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[Kris]
by Guest Tue Apr 15, 2014 9:56 pm
Please share your views on the following:
Pakistan’s biggest import item, accounting for $7 billion, is petroleum products — probably some 7-8 million tonnes. That is less than two weeks’ output of Indian refineries. More important, the Reliance refinery in Jamnagar is a stone’s throw from Pakistan; its capacity is eight times Pakistan’s oil imports — and it is underutilized for lack of markets. Admittedly, one reason for its inability to sell is that the Central government subsidizes kerosene sales of its own refineries but denies the subsidy to Reliance. Any prime minister who follows Manmohan Singh should remove this injustice. But even if it were removed, Reliance — and Essar, which has a refinery in Vadinar not too far from it — would find it much cheaper to supply Pakistan. The next prime minister should talk to Pakistan to open up that market.
It is not just oil products that Pakistan imports under the counter; it no doubt imports many more things from India. If it legalized the imports, it would be able to import a lot more from India, and find imports from India much cheaper than from elsewhere — imports of engineering goods, vehicles, iron and steel, spices and so on. It has befriended China as a bulwark against India, and China has done much for it. But China cannot supply goods as cheaply as India, or provide as close and big a market.
It is not just in merchandise trade that the opportunities lie; there are also services. Foremost amongst them is transport services. One of India’s closest allies is Afghanistan; India gives it aid worth billions. All the goods given in this aid — foodgrains, construction materials, vehicles and so on — must just now be shipped to a port in Iran and then carried over terrible roads, chiefly to eastern Afghanistan. It would be far cheaper to carry them across Pakistan by road. The Americans and their allies supply their troops in Afghanistan through Karachi, whence the goods are transported via Northwest Frontier Province to Afghanistan. Our goods could be similarly carried across Pakistani Punjab. Let Pakistanis carry them in their trucks and earn some money; we will equally save money. And the same can be done with trade between Pakistan and Bangladesh: it can be carried in our trains and on Grand Trunk Road. It will create enormous demand for kebabs, which Pakistani truck drivers cannot live without.
What prevents initiatives of this sort is our belief that Pakistan is the home of terrorists. It is true for us; our worst and deadliest terrorists have come from Pakistan or been trained there. We have taken defensive measures against them, and they have worked to some extent. But while we have many enemies in Pakistan, we have made no friends. We should identify friendly Pakistanis, and reward them.
For instance, India is known the world over as an exporter of software, not of manufactured goods. Bangalore has made its name for software. Pakistan tried to get into this market, but failed; it had neither the educational capacity nor the connections with the American market. India should allow selected young educated Pakistanis to come and work in its software industry; and if Indian software companies want to set up subsidiaries in Pakistan, they should be allowed to. Hindutwits will be outraged by this idea: why should we teach Pakistanis the one thing we are good at? We should because we need to reduce our costs. No one has a monopoly of software; the American IT companies buy it from the cheapest source. Already, the Philippines is taking away our market. We need to reduce our costs, and one way may be to import Pakistanis and Bangladeshis.
It is not only the young we should befriend. Pakistan has many rich people; they go for holidays to Nepal, Sri Lanka, Thailand, Dubai — anywhere but India, because our stupid government does not give them tourist visas. Our tourist resorts could make much money if they were opened up to Pakistanis who can afford them; it is quite safe to let Shahid Khan or Mian Muhammad Mansha into India. And our stock market is down; there is no harm if they invest a few billions in it.
http://www.telegraphindia.com/1140415/jsp/opinion/story_18183528.jsp
Pakistan’s biggest import item, accounting for $7 billion, is petroleum products — probably some 7-8 million tonnes. That is less than two weeks’ output of Indian refineries. More important, the Reliance refinery in Jamnagar is a stone’s throw from Pakistan; its capacity is eight times Pakistan’s oil imports — and it is underutilized for lack of markets. Admittedly, one reason for its inability to sell is that the Central government subsidizes kerosene sales of its own refineries but denies the subsidy to Reliance. Any prime minister who follows Manmohan Singh should remove this injustice. But even if it were removed, Reliance — and Essar, which has a refinery in Vadinar not too far from it — would find it much cheaper to supply Pakistan. The next prime minister should talk to Pakistan to open up that market.
