February 4, 2002	Monday	Ziqa’ad 20, 1422

THE visits of delegations from the state of Oklahoma, (USA), the European Union, who are consultants on trade and trainee officers of the ministry of information at the offices of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) provided an opportunity to discuss the losses suffered by Pakistan’s trade following the events of September 11 and the strategies for recovery.

The crisis has adversely affected exporters to the extent of millions of dollars. Cancellation of orders, inordinate delay in the clearance of consignments at ports of destination, imposition of war-risk surcharge by shipping and insurance companies, negative advice to intending travellers and unsavoury media projection of the country and its products were identified as some of the factors that needed attention. Overall mood at the chambers was upbeat. There was wholesale approval of the handling of the economy and the Chambers’ leaders felt confident that the worst was perhaps already behind us and the adversity could be overcome with a bit of an effort.

Yes: that bit of effort implied continuation of current policies and improvement of the environments wherein the people could go about their business with maximum of ease and minimum of hindrance. For the former, added attention to infrastructure is required and for the latter, an attitudinal change is called for in which the administrative paradigm should shift from control to facilitation.

Exporters viewpoint needs to be heard with regard to the operation of the system of duly drawbacks. At this time of downturn they can ill-afford locking up of their funds for long duration. There was also a talk of $600 million having been received by the government as distress grant. Obviously the aid is meant for those who suffered in the fall-out of September 11. Wouldn’t the exporters seem to fall in the list of the affected and hence entitled to receive some share?

For economic turnaround, people spoke of the great opportunities that lie ahead in Afghanistan. Pakistan’s location, its ethnic, linguistic, cultural affinities and historical ties and above all the lay of communications make it a natural base for reconstruction operations. However there are a number of caveats.

On top of the list are the doubts security and safety created by suspected move of Taliban and Al Qaeda remnants into Pakistan. The situation is further confounded by India’s totally disproportionate reaction to the events of December 13, 2001.

By massing over 500,000 troops on the borders of Pakistan, India has clearly brought the sub-continent to the brink of a conflict that has nuclear dimensions. The war has not come to pass thus far but the forces have not withdrawn to peacetime locations. For business the atmosphere remains very thick.

For a longer-term perspective the pattern of yo-yoing in Indo-Pakistan relations is unsettling. The ease and speed with which the environment in