Business opportunities conference: 16 MoUs signed for exploring trade, investment potential

Pakistan, Afghanistan and Central Asian States exchange strong handshakes.

ISLAMABAD: The three-day international conference ended on Wednesday with the signing of 16 memorandum of understandings (MoUs) among Pakistan, Afghanistan and Central Asian States on exploring and utilising the vast potential of investment and trade in the respective regions.

The MoUs will facilitate regional economic growth through the historical Silk Route — one of the major ancient international trade arteries linking the East to the West.

At the concluding session of the ‘Central Asian Business Opportunities Conference’, strong handshakes were exchanged between more than 250 private and public participants from Pakistan, Afghanistan and the Central Asian Republics of Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan and Uzbekistan that came together to seek new business opportunities and pursue greater regional coordination of trade and investment.

Pakistan, having served as a transit hub with potential to provide the Central Asia and Afghanistan a gateway to the Arabian Sea and beyond, has been negligible with its exports and imports for the Central Asian Republics (CARs) in recent years with each accounting for less than 1% of Pakistan’s total imports and exports.

Although Pakistan’s net exports to the CAR’s net import from the world has increased, however its growth has not translated into increased trade between the two.

Collectively, the Central Asian Republics offer a population of 65 million with a GDP of $336.41 billion. Afghanistan adds an additional population of 31 million with a GDP of $20.65 billion. In total, the five Central Asian Republics, Afghanistan and Pakistan comprise a market population of 289 million and a GDP of $594 billion, thus creating a huge reservoir of untapped economic potential. However, physical and other barriers to trade and investment prevent the region from realising its economic potential.

With a business-to-government approach, tailored plenary session allowed participants to identify and discuss business opportunities between countries. The focus of the conference was on agriculture products, textiles, leather, pharmaceuticals and construction. The private sector also announced plans for increased intra-regional participation in trade fairs.

President of the Pakistan-Afghanistan Joint Chamber of Commerce and Industry Zubair Motiwala said that countries like Afghanistan can use Pakistan and benefit from its port.

Published in The Express Tribune, April 17^th, 2014.

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