Saarc CCI calls for strong business agenda in South Asia

SAARC Chamber of Commerce and Industry Vice President Iftikhar Ali Malik Wednesday said South Asian countries need to work together with a "strong business agenda" in services trade as the SAARC region has a huge potential.
He was talking to media after returning from 3-day "6th SAARC Business Leaders Conclave" held at Kathmandu. Malik said the conclave was a big success as all the business leaders and ministers from Bhutan, Nepal and Afghanistan hailing from the SAARC member states especially Prime Minister of Nepal KP Sharma Oli who graced the mega event unanimously agreed to this point that economy has to be the most important agenda for the SAARC nations despite political challenges and compulsions coupled with political vibrations.
Comparing South Asia with other regions across the globe, Iftikhar Malik said the SAARC region accounts for only three percent of global output and two percent of world exports. Intra-regional trade has stagnated at around five percent of its total trade, compared to over 50 percent in East Asia and around 20 per cent in Latin America. Even Sub-Saharan Africa, with poor transport and telecommunication infrastructure, scores over South Asia, with over 10 percent of its trade being intra-regional, he added.
He said India for being the largest economy of the region, has a special responsibility in increasing intra-regional economic integration and must facilitate access to its large markets for SAARC members. Its above-average growth, expanding middle-class population, and demand for global goods can prove to be an engine of growth for the region, he maintained.
He said another issue which is creating hindrance is non-tariff barriers and again it is the duty of India to step forward to resolve this issue by extending cooperation with other member states to boost trade in the region. He said another hurdle is lack of awareness about non-tariff barriers (NTBs) and stakeholders like business associations should organize seminars to make traders aware of the procedures followed by each country. The move would help in increasing trade," he added.
He said SAARC member states should focus on tourism too allowing intra-regional trade in services would enable South-Asian economies to become more globally competitive. Similarly, energy and electricity cooperation are non-traditional areas of trade relationship development.
"An integration of electricity grids across South Asia will reduce power costs and enhance manufacturing competitiveness for all members, and should be high priority. Huge hydro-electric potential exists in Pakistan, Nepal, Bhutan, Afghanistan and India, which could be tapped for intra-regional power trade," he added.
The development of logistical hubs that facilitate the flow of trade across the region would greatly reduce the cost of doing business. Such hubs should be multi-model, incorporating containerized and non-containerized cargo and moving via rail, road, air and shipping links. "These logistical hubs would connect critical regional corridors, especially with countries having no common borders," he said.