The Economic significance of CHAMAN.
By: Tarique Khan Javed
President, Overseas Pakistani Investors Forum.
                           Dated 03 Dec 2008

It is said that the highest number of FX transactions in the Country after Karachi takes place in border town of Chaman. All Banks have substantial Branches in this small town, to cater to the needs of huge amount of  LCs which are opened for facilitating the so called“ Afghan Transit Trade”.

As the custom duty in Afghanistan is only 4%, there is lot of money to be made if one can get the shipment designated for Afghanistan instead of Pakistan. The container can reach the Afghan border sealed. Once inside Afghanistan it is opened and the goods are brought back to Pakistan by manual means like push carts and donkey carts which by custom can not be stopped from crossing the border with any belonging. The logic is that as tribesman live on both side of border and  family members must be free to visit and exchange goods unhindered, to keep the peace.

Electronic goods like used TV,DVD, Computers, Camera, new and used Tires, Clothes, Perfumes etc are brought in through the transit route. In return Rice, Wheat, Fertilizer is sent to Afghanistan using the traditional routes.

Great FX saver and earner:
Thus brisk trade goes on day and night on the border. All these are organized and negotiated in the Town of Chaman located nearby. The volume is enormous. Most needs of Afghanistan for food, fuel, cement, construction material pass through here. The large development and military expenditure by NATO and USA in Afghanistan, means flow of lots of dollars to Pakistan via this route in exchange of procurement of the needs from Pakistan. On the other hand all imports designated to Afghanistan but in fact meant for Pakistan is paid for by Afghanistan in Foreign currency thus saving our FX. Chaman therefore is an important factor in generating demand for PRS and thus supporting it. What happens here has repercussions for our parity rate. Recent drop in PKS rate due to heavy flight of capital from major Pakistani cities was countered by the inflow of dollars from Chaman.

Stiff resistance to a beneficial move:
Chaman is the fruit of heroic effort of the Britishers in opening the Bolan and Kojak pass and pacifying the restive region for normal trade. The task was daunting but the determination of Administrators like Richard Bruce, who settled Quetta; saw to it that a great trade route was opened for trade between Indo-Pak and Europe. Opening of the route reduced the price of fruits in Rangoon and Calcutta, as the cost of transportation and frequency of shipment improved considerably.

However at that time in 1880s few in the Region understood the benefit opening of such a route would bring. The Pathans of the area were strictly opposed to the

presence of British forces in Quetta and harassed them to the best of their ability. It was common to have a weekly “Fedaeen attack” on Quetta cantonment, in which tens of Sikh and British soldiers were killed by sword welding gallant attackers, knowing well that they too will die in the end. These days with better destructive means we call such attackers “Suicide Bombers”. Not much has changed it seems.
 
Often simple minded people can not comprehend the scope of events and developments and see forward beyond a certain limit. They oppose moves and project which would ultimately transform their life for good, beyond recognition. This was the case with opening of Chaman trade route. Now Pathans are the principal beneficiaries of the trade on the route. This has provided them lots of economic opportunities which would have been unthinkable otherwise. Now Pathans of the Region control all Transport and Restaurant business of the Area besides being involved in the massive trade itself. This has made them rich, enlightened, educated and deservedly proud.

I dare to imagine the day when all FATA would be pacified in the same way, as Upper Baluchistan and trade and prosperity ensue, leading to better education and health facility for all.

Once Afghanistan is pacified, one way or the other, the real potential of Chaman trade route will emerge. The opening of more and more trade routes with India will also give a big boost to the transit trade. This will increase the prosperity of the Region further.

Engineering marvels- Bolan and Kojak passes:
One can not but get impressed by the efforts of engineers who carved a train and road route through the narrow Bolan Pass and make it useable year road, come rain or storm. Earlier caravans of camels and donkeys used to be washed away in flush floods. The train journey to Quetta is fascinating. Passing through one of the highest railways stations in the World and pushed by two engines. Quetta Railways Station is magnificent and stands out in the otherwise poor surroundings.

The journey to Chaman is another remarkable feast. Passing though moon like barren land with few villages and orchards in low lying area, one reaches a massive high mountain range which appear like insurmountable wall. However a huge hole through the mountain called the Kojak Pass takes one on the other side quite easily. The Pass is so well fortified that it would impossible for the greatest army of the world to cross it. Fortification was done to check the Russians. However now it provides the Authority absolute control over movements in the area. The mountain range on which Kojak pass is built reportedly stretches from Nushki in the South west to Wana in Waziristan. This is what the Britishers use to call “Scientific border”. 

Once outside the Pass the low lying town of Chaman becomes visible. The road passing over the mountain is full of loaded trucks going both ways.

True potential of the trade route:
The true potential of this route is yet to come. The route was built to cater to needs of much larger area then it currently caters for. It was supposed to be link for the

entire South East Asia to Europe. However after partition its hinterland was reduced to Pakistan only. With SAFTA implementation by 2013; the trade flow is
expected to increase dramatically. On the Western side one after another crisis has made the journey beyond Chaman dangerous.   If a secure and safe road through Afghanistan becomes a reality; Chaman trade will reach such proportions that the
current volumes would look like a joke. This will usher in such prosperity in the whole Region that poverty will vanish for ever.

World has to find a way to open this most important trade route. With each regime change the expectation run high that perhaps this time around there will be complete peace in Afghanistan. However one after the other Regimes has failed to deliver. The Taliban in recent times restored law and order along the route but they demanded   lot of Taxes for themselves. After their departure no one has managed to guarantee safe passage through Afghanistan, to reach to civilized Turkmenistan and Europe beyond. The irony is that the mostly desert wasteland of South of Afghanistan is extremely poor and it would not be so if the potential level of transit trade pass through it. 

Knowing the power of money, I am sure that the route would open sooner than we think. Either sanity will prevail in Afghanistan and they would allow the trade to pass through or the Lower Portion of Afghanistan would be occupied by some neighbouring country like Pakistan, to achieve this aim. Militarily it would not be difficult at all, if we remember how we installed Taliban all over Afghanistan. The
only requirement is concurrence and support of the West. I believe they have no option but to give it, in due course.