India-Pakistan Trade: Making Borders Irrelevant

By: Tara Beteille, co-authors: Kalpana Kochhar

In our blog post last November, we discussed Pakistan’s decision to grant India most favored nation (MFN) status. We were hopeful about the gains from easier trade between the two, but noted the many stumbling blocks in between. In the past 20 weeks, both countries have made serious efforts to address these blocks. Things are looking good. Here is an update.

Both countries mean business

In addition to the goodwill gesture of Pakistani President Asif Ali Zardari visiting India this April and Indian Prime Minister Manmohan Singh considering visiting Pakistan, important issues addressed include:

• Pakistan issued an order in March 2012 to move from a positive list of 2,000 items for India to a negative list of 1,209 banned items. Pakistan intends to phase out the negative list altogether and formally give India MFN status by the end of 2012.
• India, which formally granted Pakistan MFN status in 1996 (but maintained barriers) has agreed to reduce its sensitive list of 865 items by 30% within four months. India has also agreed in principle to allow Pakistani foreign direct investment in the country.
• Both countries recently agreed to allow yearlong multiple-entry visas for business visitors, with visitors allowed to enter and exit through different cities.
• The two countries have agreed to allow each other’s central banks – the Reserve Bank of India and the State Bank of Pakistan – to open bank branches across borders to facilitate financial transactions and ensure smooth trade.
• A second checkpost gate was inaugurated this March at the Attari-Wagah border to ease road traffic between the two countries. The checkpost, with elaborate security features and capable of accommodating 600 trucks at a time, will provide upgraded infrastructure, including new storage go-downs, wide roads, and a luxurious passenger terminal.

Opportunities and gains

Making borders irrelevant can have far-reaching effects for economic prosperity across sectors in Pakistan and India. Consider a key driver of growth: electricity. South Asia’s recent More and Better Jobs flagship report estimated that industrial load shedding in Pakistan has resulted in the loss of 400,000 jobs. Trade between energy surplus and deficit regions could counter such losses — indeed, Pakistan is already in negotiations with India to import up to 500 MW of electricity.

DAWN – “No peace in Balochistan without referendum” – Eddie Walsh

“The hearing showed that there will be no peace in the region without a referendum of self-determination. That cannot be ignored.”

As the sole witness of Baloch ethnicity to speak at the recent Balochistan hearing before the United States Congress, M. Hossein Bor disagrees with comments that he was not relevant to the proceedings.

Not only was he the only witness able to speak as a Baloch, he points out that he also was the only one with deep subject matter expertise in foreign trade and investment in Southwest Asia. From this perspective, he hoped his testimony would have shed light on the unrealised strategic and economic opportunities that an independent Balochistan would provide to Americans, including the ability to contain a rising China and an emerging Iran, prevent an adversarial Pakistan from achieving strategic depth in Afghanistan, and ensure Baloch-American economic prosperity through new energy and mineral resource agreements. However, with little time to prepare for the hearing and only five minutes of allotted time to provide oral testimony, many of these points were not expressed. Bor therefore looks to this post-hearing assessment as a mechanism to share publicly for the first time what he has shared privately with Baloch nationalists and their supporters. As one of the five witnesses called before Congress, it is assured that these remarks will be closely watched by all side to the Baloch debate.

Great Game 2.0

To understand Balochistan, Bor believes that one cannot look at Pakistan’s largest province through the Afghanistan-Pakistan (Af-Pak) box. In retrospect, this is perhaps one of the strongest contributions that he could have made at the hearing.

India Vietnam Sea oil exploration deal

Time to teach those around South China Sea a lesson

By Long Tao

No South China Sea issue existed before the 1970s. The problems only occured after North and South Vietnam were reunified in 1976 and China’s Nansha and Xisha Islands then became the new country’s target.

Unfortunately, though hammered by China in the 1974 Xisha Island Battle and later the Sino-Vietnamese War in 1979, Vietnam’s insults in the South China Sea remained unpunished today. It encouraged nearby countries to try their hands in the “disputed” area and attracted the attention of the US so that a regional conflict gradually turned international.

China, concentrating on interior development and harmony, has been ultimately merciful in preventing such issue turning into a global affair so that regional peace and prosperity can be secured.

But it is probably the right time for us to reason, think ahead and strike first before things gradually run out of hands.

It seems all the countries around the area are preparing for an arms race.

