PAKISTAN’S contention that unilateral US sanctions against companies suspected of having links with its weapons programme could have “dangerous implications for the strategic stability of our region” is not simply rhetoric, but rooted in precedent.

Indeed, these designations have been used as an excuse by arch-rival India to arbitrarily harass Pakistani and Chinese commercial firms engaged in documented trade and industrial activities.

Consider the case of Cosmos Engine­ering, a Karachi-based manufacturer of automobile parts and home appliances.

In March of this year, Indian customs officials had intercepted a Malta-flagged merchant ship, the CMA CGM Attila, which was en route to Karachi. The allegation was that it was carrying a dual-use military-grade cargo, which Indian authorities claimed could be used by Islamabad for its weapons programme.

Cosmos Engineering and its Chinese partner, Taiyuan Mining Import and Export, have yet to be compensated for ‘wrongful’ seizure of their cargo

Indian customs officials claimed to have found an Italian-made computer numerical control (CNC) machine within the consignment, alleging its potential utility in nuclear and ballistic missile programmes, and subsequently confiscated it.

Although New Delhi claimed the interception, and subsequent seizure, of the cargo was made on the basis of “specific intelligence”, no evidence supporting the claim was ever publicly released, and despite the passage of several months, the Indian government has yet to substantiate its allegations.

Chinese exasperation

The Chinese supplier of the machinery, as well as their Pakistani partners, told Dawn earlier this year that they intended to pursue legal action against the Indian government “to return our goods” as well as securing “maximum compensation”.

“I have reported the entire situation to our government departments and am waiting for their reply,” Andy Qiao of China’s Taiyuan Mining Import and Export had told Dawn in March, in response to a written query.

He also mentioned that his firm was enlisting the help of lawyers specialising in international law to gather evidence and prepare legal action against the Indian government.

Andy claimed that the Indian claims were “fabricated”, and normal commercial machinery was being portrayed as being “dual-use technology” for weapons systems. He also accused the Indians of virtually “stealing the equipment” by force without notifying them.

“When we tried to contact them to ask about the basis for the seizure, they didn’t answer our calls. They didn’t respond to our emails,” he said.

Andy maintained that their contract with the Pakistani company and all the products shipped between them met legal export declaration requirements and were fully documented, in line with international trade laws.

“The Indian government’s actions are extremely irresponsible. They always want to play the role of world police, arbitrarily seize other people’s products, and wantonly violate international law and international trade rules,” Andy said.

Diplomatic outrage

Although Pakistan’s Foreign Office had issued a sharp rebuke to the Indian actions at the time, Cosmos Engineering claims that there has been no progress on the issue and their seized shipment, as well as legal efforts to clear their name, remain in limbo.

“Pakistan condemns India’s high-handedness in seizure of commercial goods. This disruption of free trade underscores the dangers inherent in the arbitrary assumption of policing roles by states with dubious credentials,” FO spokesperson Mumtaz Zahra Baloch had said at the time.

Referring to the CNC machine found in the consignment, Ms Baloch clarified that the item in question was “a commercial lathe machine”.

“Specifications of the equipment clearly indicate its purely commercial use. The transaction was being conducted through transparent banking channels with all the relevant documentation,” she said.

Open doors at Cosmos

For most countries, anything related to weapons production is kept a closely guarded secret. But Cosmos Engineering allowed Dawn wide-ranging access to its facility in the North Karachi Industrial Area, where this correspondent was allowed to meet workers and management, as well as inspect the facility to get an idea of the kind of work that went on there.

“We are one of leading manufacturers of the country specialising in parts, tools and dies, jigs and fixtures for a number of reputed industrial organisations,” Cosmos Engineering CEO Asim Farooqi told Dawn.

In a wide-ranging discussion, he rejected the accusations leveled by Indian authorities, saying that the CNC machine was an essential industrial tool, widely utilised across diverse sectors, including automotive, home appliance, and textile industries.

“Cosmos Engineering vehemently asserts its non-involvement in any defense-related activities or missile programmes,” he said.

“We have demanded the immediate release of our CNC machine held by Indian authorities. Any further delay poses a significant risk to our operations and undermines our hard-earned reputation,” he told Dawn.

When asked how far their efforts to secure legal relief had progressed, Mr Farooqi told Dawn on Thursday that his company had approached the Sindh High Court to seek the release of their consignment, and that the court had issued notices to both the shipper and the cargo insurance agent.

“Our Chinese partner has also sought help of the local court in Shanghai,” he said, adding that Chinese customs authorities had sought details of the shipment.

Published in Dawn, December 20th, 2024