Federal Tax Ombudsman Coordinator Saif ur Rehman on Sunday said Pakistan must urgently deepen regional economic cooperation, warning that declining trade with neighbouring countries is undermining long term economic stability.
Speaking to a delegation of traders, he said trade with Afghanistan, China, Bangladesh, Sri Lanka, Iran, Nepal, Bhutan and Maldives declined 17.05 percent to USD 1.635 billion during the last five months, highlighting the need for immediate policy intervention.
Saif ur Rehman said regional cooperation was no longer a choice but a necessity and called on the government to adopt a proactive and pragmatic trade policy to reverse the trend. He urged authorities to narrow the trade deficit with regional partners through a comprehensive package of incentives aimed at boosting economic integration.
He said Pakistan’s geographic location gave it the potential to emerge as a regional trade and transit hub, provided trade facilitation measures were aligned with regional economic conditions. Stronger regional trade, he added, could help conserve foreign exchange reserves, support industrial growth, create employment and stabilise the national economy.
The FTO Coordinator said the proposed incentive package should include preferential tariffs, simplified customs procedures, reduced non tariff barriers and improved logistics and connectivity. He added that promoting cross border investment would further ease trade flows and strengthen trust among regional economies.
