ISLAMABAD, Jul 27 (APP): Former President SAARC Chamber of Commerce and Industry Iftikhar Ali Malik said the economic integration in South Asia holds significant potential to address future challenges and foster regional development.
Chairing a seminar on “Economic Integration in South Asia” he said that South Asia, a diverse and populous region faced with several shared challenges that could be better tackled through closer economic cooperation, said a news release issued here Thursday.
By integrating their economies, South Asian countries can create a buffer against external shocks, he added.
Diversification of markets and sources of investment can help countries better with stand economic downturns and reduce vulnerabilities.
He said closer economic ties can lead to increased trade volumes, investment flows and technological transfers, which can boost economic growth and development across the region.
This growth can be inclusive, benefiting various sectors and sections of society.
He said many South Asian countries heavily rely on a few trading partners outside the region.
Economic integration can help diversify trade by fostering intra-regional trade, reducing dependence on external markets, and creating a more robust regional market for goods and services.
About infrastructure development he said this region needs substantial investments in infrastructure, including transportation, energy, and communication networks.
Economic integration can facilitate the pooling of resources to develop cross-border infrastructure projects, enhance connectivity, and promote regional trade and investment, he added.
Regarding leveraging the demographic dividend he said South Asia is home to a large and youthful population.
By integrating their economies, the region can create a larger and more skilled labor market, attracting investments and promoting industrial growth.
He said this would be crucial for harnessing the demographic dividend and creating employment opportunities for the growing workforce.
Iftikhar Ali Malik said historically, economic interdependence has been linked to reduced tensions and conflicts between countries and strengthening economic ties can promote mutual interests, trust, and cooperation, contributing to peace and stability in the region.
He said poverty and inequality, addressing common challenges, promoting regional values chains and industries and harmonization of policies and standards are also equally crucial and important to be taken care of to attain desired results.
However, concerted efforts by regional organizations like the South Asian Association for Regional Cooperation (SAARC) and bilateral agreements can play a crucial role in overcoming these barriers and advancing economic integration in South Asia.