India and Afghanistan inked a Preferential Trade Agreement (PTA) to boost two-way trade between the two countries. The visiting Afghan President Hamid Karzai on Thursday sought increased Indian assistance in the ongoing reconstruction efforts in his war-ravaged country. New Delhi has assured Kabul of $70 million aid for the construction of the 230 km Zaranj-Delaram highway that will connect the Iranian port of Chahbahar to the main Kabul-Kandahar-Herat highway. The PTA signed in the presence of the two leaders covers import by India of dry fruits, fruits and some other commodities from Afghanistan. The Afghan president who is on a four-day visit, held wide-ranging discussions with Prime Minister Vajpayee on the entire gamut of bilateral ties besides exchanging views on the Iraq crisis. India has already invested $100 million in Afghanistan for the improvement of its transport and communication facilities. Also, 57 buses have been given and last of the three Airbus 310s will be handed over on Friday. At a meeting organised here jointly by the Confederation of Indian Industry and the Federation of Indian Chambers for Commerce and Industry, Karzai while conceding the definite risk in investing in Afghanistan, said businessmen have to take these chances to get rich. On the contrary, he highlighted a silver lining in an otherwise gloomy investment scenario in his country. “You should also consider that it is better investing in Afghanistan which is one of the few places where competition is not that high.” According to the Afghan President, the rationale of security that lay behind businessmen being circumspect on investing in Afghanistan was misplaced. “I agree that you have several infrastructural hurdles like banking, transport and communications but otherwise places like Kabul are as secure as any other city in the world. Particularly, in the presence of an international security force.” Having signed a preferential trade treaty with New Delhi, Karzai said he has been urging investors across the globe to route their money through his Government. “We have political control but need resources to match the expectations of the Afghan people.” Parrying queries on whether Kabul has been approached by the United States to provide bases in case a war breaks out against Iraq, an evasive Karzai said: “We are too far from Iraq. US will seek bases closer to Iraq.” Talking to mediapersons he said, ‘‘India has helped us a lot in a variety of areas ranging from education to health to technology. Our relations has been a traditional and historic one.” About the situation in Iraq, he said “we will have a conference soon,” but declined to elaborate. He also had a meeting with Deputy Prime Minister L.K. Advani during which he sought Indian assistance for training of Afghan police personnel.
