LAHORE - The enhanced trade ties between the top two economies of the South Asia will lead to the promotion of cross border investment and fund raising activities in the region.
The South Asian Federation of Exchanges (SAFE), the association of the South Asian stock and commodity exchanges, has declared to support bilateral trade talks between India and Pakistan as the normalization of economic relations between both the countries is in accordance with the objectives of the Federation. South Asian Federation of Exchanges general secretary Aftab Ch, who is also MD of the Lahore Stock Exchange, while talking to The Nation observed that SAFE activities particularly focus on creating and expanding the capital market linkages amongst the nations of South Asia.  “SAFE believes that side by side the normalization of the commercial relationship, harmonization and integration of the financial services industry between both the nations would enable the investors to trade in the markets across the border.” Highlighting the features of the SAFE, he said that it is a platform launched by the bourses in South Asia with a purpose to promote development and harmonization of the securities markets in the region.
Discussing the recent bilateral trade agreement, Aftab Ch said that mutual trade should be promoted at any cost, adding that in this regard politics should be separated from trade ties between the two countries, as both the countries will benefit from the understanding reached between the two countries while Pakistan will get an access to a huge Indian market.
Bilateral trade between Pakistan and India has doubled in the last two years to $2.7 billion, which can be pushed up to $8 billion by taking some simple measures, he said. The SAFE general secretary said that easing visa restrictions to actualize the real potential. He stressed the need to reduce trade barriers between the two countries, as SAARC countries are doing hardly 5% of regional trade, which is very low.
“We have to remove non-trade barriers between Pakistan and India, as ASEAN and European Union are doing more than 35% of regional trade. According to him, the opening of 24-hour customs post at the border and setting up bank branches in both countries will greatly help increase bilateral trade. He said the trade between Pakistan and India will help reduce poverty in both countries and lead to economic development and resolution of political issues.