non-Trade Tariff Barriers that have vitiated the
already mistrusted environment present today.
The Central Banks, that is Reserve
Bank of India and State Bank of Pakistan, are presumably on the same page when
it comes to allowing deserving banks to set up branches across the border. The
right announcements have been made and the banks are waiting for the green
signal. At this moment in time, any delay in this process of providing
financial infrastructure facilitation is affecting enhancement in trade and at
the same time increasing the cost of trade transactions. It is hoped that the
mutually agreed decision is implemented so that local banks, depending on their
own network, are allowed to commence cross-border banking business.
The jamming of mobile phone signals at
the borders is also a sore point and there is no justification for denying
mobile communication connectivity. Whatever may be the security concerns, the
fact is that cellphones from third country service-providers are routinely used
by those citizens or foreigners who have roaming facility. It is time to come
out of a xenophobic mentality and enter the global age of freedom.
Both the Prime Ministers must ensure
that trade facilitation is best done if more than one channel of passage are
available. The present situation is locked on to the Wagah-Attari channel. This
is discriminatory and reflects a discriminatory mindset of the policymakers.
Businessmen from Sindh, Rajasthan, Gujarat and Maharashtra, for example, are
demanding the opening of the Munabao-Khokhrapar route as well as opening of Deputy
High Commissions in Mumbai and Karachi. Untenable and ludicrous excuses are
always proffered whenever these issues are discussed or demanded. The delay in
opening of DHCs and the Munabao-Khokhrapar route are adding to the cost of
products as well as cost of travel and creating delays in movement of goods as
well as people.
The onus also lies on the
representative bodies of the business communities of India and Pakistan to
become game changers. It is now incumbent upon Confederation of Indian
Industries, Federation of Indian Chambers of Commerce and Industry, Federation
of Pakistan Chambers of Commerce and Industry, and to some extent the SAARC
Chamber of Commerce and Industry to use their critical mass to bring about a
paradigm shift. There is need for a revisit of the composition of SAARC CCI
since it needs revitalization and introduction of a new, young and dynamic
leadership. This is imperative if this apex body representing business and
industrial community of all eight countries desires to be the catalyst of
change.
More importantly, it is
essential for the private sector to provide strength to the two political
leaders to steer in vibrancy in their economic agendas. Four or five years of
determination may be the answer to reduction of poverty, providing income
opportunities, enabling prosperity, and most important of all, ushering in an
era of peace and friendship in the sub-continent. Iqbal Azeem, the late Karachi-based poet very
vividly put it:
Koi Bataai
Ke Manzil Ka Kya Qasoor, Iqbal
Humeen Ne
Raah Mein Deewar Khud Kharri Ker Li
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