Thar-our new Economic Frontier
By: Tarique Khan Javed
President, Overseas Pakistani Investors Forum.

The South Eastern portion of Sindh known as Thar Parker is a sparsely populated and one of the poorest regions of the Country. It is large area spread over a span of 200 X 200 KM. It is a cattle farming area with small amount of Barley and Gwar Gum cultivation. The population is mixed with 50% being Hindus, still living and dressing in traditional style, which is quit distinct from rest of the Country. The colourful dress of ladies provide a happy sight in the other wise gloomy atmosphere.

Upto recently transportation in most of the area was by means of four wheel buses known as Kakras. With water being so scares most of the villages comprising of unique cone style huts are around water wells known as TAR.

Coal and Gas discovery
Recent discovery of huge quantity of Coal near Islamkot has brought in rapid development in the area. Very high quality roads have been built connecting Umerkot to Chachro, Mithi, Islamkot and Nager parker. Now a newly built road links Badin directly with Mithi the Administrative Head quarter of Thar. Earlier the entry into Thar, from eastern side, was possible only through Jaudo- Naukot route. An airstrip has already been built near Islamkot while a proper airport is to be built 12 miles away from Islamkot. A 500 MW power generation unit is being constructed by Chinese Co nearby.
Near Kantio which also now linked to Mithi, by a good road, Oil and Gas is being explored. This is already providing well paying job opportunity to some local people and expectations are running high.

Better rains in last three years
Better rains during the last three years have transformed this dissolute region into a Savannah. The plains and sandy hills are now almost covered by plants and vegetation. This can support much larger population of cattle and probably wide life. It is said that under ground water is sufficient for next five years.
The area around Nager Parker now has a number of fresh water lakes. It has become a pleasant place to visit with its red mountains and beautiful surroundings, traditional buildings and temples. Nager Parker is home to a small porcelain powder industry which is found in large quantity in its mountains. The mountains also contain good quality granite which is still to be commercially exploited. The excellent roads point to its realization soon.    

An abode of peace and harmony:
Thar Parker is Pakistan’s show case of religious harmony and tolerance. Hindu and Muslims live like brothers and there is hardly any tension between them. Temple and Mosque thrive side by side. Most of the doctors in the region are of Hindu faith and are a noble lot. One can not but notice their humanitarian sprite of practicing in this economically deprived area, to serve their own people.  
The region is also notable for the absence of crime. People of the region say that, in the past, they did not experience any theft and robbery in the region. However the recent influx of people from other parts of the Country has introduced these vices to some extent, however this is restricted to towns and villages are still free from crime.

Extreme poverty and traditional practices:
This is despite the fact that people are extremely poor. It is difficult to find over weight people in the area. Most people are very slim indicating poor nutrition and medical facilities. People survive on very basic diet with insufficient protein intake leading to stunned growth among children and weak physical structure among grown ups. The problem is exacerbated by the widespread practice of early marriage, as early as 11 years among girls and 13 years for boys. People generally look much older than their actual age due to poor health. Medical facilities are very limited and people have to travel long distance to get medical treatment which they can not often afford.

Role of NGOs and Government
To alleviate poverty NGOs like World Food Program distribute food coupons which are redeemed in large stores in towns. Other NGOs are involved in providing safe water, basic health training, educating population benefits of not cutting trees and raising birds as a source of income.
However the construction of roads by the Government in recent years and digging of wells have proved very effective in poverty alleviation and proves the point that what good governance can achieve is not comparable to efforts of all NGOs combined.
Personally I can stand witness to the fact that between August 2004 when I first visited the region traveling by Kakras from Islamkot on wards and my last visit in November 2005, there has been a sea change in the area. What was than a back breaking journey has now become a pleasant trip with family on nice melted roads. The travel time has reduced from days to hours. The entire trip from the south eastern most point-Nagerparker to Karachi some 450 KM away can be completed in 7-8 hours. This has improved the market reach of all local products and also increased the property values. Goods from Karachi and Hyderabad like wise are reach the region rapidly and cheaply due to lower transportation cost.
The Government of Pakistan and Sindh deserve all the praise for the development in the region in the recent past. 

