July 6th, 2022
PRESS RELEASE
Trade connectivity highlighted as engine of sustainable growth
The Economic Advisory Group (EAG) and Policy Research Institute of Market Economy (PRIME) organized an event to launch “Trade Connectivity” Book with the support of Friedrich Naumann Foundation (FNF) Pakistan. The event was attended by dignitaries from the government, private sector, academia, IMF and the Ambassador of the Republic of Indonesia to Pakistan. The participants stressed on the importance of trade and regional connectivity in promoting economic prosperity.
Syed Naveed Qamar, Federal Minister for Commerce, acknowledged the importance of free markets and their role in promoting growth. He was of the view that export led growth is the real aim of Pakistan and free trade will be imperative in this regard. The recent import ban was aimed at temporary restraint of imports.
EAG is of the view that the recent import ban by the government was not a well thought initiative. Moreover, the uncertain political environment in the country has further slowed down the economic activity. The promotion of exports by tapping into new markets, increasing the exports basket by reducing the trade barriers is the ultimate way forward.
Ms. Birgit Lamm, Head of Country Office FNF Pakistan, enunciated that “Pakistan has a huge market with enormous potential for economic growth, but it’s time to translate this potential to action in creating wealth for the country & its citizens”.
Syed Javed Hassan, Chairman EAG expressed his views as “The EAG Book ‘Trade Connectivity’ looks at the practical aspects of trade and why Pakistan urgently needs to enhance connectivity and thereby intra-regional trade, and also become a trading hub for trade beyond the region. Economic growth of nation states is linked to their ability to exploit connectivity and interdependencies within strong regional blocs. EAG Trade Connectivity supports this view with contemporary trade theories by focusing on internal and external economies of scale, and also suggests practical policy measure that maybe taken to bring the ideas into fruition”.
Dr. Ali Hasanain, Associate Professor of Economics at LUMS said “Creating and expanding gains from trade are at the heart of how economies grow. EAG’s “Trade Connectivity” book and today’s event are attempts to focus attention on these issues, and provide a compact overview of major issues currently holding Pakistan’s international trade down amongst the least trading nations of the world”.
Dr. Aadil Nakhoda, Assistant Professor of Economics at IBA, articulated that “Pakistan needs to make significant strides in participating in global value chains. The current situation is dire. However, there are opportunities if Pakistan undertakes regional trade agreements, reduces tariffs, focuses on improving quality of products through technical non-tariff measures (NTMs) and attract FDI in the manufacturing sectors. The government needs to ensure greater competition to foster innovation and improvement in productivity levels. Trade connectivity is an important vehicle for Pakistan’s progress”.
Mr. Adam Mulawarman Tugio said that “Trade connectivity” Book is very insightful and comprise pertinent recommendations. Trade between ASEAN and Pakistan is very small as compared to trade of China with ASEAN i.e. $200 billion. There is a lot of potential to be explored through FTAs.
Ms. Esther Perez Ruiz, Resident Representative IMF Pakistan, added to the discussion that tariff and non-tariff trade barriers impose serious constraints on growth and sustainability. Spain’s integration with the EUs in 80s and 90s was a political aspiration for the country, which led to a massive economic transformation. However, Pakistan’s exports to GDP reduced from 14% in 1990 to 10% in 2000s. Also Pakistan’s per capita GDP growth is very slow compared with its regional competitors. To realize export potential, Pakistan needs proactive policies: exchange rate flexibility, efficient allocation of resources, elimination of subsidies and creating business conducive environment in the country”.
Mr. Ali Salman, Executive Director PRIME expressed his views as “Most of the trade liberalization coming out of trade is from unilateral trade agreements and Pakistan needs to liberalize its trade policies by reducing taxes and tariffs. Only then the country would be able to integrate into the global value chains and promote exports”.
To access the full book, please click the link ahead: Trade Connectivity Ebook PDF