Trade, not aid

One thing that has become evident through the flood crisis is that the rest of the world does not seem eager to help Pakistan through its troubles. The perception is that our troubles are either deserved or not abatable. At a time when soliciting donations has been increasingly difficult for a government that lacks international credibility despite being democratically elected, perhaps it is time for the administration to try a new tactic: trade, not aid.

President Asif Zardari has uttered that phrase before, on a trip to France last year.  While he failed to convince the European Union of the utility of a free trade agreement with Pakistan then, he should try again now, both with the EU and the US. We echo the thoughts voiced in an editorial in The New York Times calling on the US Congress to approve a free trade agreement with Pakistan. If the rest of the world is unwilling to help us, perhaps they can be persuaded to let us help ourselves.

The rebuilding process will take time, patience and an efficient mobilisation of resources. While aid flows have been minimal, global financial institutions such as the Asian Development Bank and the World Bank have shown willingness to extend loans to Pakistan to help with the rebuilding process. Loans need to be paid back and it would help the nation’s ability to do so if Pakistani exporters had better access to the two largest markets in the world. The Obama administration seems to understand the need for free trade access for Pakistan in theory but has done little to secure such an agreement. If President Obama is sincere in his desire to help Pakistan’s economy as a route to US national security, then he would be well advised to pursue the agreement. For our part, we would do well to wean ourselves off our dependency syndrome.

Published in The Express Triune, August 25^th, 2010.