FCCI president appreciated the government’s announcement for allowing tariff concession on the import of 340 items from the South Asian Association for Regional Cooperation (SAARC) member countries, effective from January 1, 2014. PHOTO: FILE
FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) President Engineer Suhail Bin Rashid yesterday said that regional trade can help boost Pakistan exports as 60% trade in the world was among the regional blocs.
He appreciated the government’s announcement for allowing tariff concession on the import of 340 items from the South Asian Association for Regional Cooperation (SAARC) member countries, effective from January 1, 2014
“This will assist in increasing the trade volume among Saarc countries,” he added.
Speaking about the changes in international trade, he said that export destinations of Pakistani products had suffered mainly due to constant recession in the EU and US markets.
“Instead of focusing on the traditional markets, Pakistan should ponder to enhance its exports to China, Middle East, Turkey and India, said Rashid, adding Pakistan with its geographical location could establish as a dominant regional and intra-regional trade hub.”
Despite geographical proximity, regional trade between South Asian countries amounted to $16 billion in 2010. This is merely five percent of the total trade of Saarc countries compared to the North American Free Trade Agreement (NAFTA) possessing 60% trade with their member countries, European Union 53% and Association of South East Asian Nations (ASEAN) 26%, he noted.
South Asia has 2.5% contribution in world Gross Domestic Product (GDP) with 22% of the world population. “With the changing scenario, Pakistan should focus towards enhancing its exports to Iran, Central Asian States, Gulf countries, Russia, Turkey and China,” said Rashid.
He suggested that increasing the number of trade delegations to the emerging and regional economies along with concentrating more on trade diplomacy could pave the ways for achieving enhanced export target of Pakistan.
Published in The Express Tribune, January 3rd, 2014.
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