Saarc Chamber of Commerce and Industry (Saarc CCI) has appreciated Pakistan governments decision to promote trade with the neighbouring countries. Tariq Sayeed, President Saarc CCI termed the decision a positive step, and said that it would help increase the share of Pak trade within South Asia and effect overall increase in the intra-regional trade, which was less than five percent before the formation of Saarc in 1985.
Referring to some studies, including that by Dr Hafiz Pasha, he said that trade diversion towards the region could save enormous amount of $1.5billion per annum if essential products not made locally, were imported from the region, particularly from India.
He said Pakistan has to import raw material of steel and iron, machinery and engineering-based equipment, chemicals, consumer goods from Australia, Brazil, Mexico, Europe and South East Asian countries, which are also available in India at a compatible quality and competitive rates.
"There is no harm if we buy these products from India", he maintained. Iftikhar Ali Malik, VP Saarc CCI said that allowing of trade through Wahgah-border and increase in the importable items from India would help promote Pakistan trade with the largest market of the region and eventually have multiple impacts in terms of saving huge foreign exchange of the country.
Tariq Sayeed stressed for promoting intra-regional investment, stating that investment has taken over trade strategy due to its multiplier effects, like innovation in technology, value addition, and surplus production for quantum leap in exports.
While citing the exemplary increase in Chinese exports, he said that FDI had a major role in increasing the size of exports from China, attracting more than $50billion per annum FDI for last one decade. He said that countries where inflow of FDI had been consistent, had a huge size of exports, therefore, he stressed on promoting intra-regional investment as a multiplier effect to regional trade.
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