Improved security revived economy: Abbasi

ISTANBUL: Prime Minister Shahid Khaqan Abbasi on Friday said Pakistan’s economy had recorded a significant revival in the past four years due to the improved security situation.

Addressing the opening session of 9th D-8 Summit being hosted by Turkey here, he said the China-Pakistan Economic Corridor (CPEC) will further put the economy on an upward trajectory of robust growth.

Abbasi sought enhanced trade and economic partnerships with D-8 countries through stronger rail, road, air and sea links — a win-win for all. “We seek similar partnerships with D-8 member states through road and rail routes, where possible, but also through stronger air and sea connections, he said. Pakistan, which has remained the D-8 Chairman since 2012, also handed the chair over to Turkey at the summit’s opening session.

The 9th D-8 summit under the theme “Expanding Opportunities through Cooperation”, was attended by Nigerian President Muhammadu Buhari, Azerbaijani leader Ilham Aliyev, Iran's First Vice President Eshaq Jahangiri and the Vice President of Indonesia Jusuf Kalla.

Abbasi said as Pakistan was celebrating seventy years of its independence, it was confronting many challenges over the last decade. “We faced unrelenting terrorism emanating from instability in our neighbourhood and the environment in the region and beyond.”

He, however, stressed that as a result of a comprehensive strategy and unwavering resolve, Pakistan had successfully turned the tide. “We are also working on energy connectivity projects. Over this time, we have focused on upgrading our communications and energy infrastructure, and enhancing regional connectivity,” he added.

He said Pakistan’s integration into the Eurasian Belt and Road network will provide a firm foundation for its rapid economic development. He said the theme of the 9th summit chosen by Turkey was in complete harmony with the post-2017 development agenda, visualising sustainable development as one of the core elements of people-centric development.

Prime Minister Abbasi said Pakistan assumed the Chair of D-8 Organisation for Economic Cooperation in November 2012 at the eighth Summit in Islamabad, which adopted two landmark documents: the D-8 Charter and the Global Vision.

These documents have provided the essential basis for our joint endeavors, he added. He said it was a privilege for Pakistan to host the summit meeting, two sessions of the Council and four sessions of the D-8 Commission and a number of sectoral meetings since November 2012.

Another significant milestone achieved during this period was the Observer Status for D-8 at the United Nations, he said, adding, this status enabled the organisation to closely interact with various UN agencies and affiliated institutions for cooperative arrangements in priority areas for us.

“As we gather here to renew our collective pledge to strengthen mutually beneficial cooperation, we must also take stock of the progress made so far on trade and economic partnership goals we set for ourselves.

This summit is a good opportunity for us to identify and remove the impediments in the way of achieving our objectives.” He said twenty years ago, a shared vision motivated the leaders of our countries to establish this organization to promote cooperation in the key areas of agriculture, industry, SMEs, trade, transportation, energy and tourism.

However, the progress achieved so far falls short of our expectations, necessitating measures to accelerate momentum for stronger partnership, he added.

Abbasi pointed towards the stagnation of intra D-8 trade, after an initial increase, adding that the apprehension is that the target of US $ 500 billion in 2018, envisaged in the 2008 Kuala Lumpur Summit Roadmap, might remain elusive.

“It is, therefore, important for us to fully implement various instruments and agreements aimed at facilitating trade amongst member states, especially those related to Preferential Trade, Small and Medium Enterprises, Customs, Simplification of Visa matters and Civil Aviation.

This would certainly pave the way for substantial increase intra D-8 trade,” he added. Abbasi said while he was certain that the Organisation would continue to move steadily along the path of even more robust economic cooperation, it was also their sincere desire to see the D-8 enter the project-implementation phase with clear focus on the development, progress and prosperity of our peoples. “We also aspire for it to have a stronger voice at the international level,” he added.

He handed over to Turkish President Recep Tayyip Erdogan the Chair of D-8 for Economic Cooperation and congratulated him on assuming the chair.

“I am confident that your wisdom, sagacity, dynamism and firm commitment will bring new vigour to the D-8,” he added.

The prime minister also expressed his profound appreciation of Secretary General Seyed Ali Mohammad Mousavi for efficiently steering the agenda of the D-8 during his tenure in office.

“On behalf of the people and government of Pakistan, I assure you of our full support and cooperation in our collective efforts to achieve tangible results. In Pakistan, you will always find a willing partner and friend,” he added.

Addressing the summit, Turkish President Tayyip Erdogan suggested that D-8 countries should trade with each other in their local currencies to alleviate the forex pressure inherent in dollar-based trade.

“If we are to use local currencies for trade within the D-8, our currencies will be rid of pressures from foreign exchange and the dollar,” Erdogan said. “When we trade with our national and local currencies, our countries will benefit from this,” he said.

The D-8 Organisation for Economic Cooperation includes Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. Turkey and Iran’s central banks have already formally agreed to trade in their local currencies, a move to help reduce the cost of currency conversion and transfer for traders.

Such agreements also help Iran’s efforts to avoid unilateral US sanctions, which remain intact despite the lifting of international financial sanctions on Tehran last year. US banks are still forbidden to do business with Iran.

European lenders also face major problems, notably with rules prohibiting transactions with Iran in dollars - the world’s main business currency - from being processed through the U.S. financial system.

Erdogan has been on a push to increase local-currency trade to avoid further weakness in the lira currency.  The Lira has weakened about 4 percent against the dollar this year, after double-digit declines in the previous two years.

Prime Minister Shahid Khaqan Abbasi offered Friday prayers at the famous Valide Sultan Mosque here along with Turkish President Recep Tayyip Erdogan, President of Azerbaijan Ilham Aliyev, Nigerian President Muhammadu Buhari, Indonesian Vice President Muhammad Jusuf Kalla, Iranian Vice President Eshaq Jahangiri, Malaysian Deputy Prime Minister Ahmad Zahid Hamidi and Bangladeshi Foreign Minister Mohammed Shahriar Alam.

The D-8 leaders prayed for the security and betterment of the Islamic world. Earlier, President Erdogan hosted a luncheon reception in honor of the D-8 leaders.