The trend of rising Chinese investment in Pakistan, especially in energy sector, has given a new hope to businessmen as they expect it would reduce energy crisis and help in expanding business activities. However, for sustainable economic development, it is essential that the government should also focus on promoting economic cooperation with all regional countries that offer tremendous scope for promoting trade and exports.
Islamabad Chamber of Commerce & Industry President said this while welcoming the signing of MoU between the Punjab government and Norinco International Corporation Limited of China for setting up 300MW solar power plant in Cholistan. Bakhtawari said strong regional economic cooperation was an acknowledged tool for economic prosperity but termed it unfortunate that Pakistan had yet to promote strong relations with South and Central Asian countries to take full benefits of regional economic integration.
He said due to lack of regional cooperation, intra-regional trade in South Asia had stagnated at around just 5 percent of its total trade while East Asia enjoyed 50 percent and Latin America enjoyed around 20 percent regional trade.
Even Sub-Saharan Africa with poor transport and telecommunication infrastructure had over 10 percent intra-regional trade, he said, adding Pakistan could also significantly overcome its energy problems by working for an integrated regional electricity grid with South Asia which would not only reduce power costs but also enhance manufacturing competitiveness for all South Asian countries.
Bakhtawari said Pakistan should also make efforts for the development of rail, road and air links with regional countries that would facilitate the flow of trade across the region and would greatly reduce the costs of doing business. He said Pakistan should work for developing strong private sector connectivity with South Asia which was essential to promote regional economic cooperation. He was hopeful that Pakistan’s strong economic cooperation with its neighbours would serve as a credible instrument for peace, poverty alleviation and economic prosperity.