Pakistan proposes regional transit trade pact

Bakhtyar tells CAREC ministerial meeting govt facilitating private sector for increased investment

ISLAMABAD:

Pakistan on Monday suggested transit trade agreements among the member countries of the Central Asia Regional Economic Cooperation (CAREC), leading to a regional free trade agreement (RFTA) in order to expand regional trade.

Addressing the the19th ministerial conference of the CAREC via a video link, Economic Affairs Minister Makhdum Khusro Bakhtyar also suggested the development of regional tourism corridor, establishment of CAREC Business Council and increased involvement of private sector in promoting tourism.

According to a ministry press release, the minister highlighted that in order to expand trade between the CAREC countries, transit trade agreements among the member countries, leading to the RFTA, might be considered.

He also underscored the significance of regional cooperation in achieving the shared goals of sustainable development and economic growth. He reiterated the importance of regional connectivity, not only by roads but also by rail, aviation and ports, to unleash the region’s trade and tourism potential.

The minister endorsed the long-term CAREC strategies to promote regional tourism and gender mainstreaming. He told the meeting that tourism was part of the national development policy of the government of Pakistan, which contained immense untapped potential.

He also suggested the CAREC institute to conduct comprehensive studies, identifying underlying gaps and including roadmaps on mutually-beneficial topics. “Pakistan attaches high importance to CAREC as it is aligned with our national priorities of regional integration and cooperation,” he stated.

Bakhtyar said that the Pakistan government was focusing on facilitating the private sector for increased investment in the country. He also suggested enhanced visa facilitation regime in the form of “CAREC Sticker” for certain categories within the region.

CAREC programme is a partnership of 11 countries and six development partners, working together to promote development through cooperation, leading to accelerated economic growth and poverty reduction. It is guided by the vision of “Good Neighbours, Good Partners, and Good Prospects”.

The virtual event on Monday, was hosted by the government of Afghanistan under the theme “People-Centred Regional Cooperation in the Post-Covid Environment”. It was co-chaired by Afghan Finance Minister Abdul Hadi Arghandiwal and Asian Development Bank (ADB) Vice President Shixin Chen.

Ministers and representatives of Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyz Republic, Pakistan, Mongolia, Tajikistan, Turkmenistan and Uzbekistan addressed to the conference. Senior representatives of several international and regional organisations also attended the meeting.

Delivering his special message to the conference, Afghanistan’s President Ashraf Ghani appreciated Prime Minister Imran Khan’s recent visit to Kabul. He termed the visit an importance milestone in strengthening bilateral ties and enhancing prospectus for regional cooperation and integration.

Covid recovery

Other participants of the conference stressed that more rapid digitisation and leveraging the private sector could support the recovery from the coronavirus pandemic, accelerate regional cooperation, drive innovation, and help countries adapt to new and evolving forms of globalisation.

“As the world emerges from the pandemic, we must revive our regional cooperation efforts with a spirit of open regionalism to enable CAREC to seize the opportunities of renewed globalisation,” ADB President Masatsugu Asakawa said in his keynote address.

“There is huge potential for adopting technologies that improve the monitoring of cross-border health threats, enable the use of telemedicine and online education, and raise food safety standards—while the private sector can play a crucial role as a driver of innovation.”

Later, the ministers unanimously endorsed two new long-term strategies: a tourism strategy to develop safe and sustainable tourism destinations and provide jobs in CAREC countries; and a gender strategy to improve access to economic opportunities for women and empower them in decision-making processes.

In a joint statement, the ministers commended CAREC’s efforts to address the challenges posed by the pandemic and reaffirmed their commitment to regional cooperation and support for CAREC’s Strategy 2030.