The Pakistan Businesses Forum (PBF) says look at India and China, which, despite their border and other disputes, have a thriving bilateral trade that has now touched the figure of $125bn. Likewise, China and the US maintain a robust trade and investment relationship despite the onset of strategic competition between them.PBF Vice President, Usman Kaira, while speaking at the seminar, said what Pakistan needs is a change of mindset. Nothing should matter more to our policymakers than the socioeconomic well-being of our people, which in turn would enhance our national security.

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 countries to address tougher issues on the bilateral agenda. Low transportation costs, the availability of road and rail links, and socially identical consumer bases provide a clear advantage for trading with neighbors.

The economic activity thus generated provides our traders access to vast regional markets. We need a whole new approach to positively engaging with all our neighbours to secure more opportunities for our traders and more balanced and mutually beneficial trade and investment opportunities in the larger interest of the 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.The PBF official also said Pakistan is sitting on huge trade potential that remains largely untapped. "A favourable trading regime that reduces the high costs and removes barriers could boost investment opportunities that are critically required for accelerating growth in the country."

The 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 was only valued at a little over $2 billion back in 2019. This could be as high as $37 billion. "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 signalling 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.

Credit:
Independent News Pakistan-INP