Daily Times

As the world becomes increasingly interconnected, regional economic integration has emerged as a powerful driver of growth and development. In South Asia, a region rich in culture, resources, and potential, the idea of economic integration is particularly compelling. Pakistan’s role in fostering economic cooperation within South Asia and the benefits such integration could bring to the region are worth exploring.

Economic integration involves the collaboration of neighboring countries to create a unified market, facilitating the free flow of goods, services, capital, and labor. For South Asia, which includes Pakistan, India, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives, this concept holds significant promise. By working together, these countries can leverage their collective strengths to drive economic growth, reduce poverty, and enhance regional stability.

Pakistan’s geographical location positions it as a vital player in South Asian economic integration. Sharing borders with India, China, Afghanistan, and Iran, Pakistan serves as a critical link between South Asia, Central Asia, and the Middle East. This strategic position offers immense potential for trade and economic collaboration. South Asia is one of the fastest-growing regions in the world. According to the World Bank, the region’s GDP growth rate was projected to be around 7.1 percent in 2022, with India and Bangladesh leading the way. Pakistan, with a GDP growth rate of 3.9 percent in 2021, has significant room for improvement but remains a key player in the region’s economic landscape.

Pakistan’s geographical location positions it as a vital player in South Asian economic integration.

Intra-regional trade in South Asia is remarkably low, accounting for only about 5 percent of the region’s total trade, compared to over 25 percent in the ASEAN region. This underlines the vast untapped potential for economic collaboration. Pakistan’s trade with its South Asian neighbors remains minimal, with India-Pakistan trade accounting for less than 2 percent of their respective global trade volumes. The South Asian Association for Regional Cooperation (SAARC) was established to promote regional cooperation and integration. Pakistan, as a founding member, plays a crucial role in this organization. While SAARC has made some progress in areas such as trade agreements and cultural exchange, political conflicts have often stalled its initiatives. To move forward, member countries, including Pakistan, must prioritize economic collaboration over political differences.

One of the most promising developments for regional integration is the establishment of economic corridors and trade routes. The China-Pakistan Economic Corridor (CPEC) is a prime example. This ambitious project, valued at around $62 billion, aims to connect Gwadar Port in Pakistan to China’s Xinjiang region, creating a network of roads, railways, and pipelines. CPEC not only enhances Pakistan’s connectivity but also serves as a potential conduit for regional trade, benefiting the entire South Asian region. Energy cooperation is another critical area for regional integration. South Asia faces significant energy deficits, with Pakistan experiencing severe power shortages. Regional energy projects, such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, can address these issues. The TAPI pipeline, estimated to cost $10 billion, aims to transport natural gas from Turkmenistan to India, passing through Afghanistan and Pakistan. Such projects not only improve energy security but also foster economic interdependence.

The benefits of economic integration for South Asia, including Pakistan, are manifold. By creating a unified market, countries can increase trade, attract foreign investment, and stimulate economic growth. Additionally, regional integration can lead to job creation, poverty reduction, and improved living standards. For Pakistan, greater economic cooperation with its neighbors could also enhance energy security, as regional energy projects could address the country’s chronic power shortages. To realize the potential of economic integration, South Asian countries must overcome their differences and work towards common goals. For Pakistan, this means fostering a conducive environment for trade and investment, improving infrastructure, and engaging in constructive dialogue with its neighbors. Collaborative efforts in sectors such as energy, agriculture, and technology can drive regional growth and development.

Pakistan’s role in South Asian economic integration is both significant and strategic. By bridging borders and fostering economic cooperation, Pakistan can contribute to a more prosperous and stable region. The journey towards integration may be fraught with challenges, but the potential rewards make it a goal worth pursuing. As South Asia stands on the brink of a new era of collaboration, Pakistan’s leadership and commitment will be crucial in shaping the future of regional economic integration. Pakistan’s geographical location positions it as a vital player in South Asian economic integration. Sharing borders with India, China, Afghanistan, and Iran, Pakistan serves as a critical link between South Asia, Central Asia, and the Middle East. This strategic position offers immense potential for trade and economic collaboration. South Asia is one of the fastest-growing regions in the world. According to the World Bank, the region’s GDP growth rate was projected to be around 7.1 percent in 2022, with India and Bangladesh leading the way. Pakistan, with a GDP growth rate of 3.9 percent in 2021, has significant room for improvement but remains a key player in the region’s economic landscape.

Intra-regional trade in South Asia is remarkably low, accounting for only about 5 percent of the region’s total trade, compared to over 25 percent in the ASEAN region. This underlines the vast untapped potential for economic collaboration. Pakistan’s trade with its South Asian neighbors remains minimal, with India-Pakistan trade accounting for less than 2 percent of their respective global trade volumes. The South Asian Association for Regional Cooperation (SAARC) was established to promote regional cooperation and integration. Pakistan, as a founding member, plays a crucial role in this organization. While SAARC has made some progress in areas such as trade agreements and cultural exchange, political conflicts have often stalled its initiatives. To move forward, member countries, including Pakistan, must prioritize economic collaboration over political differences.

One of the most promising developments for regional integration is the establishment of economic corridors and trade routes. The China-Pakistan Economic Corridor (CPEC) is a prime example. This ambitious project, valued at around $62 billion, aims to connect Gwadar Port in Pakistan to China’s Xinjiang region, creating a network of roads, railways, and pipelines. CPEC not only enhances Pakistan’s connectivity but also serves as a potential conduit for regional trade, benefiting the entire South Asian region. Energy cooperation is another critical area for regional integration. South Asia faces significant energy deficits, with Pakistan experiencing severe power shortages. Regional energy projects, such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, can address these issues. The TAPI pipeline, estimated to cost $10 billion, aims to transport natural gas from Turkmenistan to India, passing through Afghanistan and Pakistan. Such projects not only improve energy security but also foster economic interdependence.

The benefits of economic integration for South Asia, including Pakistan, are manifold. By creating a unified market, countries can increase trade, attract foreign investment, and stimulate economic growth. Additionally, regional integration can lead to job creation, poverty reduction, and improved living standards. For Pakistan, greater economic cooperation with its neighbors could also enhance energy security, as regional energy projects could address the country’s chronic power shortages. To realize the potential of economic integration, South Asian countries must overcome their differences and work towards common goals. For Pakistan, this means fostering a conducive environment for trade and investment, improving infrastructure, and engaging in constructive dialogue with its neighbors. Collaborative efforts in sectors such as energy, agriculture, and technology can drive regional growth and development.

Pakistan’s role in South Asian economic integration is both significant and strategic. By bridging borders and fostering economic cooperation, Pakistan can contribute to a more prosperous and stable region. The journey towards integration may be fraught with challenges, but the potential rewards make it a goal worth pursuing. As South Asia stands on the brink of a new era of collaboration, Pakistan’s leadership and commitment will be crucial in shaping the future of regional economic integration.

The writer is a journalist, TV presenter & column writer. She can be reached via her insta account @farihaspeaks