How Pakistan can help Southeast Asian Country Timor Leste in Reducing Their Dependence on Oil?
Timor-Leste is a country in Southeast Asia, located east of the Indonesian archipelago and north of Australia. Timor-Leste is a small country with an area of around 15,000 square kilometres. Dili is the capital of the country. Timor-population Leste’s is estimated to be around 1.3 million people. Timor-official Leste’s languages are Tetum and Portuguese. The Catholic faith is practised by around 95% of Timorese. After more than four centuries of Portuguese colonial control and two decades of Indonesian annexation, Timor-Leste (East Timor) became an independent republic in 2002.
Timor- Leste government has been focused on maintaining political unity and fostering economic growth since then. It began its independence in tough circumstances: poverty was prevalent, education was inadequate, the industrial sector was non-existent, and political unrest was on the rise. On the plus side, future oil and petroleum revenues are currently the only source of long-term viability. Despite the steady progress accomplished to far, it is believed that more over 40% of the population still lives in poverty, and unemployment is high.
Because of the poor economic performance of many resource-rich countries, natural resources have been viewed as a curse. Nigeria, Zambia, and Guyana are resource-rich countries, but their growth has been modest in recent decades, and their GDP per capita is low. In other words, despite their plenty of resources, many countries have failed to elevate their populations out of poverty.
Same is the case with Timor-Leste because of its geographical location where natural resources are high its economy is nearly 90% oil dependent. However, in my opinion, they must reduce their reliance on oil because, according to Lao Hamutuk researcher, “Timor-Leste has about seven years before its remaining petroleum/oil wealth – the only ship that can take the nation out of poverty – will have sailed.”
To reduce their dependency on oil they can improve their service and manufacturing sector by promoting jobs in these sectors. Service sector is the biggest contributor for the non-oil GDP. They have to invest in manufacturing sector so the basic products like garmnets, beverages, furniture etc can be manufacture in their own country. In 2017,Timor-Leste imported USD10.3 million worth of used clothing, including blankets, linen, and other items, because their indigenous material could not compete with even second-class imported fabrics. Country also imported furniture worth USD3.2 million. At the top end of the market, local manufacturing is unlikely to compete. Timor leste can grow faster by providing opportunities to local marketer of their country like they can provide reasonable electric and gas rate to textile industry, provide best machinery to agricultural sector so they can flourish in the near future. They have to invest more in other to reduce their dependency on oil.
Agriculture provides a living for almost 80% of Timor-population, Leste’s yet the majority of farmers have limited access to the tools and techniques required for sustainable and effective agricultural output. In 2005, the agriculture industry contributed 30% of Timor’s GDP, but by 2011 it had dropped to 15.9%. Internal reasons such as a lack of public investment in agrarian development, a lack of institutional finance, inadequate irrigation facilities, the government’s bad agriculture-related marketing policies, a half-baked land reform strategy, and low agricultural returns may be to blame. In comparison to Pakistan, it is a predominantly agricultural country with abundant natural resources. Agriculture is a significant part of the Pakistani economy. This sector provides direct support to the country’s populace and accounts for 26% of GDP. Agriculture has long been recognised as critical to alleviating poverty and encouraging rural development. When agriculture grows, so does the economy as a whole, hastening the reduction of poverty in both rural and urban areas.
Timor-Leste can turn to Pakistan for assistance in boosting their agriculture sectors. Pakistanis are known for their friendliness. They can teach them how to use modern technologies to conduct farming. In this way, not only would the relationship between the two countries thrive, but it would also have a significant impact on both countries’ imports and exports. Timor-Leste can also look to Australia for agricultural growth because they are adjacent countries and more cost-effective for the people of Timor-Leste, but they must be cautious about security because their previous relations were strained. All countries are rational actors who pursue their own goals, thus Timor Leste, in my opinion, should pursue the prosperity of their people.
SYEDA MAHNOOR FATIMA
INTERNATIONAL ISLAMIC UNIVERSITY
ISLAMABAD.
