Strong economic relations between India and Pakistan will help achieve long-term objectives for the betterment of the people of the two countries, according to Pakistan Minister for Commerce Humayun Akhtar Khan.
On the eve of the first-ever South Asia Business Forum, organised by the Commonwealth Business Council (CBC) in London, he said: "A peaceful region, one characterised by economic integration, political harmony and free movement of people by open cultural exchange provided a sound basis for economic growth.
"Persistent hostility between India and Pakistan, the largest economies of the region, is one of the important factors retarding business and trade in the region. Political disharmony in the region will continue to significantly influence regional economic integration."
Khan added: "Pakistan desires that political relations between India and Pakistan across a broad spectrum of issues should be streamlined. With a strong political environment and resolution of the long standing disputes, citizen of both countries would be able to reap a large piece of dividend."
According to CBC sources, the South Asian region is inhabited by a population of 1.5 billion with a combined gross domestic product (GDP) of US 640 billion dollars (at market exchange rate) and US 3.4 trillion dollars (purchasing power parity). Despite immense potential, the people of South Asia are languishing at lowest average per capita income of US 470 dollars. Intra-regional trade has unfortunately not picked up in consonance with the potential and was trailing at five percent of total regional trade, CBC said.
On better trade relations with India, Khan said: "Over the last few years, there has been encouraging movement along three dimensions: political relations, trade competitiveness, and trade integration. Recent confidence building measures (CBM) pursued by India and Pakistan augur well for the economic growth and prosperity of the region.
"If the efforts to resolve the core issues are undertaken with sincerity of purpose then prospects for the regional prosperity are immense." Khan will address a delegation of business leaders and ministers attending the Commonwealth Business Council's South Asia Trade and Investment Forum on Wednesday in London.