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OPINION Vol.1, No.1 June 2013 - National Defence University

OPINION Vol.1, No.1 June 2013 - National Defence University

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Opportunities<br />

• Russian aspirations to retain her influence over CARs.<br />

• Though Pak-Russia relations are improving, these are still far from friendly.<br />

• Possible competition with Iran (Gwadar vs Chabahar).<br />

• A viable mechanism to achieve inter-regional cooperation.<br />

Additional Challenges. Few other challenges are:-<br />

• Evaluation of trade terms with India – implications of granting MFN status.<br />

• Existing constraints to economic and energy cooperation in the fields of physical, institutional<br />

and policy measures.<br />

• Development of communication infrastructure linking Gwadar.<br />

• Regional approach to address the problem of militant organizations.<br />

• Border security issues.<br />

Regional Context. In the regional context, major opportunities are:-<br />

• Using the SCO’s platform, a proactive regional role can be mustered for peace and stability in<br />

Afghanistan.<br />

• Pakistan provides the shortest routes from Central Asia to the sea ports coupled with an enhanced<br />

cargo capacity at Gwadar.<br />

• Pakistan’s membership and association of all regional organizations lends us a unique position to<br />

facilitate inter-regional cooperation.<br />

• Being member of SAARC and ECO, Pakistan could facilitate the extension of ECO's Transit<br />

Transport Framework Agreement to South Asia.<br />

• CASA-1000 and TAPI can create a track-record to enhance inter-regional cooperation.<br />

• APTTA can be extended to all CARs.<br />

• Transport corridor of Almaty-Karachi road has the potential to attract the attention of CARs.<br />

• The already agreed Pak-Afghan-Tajik route can become a trade corridor.<br />

• Inter-regional trade will generate lot of transit revenues.<br />

Bilateral Context. Following are the major opportunities for Pakistan:-<br />

• Indian growing energy demands have strengthened Pakistan’s prospect of serving as a trade and<br />

energy corridor. Indo-Pak cooperation in trade and energy sector can facilitate both countries in<br />

terms of socio-economic development and promotion of peace and stability in the region.<br />

• There is vast scope for economic cooperation between Central Asia and Pakistan. Pakistan can<br />

import various natural resources and, in return, can offer assistance in the areas of banking,<br />

textiles, footwear, sports, hydropower, construction, agricultural products, hotel industry and<br />

pharmaceuticals.<br />

• We can offer services of NADRA, other education and training facilities.<br />

• Uzbekistan and Kazakhstan offer more opportunities for joint industrial ventures.<br />

• Pakistan’s expertise in defence equipment offers another opportunity.<br />

• Central Asia presents lot of avenues for the role of private sector.<br />

Possible Scenarios. Given various internal and external drivers, few scenarios which could emerge in the<br />

context of inter-regional cooperation in 10 – 15 years timeframe are:-<br />

Scenario – 1 (Most Likely). ‘No war and no peace’ like situation persists in Afghanistan. The<br />

efforts to effect inter-regional cooperation will bear partial results. CASA-1000 is likely to<br />

materialize, while TAPI remains in doldrums; trade may increase by 20 – 30% from the current level.<br />

The Iranian route will fetch better trading activity for CARs. However, the Almaty – Karachi route<br />

<strong>OPINION</strong> <strong>Vol.1</strong> <strong>No.1</strong> 7 <strong>June</strong> <strong>2013</strong>

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