“Kashmiri Goods Ought to Reach Rawalpindi and Karachi”: Abdul Hameed Punjabi
30 Dec, 2010 · 3308
Nadir Ali interviews Abdul Hameed Punjabi, Sr. Vice President of the Kashmir Chamber of Commerce and Industry
Nadir Ali: What is your assessment of intra-Kashmir trade over the last two years? What is the estimated worth of daily transactions?
Abdul Hameed Punjabi: We have an unofficial graph according to which the estimated value of trade is around 100 crore rupees a day.
NA: What countries do you export your products to? What is the total quantity of trade?
AHP: Handicrafts and horticulture products, as usual, remain our potential exports. We export them to European countries, the US etc. We earn in foreign currencies because they do not import from us. They buy our goods and provide payment. The estimated turn out in Kashmir is around 1500 crores.
NA: Which sections of society benefit most from trade in Kashmir?
AHP: Trade affects the whole of Kashmir, not just any particular class or organization. For example, around 20-25 lakh are involved in the handicraft industry.
NA: Which is the bigger industry in Kashmir: horticulture or tourism?
AHP: These are two different sections. The tourism industry holds a lot of potential in terms of economic development. As far as the horticulture industry is considered, we get its feedback from rural areas, which have developed economically and socially. Hence both these industries aid economic development in Kashmir.
NA: What about cross-LoC trade? What items do you generally send across to Pakistan- administered Kashmir and what do they send to our part of Kashmir?
AHP: The governments of India and Pakistan fixed a list of items for Cross-LOC trade. From the Indian side the items were horticulture products like apples, cherries etc, and handicrafts. Pakistan also formulated a list of tradable items to be sent across to Indian-administered Kashmir. Cross-LoC trade isa good initiative for Kashmir. It has much potential to boost Kashmir’s economy and develop it immensely.
NA: Cross-LoC trade means trade between Indian-administered Kashmir (IAK) and Pakistan-administered Kashmir (PAK). If you send your products to Pakistan (Rawalpindi, Karachi etc) directly, would you call it cross-LoC trade?
AHP: We believe that cross-LoC trade implies trade between IAK and PAK only. But we would be interested in sending goods to Pakistan directly as well. It would certainly boost our economy. A central point in PAK would be advisable, like we have in Delhi. However, if we send our products or goods directly to Pakistan, then it would not be called cross–LOC trade but international trade.
NA: Do you believe cross-LoC trade should go forward?
AHP: Yes, we are keen on it. It is a good avenue for profit-making. We send our items to Delhi, from where it is exported. Cross-LoC trade could work along similar lines, so that our items can also be exported to Rawalpindi, Karachi etc.
NA: Cross-LoC trade is primarily a barter trade. There is no banking transaction system, any excise department and custom etc. Are you satisfied with this system? Would you like to continue with barter trade?
AHP: Yes, cross-LoC trade is barter trade, which is an old trading system. We are not satisfied with it and do not support it at all. It does not benefit the traders. In today’s trade, money should be involved. We would like the governments of India and Pakistan to make informed decisions on cross-LoC trade. A banking transaction system, excise department and custom services would be preferred. I believe such formalities will ensure that trade is successful in both parts of Kashmir.
NA: The Kashmir Chamber of Commerce initiated cross-LoC trade in collaboration with other stakeholders. Did you suggest barter trade as an option to begin with?
AHP: No, we did not suggest barter trade. Both the governments of India and Pakistan come to this conclusion on their own. They wanted initiatives for trade and decided to start with the barter system. They did not fix any modalities.
NA: Given these constraints, what does cross LoC trade signify?
AHP: It is just a symbol. It only means cross-LoC trade can occur even though that trade (which is primarily barter trade) may not benefit Kashmiri traders adequately. The governments of India and Pakistan should work towards a better system, one that promotes trade across LoC more profitably.
NA: What needs to be done to enhance cross-LoC trade?
AHP: We have already taken decisions on improving cross-LoC trade. Communication should be very easy. Without communication, no trade is possible. Also, buyers and sellers should have the opportunity to meet. Kashmiri traders from both sides of the border should visit the other side and meet their potential traders and buyers. This would enable them to determine the market preferences. It would be immensely beneficial for traders.