It is not just oil products that Pakistan imports under the counter; it no doubt imports many more things from India. If it legalized the imports, it would be able to import a lot more from India, and find imports from India much cheaper than from elsewhere — imports of engineering goods, vehicles, iron and steel, spices and so on. It has befriended China as a bulwark against India, and China has done much for it. But China cannot supply goods as cheaply as India, or provide as close and big a market.
It is not just in merchandise trade that the opportunities lie; there are also services. Foremost amongst them is transport services. One of India’s closest allies is Afghanistan; India gives it aid worth billions. All the goods given in this aid — foodgrains, construction materials, vehicles and so on — must just now be shipped to a port in Iran and then carried over terrible roads, chiefly to eastern Afghanistan. It would be far cheaper to carry them across Pakistan by road. The Americans and their allies supply their troops in Afghanistan through Karachi, whence the goods are transported via Northwest Frontier Province to Afghanistan. Our goods could be similarly carried across Pakistani Punjab. Let Pakistanis carry them in their trucks and earn some money; we will equally save money. And the same can be done with trade between Pakistan and Bangladesh: it can be carried in our trains and on Grand Trunk Road. It will create enormous demand for kebabs, which Pakistani truck drivers cannot live without.
What prevents initiatives of this sort is our belief that Pakistan is the home of terrorists. It is true for us; our worst and deadliest terrorists have come from Pakistan or been trained there. We have taken defensive measures against them, and they have worked to some extent. But while we have many enemies in Pakistan, we have made no friends. We should identify friendly Pakistanis, and reward them.
For instance, India is known the world over as an exporter of software, not of manufactured goods. Bangalore has made its name for software. Pakistan tried to get into this market, but failed; it had neither the educational capacity nor the connections with the American market. India should allow selected young educated Pakistanis to come and work in its software industry; and if Indian software companies want to set up subsidiaries in Pakistan, they should be allowed to. Hindutwits will be outraged by this idea: why should we teach Pakistanis the one thing we are good at? We should because we need to reduce our costs. No one has a monopoly of software; the American IT companies buy it from the cheapest source. Already, the Philippines is taking away our market. We need to reduce our costs, and one way may be to import Pakistanis and Bangladeshis.
It is not only the young we should befriend. Pakistan has many rich people; they go for holidays to Nepal, Sri Lanka, Thailand, Dubai — anywhere but India, because our stupid government does not give them tourist visas. Our tourist resorts could make much money if they were opened up to Pakistanis who can afford them; it is quite safe to let Shahid Khan or Mian Muhammad Mansha into India. And our stock market is down; there is no harm if they invest a few billions in it.
http://www.telegraphindia.com/1140415/jsp/opinion/story_18183528.jsp
Guest- Guest
Re: [Kris]
by Kris Tue Apr 15, 2014 10:39 pm
Rashmun wrote:Please share your views on the following:
Pakistan’s biggest import item, accounting for $7 billion, is petroleum products — probably some 7-8 million tonnes. That is less than two weeks’ output of Indian refineries. More important, the Reliance refinery in Jamnagar is a stone’s throw from Pakistan; its capacity is eight times Pakistan’s oil imports — and it is underutilized for lack of markets. Admittedly, one reason for its inability to sell is that the Central government subsidizes kerosene sales of its own refineries but denies the subsidy to Reliance. Any prime minister who follows Manmohan Singh should remove this injustice. But even if it were removed, Reliance — and Essar, which has a refinery in Vadinar not too far from it — would find it much cheaper to supply Pakistan. The next prime minister should talk to Pakistan to open up that market.
It is not just oil products that Pakistan imports under the counter; it no doubt imports many more things from India. If it legalized the imports, it would be able to import a lot more from India, and find imports from India much cheaper than from elsewhere — imports of engineering goods, vehicles, iron and steel, spices and so on. It has befriended China as a bulwark against India, and China has done much for it. But China cannot supply goods as cheaply as India, or provide as close and big a market.
