Central Asia Target marker for Fruits of Pakistan

Fresh Fruit of Pakistan
IQBAL MIRZA

The five Central Asian Republics (CAR)–Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan and Uzbekistan – with a combined gross domestic product of $207 billion and a population of 66 million, offer a sizeable market for Pakistan’s goods, services and investment.

However, much of the potential for the economic co-operation with the region has remained untapped, with Afghanistan’s war acting as a major barrier, according to the CEO of Harvest Trading, Ahmad Jawad.

Talking to Business Recorder he said that things, it seemed, appeared to be changing as per the recent amendments in the Pakistan-Afghan transit trade agreement.

Traditionally, Pakistan has been routing its exports to CAR through Afghanistan, occasionally using air transport.

“This is really a big market for Pakistani fruits.

But we need a clear strategy, a roadmap, and immediate concrete steps to build and expand trade ties with these countries in order to get good push for survival of our horticulture products in future,” he said.

Pakistan can get into Central Asian markets from three sides, Jawad said, and identified that “we can take Afghanistan, Iran and China routes to reach out to these markets”.

He said that Pakistan’s bilateral trade with CAR would rise immediately if Chinese would start using Gwadar port for trading with Central Asian States “and we use our road links with China to reach out to these countries”.

Pakistan could also use the Iranian free trade zone of Chabahar to reach Central Asia while facilitating Iran-Central Asian business through Gwadar he added.

Ever since CAR emerged as independent states after breaking away from the USSR in early 1990s, Pakistan has done little to promote trade with them, except for signing some agreements.

“We can export a large number of items to Central Asian countries;” he claimed.

Pakistan has already been exporting cereals, frozen fish, fruits and vegetables, medicines, medical/dental/surgical instruments, leather and leather products, carpets, textile fabrics, knitted garments, ceramics/kitchen wear and bathroom fittings, furniture and confectionery, to Central Asian States and it has been importing cotton and agricultural machinery from there.

In 2010, the CAR combined imports stood above $50 million.

“Even if we manage to get one percent of this business, our export earnings will increase by half a billion dollars,” Jawad said.

He regretted that “we are already late in tapping trade potential of Central Asian countries.

China is fast becoming the largest trading partner of these states, and India and Iran are increasing their shares gradually”.

He emphasised that moves to expand trade volumes with Central Asian states must be supplemented by more frequent people-to-people contacts, trade shows and using established banking channels.
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