Moazzam Husain

January 2012

Following the events of the attack on Salala military posts, relations are at a low ebb and NATO supplies through Pakistan are blocked

Opportunity for US policymakers to break the impasse and create goodwill

Build and stabilize Pakistan prior to pullout from Afghanistan

Each month close to a thousand freighter

aircraft haul in provisions and supplies for ISAF/ NATO into Afghanistan ◦ Aircraft chartered through civilian contractors ◦ US Military aircraft

The aircraft are empty on the return flights

In cases where possible, return flight can be used to fly out perishable but high value Pakistani farm products

Return flight path from Kabul /Bagram to touch down in Lahore where landing and security arrangements can be made

Cargo is proposed to be containerized and consolidated for pick up at Lahore airport – a warehouse and cold store already exist

At port of arrival, cargo will clear normal customs procedures after which it shall be cleared to consignees

This will offer a cost advantage – even if temporary - for Pakistan to capture market share in end or transit destinations to which these aircraft return.

Every month 4,000 containers move from Karachi port to various parts of Afghanistan

◦ Cargo for US/ ISAF forces ◦ Most are private – Mersk, APL, Haplog etc ◦ Many are US Military ◦ Some are reefer (refrigerated)

On return journey these are empty In cases where possible, some of this

space be used for Pakistan farm products to be shipped out

Cargo will be consolidated at a pick

up point in Karachi – a warehouse or a cold store

This will offer a cost advantage –

even if temporary - for Pakistan to capture market share in end or transit destinations to which these empty containers are shipped back

Since the start of Operation Enduring Freedom in 2001, war risk coverage has pushed international shipping costs for Pakistan to uncompetitive levels. Pakistani exporters have been enormously disadvantaged. Now may be the time to make this good to them

Each month, reportedly 300-500 containers of bottled drinking water, sourced from Dubai, are brought to Afghanistan for consumption by US forces

What would it take for this requirement be sourced from Pakistan’s large organised bottled water industry which includes US players like Coke (Kinley)and Pepsi (Aquifina) Similarly, how can we encourage the US Defense Department to arrange other non combat supplies, sheets, linen, medical supplies by procuring these from certified Pakistani manufacturers?

Pakistani food producers often lack the scale and expertise to effectively brand and market their products in export markets ◦ Meat and poultry

◦ Dairy, milk, butter, cheese

◦ Horticulture produce

◦ Juices, jams, concentrates, pulps and puree

◦ Specialty herbs, spices and pickles

Assist in development and registration of an “Indus” food brand under which products meeting certification and traceability criteria will enjoy “Indus” branding which may be managed as a cooperative

Other value addition: ◦ the services of a top marketing

thinker like Philip Kotler or Jack Trout to lead and contribute to this initiative

◦ Shelf space rental in US and EU markets

◦ Advertising funds to create “Indus” into a billion dollar brand

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