KARACHI: Pakistan Businesses Forum (PBF) Vice President Usman Kaira said on Thursday that India and China, despite their border and other disputes, have a thriving bilateral trade that has now touched $125bn.
Likewise, China and the US also maintain a robust trade and investment relationship despite the onset of strategic competition between them, said PBF Vice President, Usman Kaira, while speaking at a seminar.
He said nothing should matter more to our policymakers than the socioeconomic well-being of our people, which in turn would enhance our national security. Kaira said: “The world is changing rapidly. Nations have learned that cooperation and competition can coexist as long as there is mutuality of benefit. No confidence-building measure is more potent than bilateral trade as it can help reduce mutual distrust and position of countries to address tougher issues on the bilateral agenda.”
In economic terms as well, low transportation costs, availability of road and rail links, and socially identical consumer bases provide a clear edge to trading with neighbours. The economic activity thus generated provides our traders access to vast regional markets, he added.
Kaira said: “We need a whole new approach to positively engaging with all our neighbours in securing for our traders more opportunities of balanced and mutually beneficial trade and investment opportunities, in the larger interest of economic security of the people of Pakistan. In due course, trade and investment ties can become a building block towards durable peace in South Asia.
PBF official also said Pakistan is sitting on huge trade potential that remains largely untapped. “A favorable trading regime that reduces the high costs and removes barriers could boost investment opportunities that is critically required for accelerating growth in the country.”
“South Asian countries are yet to reap the benefits of shared land borders, the report adds. While Pakistan and India collectively represent 88 percent of South Asia’s Gross Domestic Product, trade between the two countries is only valued at a little over $2 billion back in 2019.” He said that this could be as high as $37 billion.
He said: “For example, it is cheaper for Pakistan to trade with Brazil than with India. Reducing policy barriers, such as eliminating the restrictions on trade at the Wagah-Attari border, or aiming for seamless, electronic data interchange at border crossings, will be major steps towards reducing the very high costs of trade between Pakistan and India.”
Similarly, Pakistan can reframe its connectivity push while also signaling that it is not abandoning China. Beijing may indeed be very receptive to the idea as it could help bring Islamabad’s expectations of Chinese financing back to realistic levels, Kaira concluded.
