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COMMERCIAL VENTURES IN BALTISTAN A DISCUSSION PAPER Ås, Norway May 2007 GEIR AMBRO Development adviser Geir Ambro, M.Sc. mobile: +4745450120 email: [email protected]

COMMERCIAL VENTURES IN BALTISTAN - UMB · creating a number of commercial ventures in Baltistan, pivoting around nature, craftsmanship, and natural resources in the area. The purpose

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Page 1: COMMERCIAL VENTURES IN BALTISTAN - UMB · creating a number of commercial ventures in Baltistan, pivoting around nature, craftsmanship, and natural resources in the area. The purpose

COMMERCIAL VENTURES IN BALTISTAN

A DISCUSSION PAPER

Ås, Norway

May 2007

G E I R A M B R ODevelopment adviser

G e i r A m b r o , M . S c . • m o b i l e : + 4 7 4 5 4 5 0 1 2 0 • e m a i l : g e a m b @ o n l i n e . n o

Page 2: COMMERCIAL VENTURES IN BALTISTAN - UMB · creating a number of commercial ventures in Baltistan, pivoting around nature, craftsmanship, and natural resources in the area. The purpose

IntroductionPurpose of this Paper

After spending nearly five weeks in Baltistan in June/July 2005, based in Skardu, travelling to Basho, Shigar, Khaplu and Gilgit, I had many impressions to digest after coming home. While collecting data for my thesis “Defining local ownership - a grounded theory approach” (Ambro 2006)1, also saw many exiting possibilities in the form of potential of creating a number of commercial ventures in Baltistan, pivoting around nature, craftsmanship, and natural resources in the area. The purpose if this short paper is to present a few ideas that arose from my time in Baltistan. It is not a scientific paper, neither is it a business plan, though it very well can be developed in either directions. The paper is more of a starting point for a discussion, an eye-opener, and some food for thought. Some ideas might be considered to far fetched, or undoable, or maybe as too controversial for some. Some might not be in line with customs or religion, but please keep in mind that this is a starting point, a brainstorm on what I personally saw as a potential.

Baltistan’s geography

To better understand the context for this paper, I briefly present a sketch of the geography of the region.

Baltistan is a part of a region called the Northern Areas and Chitral (NAC) in the extreme north east of Pakistan. Nested between the Karakuram and the Himalayas, two of the world’s highest mountain ranges, it encompasses six different valleys: Skardu, Shigar, Khaplu, Kharmang, Roundo and Gultary. Strategically located in “crux of Central and South Asia, lodged between Afghanistan, China, India and Pakistan, NAC has been important strategically throughout history; as a crossroads on the Silk Route; during the colonial period, the cold war and the Great Game; and most recently due to events in Afghanistan and Kashmir” (Nyborg & Ali 2005)2.

The inhabitants mainly live along the river valleys of the Indus and its tributaries, the Shyok and Shigar river (Aqil 2004)3. The area is remote, and “considered one of the poorest regions of Pakistan” (ibid). Baltistan varies between an altitude between 2000-3000 meters, but has also several of the world’s highest peaks, among them K2 and Nanga Parbat. Wintertime can be harsh and long, stretching in time from November to April, bringing temperatures as low as -20°C in December and January. Summertime is usually warm, temperatures reaching 35°C in July and August (Nyborg & Ali 2005).

Skardu, the main hub of Baltistan might be a mere 50 minutes by plane from Islamabad, but travelling the same distance by road takes as much as two days given good weather and the right season – that is, at the best of times. In winter, the snow may block the mountain passes on the Karakuram Highway (KKH) and the road connecting KKH to Skardu, making it isolated for longer periods of time. In spring, the melting snow makes the rivers and watersheds in the area swell, and landslides may block the road between KKH and Skardu at several places. This makes travel by car, lorry, and bus very difficult.

Baltistan is often called a vertical desert due to the very low annual precipitation (around 150mm annually, mostly as snow) (Aqil 2004). The lack of rainfall makes cultivation difficult, and the subsistence agriculture of the region mainly relies on irrigation from snowmelt from the mountains. Traditionally, the farmers have themselves constructed irrigation channels, diverting water from streams, rivers, and natural springs (ibid).

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1 Ambro, G. (2006). Defining local ownership: a grounded theory approach. Norwegian University of Life Sciences. XIII, 85 bl. p.

2 Nyborg, I. & Ali, J. (2005). Exploring Nature, Wealth and Power Issues in Agriculture and Resource Management: A Case Study on the Aga Khan Rural Support Program, Northern Pakistan Noragric (ed.). NORAGRIC working papers, 0809-4934. Ås, NORAGRIC.

3 Aqil, G. (2004). Morality and rationality! Which comes first? : mutual insurance and solidarity networks in the Western Himalayan societies. Master of Science. Ås, Norwegian University of Life Sciences, Noragric. 86 s. p.

