KARACHI: A top business leader said on Friday that the country should tap into the export market of the D-8 group of developing nations, which has a combined GDP of $4.92 trillion and offers potential to correct its regional trade deficit.
Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), represented Pakistan in the General Assembly meeting of the D-8 Chambers of Commerce and Industry (D-8 CCI).
The meeting was also attended by representatives from Iran, Turkey, Egypt, Indonesia, Bangladesh and Nigeria, FPCCI said in a statement. Sheikh said Pakistan had several advantages to increase its trade with the D-8 countries, such as friendly ties, geographical proximity, land-based access, lower transportation costs and time, and untapped opportunities in various sectors.
“With intra D-8 trade at merely 5 percent, there are low-hanging fruits to be grabbed in a short span of time,” he said. Sheikh said the meeting discussed a roadmap and strategy for intra-alliance trade promotion, including a preferential trade agreement, a visa facilitation mechanism, a currency swap arrangement, a barter trade system and a halal exposition in Indonesia.
"The D-8 bloc represents more than 5 percent of global GDP; which makes the alliance a significant one for the D-8 countries in particular and the entire region in general," he said. "If we can capture the D-8 market in value-added textiles; IT & ITeS services; sports goods; rice, fruits & vegetables; surgical equipment; pharmaceuticals and construction materials, Pakistan can enhance its exports by $5-10 billion within 2-3 years in relation to D-8."
Sheikh stressed that D-8 countries have a cumulative population of more than 1.1 billion and that a preferential trade agreement can usher in a wave of economic prosperity, investments, joint ventures, industrial collaborations, tourism & hospitality boost, establishment of cost-controlled trade routes and a collective voice in economic affairs in other international forums.