Potential: Trade among SAARC nations could reach $100b

Easing trade restrictions could bring prosperity in region, says PBIF chief

ISLAMABAD: Trade among Saarc nations could be increased to $100 billion from the current dismal figure of $28 billion a year and will bring about a new era of prosperity in the country, said Pakistan Businessmen and Intellectuals Forum (PBIT) Mian Zahid Hussain.

He said Saarc countries were not encouraging trade and investment within the region and preferred trade via third countries, a factor that had made the subcontinent home to majority of the poor in the world. “Twenty-five per cent of the trade of Southeast Asian nations is within the ASEAN region while almost 95% trade of Saarc nations is with Europe and North America,” he said.

He said trade within Saarc countries costs 85% more than the trade between ASEAN nations which could be increased by 250% immediately if South Asian Free Trade Area (Safta) is revisited.

“Indian companies have invested $75 billion in other countries but its share in Saarc is negligible, the attitude of other countries is not different either,” he said.

Hussain was of the view that easing trade and visa restrictions, encouraging people-to-people contacts and promoting tourism, health and education could bring countries closer and at the same time promote prosperity within the region.

Published in The Express Tribune, September 30^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.