Horst Simon, Regional Director of the Global Association of Risk Professionals
By Moayyed Jafri
Horst Simon
Horst Simon is Regional Director of the Global Association of Risk Professionals. He believes the biggest risk in business ties, is not doing a comprehensive risk analysis.
Q. How would more robust and liberalised Indo-Pak trade relations affect the two countries?
A. Indo-Pak trade liberalisation can bring the two countries together and work for the benefit of the people on both sides. Uninterruptible, sustained and maintainable business relations between two countries can exist only if they consider all the possible and probable threats of disruption and create procedures that would minimise the risk, if not eliminate it completely.
Q. Why is risk analysis important?
A. In case of Lebanon, the MNCs did not do proper risk analysis and did not devise the procedures and parameters that would ensure security of their investments. They had to suffer in the end. This, however, does not in any way mean that Pakistan and India should continue a more conservative approach towards bilateral trade, but only emphasises the need to create circumstances, policies and risk-eliminating measures that would ensure as a much permanency to this affair as possible.
Q. What measures can be implemented to minimise Indo-Pak trade risks?
A. It is a global fact that parties with strong economic interests bound together think a hundred times before jeopardising their financial interests. Showing the value Indo-Pak trade can add to businesses across the border and to bring to light the greater good achieved by it will help minimise trade risks. Once this starts to happen, the governments will automatically be sucked in for the sake of the economic good it brings. Thus it will minimise the risk to a greater extent.
Q. What are your thoughts on business continuity planning?
A. Business continuity planning conjugate to risk management strategy is equally important. Consider the example of Sudan where a country was created overnight and everyone was stumped – the negative impact of such abrupt scenarios too can be minimised.
Q. What are your thoughts on the Aman-ki-Asha initiative?
A. The Aman-ki-Asha project is the perfect recipe to bring about the change both Indian and Pakistani businessmen desire. Persistence of such campaigns can set things rolling in the right direction and can act as the chief motivator towards their materialisation.
Dr J S Juneja, Chairman of Global Projects and Services India
By Babar Dogar
Dr JS Juneja
Dr J S Juneja is Chairman Global Projects and Services India, former chairman of National Small Industries Corporation Ltd., the Government of India Enterprise and former president of the All India Management Association and Chairman of SME committee. He was part of the Indian delegation that participated in the Indo-Pak Management Summit.
Q. What are your thoughts on the Indo-Pak Management Summit?
A. This initiative is a step forward towards achieving greater goals. While contact between businessmen of both countries is a positive development, India and Pakistan would have to take their armies and specifically ISI and RAW onboard to achieve the desired results.
Q. What are the factors that hinder trade between the two countries?
A. A single incident of terrorist activity by non state actors operating on both sides of the divide could jeopardise the entire process. Both governments should bring forth the officials of their military establishment and take them onboard. It is not a big issue for leading Indian businessmen to take their military top brass onboard. However, Pakistan also has to take its military establishment into confidence. People-to-people contact between the two countries should continue to pressure the governments and military establishments to move forward.
Q. How will increased economic cooperation between the two countries affect Indo-Pak relations?
A. People on both sides of the border would forget about the so-called core issues between them once there are massive financial stakes involved. France and Germany in Europe fought several wars but now they are almost one. It is time for the people of this region to move forward.
Q. How will people benefit from trade between the two countries?
A. At present there is indirect trade between the two countries which neither benefits the people nor the governments. Direct trade between the two countries will help generate revenue for the governments and provide goods to the masses at reasonable prices. Medicines that are sold in the Pakistani market at the rate of Rs15 are available for two or three rupees in the Indian market. At present approximately 150 trucks from India are unloaded at Wagah border. The number should be increased to 600 to 700 per day.
There are certain disadvantages of linking direct trade but ways can be found around them. It is hoped that the Pakistani government will reciprocate the Indian government’s goodwill gesture in which it has reduced its negative list by 30 percent during the SAFTA summit.
