KARACHI: Escalating tension between Pakistan and India has caused anxiety in the business community of the country’s industrial and commercial hub Karachi.
They wished a better sense prevailed on both sides and instead of fanning war hysteria, leaders showed restraint and resolve to settle current conflict and outstanding issues through negotiations.
The worsening relations between the two countries, however, have not impacted the bilateral trading activities so far.
Korangi Association of Trade and Industry President Zahid Saeed said the business community stands by the nation and the armed forces. But the role of the government in building a good image of Pakistan has been weak, he added.
“Partially our economic woes relate to adverse global perception of Pakistan. The government has not been able do much to change that,” Mr Saeed said referring to India’s propaganda.
“Despite multiple problems in India, it has managed a positive image to a point where every country wants to invest there. Its huge consumer base adds to the attraction,” he added. He said it is high time the leaders gave serious attention to the issue.
In case the situation between the two nations worsen, he said, Pakistan stands to lose more because of India’s effective media management.
Mr Saeed thought that the government was more concerned about the internal opposition than countering the build-up across the border.
Federal B Area Association of Trade and Industry President Abdullah Abid blamed India for creating a war-like situation every few years.
“I think our leaders are not presenting Pakistan’s case properly,” he said.
“Our leaders talk hard but lack capacity or the will to walk their talk,” he said, adding that the wars of future will be won on the economic front.
He ruled out armed conflict but said in war of words the world will side with India. He feared that the situation may worsen if trading partners under Indian influence trim their economic interaction with Pakistan.
“They might refrain from signing free and preferential trade agreements with Pakistan,” Mr Abid said.
North Karachi Association of Trade and Industry President Syed Iktida Ali said he expects mounting tension between India and Pakistan will have a bleak impact on business activities. He said the war-like situation has emerged at a time when law and order along with the overall level of confidence in the economy was improving.
Fresh investments by foreign and local businessmen will halt if the tense situation persists between the two South Asian countries, Mr Ali said.
Association of Pakistan Motorcycle Assemblers Chairman Mohammad Sabir Shaikh said India will lose more than Pakistan in the case of a prolonged conflict because India has a larger industrial and trading base than Pakistan.
A leading automobile assembler, who asked not to be named, said the current business environment is normal so far. But in the case of rising tension, he expects “severe damage” to both economies.
