By IANS,
Mumbai : Stating that trade is imperative for economic development and prosperity, visiting Pakistani Commerce Minister Amin Fahim Tuesday called for strengthening of regional trading blocks in south Asia.
“Wealth of nations has increased in direct proportion to the proportion of trade in their GDPs (Gross Domestic Product). Similarly, regional trade has been found to be most effective and efficient means of bringing progress and prosperity to all countries of the region,” Fahim said.
“This is the very reason for the emergence of regional trading blocks like EU (European Union), NAFTA (North American Free Trade Agreement) and ASEAN (Association of Southeast Asian Nations),” he said while addressing a business conclave, Exploring Business Between Neighbours, in the presence of senior officials and businessmen from both countries.
“It is about time we, in the south Asian region, should be contemplating strengthening our regional block in South Asia,” he added.
The conclave was organised by Federation of Indian Chambers of Commerce and Industry (FICCI).
Emphasising that trade also helps in positively resolving other issues between trading partners, Fahim said: “Normalisation of trade relations between India and Pakistan could thus be a vehicle to facilitate resolution of other political issues between the two countries. This would create more chances of for success of the composite dialogue between India and Pakistan.”
Stating that the role of governments is to provide enabling environment to the private sector, Fahim said that the sector can expand only if there is a non-restrictive trade regime.
Seconding Fahim were several businessmen from both the countries, adding that the numerous non-tariff barriers which are impeding trade growth between the two countries should be liberalised.
“More business visas should be stamped to facilitate stronger trade ties between the two countries,” DHL Express’ vice president (south Asia) Ramesh Natarajan said.
Natarajan also appealed to both the governments to open up telecom boundaries. “When I go to Pakistan, my India cellphone does not work. Same is the case with Pakistani businessmen who visit India. We have to go through subscribing to a local network every time we visit,” he said.
Another businessman urged the governments of both the countries to open up all boundaries and facilitate free trade.
“Trade across heavily militarised borders is severely restricted both in the number of items that are permitted to be bought and sold, and the hours during which the customs are open for business,” said Farid Fazal, director of Lahore-based D.G. Khan Cememt Company.
“With massive infrastructure development in India, we are geared up to supply cement but due to shortage of railway wagons, which are our only means to export cement, we are being restricted,” he added.
Exporters are forced to route the bulk of trade via a third party such as Dubai, raising business costs, slowing deliveries and inflating prices.
Currently, Pakistan’s exports to India stand at $300 million, while the imports from India are at $1.5 billion.
Fahim, accompanied by a high-level 70-member business delegation, arrived here Monday. He is staying at the Hotel Taj Mahal, which was the target of a brutal terror attack by Pakistani terrorists in November 2008.