NA: Has the Kashmir Chamber of Commerce taken any initiatives for the development of Kashmir trade?
AHP: We have been working very hard to develop trade in Kashmir. In 2008, we made a number of suggestions to the government of India for Cross-LoC trade, on the premise that it would be very advantageous for trade in Kashmir
NA: How can more Kashmiri products and items enter the international market?
AHP: Exports can be made from Delhi, Mumbai, Bangalore etc. Our products go to Europe and the US, among other places. However, we would also like to export our goods to the Middle East, Gulf countries and Central Asia. Recently Central Asia has opened a new door for trade. It would thus help if we could also export our goods from Pakistan-administered Kashmir.
NA: Over the last three years we have witnessed frequent strikes and curfews in Kashmir. Can you give us some idea of the losses suffered?
AHP: Curfews and strikes mean a loss of around 100 crore rupees a day. This year we had 114 such days, so we lost 114 x 100 crore rupees, approximately.
NA: Did you talk to the State and Central governments for compensation?
AHP: We do want to be compensated for the losses suffered. Kashmir is a political issue and it needs a political solution. If the government is not willing to address this issue it would have an adverse affect on our traders and business community. So I would suppose compensation is must for Kashmiri traders to help sustain their enthusiasm.
NA: Should a specific relaxation be offered to Kashmiri traders for international trade?
AHP: Marketing is essential. Communities like the United Nations should intervene. They have many organizations to assist traders and business communities in conflict zones. We appeal to the UN to intervene in this matter, especially since the economic situation in Kashmir is quite unstable. For the last twenty years the business community has suffered significantly. Kashmir is political issue and until and unless it is not solved politically, trade and business will not pick up in Kashmir in the real sense.
NA: Prior to the 1990s, handicraft trade had a huge potential in Kashmir, but since then it has been on the decline. What are the reasons for this down curve?
AHP: There are three reasons for this. First is the world wide economic recession. However, even then we exported 1500 crore rupees of Kashmiri handicrafts in 2009. But it was our individual effort and the fact that Kashmiri handicraft has its own brand name that aided sales. The second reason has to be the political unrest in the Valley. It has obviously impacted the handicraft industry. Also, I would say that the tastes and preferences have altered considerably in the present times, such as in Europe.
Abdul Hameed Punjabi: We have an unofficial graph according to which the estimated value of trade is around 100 crore rupees a day.
NA: What countries do you export your products to? What is the total quantity of trade?
AHP: Handicrafts and horticulture products, as usual, remain our potential exports. We export them to European countries, the US etc. We earn in foreign currencies because they do not import from us. They buy our goods and provide payment. The estimated turn out in Kashmir is around 1500 crores.
NA: Which sections of society benefit most from trade in Kashmir?
AHP: Trade affects the whole of Kashmir, not just any particular class or organization. For example, around 20-25 lakh are involved in the handicraft industry.
NA: Which is the bigger industry in Kashmir: horticulture or tourism?
AHP: These are two different sections. The tourism industry holds a lot of potential in terms of economic development. As far as the horticulture industry is considered, we get its feedback from rural areas, which have developed economically and socially. Hence both these industries aid economic development in Kashmir.
NA: What about cross-LoC trade? What items do you generally send across to Pakistan- administered Kashmir and what do they send to our part of Kashmir?
AHP: The governments of India and Pakistan fixed a list of items for Cross-LOC trade. From the Indian side the items were horticulture products like apples, cherries etc, and handicrafts. Pakistan also formulated a list of tradable items to be sent across to Indian-administered Kashmir. Cross-LoC trade isa good initiative for Kashmir. It has much potential to boost Kashmir’s economy and develop it immensely.
NA: Cross-LoC trade means trade between Indian-administered Kashmir (IAK) and Pakistan-administered Kashmir (PAK). If you send your products to Pakistan (Rawalpindi, Karachi etc) directly, would you call it cross-LoC trade?
AHP: We believe that cross-LoC trade implies trade between IAK and PAK only. But we would be interested in sending goods to Pakistan directly as well. It would certainly boost our economy. A central point in PAK would be advisable, like we have in Delhi. However, if we send our products or goods directly to Pakistan, then it would not be called cross–LOC trade but international trade.
