Majyd Aziz
“While
US companies have been committed to Pakistan for over six decades, the
opportunity presented by the country is finally maturing. Pakistan is a young,
growing nation with an increasingly large and sophisticated domestic consumer
market. So, why Pakistan? Because the time to start is now.” ~ Miles
Young, Chairman, US-Pakistan Business Council, US Chamber of Commerce.
The statement emanating
out of the prestigious organization manifests in clear terms the motivating
message that should warm the hearts of Pakistan’s policymakers as well as trade
and industry. It also demonstrates pragmatism and reflects a sense of urgency.
Moreover, despite apprehensions, constraints and negativity, the fact is that business
prospects are substantial for the American investor. Pakistan welcomes
latter-day Daniel Boones. Undoubtedly, the profit potential, the charm of
growth, and the geo-strategic location of Pakistan are alluring.
It is pertinent to
mention here that there are four prime areas that an American investor could
consider placing financial, technological, and entrepreneurial resources as
these are vast fields of opportunities. These relate to inland transportation,
livestock and dairy farming, agriculture and mining.
Pakistan has developed
and continues to build an excellent road network. The planned Pakistan China
Economic Corridor and the Motorways are vivid examples of present and future
traffic facilitation. At this moment, Pakistan has an estimated shortage of
about 100,000 trucks of various sizes. Trucking has been a perennial impediment
in the economic progress. The Pakistan Railways is in shambles and there is no
inland waterway. Goods arriving at the Karachi Port, Port Qasim, and to some
extent, Gwadar Port are handicapped by the lack of fast track movement either
for domestic destinations as well as for Afghanistan. The ensuing hurdle is the
higher freight outlays that impact cost of transportation.
American trucking
companies, such as Ryder, Schneider or Landstar, could set up mega trucking companies.
Taking advantage of the facilities offered by US Ex-Im Bank or OPIC, these
companies could transfer their used vehicles to Pakistan and ply these on the
Ports-to-Afghanistan route or even to Northern stations of Pakistan. The
utilization of tracking system, proven efficiency and systems, and the
employment of graduates rather than the traditional drivers would make the
desired difference. Furthermore, strategically situated self-owned service
stations along the routes would ensure transparency, would control expenditure,
and would be time-saving.
Livestock and dairy farming is
another formidable investment possibility. Whitewater Dairy Supply Co of
Wisconsin took the bold step and invested in a modern livestock farm in Punjab.
The American dairy industry has a remarkable track record and this is crucial
for Pakistan where milk supply is much less than requirements, where the
production of cheese and butter is hopelessly insufficient, and where animals
are in huge demand, more so during the Eid-ul-Azha period.
Agriculture, especially
Corporate Farming, is sorely needed. The productivity of the farms is very low,
mainly due to division of landholdings as per traditional inheritance customs,
as well as the absentee landlord syndrome, and as well as the reluctance of
feudal sector to invest in modern methods, in employing latest farming
equipment, and in non-development of seeds and other inputs. A corporate
culture is highly missing and the large agriculture corporations in USA can study,
plan and implement investment in this sector.
Another area of blatant
neglect has been the minerals sector. Obsolete mining methods, untrained
workforce, low productivity and production per miner, inability to make the
paradigm shift to latest technology, and non-availability of functional access
roads from mine mouth to highways are impediments. Moreover, transportation
cost is comparatively higher due to location, due to shortages of vehicles, and
due to nature of the cargo.
There are other areas such as
the service sector, information technology, oil and gas exploration and so many
more. The pie is large for investors from all over the world. Yes, the nation’s
non-positive image, the political instability, and the risk factors are
deterrents that have to be surmounted. But the US investor has taken bold steps
in much serious situations. Pakistan is no exception. Francis Bacon, the
English philosopher very aptly stated that “In all negotiations of
difficulty, a man may not look to sow and reap at once; but must prepare
business, and so ripen it by degrees.”
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