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The average farm size is about 2.5 ha, included land for fodder production, farm forest and fruit trees (AKRSP 1995)4. Main crops grown in the short spring and summer are wheat, barley, maize potatoes, and buckwheat. Livelihoods depend mostly on farming, but in the NAC as much as 50% of the total off-farm income is generated from remittances from factory workers, civil servants, employment with army and earning from shops (ibid). The family structure plays a very strong role in the farming system. Strong ties within the family and among relatives and other villagers provide a mutual insurance system against uncertainties (Aqil 2004). There is a strong tradition for collective work for to support families, and for farmers with low income to trade labour against foodstuff or other gains (ibid). As many as 37% of the population in the region of NAC live under the poverty line, and the area is one of the most demanding areas there is to live in, and “present huge challenges for social and economic development” (Zehra 2005)5.

The landscape is, on a personal note, immensely beautiful, stunning and dramatic. Mountains stretch from the valley floors towards the deep, almost unreal blue skies high above. On the mountain sides and along the valley floor the farmers have left their mark in form of fields of green, lush areas, juxtaposed against the grey and black of mountains and sand. The scenery is breathtaking and unique.

Near Shigar Valley floor Effects of irrigation

Commercial ideas for BaltistanTravelling through the different parts of Baltistan I was constantly overwhelmed by the beautiful scenery that appeared behind every bend along the road clinging to the mountainsides along the rivers, or as we climbed towards the skies. I was also taken by how much potential the area had in form of a number of fields. In short, I will focus on these major areas in the rest of this paper:

TOURISM GOODS AND MERCHANDISE

FOOD

Extreme tourism Soap Fruits

Walking and hiking Scented oils Meat

Hunting and fishing Perfume Vegetables

Cultural tourism Brushes Fish

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4 AKRSP. (1995). Contextual Study of the Northern Areas and Chitral. Islamabad, Pakistan, The Aga Khan Rural Support Programme.

5 Zehra, M. (2005). Creating Space for Civil Society in an Impoverished Environment in Pakistan. In Bass, S. (ed.) Reducing poverty and sustaining the environment: the politics of local engagement, p. 318. London, Earthscan Publications.

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The region of Baltistan has a very large potential when it comes to a number of different types of tourism, I have taken the liberty of sub-categorizing them accordingly, and in the following chapters I will further outline these ideas further.

Tourism

Within the area of tourism, as I see it, Baltistan has the potential of attracting a large variety of market segments. Briefly outlined, these may be placed along an axis where cultural tourism ranks low on the degree of challenges, walking and hiking slightly higher degree of challenge, fishing and hunting even higher, and on the hunting, fishing, and extreme sports like paragliding, rafting, skydiving, extreme skiing and snowboarding and mountain climbing ranks on the high side of degree of challenge. These different market segments may intermix, but still represent different target groups.

Market segments and degree of challenge

Cultural tourism

With cultural tourism, I think of the opportunities that lie in exploring the history, food-culture, culture and languages of the region. This also includes the potential that lies in the area in the form of Shigar fort, Skardu fort, and other cultural institutions in the area, as well as home-stays and samples of the food that is produced in the area. Handicrafts and antiquities from the area might also be of interest, including woodcarvings and decorative woodwork. Courses in traditional woodwork might be of interest as a speciality area. Polo also plays a part in this thematic area. By focusing on building up and selling these activities, it might be possible to offer these kinds of activities as a an add-on to the other activities following in this paper.

Walking and hiking

There is a tremendous potential for walking trips and hiking in the mountains surrounding Skardu and the valleys streching out from it. The experience of trekking/walking/hiking over mountain-passes, following ancient routes and seeing the incredible vista spreading out is an experience that could be very popular. Combined with the cultural aspect mentioned in the preceding paragraph, as well as “heritage trails” that tell stories of how the different villages traded and exchanged information and goods, this could be of great interest. This kind of activity could appeal to nature-lovers, and by also given a chance to spend nights in mountain huts along the way, the experience could be truly unique. If possible, it would be very interesting promoting and upgrading existing trails between the villages, and over mountain-passes, as well as connecting them and setting up shelters along the way. The shelters could be basic, but with cooking possibilities, or adjacent to villages that could sell tea, fruit or food on demand or by arrangement. Basic organic food would be sufficient.

Hunting and fishing

Already, there are possibilities of hunting in the Baltistan region. The potential for this should be investigated further. The sale of hunting licenses to dedicated hunters generate large revenues in other countries, and could be a possible source of income. The combined experience of hunting in a rugged mountainous area, rare game, and a great physical challenge should be a unique selling point for the hunting community. Combined with facilities to prepare the hide and

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trophy of the animal, as well as facilities to cook the meat during a cultural show would be an interesting package to many hunters. The exclusivity of few hunting licenses would also ensure good income on each license.