NA: Do you believe cross-LoC trade should go forward?
AHP: Yes, we are keen on it. It is a good avenue for profit-making. We send our items to Delhi, from where it is exported. Cross-LoC trade could work along similar lines, so that our items can also be exported to Rawalpindi, Karachi etc.
NA: Cross-LoC trade is primarily a barter trade. There is no banking transaction system, any excise department and custom etc. Are you satisfied with this system? Would you like to continue with barter trade?
AHP: Yes, cross-LoC trade is barter trade, which is an old trading system. We are not satisfied with it and do not support it at all. It does not benefit the traders. In today’s trade, money should be involved. We would like the governments of India and Pakistan to make informed decisions on cross-LoC trade. A banking transaction system, excise department and custom services would be preferred. I believe such formalities will ensure that trade is successful in both parts of Kashmir.
NA: The Kashmir Chamber of Commerce initiated cross-LoC trade in collaboration with other stakeholders. Did you suggest barter trade as an option to begin with?
AHP: No, we did not suggest barter trade. Both the governments of India and Pakistan come to this conclusion on their own. They wanted initiatives for trade and decided to start with the barter system. They did not fix any modalities.
NA: Given these constraints, what does cross LoC trade signify?
AHP: It is just a symbol. It only means cross-LoC trade can occur even though that trade (which is primarily barter trade) may not benefit Kashmiri traders adequately. The governments of India and Pakistan should work towards a better system, one that promotes trade across LoC more profitably.
NA: What needs to be done to enhance cross-LoC trade?
AHP: We have already taken decisions on improving cross-LoC trade. Communication should be very easy. Without communication, no trade is possible. Also, buyers and sellers should have the opportunity to meet. Kashmiri traders from both sides of the border should visit the other side and meet their potential traders and buyers. This would enable them to determine the market preferences. It would be immensely beneficial for traders.
NA: Has the Kashmir Chamber of Commerce taken any initiatives for the development of Kashmir trade?
AHP: We have been working very hard to develop trade in Kashmir. In 2008, we made a number of suggestions to the government of India for Cross-LoC trade, on the premise that it would be very advantageous for trade in Kashmir
NA: How can more Kashmiri products and items enter the international market?
AHP: Exports can be made from Delhi, Mumbai, Bangalore etc. Our products go to Europe and the US, among other places. However, we would also like to export our goods to the Middle East, Gulf countries and Central Asia. Recently Central Asia has opened a new door for trade. It would thus help if we could also export our goods from Pakistan-administered Kashmir.
NA: Over the last three years we have witnessed frequent strikes and curfews in Kashmir. Can you give us some idea of the losses suffered?
AHP: Curfews and strikes mean a loss of around 100 crore rupees a day. This year we had 114 such days, so we lost 114 x 100 crore rupees, approximately.
NA: Did you talk to the State and Central governments for compensation?
AHP: We do want to be compensated for the losses suffered. Kashmir is a political issue and it needs a political solution. If the government is not willing to address this issue it would have an adverse affect on our traders and business community. So I would suppose compensation is must for Kashmiri traders to help sustain their enthusiasm.
NA: Should a specific relaxation be offered to Kashmiri traders for international trade?
AHP: Marketing is essential. Communities like the United Nations should intervene. They have many organizations to assist traders and business communities in conflict zones. We appeal to the UN to intervene in this matter, especially since the economic situation in Kashmir is quite unstable. For the last twenty years the business community has suffered significantly. Kashmir is political issue and until and unless it is not solved politically, trade and business will not pick up in Kashmir in the real sense.
NA: Prior to the 1990s, handicraft trade had a huge potential in Kashmir, but since then it has been on the decline. What are the reasons for this down curve?
AHP: There are three reasons for this. First is the world wide economic recession. However, even then we exported 1500 crore rupees of Kashmiri handicrafts in 2009. But it was our individual effort and the fact that Kashmiri handicraft has its own brand name that aided sales. The second reason has to be the political unrest in the Valley. It has obviously impacted the handicraft industry. Also, I would say that the tastes and preferences have altered considerably in the present times, such as in Europe.
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