Federal Minister for Commerce Syed Naveed Qamar has said that exports of Pakistan to the Shanghai Cooperation Organisation (SCO) member states have reached $3.44 billion with an increase of 30.6% during fiscal year 2021-22.
He was addressing a two-day economic forum of the SCO in Tashkent, Uzbekistan.
Citing an IMF report, he stated that the average GDP growth of SCO member states in 2021 was about 5.3%. SCO members account for about 20% of the global economy and 40% of its population.
“We are striving to move away from a consumption-focused economy towards an investment and export-driven economy,” he added.
“We intend to achieve improved export through free trade and transit agreements, regional connectivity, ‘Make in Pakistan’ initiatives, rationalisation of tariffs and an industrial policy framework, which will put Pakistan on the path of industrialisation,” said Naveed Qamar.
“Though marginal in dollar terms, it is a good omen to see Pakistan’s trade diversifying in terms of destinations,” said former member of Prime Minister’s Economic Advisory Council, Abid Qaiyum Suleri.
SCO member states have tremendous trade potential with Pakistan. This potential has grown further after the conflict in Ukraine, he added.
“Our export capacity has not achieved its full potential yet. However, the diversion of export orders from regional exporters to Pakistan during Covid and current depreciation of rupee has certainly provided it an impetus,” Suleri observed.
“Unless we resolve energy issues as well as smoothen the process for importing raw materials and plant and machinery, we cannot achieve full export potential,” noted Taurus Securities head of research, Mustafa Mustansir.
FY 2022 has started with textile exports falling due to some of these challenges and this is worrisome because the textile sector contributes the most to Pakistan’s exports, he added.
“Our exports to this region are largely textile exports and things are starting to sour for textiles,” said AKD Securities CEO Farid Alam.
Regional connectivity is a major objective of Pakistan’s Vision 2025 and is in sync with the SCO’s Development Strategy 2025. In the Chinese city of Qingdao, Pakistan proposed the establishment of ‘Pakistan-SCO Trade, Transit and Energy Corridor’. This would offer SCO member states the use of Pakistan’s road and rail network and access to international sea lines of communication for trade, transit and commercial logistics through Karachi and Gwadar, said Naveed Qamar.
This would also realise the cherished aspiration of land and maritime connectivity between the Middle East, Central Asia, China and South Asia. For enhancing regional connectivity, Pakistan has started negotiations with SCO member states to tap the transit potential of the region for trade and is actively pursuing to materialise this long term arrangement, he added.
“Pakistan fully shares SCO’s strong support for multilateralism, free and transparent trade according to WTO rules and enhanced economic cooperation among member states”, Naveed Qamar emphasised.
In addition, Pakistan strongly believes that interstate relations should be based on mutual respect, non-interference in internal affairs, and peaceful resolution of issues by upholding principles of UN charter, international law and bilateral agreements, he stated.
“We are fully committed to promoting the Shanghai Spirit which lays emphasis on equality, trust, coexistence, respect for cultural diversity, and a desire for shared development”, he added.
Naveed Qamar said Pakistan “attaches great importance to the SCO as it allows us to underscore our interest in regional peace, stability and development and support for regional cooperation”.
SCO would not only provide a platform to forge closer ties with China and Russia- the two key players in the region- but also allow us to explore greater economic linkages and cooperation with Central Asian countries in the areas of energy and transport and would help in promoting Pakistan as a regional trade corridor, he maintained.
Published in The Express Tribune, August 18th, 2022.
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