Singapore brings home high-end stealth aircraft while Australia, India and Japan are all stockpiling arms for a possible “world-class” battle. ….

Read more » Global Times

Trading with the enemy. – By Najam Sethi

The granting of Most Favoured Nation (MFN) to India has confounded certain long-established political and ideological vested interests. The story of why Pakistan denied this status to India for two decades and why it has relented today is worth telling because it sheds light on a critical dimension of Pakistan’s “national security doctrine”. ….

Read more » The Friday Times

We are still the prisoners of a culture of conspiracy and inferiority

– Let’s stop blaming America

By DR. KHALID ALNOWAISER, ARAB NEWS

I AM a proud and loyal Saudi citizen, but I am tired of hearing constant criticism from most Arabs of everything the United States does in its relations with other countries and how it responds to global crises. No nation is perfect, and certainly America has made its share of mistakes such as Vietnam, Cuba and Iraq. I am fully aware of what happened when the atomic bombs were dropped on Hiroshima and Nagasaki and the unprecedented abuses at Guantanamo and Abu Ghraib. However, what would we do if America simply disappeared from the face of the earth such as what happened to the Soviet Union and ancient superpowers like the Roman and Greek empires? These concerns keep me up day and night. It’s frustrating to hear this constant drumbeat of blame directed toward the United States for everything that is going wrong in the world. Who else do we think of to blame for our problems and failures? Do we take personal responsibility for the great issues that affect the security and prosperity of Arab countries? No, we look to America for leadership and then sit back and blame it when we don’t approve of the actions and solutions it proposes or takes.

For instance, if a dictator seizes and holds power such as Egypt’s Mubarak and Libya’s Qaddafi, fingers are pointed only at America for supporting these repressive leaders. If the people overthrow a dictator, fingers are pointed at America for not having done enough to support the protestors. If a nation fails to provide its people with minimum living standards, fingers are pointed at America. If a child dies in an African jungle, America is criticized for not providing necessary aid. If someone somewhere sneezes, fingers are pointed at America. Many other examples exist, too numerous to mention.

I am not pro-American nor am I anti-Arab, but I am worried that unless we wake up, the Arab world will never break out of this vicious and unproductive cycle of blaming America. We must face the truth: Sadly, we are still the prisoners of a culture of conspiracy and cultural inferiority. We have laid the blame on America for all our mistakes, for every failure, for every harm or damage we cause to ourselves. The US has become our scapegoat upon whom our aggression and failures can be placed. We accuse America of interfering in all our affairs and deciding our fate, although we know very well that this is not the case as no superpower can impose its will upon us and control every aspect of our lives. We must acknowledge that every nation, no matter how powerful, has its limitations.

Moreover, we conveniently forget that America’s role is one of national self-interest, not to act as a Mother Teresa.

Nation’s honor not to be traded for prosperity: COAS

RAWALPINDI: (Saturday, April 30, 2011) – The Chief of Army Staff General Ashfaq Parvez Kayani Saturday asserted that the nation’s honor and integrity will not be traded just in exchange for “prosperity”, Geo News reported.

“What’s in national interest and what’s not is a decision only you Pakistanis have the right to make,” the Army Chief said in his address on the occasion of Yaum-e-Shuhada …

Read more :  The News

SINDH NEEDS INDUSTRIAL DEVELOPMENT

by Dr Ali Akbar Dhakan, Karachi, Sindh

All the macro economic objectives can be obtained through the development of industries both small and large scale because they provide employment facilities, increase supply of goods, boost up exports, control inflation and price hike, reduce poverty and provide chances of prosperity through improvement of purchasing power of the common people .The problem of unemployment in Sindh particularly in Rural areas is due to lack of focus and attention to be given to the development of this sector.

Global Perspective of Sindhu Vas Magazine (Fragrance of Indus)

by Jagdeesh Ahuja, Hyderabad, Sindh

1.Message of Universal Love, Peace and Prosperity. 2.Elimination of War and Poverty. 3.Emancipation from all forms of slavery and exploitation. 4.Creation & construction of Humane Society. 5.Peaceful co-existence of all civilizations. 6.Sindhu Vas is a concept based on Sindhu (Indus) Civilization. Its canvas is spread over Himalayas to Hindi (Sindhi) Ocean. 7.Peaceful resolution of all disputes including matter of water distribution among all Sindhu Vasis.