Former SAARC president calls for regional trade boost amid global uncertainty

LAHORE:SAARC Chamber of Commerce and Industry former President Iftikhar Ali Malik has stressed the urgent need to address the challenges cropped up in the wake of Trump tariffs by fully reviving regional cooperation though SAARC (South Asian Association for Regional Cooperation) to strengthen intra-regional trade.

In a statement issued here on Sunday, he said by becoming more resilient and less dependent on major powers, Pakistan can better shield its economy from future global trade shocks. He said to mitigate Trump tariff impact, Pakistan must adopt a multi-pronged strategy with essential diversification of export markets and expanding trade ties with Africa, Central Asia, and the European Union can reduce risk.

He said that Pakistan should invest in value-added industries and technology to make its exports more competitive. Improving the ease of doing business and political stability would help to attract foreign investors despite global uncertainties. He said Pakistan’s textile and manufacturing sectors, which rely heavily on imported raw materials and machinery, will bear the brunt of higher costs due to volatility in global prices.

He said policy reforms to attract and protect foreign investment, along with greater integration into global value chains, will also help in mitigating external shocks.Strengthening domestic industries and encouraging import substitution will definitely further shield the economy from global trade uncertainties.

By adopting a proactive and diversified economic strategy, Pakistan can reduce vulnerability to global policy shifts like the Trump tariffs. He said Pakistan must focus on enhancing the competitiveness of its industries through modernisation, better infrastructure, and skill development. He said improving trade ties with regional partners through CPEC can open new export avenues.

He cautioned ‘We should also bear in mind that global trade war is posed to reduce demand for Pakistani exports, particularly textiles, which form the backbone of the economy.’The government must take all stakeholders into confidence in framing result-oriented strategy to offset the impact of tariffs on Pakistan economy especially exports, he concluded.