Pakistan should integrate with $20 trillion SCO economy: FPCCI

KARACHI: The apex trade body has urged the government to promote trade, investment, and economic ties with the Shanghai Cooperation Organisation (SCO) nations, saying the bloc has a cumulative gross domestic product (GDP) of $20 trillion.

“This will mean broadening of export markets, becoming part of major supply routes of the world, major joint ventures, transfer of technology and foreign direct investment (FDI) by major retail groups and industrial conglomerates from SCO countries,” FPCCI president Irfan Iqbal Sheikh said.

He stated that Pakistan could make use of the bilateral and multilateral relations with the SCO nations by translating the relations into commercial and economic ties through people-to-people, business-to-business, chamber-to-chamber, and joint trade promotion activities.

“We can multiply exports of products and services to SCO countries such as value-added textiles, IT & ITeS services, surgical instruments, sports goods, cultural artifacts, rice, fruits and vegetables, and precious stones and minerals.”

An economic bloc with a GDP of $20 trillion could uplift Pakistan out of all its economic shortcomings; provided a country works hard and diligently to tap the opportunities and potential that SCO offers, he said.

FPCCI president represented Pakistan in the board meeting of the high-powered business council of SCO held in Tashkent, Uzbekistan.

He apprised the audiences of the economic aftermath of the most devastating floods of Pakistan’s history and the need for the international community to swiftly provide much needed relief and assistance.

Sheikh elaborated that the extent of damage was so much that Pakistan would need upwards of $15 billion for rehabilitation of the affected populace and reconstruction of the infrastructure.

“The SCO Business Council that Pakistan has implemented land-based logistics convention, i.e. TIR, measures initially for Turkey and Azerbaijan; and, by the end of this year, we are going to start land-based transportation to Uzbekistan as well.”

Eventually, through TIR (Transports Internationaux Routiers), Pakistan would expand to Russia and other Central Asian states, Sheikh said. “TIR has cut short the transit time by two-thirds and more than halved the transit cost for the trial consignments to Turkey.”

He highlighted that SCO region offered significant potential for Pakistani exports in goods and services and export of skilled and semi-skilled workforce.

FPCCI chief offered to collaborate on regional trade exhibitions and exchange of trade delegations. “The time has come to look east and expand, enrich and diversify our trade, investments and economic relations with the new and untapped markets,” he said.