LAHORE: President of Pakistan, Mamnoon Hussain has said that the members of Organisation of Islamic Conference (OIC) have great potential for economic cooperation with their immense natural and human resources but unfortunately, intra OIC trade does not reflect this potential.
He was speaking at the second OIC-LCCI Ambassadors & Trade Conference. Federal Commerce Minister Khurram Dastgir, Punjab Governor Chaudhry Muhammad Sarwar, ambassadors and businessmen of OIC members and observer states, LCCI President Engineer Sohail Lashari, Vice President Kashif Anwar, Senior Vice President Mian Tariq Misbah, Chairman of LCCI Standing Committee on OIC Hasnain Raza Mirza, Co-Chairman Mahmood Ghaznavi, Executive Committee Members and former office bearers were prominent in the massive gathering.
“Second OIC-LCCI Trade & Investment Conference was a giant leap towards bringing the members of Organisation of Islamic Conference (OIC) in close proximity. Such initiatives would not only enhance trade and economic cooperation between the Muslim Countries but would also pave the way for progress and prosperity in the Muslim Countries.”
Director General Institute of Strategic Studies Dr Rasul Baksh Rais gave a detailed presentation on Common Muslim Common Market. The Conference was aimed at identifying ways and means to promote trade among the OIC member states.
President Mamnoon Hussain said that role of the private sector must be emphasized for trade promotion and economic development and it has to involve endeavours of the governments of OIC member states in order to achieve these goals. He said that there was a dire need of a centralised electronic data base on trade, investment policies and tariffs etc., and its sharing amongst the OIC member countries. There must be frequent trade exhibitions and interactions amongst the Chambers and the governments of these brotherly Muslim countries.
He said that Pak-China Economic Corridor will usher in a new era of economic development for the whole region as it would not only benefit Pakistan and China but Middle East, Central Asian states and other neighbouring countries as well.
He said that all efforts were being made to improve energy and security situation in the country that are the biggest impediment to foreign investment. It is not the GDP alone that would get a boost but the foreign investment would also increase considerably in next few years. He said that presently Pakistani merchandise was arriving in 216 countries but the 70 per cent of the total trade is with only 20 countries that should be expanded.
“It is the utmost desire of Pakistan that the trade among the OIC countries shall flourish, I see it expand further and OIC Block being the second biggest bloc emerging as one big economic power on the economic map of the world. Pakistan wants unity amongst the Muslim countries as harmony is the key to every success. There may be differences amongst many Muslim countries. Being an important member of the OIC, Pakistan wishes that all differences and disagreements must be resolved without involving alien forums. Negotiations are always the most effective methods for solving issues,” the President added.
He said that OIC members have to increase intra-OIC trade. He said that groups like GCC, D-8, ECO and African Union could be more interactive within themselves and with the rest of the groups for a healthier economic activity.
He said that SMEs need to be developed further to its maximum strength in the OIC countries while area of value addition should also be focused in particular. He said that trade of non-conventional items between the OIC member states could play a vital role in strengthening the economic ties.
Moreover, he said, technology exchange, technical skills development, capacity building, medical research, educational expertise and religious knowledge could also be proved an effective tool.
In his address, Federal Commerce Minister Khurram Dastgir invited the investors of Muslim countries to initiate joint ventures with their Pakistani counter parts and take full advantage of investment-friendly policies of the present regime who was taking all possible measures to facilitate the stakeholders.
Governor Punjab, Chaudhry Muhammad Sarwar said in his address that the LCCI has always played a very supportive role in the development of bilateral relations of Pakistan with the Muslim countries.
He said that Muslim countries comprise approximately of one fourth of the world population and possess all sorts of natural resources. They are rich in oil. Despite this, their economies are fragile and far from being knowledge-based economies. They depend upon the West for their needs for high tech machinery and products. They have remained the producers of primary products.
Sarwar stressed the need of women’s contribution in economic activities who were more than 50% of the world population. He said that Muslim countries must encourage their women to educate themselves and help add value to their respective economies.
He said that issues of tariff and non-tariff barriers, visa regimes, banking and financial problems, direct air and land linkages, free and direct trade links should also be tackled on priority basis.
Speaking on the occasion, LCCI President Engineer Sohail Lashari said that OIC is the second largest world forum after United Nations with an enormous market and colossal opportunities. He said that if there is unity and realization of collective power OIC can rise on the world map as an extensive economic force. “The OIC countries have a great potential both in terms of natural resources and the human resources for vigorous economic collaborations which can increase the trade to a large extent. We are a bloc of talented nations with rich knowledge and culture. Islam is our strong bonding point,” he added.
He said that strong leadership with clear directions were must to achieve the desired goals. He said that mutual cooperation and shared assistance is required to strategise our approach towards the achievement of economic prosperity and affluence.
He said that issues and conflicts amongst the Muslim countries should be addressed within themselves. There should be peaceful resolutions and amicable settlements of any religious, ethnic or cultural disputes which exist or may spring up.
LCCI President also stressed the need of joint efforts to cope with the menace of terrorism that was seriously damaging the reputation of Muslim World.
He said that talent of women folk should also be utilized for economic wellbeing of the OIC member states and the governments of these states to provide all support to women which was important for the growth & economic advancement.
Sohail Lashari said that significantly increasing trade between the OIC states despite an economic crunch experienced by the world, was an ample proof of potential of the Muslim world. He said that total market of the 57 OIC member states gives access to 1.6 billion consumers which is a gigantic size of the market. But unfortunately it has not been exploited to even half of its actual potential.
Lashari said that the total trade of OIC with the world is over $ 4 trillion and Pakistan’s share in the trade with OIC is just US $ 30.33 billion thus making Pakistan’s share of trade in OIC to be only US $ billion 0.78 per cent. He said that there is large potential for this share to increase.
He urged the Ministry of Commerce to provide financial and technical assistance to the LCCI for establishment of OIC Trade & Coordination Centre at the LCCI as agreed in the first OIC-LCCI Conference held in 2012 at Bhurban. He said that the plan has not been materialized yet, therefore, Minister of Commerce should provide financial and technical assistance to LCCI for establishment of the OIC Trade & Coordination Centre.
Sohail Lashari said that development through SME sector in the OIC member states chould be a stepping stone in achieving the goal of trade enhancement and trade sufficiency.
He informed the participants of the conference that LCCI has launched a very important and significant initiative of the establishment of 5 countries’ strategic Joint Chamber of commerce and industry including Russia, China, Iran, Turkey & Pakistan.
He urged the OIC member countries to join hands in joint ventures and mutual investments in the fields of agriculture & food, auto parts, carpets, chemicals and pharmaceuticals, construction, iron and steel, household appliances, leather goods, plastics and plastic items, textiles and textile made-ups, and mining and minerals.
He also urged diplomatic representatives to encourage their entrepreneurs to benefit from the liberal incentives being offered by Pakistan to foreign investors.