The economic policies have been considered as subordinated branch of political strategies in cold war regime. However, in the present regime of globalisation economic policies have dominated the geostrategic and political issues. The free trade under WTO system has led the relocating of investment, while Asian economies have become the attractive destinations for investment.
The repositioning move of investment and businesses headquarters has been further accelerated in the present decade due to growing Greenfield investment policies and transnational economic projects. Now the focus of diplomacy has diverted to the formation of economic alliances from the remapping of political blocs based on political ideologies. Construction of Suez Canal, Panama Canal, North Atlantic Free Trade Agreement (NAFTA) and formation of European Monetary Union are the successful examples of geo-economic strategies in past, while Britain Exit from EU, ratification of TIR convention by ECO member countries, Gul Train, ECO Economic Vision 2025, Visa Stickers for businessmen, White Card Scheme, under the umbrella of Economic Co-operation Organisation (ECO), Chahbahar trilateral agreement, Pak Iran Gas Pipeline, Turkmenistan Afghanistan Pakistan and India Gas pipeline and most importantly China Pakistan Economic Corridor (CPEC) are the recent examples of the domination of geo-economic strategies.
The isolation and disintegration of Kashmir from the fast changing economic scenario is quit visible. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted a proposal to the government of Pakistan for initiating the efforts to grant observer status to Azad Jammu and Kashmir (AJK) in the Economic Co-operation Organisation (ECO) on the same lines as Northern Cyprus. Northern Cyprus was granted observer status in ECO on the recommendation of Turkey which was supported by ECO member countries. Northern Cyprus is an autonomous entity in Turkey, almost similar to AJK. The proposal was submitted by Federation of Pakistan Chambers of Commerce & Industry (FPCCI).
Pakistan is the founding member of Economic Co-operation Organisation (ECO), which aspires to create a greater role of the ECO region in the growth of world trade and gradual integration of the member states' economies with the global Economy. ECO enjoys observer status with the United Nations, World Trade Organisation, the Organisation of?Islamic Conference, and the Islamic Development Bank. ECO Chamber of Commerce and Industry (ECO CCI) is the major
affiliated organisation of ECO, which represents the private sectors of ECO countries: Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, Turkey, and Uzbekistan.
The presidency and secretariat of ECO CCI was transferred to Pakistan from Iran in September 2014 for 3 years on rotation basis; however a permanent secretariat will be established in 2017. Since its inception ECO CCI has initiated or actively participated in the formulation and implementation of important economic agreements and strategies. TIR Convention, ECO Trade Agreement (ECOTA), ECO Trade and Investment Network Web Portal, ECO Container Train from Islamabad to Istanbul, construction of the railway line on Kazakhstan-Turkmenistan-Iran, establishing centers for Risk Management, Food Security Programs and Tourism Promotion and several programs for women empowerment and the promotion of health tourism in the region are included in those initiations.
Observer status is usually granted by intergovernmental organizations to non-member states and international governmental organizations that have an interest in the inter-governmental activities. It is a privilege to non-members to give them an ability to participate in the organization's activities. Observers have a limited ability to participate in the inter-governmental organisation. Though they do not have the ability to cast their vote or propose resolutions.
It is noteworthy that Northern Cyprus is a self-declared-state recognised only by Turkey, while it is considered by the international community to be part of the Republic of Cyprus. Due to its lack of recognition, Northern Cyprus is heavily dependent on Turkey for economic, political and military support. No nation other than Turkey has officially recognised Northern Cyprus as a sovereign state. The United Nations recognizes it as territory of the Republic of Cyprus under Turkish occupation. Pakistan had initially declared its recognition of Northern Cyprus as a sovereign state shortly after its declaration of independence, but it withdrew the recognition after the UN deemed the declaration illegal. The United Nations considers the declaration of independence by Northern Cyprus as legally invalid. However, it is important that Northern Cyprus is an observer of the Organisation of Islamic Countries (OIC) and Economic Co-operation Organisation (ECO).
The observer status for AJK was aimed at boosting economic co-operation and bringing prosperity to the region, as it is highly expected that Kashmiri business community and enterprises should be facilitated through this international platform which aimed merely the economic co-operation and prosperity in the region and the economy of Kashmir will be linked with global economy in this way. This will promote tourism in Kashmir which could attract foreign investments in tourism sector in Kashmir and ultimately it will boost the economic activities. After granting observer status, ECO events and activities including business forums, conferences, and exhibitions will be organised in Kashmir also.
It is a common intuitive that the young persons living in Kashmir feel that their only means of making a respectable living is by working abroad. While some businessmen living in the Middle East, the United Kingdom, and the United States have their origins in Kashmir and they want to be associated with Kashmir through investment and business linkages. Kashmiris have a natural inclination towards globalisation in terms of migration, cross boarder businesses, and multi-cultural adoptability. Peoples of Kashmir are well connected with global cultures and institutions but the land of Kashmir is isolated from global economic activities due to Indian occupation. The banking and financial institutions, tourism and travelling, watershed development, timber industry, restoration of forest, fruit processing, and power generation are the areas where foreign investment is required. The investment in these sectors may lead the accelerated economic growth. The linkage of Kashmir with ECO countries may help to design multilateral investment programs. Those programs could be structured in a variety of ways. ECO Trade and Development program, the proposed Business Rating program, Investment promotion forums, and joint business forums may be helpful for Kashmiris. Currently the Kashmiri business enterprises and business community is not a part of the multiple economic and business activities at the ECO platform including TIR Convention, White Card Scheme for cross the boarders driving, visa stickers, ECO Trade Agreement (ECOTA), Joint business forum, and ECO Vision 2025 etc. Kashmir as an observer may be in a position to participate in these international ventures and integrate with the changing global economic scenario.