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Rasheeda Bhagat

Recently in Karachi

Emerging from the "last couple of years of sheer hell" the Paksitan economy has now turned around and peace with India would make it go "only upward", says Mr Wasim Mirza, Managing Director, Swiss Speciality Chemicals, Karachi, in an interview to Business Line.

Excerpts from the interview:

General Musharraf is being seen as a saviour of the Pakistan economy. Your comments.

In the last two to three years, we have come out from what was sheer hell. We live in a tough neighbourhood which is by itself an impediment to business. Now business and politics are intermingled. It is a growing phenomenon. Gen Musharraf and his team have done wonders to steer us out of that horrible situation. So most Pakistanis you talk to will be pro-Musharraf.

On the one side, you can argue about democracy, but then democracy is valid in countries where there is 100 per cent literacy. We are not and we need a czar-like person who is honest and in total control. Even his worst enemy cannot blame him for corruption. That is in itself a big thing.

So his administration was clean?

Absolutely. The fact that he himself is not corrupt and the top positions are held by clean professionals like Mr Shaukat Aziz has really helped. In 55 years, we never had $10 billion reserves, and growing.

Where is this money coming from?

Exports are going up. Overseas Pakistanis are sending in money after 9/11.

Why?

Well, you were there for good. Life was secure and taken for granted. But things changed. Even if you did not want to leave immediately, you wanted to build bridges. When the media blitz makes you jittery, where do you want to send your money? Obviously home, which suddenly sounds so beautiful. With all its problems, it still is home.

Also, another big problem in our economy was inconsistent policies, which has been solved by his government. You and I might not like it, but as business people when we know this is it, we can learn to live with it. And manoeuvre our business according to the rules. Tax collection has also gone up.

Both direct and indirect taxes?

Yes. Of course, we have a long way to go, but it is happening. Our exports are really being pushed. Textiles is number one right now and that is showing in our business. From the economy point of view, unless something very drastic happens we are on the road to success. So full marks to Gen Musharraf and his team.

So where does the Jamali Government come into the picture? Who is really running the country?

Day to day he is running the government. He is fairly competent and doing a decent job.

And there are no charges of corruption like you had with Ms Benazir Bhutto or Mr Nawaz Sharif.

No, no. It is not possible with Gen Musharraf sitting at the top with his people in key positions being the professionals. That is not possible any more.

How do you look at the latest Indo-Pak initiative?

Anybody you ask in Pakistan, irrespective of the strata of society he comes from, will say, `fantastic'. Like Mr Vajpayee said... We will become the laughing stock of the world. My own reading is that Iraq has really taught us both some lessons; we better clean up our act and come together.

Of course, it is wishful thinking at this stage because it will be difficult and painful... we are so unfortunate in India and Pakistan that we do not have a role model of the stature of Nehru, Qaid-e-Azam or Gandhiji. Somebody with courage and vision. With these two people (Mr Vajpayee and Gen Musharraf), this is our last hope.

Why would you say that?

On our side is the Islamic revival. On your side is the revival of fundamentalism. So whom are we left with? Do we have any chance? It is not only Mr Vajpayee's but Gen Musharraf's last chance too. So everybody should support it. I am sure the solution in the end cannot make everybody happy. But you have got to make a start somewhere.

Could the solution be to make the LoC the international boundary?

Even if we do that, the only problem is that if India does not do anything about the Kashmiris on its side... give them respect, engage them in economic activity and improve their lot, we will not be able to justify it.

Of course, we badly need to flood Kashmir with industrial development, education and employment opportunities...

Yes, whatever it takes. If at the end of the day, whatever the solution, if the people here can see that, in the end, the Kashmiris have got a good bargain and are happy, that will sell the solution and nobody will have a grudge. But if it is seen as a sellout and the Kashmiris continue to suffer, then you have a problem. And the solution will not endure.

But once that is solved where do you see both the economies going.

Only upward.

Well, we in India had thought that after 9/11, Pakistan was in a vulnerable position. But the confidence I see here is surprising.

When development starts taking pace, when the siphoning of money stops, Pakistan is a much smaller country to manage. If you spend $1 billion, you can see things happening — roads being made, bridges coming up, better lighting, and the like. Banks are flush with money. Slowly but surely the investor's confidence is coming back.

What about foreign investment?

I am first and foremost interested about the local investor. If his confidence is not there in his own country, how do you expect somebody else to have confidence? No matter how you define it, economy is all about perception.

Our markets are not mature developed markets and, of course, we have the WTO looming on our heads; both of us. And yet we are fighting. Look at what the Chinese did to your textile machinery sector and our polyester trade. You cannot compete with China; it is a production powerhouse.

The agenda is immense; we have such a lot to catch up on at all levels. If we can turn our attention to these areas, the potential is only upward. We have tremendous human resources, which need to be given the right opportunities to operate. We live in a tough neighbourhood; Iran, Afghanistan, India...

Mr Vajpayee has said you cannot choose your neighbours. You can say the same!

Exactly. A friend of mine called up from Switzerland to say you should learn from us how neutral we are. And I said your neighbourhood is Italy, Germany, France, Belgium, and our neighbourhood is Iran, Afghanistan, India and China!

One perception is that China is also nudging Pakistan to make peace with India.

China is a good friend, well-wisher and will give good advice. If it puts in a friendly word in a very polite way and tells where we should go, it will help. We are very receptive to China's views.

Coming to fundamentalism, you have your share as we have ours. There is anger against the US. So are concerns on militancy and fundamentalism growing?

Fortunately, on both sides, this group is a minority. In your billion-plus people, we do not think the fundamentalists are in a majority. You have the biggest middle-class in the world; they are educated and not militant.

Those who are, are just being used. On our side too, it is a very small minority but it has a very big nuisance value. That is a problem but I think majority will prevail on both sides.

How was the attack on Iraq seen here?

The sad thing is that the biggest superpower in the world is also the most hated one. It is such a tragedy. Now, if you want to go to the US, you have to think twice. You do not want to go through all the hassles. The biggest loss will be the American way of life... the values that were always cherished. It was a land that rewarded anybody willing to work hard. Now, that is changing dramatically. There is a big question mark on that.

Yesterday, I was reading an article by a British journalist who said: Look, where did imperialism take us? How long did it sustain us? It does not work in the long run, so do not get excited.

I think there are much better ways of exerting pressure than through the bullet. I really like the US in that it is a great model for human success stories and the values it stood for. An average American you talk to is a great person. I only hope the US will not lose the dream for which its forefathers did all the groundwork.

Response can be sent to rasheeda@thehindu.co.in

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