This can help Pakistan to distract millions of Pakistani youths

Society Pakistan & World Affairs
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Can it help?

http://www.samachar.com/Indias-economic-raise-a-huge-opportunity-for-Pakistan-US-lhqoK1fjche.html?source=recommended_news

India’s economic raise a huge opportunity for Pakistan: US

Published: Saturday, Jul 16, 2011, 13:13 IST | Updated: Saturday, Jul 16, 2011, 14:31 IST
Place: Washington, DC | Agency: PTI

India’s rise offers a huge opportunity for Pakistan facing major economic challenges, a top United Satates official said, advocating that Islamabad should improve its trade ties with its neighbour.

“India’s economic rise presents a huge opportunity for Pakistan, a bilateral breakthrough could provide a catalyst for wider regional economic integration in South and Central Asia,” Robert Hormats, Under Secretary for Economic, Energy and Agricultural Affairs, said.

Hormats said the pace of economic integration in the Asia Pacific region as a whole over the last two decades should serve as an example for other regions.

“It should, and I believe it can, be replicated in South Asia as well. Hundreds of millions of people would benefit from such increased collaboration,” he said.

Hormats, a part of the high-power US delegation for next week’s India-US Strategic Dialogue in New Delhi, said the two countries already work together in a lot of areas resulting in enhanced trade and investment and mutual job creation.

Trade between the US and India has doubled twice in the past ten years. It continues to grow and drive their economic partnership.

In 2010, the two-way trade was up almost 30% from the year before.

“In Delhi and Chennai (the two cities to be visited by the US delegation) we will consider ways to further expand these numbers,” Hormats said.

Indian foreign direct investment in the United States was USD 5.5 billion at the end of 2009, growing at approximately 35% between 2005 and 2009, making India the seventh largest growing source of FDI in the United States.

“We welcome such investment, we welcome more and more of it, and we will also discuss this while we are in India,” Hormats said.

He also said it is unfortunate that some economic barriers make it hard for US exports to reach certain portions of India’s markets, especially in agricultural goods.

“Restrictions in retail, insurance, defence and other key areas continue to limit the expansion of American firms and US and Indian firm partnerships in India. We would like to see more of those partnerships. We will also discuss these topics during our trip,” he said.

“We must encourage and recognise the benefits of market openings that will allow trade and investment between our two countries to grow and to thrive to the mutual benefit of both,” Hormats said.

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Re: This can help Pakistan to distract millions of Pakistani youths

Indias this so called “economic rise” hasen’t done jack for its vast majority that lives below the poverty line but will do wonders for us bad pakis. wah wah! Now is this another one of Indian logic or its media spin?

living conditions as of today.

http://www.economist.com/node/16693283

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Re: This can help Pakistan to distract millions of Pakistani youths

Wait till the "Cowboys" put the "Indians" where they belong! :D

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Re: This can help Pakistan to distract millions of Pakistani youths

Not until China is taken care off.

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Re: This can help Pakistan to distract millions of Pakistani youths

Why would india consciously want a better Pakistan? I am all for reduced military spending (nuke program ensures pakistan's survival), but if trade was everything then Pakistani economy should start booming after the indopak afghan transit deal but I don't see any signs.

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Re: This can help Pakistan to distract millions of Pakistani youths

There are many in India who think better Pakistan is in India's interest. (Vajpayee is one of them). An economically successful Pakistan would not want to get into fight with India or would not bleed India becuase they would stand to loose as well. India is a similar position; although it can win a war with Pakistan, but economically it will loose a lot. The Transit agreement is not worth the paper it is written on. Even the might US supply can't get through to Afganistan, why would India businessmen send goods through Pakistan.