It is not just in merchandise trade that the opportunities lie; there are also services. Foremost amongst them is transport services. One of India’s closest allies is Afghanistan; India gives it aid worth billions. All the goods given in this aid — foodgrains, construction materials, vehicles and so on — must just now be shipped to a port in Iran and then carried over terrible roads, chiefly to eastern Afghanistan. It would be far cheaper to carry them across Pakistan by road. The Americans and their allies supply their troops in Afghanistan through Karachi, whence the goods are transported via Northwest Frontier Province to Afghanistan. Our goods could be similarly carried across Pakistani Punjab. Let Pakistanis carry them in their trucks and earn some money; we will equally save money. And the same can be done with trade between Pakistan and Bangladesh: it can be carried in our trains and on Grand Trunk Road. It will create enormous demand for kebabs, which Pakistani truck drivers cannot live without.
What prevents initiatives of this sort is our belief that Pakistan is the home of terrorists. It is true for us; our worst and deadliest terrorists have come from Pakistan or been trained there. We have taken defensive measures against them, and they have worked to some extent. But while we have many enemies in Pakistan, we have made no friends. We should identify friendly Pakistanis, and reward them.
For instance, India is known the world over as an exporter of software, not of manufactured goods. Bangalore has made its name for software. Pakistan tried to get into this market, but failed; it had neither the educational capacity nor the connections with the American market. India should allow selected young educated Pakistanis to come and work in its software industry; and if Indian software companies want to set up subsidiaries in Pakistan, they should be allowed to. Hindutwits will be outraged by this idea: why should we teach Pakistanis the one thing we are good at? We should because we need to reduce our costs. No one has a monopoly of software; the American IT companies buy it from the cheapest source. Already, the Philippines is taking away our market. We need to reduce our costs, and one way may be to import Pakistanis and Bangladeshis.
It is not only the young we should befriend. Pakistan has many rich people; they go for holidays to Nepal, Sri Lanka, Thailand, Dubai — anywhere but India, because our stupid government does not give them tourist visas. Our tourist resorts could make much money if they were opened up to Pakistanis who can afford them; it is quite safe to let Shahid Khan or Mian Muhammad Mansha into India. And our stock market is down; there is no harm if they invest a few billions in it.
http://www.telegraphindia.com/1140415/jsp/opinion/story_18183528.jsp
>>> I just skimmed through the article and some things jumped out. While the cultivation of potential markets is generally a good idea, the petroleum demand seems to be rather minor in magnitude, unless the stats above are incorrect. It is a bit premature to talk about getting into a full blown business engagement with Pakistan because of its political instability and lack of economic maturity. Yes, there are reasonable people there who would welcome that, but the entire system is beholden to the ISI and the government/military revolving door is very much operative in terms of the people who call the shots. That segment has a visceral hatred of India and has defined their (and the country's) self-identity. The mentality trumps economic rationale. The sad part is a minority with the access to the levers of power can bring the country down, which they have and in the process have poisoned the well. Add to that the country itself is unraveling, with internal schisms. The 'india as bogeyman' trick is not working all that well, but not for want of trying. Given the potential costs involved in the form of Indian vulnerability to terrorism, lack of a robust Pakistani business infrastructure and the inherent instability of the political system ( to name a few), the costs vastly outweigh the potential opportunities. I think the gentlemen who wrote this piece is likely being more emotional than rational about this. I have even met Pakistanis who have feelings in this vein, but the problem is the ground realities would require a much more mature Pakistan politically and economically to engender the possibilities the author envisions. If his intent is to give Pakistan a helping hand in the hopes of converting it to a respectable member of the community of nations, laudable as that may be, it is a case of repeating the same experiment hoping for a different result at least this time. India is plugged in globally in terms of business, which means it can afford to pick and choose its partners in the neighborhood. I don't think tis should be India's fight.
Kris- Posts : 5461
Join date : 2011-04-28
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