Pakistan\u2019s trade with South Asia can be enhanced to $67b: WB
\nINP
\nWASHINGTON
\nThe lead economist for the World Bank, Sanjay Kathuria on Wednesday said the current level of Pakistan\u2019s trade with South Asia of only $23 billion per year was low against the potential of around $67 billion which could be tapped by increasing business ties with the regional countries.
\n\u201cPakistan\u2019s trade with South Asia accounts for only 8 per cent of its global trade and the country can increase its exports to regional countries by eight times,\u201d he said while talking to journalists here at the World Bank office on Wednesday.
\nSanjay Kathuria has authored the recently launched World Bank report titled \u201cGlass Half Full: The Promise of Regional Trade in South Asia\u201d, which dilates on the measures which Pakistan should take to realize the trading potential in South Asia.
\nSanjay said Pakistan\u2019s actual trade with South Asia was $5.1 billion against the potential of over $39 billion per year.
\nWith the rest of the world, the total trade was $67.9 billion, he added.
\nIn order to achieve the real potential of regional trade, Sanjay suggested to remove the unnecessary non-tariff barriers within the region, increase people to people contacts, improve road and air connectivity, and liberalize trade within South Asia.
\nOn the occasion, World Bank Country Director for Pakistan, Illango Patchamuthu said \u201cPakistan is sitting on huge trade potential that remains largely untapped\u201d.
\n\u201cA favourable trading regime that reduces the high costs and removes barriers can boost investment opportunities that are critically required for accelerating growth in the country.
\n\u201cMeanwhile Director Macroeconomic Trade and Investment, WB, Caroline Freund said Pakistan\u2019s economy showed a significant improvement during the previous year when the total GDP growth rate was recorded at 11-years high of 5.8 per cent.
\nHowever, she said that was mainly consumption-driven growth, but Pakistan really needs export promotion policies to ensure sustainable economic growth.
\nWith respect to the currency exchange rate, Caroline termed the undervalued currency as a part of anti-export policies saying that if a currency of any country is undervalued, the imports would get cheaper and the exports would get costlier and would ultimately discourage the exporters.
\nTo a question, she said the appreciation of any country\u2019s currency by 10 per cent would mean the contraction of exports by 5.7 per cent.
\nShe said the value of the exchange rate should be determined by the real market trend by balancing the other implications of devaluation including inflation, increasing debts, and increased cost of business.
\nMeanwhile, a press statement issued by the World Bank said while Pakistan and India collectively represent 88 per cent of South Asia\u2019s Gross Domestic Product (GDP), trade between the two countries is only valued at a little over $2 billion which could be as high as $37 billion.
\nRegional trade can create many more jobs and make the country prosperous if trade barriers with South Asia especially between India and Pakistan are removed.
\nPakistan\u2019s trade with South Asia accounts for only 8 per cent of its global trade, despite the region being the world\u2019s fastest growing.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pakistan\u2019s trade with South Asia can be enhanced to $67b: WB INP WASHINGTON The lead economist for the World Bank, Sanjay Kathuria on Wednesday said the current level of Pakistan\u2019s trade with South Asia of only $23 billion per year was low against the potential of around $67 billion which could be tapped by increasing […]<\/p>\n","protected":false},"author":2,"featured_media":2460,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39002","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n