A peaceful Afghanistan is in the best interest of Pakistan and the rest of the countries in the region. Trade is correlative with peace but chaotic situation in Afghanistan has not only jeopardized peace in the region, but also in the world. It is unfortunate that Pakistan is always blamed for the situation in Afghanistan whereas in fact foreign powers, including India and the United States, desperately want to keep their presence in that country on one pretext or the other. Some countries also want to keep Pakistan in a situation which Afghanistan is enduring. The country has been in a state of war for the last over three decades and there is no letup in the situation.
However, a new regional economic and trade order is emerging in the shape of China Pakistan Economic Corridor and establishment of a trade route from Pakistan to double landlocked countries in central Asia such as Tajikistan, Kyrgyzstan and Kazakhstan through China. In this regard, a four-nation agreement was signed in 2004, allowing transit trade within the four countries. A big hindrance in opening up a trade route through Afghanistan is foreign interference, especially from India which wants to besiege Pakistan from all sides. If peace in Afghanistan is in the interest of Pakistan, peace in Pakistan will guarantee economic and industrial development in India. After making peace with Pakistan, India can get concessions from Islamabad to get access to the central Asian states for trade and investment. Pakistan has the option to get access to Central Asian markets via China, bypassing Afghanistan. However, there is no option available for India. Pakistan and India should compete in trade and investment and not in terms of nuclear devices or missile systems. Pakistan has another option to enhance its business activities and that is to sign a free trade agreement with Iran after sanctions have been lifted on that country. There is also need to revive the Pakistan-Iran gas pipeline project which went in abeyance for no apparent reasons.
As a matter of fact, Pakistan is on the threshold of economic development as opportunities are knocking its door, but it seems the leadership is perplexed or confused not knowing how to respond to the business offers. The officials still prefers business relations with far flung countries rather than the countries in the region. It is hoped that the government will be able to devise a liberal trade policy during its tenure in the office. So far, the draft of the policy continues to shuttle from one table to another and no one knows when it will reach the implementation stage.
