The SAARC Chamber of Commerce and Industry,an apex body of chambers in the region,Tuesday demanded flexible regime to augment Pak-Indo relations for remarkable improvement in economic co-operation between the two major economies.
It was stated today by President SCCI,Vikramjit Singh Sahney by telephone from New Delhi while talking to VP SCCI,Pak chapter and veteran trade leader Iftikhar Ali Malik.He said that free movement of business community will not only help improve the business environment but also positively affect the entire region of South Asia.
He said that Pakistan and India,with the support of their private sector,have taken historic steps to normalize bilateral trade relations.South Asia is the fastest growing region in the world but also one of the least integrated while the region’s trade with the rest of the world is growing rapidly, intra-regional trade is merely 5 per cent of its total trade.
Vikramjit said that despite being natural trade and investment partners,the volume of trade between Pakistan and India, the two largest economies of the region,has been extremely low.He said that for instance,total trade between Brazil and Argentina amount to US$33 billion in 2010,almost 15 time more than the current Pak-Indo trade of little over US$2 billion. He said that it is worth mentioning that Argentina and Brazil too have had similar turbulent past of war and fierce rivalry.
He said that bilateral trade between Pak-Indo a couple of years ago stood at an estimated US$1.83 billion.India accounts for nearly 1.2 per cent of Pakistan,s global exports, while Pakistan accounts for less than 0.9 percent of India’s global exports.
Iftikhar Ali Malik said that the private sector of either country has to play a key role in the prevailingscenario for viable and sustainable better Pak-Indo trade relations for welfare of the people of the region. He said opening of proper trade within the ambit of law between the two countries will help definitely check the billions of dollar irregular and illegal trade (smuggling) through land and sea routes. He stressed the urgent need for holding a series of dialogue between Pak-Indo private sector to thrash out modalities prior to finalize trade promotion agreements without affecting the industry of either country.