Deepak Kapoor, Chairman of PricewaterhouseCoopers India
By Babar Dogar
Deepak Kapoor
Deepak Kapoor is the Chairman of PricewaterhouseCoopers (PwC) India. He has been leading the financial advisory practice for more than eight years and the telecom, entertainment and media practices for more than 10 years.
Q. What can be done to promote Pak-India bilateral ties?
A. Awareness among people about the benefits of trade between both the countries is vital to move forward. Although a number of bottlenecks still exist that need to be removed, we have to carry forward the Aman Ki Asha initiative at any cost.
Q. What are your thoughts on the Aman Ki Asha initiative?
A. It’s the power of the people and their pressure on the political governments that can curtail the sabotaging acts of non-state actors present on both sides of the divide.
Q. To what extent will the large-sized Indian economy affect the Pakistani market?
A. The small and medium Pakistani entrepreneurs must have strong reservations that India, being a comparatively bigger economy, will affect Pakistan’s economy. However, this will create an environment of competitiveness among them as well. If India is a bigger economy, it also holds the attraction of a market of 1.3 billion people for the Pakistani businessmen. There’s great potential in Pakistan to explore the Indian market. Apart from the government-to-government contacts in the past, the present exchanges among businessmen will certainly put more pressure on the respective governments to do more.
Q. What are your thoughts on India’s globalisation policy?
A. Just like the Pakistani businessmen, the Indian businessmen had similar reservations in 1991 when India opened its doors for the outside world and established trade links with the US. It was an age of globalisation where it was not possible for anyone to live behind closed doors. The globalisation policy opened new vistas and now India is one of the fastest growing economies in the world.
Q. What measures can be taken by Indo-Pak governments to boost bilateral relations?
A. The Indo-Pak governments should immediately take two to three initiatives as a goodwill gesture. These include improving the flight schedule between Islamabad and Delhi, as there are only three flights between the two capitals in a week, and improving the visa regime and telecommunication facility.
Q. How was your experience in Pakistan?
A. I love the people of Pakistan for their hospitality and cooperativeness. I especially liked Lahore a great deal and I will never forget the welcome given to me by Lahoris at the airport.
Kaushik Roy, Adviser to the Chairman of Reliance Industries Limited
By Moayyed Jafri & Khalid Khatak
Kaushik Roy
Kaushik Roy is Adviser to the Chairman Reliance Industries Limited. He believes that in modern day global trade, building the country as a brand is the most important thing. This is also the vision that got his company to reach global heights.
Q. What factors are necessary for national brand building?
A. Political stability is the foremost factor to build a national brand as it sends out the right kind of message regarding consistency of policy and safeguarding of investment. The market potential is the second logical parameter, while the percentage of youth will be the third, considering the likely talent in human resource and due to the buying behaviour.
Q. How significant is liberalised trade for economic growth?
A. Competition is the best way of growing. India witnessed such a competition level after liberalisation when new brands emerged in the country. There isn’t a tangible economic benchmark to merit liberalised or globalised trade. It has both its rewards and challenges.
Q. What has been the impact of trade liberalisation on the Indian economy?
A. In a way, India is still coming to terms with it, especially in the medium level where entrepreneurs are formally protected by protectionism. However, the national growth has been phenomenal. And it’s not just investment that flows into a country post liberalisation, it’s the tremendous learning opportunities brought in by much bigger and experienced business players from the developed world.
Q. How did India go about it?
A. India has adopted the western model of employing professionals atop ministries, without undermining the political electorate. This has reaped amazing results because these individuals can concentrate more without being pulled back by political factors.
Q. How can trade liberalisation boost Pakistan’s economy?
A. Pakistan has wonderful youth potential that can benefit from cashing in on this, through the learning and growth of liberalised trade. The multinational companies employ local vendors when they invest in any country, which not only boosts employment but also leads towards skill generation.
Q. What can be done to promote trade liberalisation in Pakistan?
A. Pakistan will need to bring forward strong lobbies that are pro-liberalised trade and economy. Political alliances having progressive thoughts have adopted this approach successfully and so did India. Such steps need to be believed in and backed by performance. When the Indian president decided to take this step, it was backed by a sense of belief that has brought India the economic gains that it enjoys today.
