Investment in Pakistan linked to Kashmir resolution, Shaukat tells Indian business

Prime Minister Shaukat Aziz has categorically told the Indian businessmen that permission to invest in Pakistan depends on the progress made in resolving the Kashmir dispute. Responding to the demand from the captains of Indian trade and industry at the interactive business meeting, here on Wednesday, to be permitted to bid in the privatisation process in Pakistan and also establish joint ventures with Pakistani businessmen, the premier said these things require normalisation of relations between both the countries.
He said Pakistan offers foreign investors complete freedom to hold 100 percent equity and full repatriation of profits. Without mincing words, he said, this option is not available to Indian nationals until there is a meaningful progress on all the contentious issues, including the core issue of Kashmir.
In a closed door meeting the Indian businessmen pleaded to keep the Kashmir issue on a back burner and asked for opening transit trade for them to Afghanistan and Central Asia through Wagah.
The prime minister asked them to consider sending their goods by ships, as there was plenty of space available at Pakistani ports.
He said Pakistan would definitely import goods and services, which benefit both the countries. He ruled out any linkage between gas pipeline and transit trade to Afghanistan or Central Asia or importing diesel oil from northern India.
According to informed sources, Shaukat exhibited confidence in his response to Indian demands that flexibility on Pakistan's part should not be viewed as weakness. For the status quo to change both the sides need to move forward on all issues in tandem. He said we could consider enhancing imports of Indian goods on case-to-case or product-to-product basis, which permits our industry to be competitive and not be adversely impacted.
The question of giving Most Favoured Nation (MFN) status to India will remain a pending issue until the core issue of Kashmir was meaningfully addressed was the clear message of the premier.
APP ADDS: Earlier, addressing a joint meeting of businessmen from Federation of Indian Chambers of Commerce and Industry (FICCI) and industrialists from Confederation of Indian Industry (CII) on Wednesday evening, Prime Minister Shaukat Aziz said that resolution of Kashmir dispute would create the requisite political framework conducive to closer cooperation, adding that constructive engagement between both the countries requires vision, sagacity and purpose.
The prime minister also held meeting with the leading businessmen and industrial tycoons from FCCI and CII.
Spelling out the parameters of engagement as far as Pakistan is concerned, Shaukat said we must cultivate good neighbourly relations. We must respect each other's sovereignty and territorial integrity and base our relations on so foreign equality.
"We should respect the principles of non-intervention and non-interference, we must endeavour to win each other's trust and confidence," he added.
He said, "We are conscious of our geo-strategic and geo-economic significance. We are equally conscious of our credentials as a progressive, moderate Islamic state, which can be a model to others.
The prime minister also said, "We are committed to pursuing the policy of enlightened moderation at home and abroad. We believe that at this critical juncture of contemporary history, it is important to debunk the theory about clash of civilisation."
It is time to accommodate in full the aspirations of the Kashmiri people, he said, adding that this is an imperative of justice, history and democracy.
The prime minister emphasised that it is time to think "out of the box" both in India and Pakistan.
Pakistan and India must lead South Asia to new horizons of economic development, he said, adding, "Our basic economic indicators are impressive."
Pakistan is prepared to make its earnest contribution to the success of these endeavours. We need to move from tactical to strategic discussions, the prime minister said.
As chairman of the Saarc, Pakistan has been proactive in promoting regional cooperation. There is a clear recognition all around that the success of Saarc is an important factor in Pak-India relations.
Both regional and bilateral process, he said, are mutually reinforcing. On the bilateral track, the confidence-building measures (CBMs) and composite dialogue process have progressed and should be made more substantive and purposeful.
"Pakistan is prepared to make its earnest contribution to the success of these endeavours. I sincerely feel that the time has come to bridge the trust deficit. Both the sides must move away from conditioned reflexes to open new avenues and cover fresh grounds in our bilateral relations," he said.
"We are forging closer cooperative links with all these regions. We want to build positive links with the process of globalisation and believe that regional cooperation is a necessary ingredient in maximising dividends in an increasingly interdependent world," Shaukat added.
Pakistan, he said, would host the ministerial meeting of the Asia Cooperation dialogue (ACD) in Islamabad in April. Pakistan and India can together contribute to the success of the ACD enterprise.
Central to Saarc's functioning is the Pak-India equation. The recent improvement in atmospherics between Pakistan and India has helped in propelling the process of regional cooperation in South Asia.
Under Saarc we are coming together in trade with Safta that is MFN plus, he said, adding that we are also working towards customs cooperation by setting up an arbitration council that is working instrument on avoidance of double taxation and on promotion and protection of investments.
Investments and joint ventures could take off in a big way if we are able to create an enabling environment of peace, stability, trust and confidence, he said, adding, "We should work towards attaining these objectives."