Peace through Business

 by Rameez Karamat Ali (@itsrkali)
 

NEW DELHI: Pakistani companies may soon be able to invest in India as the government plans to strike off the country from a negative list that debarred investments from across the border. The symbolic move is not likely to yield fat investments into the country, but offer a political dividend to warm the often-frosty ties between the two neighbors.

 

Reference: http://articles.economictimes.indiatimes.com/2011-08-22/news/29914920_1_negative-list-mfn-status-india-and-pakistan 

 

Now the basic question which will rise in our minds that how this can be good news, especially for Pakistanis? As Pakistani money is going out especially toward India? This may hurt investor’s interest in prosperous Pakistan. But this will definitely bring peace and stability in region.

 

Now as we all know, India is a growing market and it is attracting foreign investors from all over the world. In this situation, if ‘Trade Gurus’ of Pakistan will invest in India then that will increase the volume of trade between two countries and if this trade volume increases to a considerable limit then peace in this region will become ‘Need of the hour’ for these ‘Trade Gurus’, then they will put some pressure on their respected Govt. to bring stability in the region. May be I am expecting too much but that large trade volume can stop the sudden drawbacks which we have to face in past due to any incident like Mumbai attacks.

 

This is not very easy as it looks because establishments and business communities of both sides opposed that in past. I am a Pakistani so I will tell you about my side. In 2005, Pakistani business community imported large amount of tea from Kenya despite the fact that India was the largest tea producing country. But if we compare internal trade between states then investing in India can generate a large profit as compared to the other countries. So business community will see their benefit and I am not very sure about establishment from both sides that what they will watch in this matter?

 

American intervention will be another factor. But American economy is a question mark in front of Investors, especially in this situation. So investor’s are searching for alternative markets. India is a good choice so Trade Volume with India may Increase in future.

 

So In future we should concentrate on trade and commerce between Pakistan and India. This can be a relatively stable option to bring peace in this region for a longer period of time.

 

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