LAHORE : The speakers at a seminar declared thetrade as the best option to build confidence and improve relationsbetween Pakistan and India, besides creating new opportunities forpoverty alleviation from both the countries.
The seminar was organized by the Centre for Peace and Democracyin collaboration with the LCCI here on Friday.
Among others the key speakers included former economic advisor DrSalman Shah, SPD Director M Shoaib Adil, LCCI SVP Sheikh MuhammadArshad, Convener of LCCI Pak-India Trade Promotion Committee AftabVohra, noted economist Dr Qais Aslam and PIAF Chairman SohailLashari.The seminar was organized by the Centre for Peace and Democracyin collaboration with the LCCI here on Friday.
Speakers said that Pakistan having annual import bill of around$12 billion is importing goods worth around $600 million or around 2percent only from the Saarc member countries. In a consensus opinionthe economists as well as the business leaders said that Pakistanand India should work for ensuring uninterrupted bilateral tradewhich will help strengthen their economies and promote regionalintegration in South Asia.
Dr Salman Shah said that both the countries should focus onpromoting trade and economic relations to create new hopes and abetter future for their people. Presently the regional trade ofsouth Asia is just 2 percent while Pak-India trade is not more than0.5 percent of our GDP, which should be enhanced to a high level inthe interest of the public of all the countries in the region, saidthe former advisor.
On the other hand EU countries and the Asian are presentlytrading more than 22 percent of their GDP, he added. He said thatPak-India official trade is of $2 billion out of which $0.6 billionis export while $1.4 billion is import. He stressed the need forenhancing this trade balance with the neighbouring country.
He brushed aside a notion that free trade with India wouldeliminate our industry, saying it would rather be beneficial forboth the countries and their people. He said negotiations should bepreferred over confrontation to solve all problems between the twocountries. The LCCI SVP Sheikh Arshad said India should fully reciprocateall efforts of Pakistan to improve relations as Pakistan could notpromote trade unilaterally. He said the national interest should bekept supreme in relations with other countries.
He said that Pakistan exported goods valued $268.33 million andimported $1.03 billion in 2009-10 whereas, Pakistan suffers a tradedeficit with India and Trade is in Indian favour. He drew theattention of India towards delays in the issuance of business visasto members and requested to simplify the visa procedures.
Aftab Vohra said that the country imports Indian goods of up to$3 billion through informal trade via Dubai and Singapore, and ifthis trade is allowed from India directly in a legal way the cost oftrade will go down enormously, besides improving the governmentrevenue. He said that by removing non-tariff barriers from her sideIndia could pave the way for Pakistan to enhance its trade and tonarrow down the trade deficit. He said the unauthorized trade couldbe converted to legal business through frequent interaction betweenboth the countries chambers and trade associations, which will stopsmuggling entirely and lower the const significantly.
He observed that Pakistan imports some Indian items throughinformal trade via Dubai and Singapore which is estimated around $2-3 billion per year and this trade could obviously be undertakenbilaterally at significant lower cost.
PIAF Chairman Sohail Lashari said that we believe to enhancebilateral trade between two countries, with regular exchange oftrade delegations and interaction between the leading tradeassociations with active participation in exhibitions of twocountries.
Bilateral trade has a potential to increase up to $ 5 billion. Hesaid that trade between India and Pakistan is less than 0.5 percentagainst their total trade and this should be increased. If the SouthAsian states manage to promote their trade under SAARC this wouldmean that a huge market of around 1.3 billion people only next toChina could be created. The member states will have a number ofadvantages based on specific factors of extreme convenience, headded.
Dr Qais Aslam said if the South Asian states manage to promotetheir trade under SAARC this would mean that a huge market of around1.3 billion people, he added. Besides the short distance there wouldbe lesser freight cost which will ensure quick deliveries and shortinventories. The member states will have no language barrier andwould be abreast with each others trade practices and fashion needs.All this will result in complementing each others economy. However,all this is possible if India and Pakistan resolve their politicaldisputes through dialogue or any other means. He said that promotion of trade is the only way to minimizepolitical tensions in the region. The two neighbouring countriesshould not mix trade with politics and the business community shouldbe allowed to carry on with their trade without hurdles.
Bilateral trade has a potential to increase up to $ 5 billion. Hesaid that trade between India and Pakistan is less than 0.5 percentagainst their total trade and this should be increased. If the SouthAsian states manage to promote their trade under SAARC this wouldmean that a huge market of around 1.3 billion people only next toChina could be created. The member states will have a number ofadvantages based on specific factors of extreme convenience, headded.
Dr Qais Aslam said if the South Asian states manage to promotetheir trade under SAARC this would mean that a huge market of around1.3 billion people, he added. Besides the short distance there wouldbe lesser freight cost which will ensure quick deliveries and shortinventories. The member states will have no language barrier andwould be abreast with each others trade practices and fashion needs.All this will result in complementing each others economy. However,all this is possible if India and Pakistan resolve their politicaldisputes through dialogue or any other means. He said that promotion of trade is the only way to minimizepolitical tensions in the region. The two neighbouring countriesshould not mix trade with politics and the business community shouldbe allowed to carry on with their trade without hurdles.
