Trade diversion towards region to save US$ 1.5 billion: SAARC CCI

ISLAMABAD, Mar 27 (APP): SAARC Chamber of Commerce and Industry (SAARC CCI)has appreciated the decision of Federal Minister for Commerce, Makhdoom Amin Fahim for promoting Pakistan trade with neighboring countries. 

President SAARC CCI Tariq Sayeed, while regarding the decision as a positive step said that it will help increase share of Pakistan trade with South Asia and will overall increase the intra‑regional trade, which since the formation of SAARC had been less than 5 percent only. 

He said that trade diversion towards the region could save enormous amount of US$ 1.5 billion per annum,if essential and not locally manufactured products are imported from the region particularly from India. 

Presently, Pakistan has to import raw material of steel and iron, machinery and engineering‑based equipments, chemicals, consumer goods from far‑flung markets like Australia, Brazil, Mexico, Europe and South East Asian countries. 

These are also available in India at a compatible quality and competitive rates, there was no harm if we buy these products from India, he added. 

Tariq Sayeed urged upon the need for promoting intra‑regional investment adding that investment had 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 US$ 50 billion 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 for the need of promoting Intra‑regional investment as a multiple effect to regional trade. 

Vice President SAARC CCI Iftikhar Ali Malik said that allowing of trade through Wagha‑border and increase in the importable items from India will help promoting Pakistan trade with the largest market of the region.