Pakistan still pinning hopes to strengthen SAARC cooperation in future: Asad Umer
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We really need to think out of the box solutions for regional cooperation amid tensions and confrontations between the two states, Asad Umer said, adding that Intra-regional trade, especially trade between India and Pakistan, is one of the major growth drivers
ISLAMABAD: Indian response to Pakistan’s goodwill gesture to open Kartarpur Corridor was unfortunate, however, Pakistan is still pinning hopes to strengthen SAARC cooperation in future.
This was stated by Federal Minister for Finance, Revenue, and Economic Affairs Asad Umer while speaking at the inaugural plenary of 11th South Asia Economic Summit (SAES) held under the auspices of Sustainable Development Policy Institute (SDPI) in Islamabad on Tuesday.
We really need to think out of the box solutions for regional cooperation amid tensions and confrontations between the two states, the minister said, adding that Intra-regional trade, especially trade between India and Pakistan, is one of the major growth drivers.
Stressing the need to create political space for regional cooperation, he said it is our inability that we failed to get people of the region out of poverty. It is a real opportunity for those political leaders, who believe in a peaceful and prosperous South Asia, he added.
Highlighting the government’s role in promoting cross regional energy transfer and inter-regional trade, Asad Umer said channelization of non-political forums to build political space for policy making is required for an effective cooperation among South Asian states.
Commenting on the recent dollar spike against rupees, the minister said that the neutrality of State Bank of Pakistan (SBP) is intact and we believe in autonomy of the institution whereas there is no change in the government policy.
He said that the recent decision on exchange rate was taken by the central bank, however, there is a need to improve the communication mechanism, that’s why the SBP governor has also been taken on board to devise a communication mechanism in this regard.
If needed, we will further institutionalize the structure and role of SBP, he said, adding that the financing gap is complete and we don’t have any current account crisis, though a lot needs to be done.
Dr Shamshad Akhtar, the former caretaker finance minister, said that this new age of globalization and digitization, amid nationalism call for enhanced regional cooperation and connectivity.
She said that re-imagining regional connectivity is often costly and time-consuming and that require patience and leadership. Connectivity should not be constrained to road development but to have ICT, digitization, energy cooperation and construction of ports, etc.
She said Sustainable Developments Goals (SDGs) can guide us to improve trans-boundary corridor, where institutions like SDPI has distinct role to play. “Regional connectivity is of course gaining momentum today, where Belt and Road Initiative (BRI) led by China can steer the effort for regional cooperation.”
Dr Shamshad Akhtar said that BRI has the potential to generate momentum to enhance regional partnership, which is currently in the state of deadlock especially between India and Pakistan. “Economy needs to progress on a set of new elements of requisite reforms, which include streamlining tax system, improvement in banking system, easing the procedures to do business, improving competitiveness and promoting trade facilitation through trade regulation.”
Pakistan and China can play active role in regional cooperation and improve connectivity, she added, adding that there is need to think and work on that how development can be part of peace and contribute to peace efforts in the region.
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