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Re: This can help Pakistan to distract millions of Pakistani youths

Agreed, majority are still living in bad conditions but their conditions are lot better than it was before. You have to visit India to see what’s going on there. Progress is slow in reaching certain parts of India compared the other parts, but the change is happening. I left India 16 years ago, at that time the southern state of Tamil Nadu was making less than 100,000 vehicals per year. Today they make a million cars (just cars alone) and it is 20 % of Indian market. It has created 150,000+ direct jobs and a million indirect jobs. The lives of so many have improved. The progress is catching up to other parts as well. Bihar is one of the fastest growing states in India. In fact, after Southern and Western India the next is Eastern India (Bihar, West Bengal, Jharkan and Orissa).

So, stop living in denial and start looking around. Those non-pakistanis (including me) who advocate better economic ties between India and Pakistan, do so partly for selfish reasons, not becuase of goodness of heart to help Pakistan. With trade and movement of people, peace has a much better chance. Having said that, of late I am realizing that India is learning to live with a defunct Pakistan and may soon start thinking there would be no tangible benefit of improving ties.

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Re: This can help Pakistan to distract millions of Pakistani youths

Indian realtionship with US is an economic cooperation, even the so called strategic relationship too has underlying economic interest. India so far seems to know how to protect it's own interest. The rejection of American fighter jets is a case in point. After the attacks on India by terror elements based at Pakistan it could have sold its soul to US get some pressure put on Pakistan. But, knows where it's interest lies. Above all, it's a virant democracy, not run by tin pot generals who sign off commitments that can not be fulfilled.

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Re: This can help Pakistan to distract millions of Pakistani youths

Case of Living in Denial ???

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Re: This can help Pakistan to distract millions of Pakistani youths

Could not have said it better me-self. Imagine the BS this nation spews even with mass starvation deaths that has put even noko to shame.

I just find their delussion hilllarious, a typical case of living in complete and full denial.

The resume is quite impressive and long :)

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Re: This can help Pakistan to distract millions of Pakistani youths

You sound jealous, in fact all of us could not digest the fact that India is moving forward economically. This gives us heartburn. How could a hindu baniya, a racist kafir can be a businessman of the world. But it is the fact and we have to live with it. Both of the nations were created simultaneously, but we took the part of religion and got so many religious fanatics that now we are not able to control them. They took their lesson during 1990s and started to open their economy and became emerging economical powerhouse. We should learn from them, if within 20 years, they can turn the table! Why cann't we? Religion will not give us food, water, shelter, jobs, medicines, modern education (all of us cannot be mullas). We have been trying to copy Gulf counties, they can afford to be entirely religious as they have oil, we do not. So we have to divert our attention to producing more services and products in order to enhance our GDP. It is easy to be Maulvi or religious teacher, but very hard to be a scientist, doctor or Technician.

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Re: This can help Pakistan to distract millions of Pakistani youths

No, We are living in constant denial and believing in every conspiracy theory put forward to us. I found Indians to be more rational and know how to face reality and mold the situation in their own favor. See how instantly they switched their sides frm Russia to US. They know which side of bread to be buttered. We have not learned anything frm history (Societies who donot learn from their history soon became part of it) . If you want to win your enemy keep vigil on their move. Indians are quite shrewd in doing so.

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Re: This can help Pakistan to distract millions of Pakistani youths

We are self sufficient in religious fanaticism and we export it too . Don't we ? Only if we start to tax this export , Pakistani coffers will be full of gold.

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Re: This can help Pakistan to distract millions of Pakistani youths

Good to see, I am not posting in vain.....good to hear sane voices from Pakistan....Just not economic success...success of Indians (including Muslims) abroad in every field due to their approach to life, where their faith does not complicate their lifes...In this day and age you don't need religion to keep our moral compass.. you need common sense to do that....religion is needed for personal salvation...and Islam is fully capable of providing it.

(BTW 2 of the 3 morning anchors in CNN are 2nd gen Indians. (Ali Velchi and Chetry), one Sunday anchor is first gen Indian Muslim.....Chief medical correspondent is a 2nd gen Indian. the list goes on....).

