KARACHI: It is need of hour that Pakistan should enhance exports with Middle East and other Islamic Economies, attract Foreign Direct Investment to reduce trade deficit and strengthen economy.
This was stated by Irfan Iqbal Sheikh, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) while representing Pakistan at the 38th General Assembly of the alliance to discuss trade, investment, economic and B2B relations.
The 57-country alliance of Islamic Chamber of Commerce, Industry and Agriculture (ICCIA) represents an enormous collective gross domestic product (GDP) of $7 trillion that makes it the most significant alliance for Pakistan to enhance its exports, attract foreign direct investment (FDI) and remittances.
Irfan Sheikh said, “the trade volume among OIC (Organisation of Islamic Cooperation) countries is only 17.5%, while European Union (EU) countries have 55% and North America Free Trade Agreement (Nafta) has 58%”.
He said that all ICCIA countries should work towards enhancement of trade to capitalise on mutual strengths while attending the 33rd board of directors meeting of ICCIA.
“There are lots of export opportunities in Muslim countries, which Pakistan can explore. These sectors include services and IT exports, meat, agriculture, medical and surgical equipment and sports goods, he mentioned.
The FPCCI chief pointed out that Pakistan should focus on enhancing its exports to OIC countries, particularly value-added textiles, leather products, footwear, handicrafts, sports goods, pharmaceuticals, gems and jewellery, rice, fruits and vegetables and construction material. “Pakistan should capitalise on people-to-people, business-to-business and chamber-to-chamber contacts, and translate them into government-to-government contacts aimed at increasing trade, investment and economic cooperation tangibly,” he said.
Trade shows and exhibitions would also help, he suggested. Alternatively, Pakistan’s government can also lobby for a favourable tariff structure like GSP Plus. Furthermore, Sheikh pointed out that one of the most pivotal opportunities with ICCIA countries for Pakistan is to export skilled and semi-skilled human resources to these countries as there is a potential to export as many as one –two million additional HR to these countries.
Sheikh also expressed his profound concerns over the increasing energy and power prices in Pakistan and its fast-increasing demand.
Pakistan is directly affected by many social or economic issues faced by Afghanistan and Muslim world should collectively help Afghanistan to tackle crises like food shortage, healthcare, unemployment, infrastructure and create enabling environment for economic growth, Sheikh revealed.
At the end, he proposed that OIC should organise trade fairs and exhibitions at various levels, across ICCIA, single-country exhibitions and sectorial fairs as well. He also hoped that this is possible now as most of the Covid-related restrictions have been lifted by the countries.
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