KARACHI, June 1: Traders in Karachi and Mumbai are exploring joint venture import arrangements from the international market for those commodities which are in short supply but in pressing demand in Pakistan and India.

“The idea for such arrangement is to save on prices and freight,” said Raees Ashraf Tarmohammad, leader of the Pakistan Commodities Importer Group, adding that traders of the two countries are now examining this proposal in perspective of shipping and banking arrangements and in context of exchange value of the two currencies.

Pakistan and India are facing shortages of certain varieties of pulses and traders feel if they pool their resources and jointly negotiate prices and supply, consumers in the two countries will be able to get quick delivery at relatively cheap rates.

Raees Ashraf Tarmohammad is now one of the active players in import business after the government decided to take on profiteers, hoarders, speculators and manufacturers of sugar and cement. At a business meeting in Mumbai on May 24, Mr Raees did not mince words to declare that trade imbalance for Pakistan was a too small issue if imports of sugar and commodities ensured cheap and quick delivery to the Pakistani consumers.

Mumbai port has emerged as the biggest supplier of sugar, pulses and certain other commodities to Pakistan in the last more than one year and traders in the two countries are upbeat on prospects of further expansion.

The prospects for further business expansion were discussed in details last week when a 35-member delegation of Pakistani traders, industrialists, insurance operators, media persons, educationists and others visited Mumbai under a Karachi-Mumbai exchange programme of the South Asia Free Media Association (Safma) from May 23 to 27.

During the visit, Karachi Chamber of Commerce and Industry President Haroon Faruqi signed an agreement with the Maharashtra Economic Development Council (MEDC) to take up joint research projects for business, investment and trade relations. Established in 1957 jointly by several chambers of commerce and industry of the Maharashtra state, the council represents the single biggest economic unit of the Indian economy, with an economy that now touches around Rs3.5 trillion, almost half the size of Pakistan’s total economy.

Mumbai, the capital of Maharashtra, is the Indian hub of financial services, manufacturing, trading and entertainment industry and one of the leading centres of education and healthcare, both in public and private sectors.

Indian business leaders and officials are now confident to a level that almost borders arrogance. “We compare our economic progress with South Korea and Germany and not with the neighbouring states,” said a senior official of the MEDC. But any reference to China that is showing phenomenal growth over the last more than a decade with complete control on inflation make Indian businessmen blush. Unlike India, China does not have a bulging financial services sector and its international trade is based on the principle of mutual benefit of the trade partners.

“India can take China head on if it reconciles with Pakistan,” remarked Rafique Dawood, who led the Safma-sponsored Pakistan delegation to Mumbai. Mr Dawood comes from a well-known business family of Pakistan, who with Adamjees, Bawanis and Dadas, can be called the architect of modern business in Pakistan.

While Rafique Dawood appreciates the enthusiasm of traders in India and Pakistan to further expand business, he is cautious in his assessment. “Let us not forget both of us carry a drag of more than 50 years bitterness, acrimony and wars and there are still bleeding wounds,” he said. But he was confident that the course of time and frequent interaction of the people of the two countries at various levels will heal the wounds. “Geography has condemned us to be each other’s neighbours and we will have to learn to live like good neighbours who respect each other’s privacy,” Mr Dawood added.

He acknowledges the progress made by the Indians in business but is confident that “we in Pakistan can take on the Indians.”

“Given equal opportunities and a level-playing ground, Pakistan business can make deep inroads into the Indian market, and we can give them tough competition in world market,” Mr Dawood said.

Zahid Adamjee, who represented another business family that played a key role in initial days of Pakistan, was also a member of the delegation. The visit to Mumbai provided him an opportunity to meet many Indian businessmen who were known to senior Adamjees and are now keen to have relationship with their children in Pakistan.

“We can import many automotive parts and equipment for electric industry from the multinationals in Mumbai at much less cost and far too quickly than what we incurring now,” he said. He made a particular reference to two multinationals that are his business partners located in Europe, though same companies in India can give him business advantage.

Saifuddin Zoomkawala, a top insurance operator in Pakistan, is already in business relations with General Insurance Corporation of India. His company offers health policy and he discussed the issues with Indian insurance industry leaders and senior people in healthcare in Mumbai.

One of the proposals being explored is to offer a health policy in both the countries that should incorporate clauses for treatment for Pakistanis in India and for Indians in Pakistan. If cheaper and better treatment and hospitals are available in India for Pakistanis then why go to Europe or the US is the question being asked.

The insurance leaders of the two countries are expected to meet in Mumbai in November to thrash out a workable package for consideration by the governments of India and Pakistan.

An Indian delegation will now visit Pakistan from June 10 on a similar Karachi-Mumbai exchange programme. This visit is being sponsored by Mumbai Safma. Safma has earlier organised a Punjab-Punjab exchange programme. A comprehensive report indicating complementary of the two economies has been prepared.