Mr Majyd Aziz, President of the MHG Group and a former president of the Karachi Chamber of Industry and Commerce, is a votary of improving trade ties with India. Talking to Business Line , he said: “Only idiots wouldn't trade across the border. Of course, certain industries will be hurt, but that cannot be helped in the larger interest of both the countries.
Excerpts from the interview:
We are into textiles, are one of the largest importers and exporters of coal, chrome ore and are big in cargo handling. We also import pulses, soya bean and chana from India. Only idiots won't trade across the border, of course certain industries will be hurt.
I've returned to Karachi after eight years; its razzle-dazzle has dimmed… your economy is obviously under pressure…
I agree, Karachi is not the same though it has seen a lot of infrastructure improvement thanks to Mustafa Kamal, our young Mayor till recently. But Karachi is a paradox; on one side there is poverty, on the other, people are buying up cars. We don't have a mass rapid transit system. The circular railway project is hampered by politics; our bus mafia has stalled it though the Japanese are ready to give us millions of dollars and put it up.
Coming to bilateral trade ties, how do you see the future?
Very positive. For the first time since Independence, an Indian Commerce Minister, Mr Anand Sharma, visited Pakistan and with a huge delegation of CEOs too. If such a high-power delegation can have a safe visit to Pakistan, why are 20 Test cricketers afraid to come?
Coming to trade, since India gave us MFN (Most Favoured Nation) status in 1996, I've been a proponent of reciprocating it. It will affect my business, but should I think in individualistic terms or in the larger interest? And India is changing its mindset, knowing it is in its interest. Mr Anand Sharma said, “if Pakistan takes one step, I will take two”… I believe India wants a strong, stable Pakistan as this is in its interest.
Coming to the negative list, it was prepared in consultation with stakeholders. But, then, one of our politicians called it “most favourite nation”. In Urdu, that translates to “ sabse pasandita mulk ”, so people said we have such issues with India and all of a sudden we make it our most favourite nation. So, instead of phasing out the negative list in 2-3 quarters, it might take one-two years to give some breathing space toindustries that may be affected.
Such as…
Automotives, filament yarn, maybe textiles. I make value-added suiting; my biggest competitor is India. I handle 50 per cent of Pakistan's chrome ore exports; India is a big exporter. And, ironically, Indian ferro alloy plants have approached us for chrome ore but if I sell to China, my main customer, the freight costs me $ 5 a tonne, but to send it to Kolkata it would cost $23-24.
Why… Kolkata is much closer?
One, there is no direct shipping… not even between Karachi and Mumbai. Two, China exports so much to Pakistan that containers go empty; that is why it costs much less. We don't know what will come from Kolkata to Pakistan.
The biggest problem we have in India is the mindset. There are bureaucratic hassles. Customs take one month, and then they will say send a sample to Kolkata. Take cement. We export to India; the highest Pakistan has done is send 762,000 tonnes a year. I believe once the new Wagah Gate is opened, we may do a million tonnes. We will be catering mainly to the north. But if shipping is opened, we may be able reach the south and touch 1.5 million tonnes.
But our cement lobby is going to resist…
But you guys are so huge and building like crazy… Your cement mills are not able to cater to the demand. India has the right policy; if you can get it from a neighbour at the right price why go outside? We have 24 cement mills of which 6-7 are not working because they did not modernise.