The debate about regional integration in South Asia and the China Pakistan Economic Corridor (CPEC) has been in the news for quite some time. Besides, there is skepticism over the prospects of making countries of the region cooperate with each other despite the presence of outstanding issues among them. The much discussed CPEC has also become controversial due to perceptions about it benefitting mostly one province. Right now, there are three possible routes for CPEC -- the eastern route, the western route and a third alternative route but smaller provinces are convinced that eastern part of the country would benefit, at their cost.

Against this backdrop, a conference titled ‘South Asia: Corridor of Opportunities’ was organised by the Institute of Chartered Accountants of Pakistan (ICAP) and the South Asian Federation of Accountants (SAFA) in Lahore last week. Though there have been discussions on these topic in the past, it was a unique occasion where chartered accountants of the region had taken the lead and invited experts from different South Asian countries to discuss these issues threadbare. While it was an occasion to discuss the benefits of going for regional integration and CPEC, the participants were free to challenge the presenters and even ask tough questions.

So, the question is as to why the accounting professionals were involved in this huge exercise. The answer comes from Hafiz Mohammad Yousaf, President ICAP. He tells TNS that they thought the accountants must be on board as they are duty-bound to ensure transparency and accountability and safeguard public interest, especially in mega projects involving huge inflow of money. He adds ICAP has the distinction of being probably the only institute which has an independent Quality Assurance Board (QAB) to ensure the quality of audits through Quality Control Review (QCR) Program, in public interest. This event also provides an opportunity to the inquisitive lot to seek answer to their queries and clear their apprehensions, if there are any.

Yousaf says the topic "South Asia: Corridor of Opportunities" is extremely significant at the moment and vital for the long-term survival of the economies of the region and the accounting profession. "There are certain challenges and also certain opportunities. What should be our responsibilities and obligation as an accountant? The opportunities that are offered by the present time in various areas put us in a place to discharge our responsibilities and obligations towards the society."

Ahsan Iqbal, Minister for Planning, Development and Reform, also terms the conference highly relevant and says its technical sessions will deliberate on issues of sustainable regional development. It would redefine the role of accounting professionals towards meeting challenges and utilising opportunities that would lead to sustainable economic development in the country. "Professional accountants must take the lead in ensuring the quality, reliability, and credibility of financial and non-financial management information to build up public confidence."

CA. J. Venkateswarlu, Central Council Member Institute of Chartered Accountants of India (ICAI), refers to a World Bank report and states that in the last quarter of 2014, South Asia was already the fastest-growing region in the world despite different debilitating factors. For example, he says, the cost of trading across borders in South Asia is one of the highest in the world; it takes on average more than 33 days to export from South Asia compared to 12 days from OECD countries and more than 46 days to import into South Asia compared to 14 days for OECD.

Regional integration in South Asia, he adds, has remained weak on all fronts. Even in the face of pressing needs, regional cooperation on water and energy, for instance, barely gets the kind of attention that it deserves. Poor transport connectivity and trade facilitation, poor banking links and capital market contacts, limited movement of skilled professionals within the region further limit the scope of collective growth, he adds.

Venkateswarlu is convinced that trade within South Asia can be more than doubled if appropriate regional agreements on roads, rail, air, and shipping are put in place enabling seamless movement. Afghanistan and Nepal, he says, have water resources that could potentially generate around 24,000 and 83,000 megawatts of electricity respectively. Transmission infrastructure, clean energy generation, and fair pricing agreements across borders hold the key to realising this potential, he adds.

Naeem Sheikh, President SAFA (a SAARC affiliate body), tells TNS the role of the accounting profession in a developing a country is far more crucial and challenging than in a developed nation because of a series of problems -- like lack of resources, heavy borrowing, and unplanned investment, high level of development expenditure and above all, lack of accountability. Therefore, it is important to engage accountants in the journey to progress.

Therefore, he says it is the responsibility of the profession to strive hard to provide order in this state of chaos and confusion. The accounting profession, he says, has to provide systems, standards, procedures, tools and training to ensure transparency and accountability, ethical practices and corporate governance leading to a robust economic system and growth.

Nadeem Babar, CEO Orient Power Company Ltd, highlights the energy woes of the region and adds that the good thing is that South Asia is in a unique neighbourhood. It is a fact that 42 per cent of the world’s gas reserves are next to South Asia, 38 per cent of the oil reserves are in the neighbourhood, 24 per cent of the coal reserves (including South Asia, SE Asia, China) are within short distances, the largest watershed outside of polar caps is within its territory in the north, much of South Asia has plentiful sunshine (average 300 days) in its plains in the middle and Southern coastal parts of it have good wind corridors. It would be a pity if this potential is not tapped, he comments.

The conference offered an opportunity to the participants to ask government representatives some unanswered questions about the CPEC. It was a means to clear things shrouded in mystery. Adnan Gilani, Team Lead, Prime Minister’s Delivery Unit (PMDU), compared the CPEC route with trade routes like Panama Canal that handles 5 per cent of all seaborne trade and earns over $2.5 billion per annum and Suez Canal that handles 10 per cent of all seaborne trade and earns over $5 billion per annum directly from tolling revenues.

He says going for the CPEC will be a win-win situation for both Pakistan and China as the latter’s stake in Gwadar will also allow it to expand its influence in the Indian Ocean -- a vital route for oil transportation between the Atlantic and the Pacific. "Another advantage to China is that it will be able to bypass the Strait of Malacca. As of now, 60 per cent of China’s imported oil comes from the Middle East and 80 per cent of that is transported to China through this strait -- the dangerous, piracy-rife maritime route through the South China, East China and Yellow Seas."

There can be differences on certain issues like the route of the CPEC, but people unanimously support it being a ray of hope for the growth of the country and the region," he concludes.