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Re: This can help Pakistan to distract millions of Pakistani youths

For ****s sake. We always have this discussion and I always have to clarify how Pakistan does not benefit from an open trade regime with India. Rather it will lose out in such a situation. We all trade in the same commodities. We all suffer from food insecurity. We all suffer from a lack of a diversified service sector.

Pakistan does not benefit from a free trade regime in South Asia. However the US does benefit and note how they linke Central Asia to South Asia. I wonder why that is.

Please for the love of god think strategically before you post such drivel.

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Re: This can help Pakistan to distract millions of Pakistani youths

$#%@#%@#$ (sorry to disappoint you I am not burying any swears in there, just for getting dramatic effect).

I think you underestimate Pakistan. You assume Pakistan would only be exporting Cotton, Sugar and other agricultural goods. Export garments etc., Your are wrong, if I am not mistaken, commodities are cheaper in India than in Pakistan. In fact, one of the first things that will happen is textile machinery and tools industry will start moving towards westward from India.

In fact, successful Indian muslims who have natural affinity to Pakistan (mind you I am not calling them as traitors for that) will start investing in pakistan. Indian businesses invest all over the world, I don't see any reason why they would not invest in Pakistan, with it's attractive market and potential, if the environment is there.

BTW Canada is better off with the NAFTA than before. Of course if your measure of Canadian success is Canada being a better economy than US, that ain't going to happen anytime soon.

Service oriented economy alone is not going to make it happen for a developing country. I am not saying Pakistan should open its economy completely to India, need to protect areas it need to protect.

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Re: This can help Pakistan to distract millions of Pakistani youths

How would machinary and industries move to Pakistan when as you say commodities are cheaper in India? That would of course include cotton, wool and other raw materials. Additionally labour is cheaper in India. You have proper trade insfrastructure in place - road, rail and ports. Compared to India Pakistan lags behind in all, so how does this benefit Pakistsan?

NAFTA is not SAFTA. Big difference because Canada has a comparative advanatage in key raw materials which the US does not.

Just riddle me this, in what industry does Pakistan have a comparative advantage vis a vis india?

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Re: This can help Pakistan to distract millions of Pakistani youths

You might not know this, in cetain segments of Garment export Pakistan has better receiption abroad. Today Pakistan pays a premium to get Textile machinery imported through legal means and smuggling. There is every incentive for engineering firms to invest in Pakistan where there will be demand for their products. Same thing is true for other areas, manufacturing follows where demand is if the manufacting cost is managable. Besides, the labor cost espceially the semi skilled and skilled that is required in certain manufacturing industries is NOT going to remain cheap in India for ever. Besides, with scale the cost will come down automatically.

Also, cost is not the only criteria. With growing rich and high middle cost, Indians are willing to pay for quality, Pakistan can covet that market. For example, Pakistan can make better Sherwani's than anything Delhi can churn out. India has huge pool of software talent, but again, like most countries all of it is not top notch. Indian software giants can setup centers in Pakistan to attract the best in Pakistan. All these will lead to trickle down effect.

Of course, even with good relations things will not happen automatically, the governments in Pakistan may have to do their part to woo the Industries, like state govenrments in India compete with each others. Again, I will give example of Tamil Nadu, it has many advantages for auto industries, yet, it regularly offers incentives to attract foreign auto majors to invest in Tamil Nadu. Same thing goes to Gujarat or Maharastra.

You need to create opportunities, things will happen automatically. Water buffalo may be an ugly animal, yet many parasites and birds live off it. (before you go to town with my comparison of buffalo to India, let me make it clear, Buffalo is harmless and productive).

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Re: This can help Pakistan to distract millions of Pakistani youths

A lot of ifs and assumptions. Nothing based on comparative advantage. Reception means little when you can't compete due to cost. And due to India's large economy, urbanized and highly skilled workforce (compared to Pakistan) they have a much larger comparative advantage in all aspects of primary and secondary industries.

You are referring more often to politics and not the economics of trade liberalization. One simple question. In what industry does Pakistan have a comparative advantage vis a vis India?