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CNN Live At Daybreak
War on Terrorism Being Fought in Afghanistan, But Economic Effects Being Felt in Pakistan
Aired October 30, 2001 - 06:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: Well the war on terrorism is being fought in Afghanistan, but some economic effects are already being felt in Pakistan. As CNN's John Vause reports, there are more and more signals coming from Pakistani people that they will not support a campaign that threatens to drag them into poverty.
JOHN VAUSE, CNN CORRESPONDENT: Karachi City (ph) markets normally crowded with tourists with plenty of cash, these days business is slow. Muhammed Elli (ph) sells T-shirts, shorts and caps. In his (INAUDIBLE) English he sums it all up.
MUHAMMED ELLI (ph): (INAUDIBLE) no business. Business always very (INAUDIBLE). Everybody (INAUDIBLE).
VAUSE: (INAUDIBLE) sells carpets, rugs and tablecloths. His is a similar story.
UNIDENTIFIED MALE: My shop is not up (INAUDIBLE) tourists. But now as you know (INAUDIBLE).
VAUSE: Quite simply, it's not good for business to be next door to a war zone. Before September 11th, the Pakistan economy was in trouble. Now the airstrikes on Afghanistan will cost Pakistan billions -- billions it doesn't have and the fear is economic and social unrest for a fertile recruiting ground for Islamic fundamentalists.
UNIDENTIFIED FEMALE: They're saying to them that the reason why you are in the situation you are is because your government are prowess (ph) because they're secular, because they haven't followed Islam.
VAUSE: But what about all that aid or that debt relief from the United States, Canada, Japan and Europe - Pakistan's reward for its part in the international coalition against terrorism. Most hear from President Musharraf (INAUDIBLE) say they're grateful, but to be honest, they say it's nickel and dime.
So far this country has received hundreds of millions of dollars. What they say they need is in fact billions to help pay off the national debt, which is close to $40 billion.
But why should the richer nations pick up the tab for Pakistan's economic problems? Because people like (INAUDIBLE) and his fellow shopkeepers who already blame the U.S. for their problems, say they'll take to the streets if they can't make a living.
And those anti U.S. protests which so far have been relatively small will grow, causing more domestic problems for President Musharraf after siding with the United States, he's now hoping for more economic benefits from the international community.
UNIDENTIFIED MALE: They'll contribute to Pakistan getting more investment and donor money because (INAUDIBLE) Pakistan is good for the region and good for the world.
VAUSE: But with tough economic times ahead for the world economy, the question now is how much are many countries willing to spend to keep the shopkeepers in Karachi and others just like them in business employed and their families fed.
And some analysts here point to Afghanistan and say it took just 20 years for that country to reach the state it's in now and say to avoid similar problems here in Pakistan, action needs to be taken now - Leon.
HARRIS: Well John, along with these economic pressures that you talk about, we also see the bombing continuing and Ramadan is also approaching. What about the pressure that's putting on President Musharraf?
VAUSE: Well indeed that's just one of many pressures which the president is facing, but indeed, he certainly seems to be in control. There won't be an uprising next week, next month - there may not be one at all. But there are indeed problems which are bubbling under the surface, which could present themselves and could make trouble six months down the line.
Problems like - if you look at the Pakistani border, thousands of young Pakistani men on the border waiting to cross into Afghanistan to fight alongside the Taliban. Not unusual for Pakistani men to go and fight with the Taliban. The Taliban sort of pull out while they were (INAUDIBLE) Afghanistan for the reinforces to come from Pakistan and that call was answered.
This is similar - right now the leader of those men is in Jalalabad trying to negotiate their passage into Afghanistan. We also know on the Soup Road (ph) hundreds of protesters are blocking that highway to (INAUDIBLE). They've been there for six days, and we're being told now that more Pakistani security forces are on their way there. has been some exchange of gunfire and residents are being told to move to safer ground.
And with this military campaign into its fourth week, there is indeed a growing need amongst the general population, the silent majority that Mr. Musharraf called them, there's this general unease because of what they say is his lack of results and this growing list of civilian casualties. And of course, as you say, all this against the backdrop of Ramadan and also the winter, which is coming up in Afghanistan - Leon. HARRIS: Quite a complicated picture. John Vause in Islamabad, thank you very much.
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