Hyderabad chamber calls for boosting trade with neighbours

Says border trade in local currencies to benefit all neighbouring countries

HYDERABAD:

Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) has called for strengthened border trade as a vital strategy to enhance Pakistan's economic stability and growth.

HCSTSI President Farooq Shaikhani In a statement issued on Sunday, he underlined the importance of increasing trade with neighbouring countries - Iran, India, and Afghanistan - highlighting the potential benefits of conducting transactions in local currencies.

Shaikhani believes this approach would help reduce trade costs and positively impact Pakistan's foreign exchange reserves and benefit the economies of all four countries involved.

Shaikhani further stated that importing affordable gas and electricity from Iran could help address Pakistan's ongoing energy needs. In return, Pakistan could export valuable agricultural products, such as rice, wheat, and fruits, to Iran.

He went on to add that trade with India presents opportunities for Pakistan to export goods like cement, cotton, and agricultural products, while importing machinery, medicines, and technology from India.

Shaikhani also highlighted the promising prospects of trade with Afghanistan, where Pakistan could export products such as medicines, textiles, and foodstuffs, while importing dry fruits and minerals from Afghanistan.

He stressed that this strategic approach could not only foster economic growth but also strengthen regional trade relationships.

The Hyderabad chamber president called on the government to implement practical measures to enhance trade relations with Iran, India, and Afghanistan. He stressed the need to improve facilities at border checkpoints and to streamline the border trade system to promote legal commerce.

Drawing a parallel with the European Union, Shaikhani pointed out how the adoption of a common currency (the Euro) has facilitated trade and contributed to economic stability in Europe. He urged Pakistan to consider increasing the use of local currencies in trade with its neighbors, arguing that this would not only bolster trade relations but also support the strengthening of regional economies.

Shaikhani also stressed need for stringent measures to combat smuggling and illegal trade. Addressing these issues is crucial for benefiting the national economy and enhancing the volume of legal trade, which could help reduce Pakistan's trade deficit, he added.

Shaikhani stated that improving trade relations with Iran, India, and Afghanistan, combined with effective measures against smuggling, would provide economic stability and create valuable employment opportunities for the Pakistani workforce.

These efforts, he said, are essential for fostering a robust and resilient economy. APP