Trade surges despite rising tensions

Lahore: Undeterred by all the tough talk and jingoism, unfazed by political tensions and unlike in the past, traders from Pakistan and India continue their cross-border trade through land route at Wagah borders.

The unfortunate and gory incidents of November 26 in Mumbai this time round has surprisingly left the trade and passenger movement almost unaffected.

If one sifts through the recent history of tensions between the two countries, it becomes obvious that direct trade becomes the first casualty whenever there is tension between the two nuclear neighbours.

But it was different this time. Trade continued even when the terrorists were striking in Mumbai.

"In fact the trade increased soon after the Mumbai attacks. More than 60 to 70 trucks are crossing over the Wagah border daily," said Mohammad Saeed, a custom official at the Wagah boder.

'Increase in activities'

"We witnessed an increase in trade activities at Wagah because Pakistani traders, thinking that their goods will be stuck across as the borders might close down hurried to bring over the goods for which they had already ordered," said the customs official.

"Similarly, Indian traders rushed to get the goods over," said Saeed.

Currently Pakistan is sending cement, dry fruits and salt to India while it is importing vegetables and raw cotton from India.

At the end of November 2008, Pakistan imported goods worth $15.7 million (Dh57.6 million) while exports stood at $23.6 million. But most of the export figures cater to Afghan transit trade. Afghanistan sends its goods, mainly dry fruits, via Pakistan to India.

However, the passenger movement witnessed a fall post-Mumbai as only 100 to 200 passengers are crossing over Pakistan to the Indian border daily.

Before November 26, the number of passengers crossing over Wagah by foot was between 300 and 400.

More than 200 passengers are still travelling by train to India daily and the same is the number for Indian passengers.

"This time round the businessmen from both side of the border and the civil society has generated this message that people from both countries are bigger than their governments and they'll be the ones who would lead the future of Pakistani-Indian relations," said Rana Ayoub, a sugar trader in Lahore.

"The businessmen from both sides understand that the terrorists are nobody's friends. Terrorism creates and thrives in unstable environments and business can only survive in a stable environment. So the divide is pretty much clear. In the end the civil society will win," said Ayoub.

Pessimistic

However, there others who believe business can not survive unless the political stand-off is resolved.

"My long experience with Pakistan-Indian trade tells me that unless the core political issues between the two countries are resolved, there cannot be a stable trade relationship between the two countries. Bureaucratic hurdles on both side is another factor that hampers the trade," said Azhar Saeed Butt, former president of the Pakistani-Indian chamber of Commerce.

He said trade did not stop because previously made orders had to be delivered.

Imran Zahid, a potato trader said trade and culture were key to building lasting relations.

"Trade, I think is the best way forward for lasting peace and stability," he said.

Trade: Money spinner

Trade between Pakistan and India in the month of November, when terrorists bombed Mumbai, stood at $15.7 million (Dh57.74 million).

Products traded in by the two nations include the following: