PAKISTAN and Kazakhstan have a lot to learn and benefit from each other’s socio-conomic experiences and strengths. A good beginning in that direction was made on Monday, when taking advantage of the two-day visit of President Nursultan Nazarbayev to this country, the two governments signed five highly significant agreements in Islamabad. Six times the size of Pakistan and having a population eight times less than that of this country, the land-locked, oil- and gas-rich Kazakhstan can perhaps access Karachi port or the upcoming Gawader port in shorter time than it would take its goods to reach any other international sea port. It is, therefore, but natural for these two countries to probe closely the possibilities of establishing closer bilateral trade and economic relations. With its per capita income of $6,300 Kazakhstan is a rich country growing at the rate of over nine per cent annually. Though 26 per cent of its population lives under the poverty line and the country endures an unemployment rate of over eight per cent, Kazakhstan is still a quality-conscious market as it had remained a part of a superpower for over 50 years. Its annual exports are almost equal to that of Pakistan’s and imports are about a little less than $10 billion. Most of its exports are made up of oil and gas and its imports include machinery, metal products and foodstuff. Its industry produces tractors, other agricultural machinery, construction material and its main agricultural produce are wheat, cotton and livestock. It has oil reserves of 2.70 billion bbl and natural gas deposits of 920.3 billion cubic meters.
It is this economic picture which the planners in Pakistan need to keep in mind while proposing mutually beneficial bilateral trade and investment projects. An environment for undertaking such projects has been created with the signing of the five agreements, one of which stipulates investment in each other’s countries by the private sectors of the two. Since both grow cotton and have a lot of experience in producing and marketing textiles, the two could join hands to make most of the upcoming liberalization in the world cotton textile market. More so, as Pakistan would be able to provide Kazakhstan ready access to world markets for its textile products with value addition in Pakistan which would surely enhance the profit margin for the country of origin. The recently signed quadripartite agreement on transit traffic between Pakistan, Kazakhstan, Kyrgystan and China should enable the two countries to get the import requirements of Kazakhstan quickly transported to their destination, again by value adding in Pakistan as that would make it highly economical for the country of final destination.
The economic managers in the two countries, while planning for the future, should keep in mind that as of today both Pakistan and Kazakhstan are predominantly importing countries which makes it difficult for them to quickly enhance their bilateral trade in goods. There is, however, some room for trading in services and that is the reason why perhaps the two have signed an agreement for establishing their bank branches in each other’s countries. In urban economic management Pakistan could provide a lot of assistance to Kazakhstan and even in environment control Islamabad has more expertise and could help Almaty in overcoming the enormous problems that it faces because of environmental degradation of its rivers. And young Kazakhs wanting to learn international languages can take advantage of the facilities that exist at our National University of Modern Languages.