In the neighbourhood: FCCI chief urges increased export to regional countries

Says trade survival depends on regional diversification.

FAISALABAD: “Sixty per cent of world trade is amongst regional blocs and Pakistan can increase trade by concentrating more on trade with regional countries,” said Engineer Suhail Bin Rashid, president of the Faisalabad Chamber and Commerce Industry (FCCI).

He said that the major proportion of global trade is restricted to regions but unfortunately in Pakistan’s case, we are forced to develop trade relations with countries that are geographically far. This not only is more time consuming but will also increase transportation costs. Therefore there is a dire need to remove trade barriers among regional countries, Rashid added. He noted that after China, India is the most attractive trade destination with its consumer market reaching up to 1.3 billion people.

He emphasised that Pakistan should diversify its export products and introduce unconventional goods to traditional markets which will improve the selling point of Pakistani goods.

Rashid said that despite the geographical proximity, regional trade between South Asian countries was valued at $16 billion in 2010, which is only 5% of total trade between members of the South Asian Association for Regional Cooperation (Saarc). He said that with the changing scenario, Pakistan should concentrate on enhancing its exports with Iran, Central Asian States, Gulf countries, Russia, Turkey and China.

Rashid suggested that the government should facilitate the manufacturing of non-traditional items by extending reasonable incentives to the manufacturers.  He voiced hoped that the government would expedite its efforts to overcome the energy crisis with the exploration of new gas wells.

Published in The Express Tribune, October 29^th, 2013.

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