The regionalization and co-operation among neighbour countries particularly having common borders is getting importance with the uncertainty prevailing over the world about the rising prices of raw materials, POL & transportation. Pakistan in particular is in dire need of such collaboration as devastating floods, chronic shortage of energy, dependence on imported oil & gas, adverse affects of war against extremists and depreciating rupee have depressed the economy and resulted in hyper inflation adding miseries to the difficulties of common man.
India is our important neighbour that has made tremendous progress in the development of industry because of political stability, peaceful environment, business friendly atmosphere and stable prices, which resulted in inflow of foreign investment and increase in domestic savings to 35% of GDP. The wisdom of the Indian government is that they preferred the assistance in transfer of technology that produced results. Industry not only played a vital role in import-substitutions but also embarked upon exports. Their development example could be ameliorated to make better use of our sources and work force.
Recently an FPCCI Delegation attended a Conference on Indo-Pak Economic Relations in New Delhi, arranged by FICCI. A number of possibilities and opportunities for co-operation in development of various economic sectors were discussed. It was also recognised that due to co-operation with MNCs India was ahead of Pakistan in Technology. It was also desired that despite the differences there was a need to abridge confidence between Business Communities of two countries to share with each other their experiences, conveying a message to people at both sides that their prosperity was co-related.
At the forum of SAARC Chamber of Commerce & Industry similar feelings are found and ways & means are being sorted out to materialise these feelings into reality. It is felt that there is no harm in sharing knowledge or co-matching products. The beginning could be made from the import of raw materials and semi-finished goods. This mutual trade will result in savings because of low prices of raw materials and low cost of transportation. It may be kept in view that in developed countries the inventory is maintained on the lowest level whereas in developing countries inventory levels are in terms of months because of the long shipping period and fluctuating prices. It involves substantial capital investment. Whereas if we import from the neighbour countries the inventory level could be maintained at low ebb and the investment so saved could be diverted to some other important production sectors.
Our Autopart Industry by sharing technology with Indian Industry could develop engine parts and force the Automobile assemblers in Pakistan to delete these parts from imports. It will certainly benefit our Vendor Industry to expand the range of auto parts being manufactured in Pakistan. Moreover, co-manufacturing with Indian Industry could pass on to Pakistan benefits of economies of large scale production. We will be able to get the parts manufactured at low cost. However, this practice will only be adopted where it does not damage our Vendor Industry and both sides arc in win-win position.
Pakistan in its neighbourhood has countries like Afghanistan and Central Asia where there is large demand for industrial goods. To tap these markets India is constantly seeking transit facilities from Pakistan. Instead of transit facilities India should cooperate with Pakistan in producing industrial goods that it wants to export to Afghanistan and Central Asian countries. This collaboration will benefit both the countries and deepen business and economic relations.
In my capacity as Vice President of SAARC Chamber of Commerce & Industry I want to establish an Auto Industry Cell at the Head Office of SAARC CCI, which will suggest constant improvements in Auto Industry in Pakistan and recognise opportunities of collaboration with neighbour countries. I have therefore requested the Pakistan Association of Automotive Parts & Accessories Manufactures (PAAPAM) to develop a concept paper which highlights the measures on getting co-operation from India on indigenization of capital machinery with technology transfer.
These suggestions are being made in the national interest because Pakistan cannot develop if we keep ourselves aloof from the neighbour countries. Economic collaboration is the best way to share prosperity and ensure peace among the regional countries. It must be promoted in a way that suits our country. The strategy of apartheid should be given up.