New business and investment opportunities:
Now the area is ready for rapid economic integration with the rest of the country and to become the latest economic frontier for all businessmen and investors.
With better water availability, presence of huge amount of coal and probably some oil and gas soon, excellent infrastructure of roads the area deserves attention of businessmen and investors of the country. Those entering the market now are likely to gain large dividends compared to those who will eventually come later. Some of the pressing needs and thus opportunities are as follows:

1. Need for a Motel chain:
The first thing needed by the region is a chain of decent clean hotels or motels in all major towns like Umerkot, Mithi, Islamkot, Nagerparker, Chachro, Diplo and Kantio. These could be 10 rooms hotels initially located next to a major petrol pump located just on the gates of these towns. These hotels charging Rs 400 to 500 per night ought to have 50-80% occupancy rate in coming years, as presently there exist no such facilities . These hotels could be built by individual investors or could be promoted and owned by a large Public Limited Co 50% owned by Government of Sindh and rest by small investors. This Co may be named Thar Holiday Motels Co Limited (THM) and be listed on Karachi Stock Exchange. This will help raise funds from large number of investors and allow for easy future expansion. I propose initial capital of Rs 250 million for this Co.
These hotels comprising traditional cone shaped huts but with good quality beds and baths would be a grate relief to business visitors initially but eventually attract local and international tourist to enjoy the unique culture and landscape of the region.
The motels with parking facilities in from of each room and having a decent restaurant will also attract travelers on the way to far off place for rest for few hours. The rooms may be rented on hourly basis for say Rs 100 per hour.

2. Need for a completely free Economic Zone
As a trend setter Government of Sindh should consider creating a truly completely free Economic Zone on a large area of say 40 X 40 KM in an area near the Coal mines. With available energy source nearby and envisaged airport this Zone could attract energy based industry like steel and alloys.
The Zone to be named Thar Free Economic Zone Co Limited (TFE)  could also owned say 50% by Government of Sindh and rest by small investors though a listing on Karachi Stock Exchange.
I propose an initial capital of say Rs 500 million for this Co.
The Free zone ought to provide one window service to industry in the Zone like Jabal Ali Free Economic Zone in Dubai.
As a deprived region which was of no interest to anyone upto recently, the Government should consider giving this zone freedom to house gaming and entertainment industry like Las Vegas in USA. This will attract lot of investment in this entertainment deprived country.

3.  Need for Large Safari Park with hunting facility:
With a very large part of the Region deprived of any significant population and with improved water availability, there exist possibilities of raising wild life for commercial use.
African countries like Zimbabwe are earning large sums of money maintaining and promoting large game parks. In these parks with the help of local communities nearby; animals like Elephant, Lion, Tiger, Giraffe, Zebra, and Deer are carefully raised to increase their numbers. When the populations of animals reach above optimum levels culling is allowed as business proposition. Licenses are issued to rich hunters to kill these animals on payment of very large fees. The income from these parks is shared by the investing Co and the local communities. Government receive good amount of taxes from the Cos and the activity promote travel and hotel industry generally. Wildlife protection and promotion NGOs have approved of these parks as they tend to increase the population of wild life rather reduce them.
An area comprising say 50 X 50 KM may be earmarked for this park. The location may be between Kantio and Mithi or between Chachro and Ahmed Tar or between Mithi and Diplo. 
A Thar Safari and Game Park Co Limited (TSG) with 50% Government of Sindh ownership and remaining small private investors may be formed and listed on Karachi Stock Exchange.             
I propose initial capital of Rs 500 million for this Co.

4. Need for opening 4 points for travel and trade with India
Being in a corner of Pakistan; Thar to prosper need to trade with India. Before Pakistan through Thar and Karachi goods like cotton, cattle and Opium were exported out of Rajasthan and Gujarat.
Nager Parker was an important trading post. After Pakistan trade  continued on lower scale upto 1965 but after it died down and added to the poverty of the people in the area.
With better relations with India, Sindh government should fight for opening old trading routes. Such opening will provide major relief to the people of Sindh as they will be able to travel to India inexpensively. Given the large Rajastani and Gujrati communities in Sindh this will give a big boost to Thar as people will transverse it for travel to India.
When trade is allowed through Lahore why not through Khokkrapar, Nager Parker, Musafir Khana, Rahim ki Bazar, Gadro and Vira Wah. These were natural trading post in the past.
There opening will usher in a new era of prosperity as promised by SAFTA agreement under SAARC. At least 4 trading and traveling post ought to be opened to improve the life of people of Thar in particular and Sindh in general.

Conclusion:
Our attention on this most deprived of the countries region is a need of time. Poverty in the region and resultant involvement of foreign NGOs has been an embarrassment for people of Pakistan. Now ALLAH has responded to our call for help and has generally increased rains in the Area and also revealed the large Coal reserve and now potentially Oil and Gas. These are once in a life time developments which is likely to change the fate of the region for better in coming years. The development throws open good investment opportunities for local and international investors.
These are many business opportunities in the region. I have listed three based on my experience overseas. I hope Government of Sindh and Pakistan and people come forward to realize the listed initiatives and Cos.
I am sure that under SAFTA agreement the old trade posts of Thar will reopen by 2013. However the challenge for the Sindh government is to open at least 4 trading and travel post within 2007.