Trade with Muslim states stressed
photo: file
In light of the fact that the Islamic Chamber collectively represents a GDP of $7 trillion, Pakistan should focus and double its efforts to increase trade with Muslim countries, says Irfan Iqbal Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
“Pakistan needs to expand and enrich its trade promotion activities with the 57-member alliance of the Islamic Chamber of Commerce, Industry and Agriculture (ICCIA), which collectively represents a GDP of $7 trillion.”
ICCIA Secretary General, Yousef Hasan Khalawi visited FPCCI along with the senior members of his team. They discussed avenues to enhance and broaden trade promotion activities with Pakistan through the FPCCI platform, which is the apex body for business promotion, representing approximately 250 chambers, trade bodies and associations.
“ICCIA is a trade promotion platform that can be used for tax-free trade, barter trade or trade in common currencies,” noted Ahsan Mehanti, CEO of Arif Habib Commodities.
“The government can also sign MOUs to reduce the import bill and stabilise the rupee. Likewise, the private sector can connect and get concessions for exports and imports with ICCIA member states,” he proposed.
The FPCCI president explained that these “countries have a huge demand for Pakistani textiles, leather goods, rice, fruits and vegetables, and IT services. Pakistan should capitalise on these opportunities to bridge our trade deficit of up to $4 billion per month, which is no longer sustainable. We need to exponentially increase remittances from Islamic countries, build foreign exchange reserves (FER) and, above-all, curtail the current account deficit (CAD) – which clocked in at $17.4 billion in FY22.”
“Pakistan has great potential to establish trade ties with the member countries of the ICCIA, especially in the ambit of halal meat trading,” underscored Farid Alam, CEO of AKD Securities.
“Pakistan’s livestock population has grown at a steady rate, with buffalo, cattle, and poultry populations growing at a compound annual growth rate (CAGR) of 3.02%, 3.74%, and 9.3% respectively between FY2018 and FY2022. Egypt — a member country of the OIC — imported $1.2 billion worth of meat in FY2021, while Saudi Arabia imported $2 billion worth of meat and edible meat offals,” he added.
“However, to achieve increased trade in meat products with the ICCIA member countries, the private sector in Pakistan will have to substantially improve the meat yields of livestock to cater to the demand. Furthermore, quality standards and proper cold-chain management will also have to be improved, in order to actively meet the regulatory requirements of the importing countries, which could differ from one another,” emphasised Alam.
“In this regard, the government of Pakistan may have to introduce internal regulations around the production of meat to promote better practices and bring slaughtering practices in line with international regulations. Innovative livestock farming techniques should also be introduced in the country to improve the yields of the livestock population in the country,” he further suggested.
Khalawi said that he is “looking forward to the participation of the Pakistani business, industry and trade community in the trade exhibitions and networking sessions in Makkah and Madinah being organised by ICCIA.”
“We will also be expecting the Pakistani delegations at the Muslim Business Leaders’ summit in Malaysia and the Sustainable Agriculture Forum in Azerbaijan,” he added.
“We should work on activating our trade commissioners posted in these Islamic countries,” suggested Muhammad Farhan Ashrafi, Member Executive Committee of the Pakistan Yarn Merchants Association (PPYMA).
“The authorities should endeavour to identify items in which Pakistan has export potential and which are low in import duty tariffs,” he said.
FPCCI Senior Vice President, Suleman Chawla maintained that “as a country of 220 million people and an active member of ICCIA, representatives and nominees of FPCCI should be included in all major councils and committees of the Islamic Chamber. Pakistan has a lot to offer as it has diverse and strategically significant borders. In addition, 65% of the population is young and there is enormous potential for growth in the new industries.”
Former president of the FPCCI, Mian Nasser Hyatt Maggo said that “Pakistan should be given preference in ICCIA’s energy, IT, agriculture, tourism, green economy and youth skills development related activities and events.”
Published in The Express Tribune, October 6th, 2022.
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