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KARACHI, Dec 21: Captains of trade and industry in Karachi see a pivotal role for themselves in the reconstruction and rehabilitation of war-ravaged Afghanistan, but are uncertain of going on their own.
“We must act in top gear to develop joint venture partnerships with the resourceful international entities,” the recently elected President of the Karachi Chamber of Commerce and Industry (KCCI), A.Q. Khalil elaborated on the strategy to be adopted.
A ministerial level meeting on Afghanistan’s reconstruction will be held in Japan in January 2002 to discuss both political and economic aspects of Afghanistan’s reconstruction. The members of the conference includes Saudi Arabia, the EU, Japan and the US.
“Pakistan should use this and other such chances to strike strategic partnerships for carrying out joint reconstruction work,” KCCI chief told Dawn.
According to a report prepared by an international investment agency, rebuilding and construction process of Afghanistan could involve $20 billion bearing in mind the destruction in the country and its sizable population of 25 million. Khalil said that Pakistan was passing through a recessionary phase and had considerable surplus in construction materials such as cement, steel, sanitary wares, which can be profitably utilized in the reconstruction work.
Pakistan can expect to be involved in formulation of taxation system for Afghanistan when a new broad-based government is installed in Kabul. Under the scheme, the Pakistani taxation authorities will provide technical assistance as well as a plan for an effective taxation establishment to be put in place in Kabul, he added.
There is immense scope for flour mills, match factories, machine tool factory, pharmaceutical companies, ghee industry. Pakistan can play a vital role in rehabilitation work of telecom sector in which it was involved earlier as well. It has also the expertise for electrical installations and their restoration and maintenance.
The Export Promotion Bureau (EPB) estimates that the infrastructure development in Afghanistan will require $8-9 billion and it is now time for exporters to find ways and means to avail this opportunity.
EPB intends to devise a suitable export strategy to boost country’s exports after soliciting suggestions from exporters to cover up losses in the aftermath of Sept 11 tragedy in the US.
An official in the EPB said that the export target of $10 billion seems difficult, but Pakistan can get market access facility up to CIS countries due to some emerging opportunities in Afghanistan. The rebuilding of Afghanistan itself will offer major opportunities.
OIL AND GAS: There are opportunities for Pakistan in oil and gas sector as Central Asian Republics, as per independent studies, have huge five trillion dollars of proven oil and gas reserves.
An oil analyst said that Pakistan can expect realization of two billion dollar Pakistan-Turkmenistan — 1,600 km gas pipeline. It is envisaged that pipeline would be extended to India and then possibly to the Gulf. There are possibilities of constructing of $2.5 billion Oil Pipeline Project from Turkmenistan across Afghanistan to Pakistan’s Arabian Sea.
Oil marketing companies (OMCs) are also gearing up their efforts to market the petroleum products in Afghanistan.
“Shell is exploring opportunities for POL products required in the neighbouring country,” Chairman and Managing Director, Shell Pakistan Limited, Farooq Rehmatullah told Dawn.
Shell used to supply petrol to Afghanistan and had a liaison office during 60s and early 70s, Shell MD recalled hoping the company is again ready to cash the option of meeting POL requirements in a big way.
About possible oil reserves in Afghanistan, he said, it is difficult to estimate at this moment but there is ample scope for the petroleum companies for the exploration and reconstruction of oil installation, which must have hit or destroyed due to recent events.
A senior executive in Sui Southern Gas Company (SSGC) also painted a rosy picture for gas companies in securing lucrative contracts of exporting technical expertise.
“If things settle down politically, then prospects are bright for the gas companies to win huge contracts,” he said.
“If the Pakistan-Turkmenistan Gas Pipeline passes through Afghanistan, it will secure our long-term energy future as the domestic demand for gas has been rising by 4-5 per cent per annum,” he said.
“Pakistan gas companies are capable of securing big contracts for laying main gas pipelines, distribution and transmission systems, planning, designing and technical expertise in Afghanistan,” the official said.