As for fishing, especially fly-fishing, the same surrounding attractions would be very interesting to the fishing community. I have personally little information regarding what kind of fish are available and in what numbers, but as an idea it should be investigated further. Here, the possibility of curing or smoking the fish in camp or in nearby villages should be a further selling point that should be explored. The cultural aspect should also be included here, say with a concluding dinner at one of the old forts in the area, complete with organic food, fish and game caught by the guests themselves.

Extreme tourism

The larger part of this discussion paper will look at the potential for extreme alpine, water and aerial sports. The surroundings of Baltistan is absolutely fabulous for these kinds of sports.

Alpine sports

This includes climbing, ice-climbing, skiing, and snowboarding. In Europe, the US and New Zealand, there is a growing community of elite extreme skiiers that promote certain mountains, areas and regions for these sports. This community makes films and are immensely popular among younger people, including people that backpack around the world as well as prioritize going on skiing expeditions to remote areas. By inviting extreme skiers to come to Baltistan and have them test out extreme skiing on glaciers and mountain sides, making films about this, Baltistan could become a “cult” site for extreme skiing, drawing with it an influx of skiers wanting to test themselves on these mountains. This also goes for climbing. Not only the K2, but also the other mountains of the region. Already there are several companies promoting this (e.g. http://www.atp.com.pk/pakistan/mountain-tourism.htm), but a joint effort to develop the northern areas and Baltistan as skiing areas would be very exiting.

Aerial sports

Given the airport at Skardu, there are possibilities of developing aerial sports, i.e. sky-diving and sailplaning, in that area. By hosting e.g. a large sky-diving event, it would be possible to attract a large international body of sky-divers that would promote the region as a whole returning to their countries. When it comes to the surrounding mountains, para-gliding, hang-gliding and BASE-jumping would also be extreme activities that could be developed. The equipment are usually brought in by the jumpers themselves, so minimal investments in ramps to facilitate launch and access roads to these would be the only that is needed. To help promote these facilities, it could be possible to go the same way as with extreme skiing; inviting a select number of well-known jumpers and para-gliders and make a film about it.

Water sports

The rivers of Baltistan are large and dangerous in the spring melt, and as such could be popular for rafting and river-kayaking. Already there are a large number of possibilities doing this in Nepal and Uganda, where the rivers are in the same class as the rivers in Baltistan. Again, the promotion of the area could benefit from being a part of a film that has credibility in the community that is interested in these kinds of activities.

As a thought, the idea of inviting a team of extreme-sportsmen and -women to shoot all these activities mentioned in the extreme-sports sections could give very interesting effects.

Goods and Merchandise

This section will look into the potential for producing goods and merchandise in Baltistan.

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Drawing on the resources already present in Baltistan, a number of ideas should be discussed. One is the possibility of making organic soaps and related products such as perfume and scented oils, using local herbs and fruits as scents. Travelling around Baltistan, there was always a scent of near-lavender in the air, emanating from fragrant bushes (I am afraid that the name of the bush has disappeard in my notes) along the way. Producing soaps and lotions with oil from this plant, as well from mulberry might be an activity that could generate income. At the same time, including peach-oil and grinded pieces of the peach-stone as a scent and a scrubbing agent in the soaps could be a possible way of making exclusive soap that could be sold down country. Wrapped in locally made paper, and decorated with local art, this is a product that could also be sold regionally and internationally. Additionally, local hardwood might also be used in making bathing brushes and hairbrushes, with hair from local animals or natural fibers found in the region. It would also be interesting to map other fragrant bushes and herbs in the region that could be used in this process.

I would also like to point out that these products in no way should compete on price, as the merchandise and goods brought over from China does this. These products should be highly priced and hand made as to find a niche in a more luxurious segment of the market.

Food

As there is an access to mulberry, peaches, and cherries in the area, among other fruits, there could be a possibilty of looking into setting up production of jams and jellys, juices and other products such as scented teas. I heard that there had been a visit by a group of investors interested in setting up production of juice, but that it had failed. Still, exclusive, natural, organic mulberry jam, with a clear difference from sugary jams produced elsewhere might find a following among the better hotels in Pakistan and the region. The same might be the case of organic meat and fish, locally caught and prepared for selling to hotels and up-scale markets down-country. This might include kid-meat and trout, as well as organically grown vegetables.

Closing remarks

The idea of this brief paper is to present a set of ideas to be discussed further. It is intended to whet the appetite for thinking differently about Baltistan and to start off some ideas about the potential in the area. Some ideas might already be in motion, others might be cast off, others might be discussed, evolving into new ideas. It is not a scientific paper, it does not present a SWOT-analysis or a business plan, a budget and a timeline. It is intended to be a mental bungee-jump, a challenge and a present some new thoughts. Please read it as such, and please be in touch if the need or want to discuss some of these ideas should arise.

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