A landmark agreement

A long time in coming, the agreement between the governments of Pakistan and Afghanistan needs to be welcomed, not least because it will regularise the existing Afghan-Pakistan trade, most of which currently takes place through illegal channels. By removing many legal barriers to trade, it is hoped the roaring cross-border smuggling volumes will now be dampened. The deal in itself signals a welcome – and one hopes irreversible – change in ties between the two neighbours. The Pakistan-Afghanistan relationship is not an easy one and a landmark agreement could go a long way towards bridging some of the mistrust. Opening up Afghanistan’s transit trade routes gives the landlocked country much-needed access to the port of Karachi whereas Pakistani exporters get unhindered access to the landlocked markets of Central Asia. Kazakhstan, in particular, is a thriving economy in desperate need of many goods that Pakistan produces, including agricultural products. The ability to supply those via land routes would make Pakistani goods highly competitive in the Central Asian markets and should increase trade volumes between Central Asia and Pakistan.

The agreement also gives Afghan exports and importers access to the massive Indian market. Were a similar deal signed between Pakistan and India, there could be much to gain on both sides. The deal on transit trade with Afghanistan is an urgent reminder of the need to resolve our outstanding issues with our eastern neighbour as well. Unfortunately, the events of the past week would raise doubts in the mind of even the strongest of optimists. Both India and Pakistan need to understand that they have much to gain if such a deal were agreed upon. Also, the people of both countries need to impress upon their respective governments, and more importantly their security establishments, the need for such a deal. Rather than seeking mutually assured destruction through the pursuit and expansion of nuclear weapons programmes, imagine how much better off the people of South and Central Asia would be if Pakistan and India were to pursue mutual economic prosperity.

Published in The Express Tribune, July 20^th, 2010.