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Pakistan seeks to boost trade ties with Oman

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JOMAR MENDOZA -


MUSCAT, JAN 16 -


Pakistan is eyeing stronger trade relations with the Sultanate, notably by harnessing opportunities linked to the China-Pakistan Economic Corridor (CPEC), an initiative conceived as part of China’s ‘One Belt, One Road’ mega venture, according to Professor Ahsan Iqbal, Minister of Interior/ Planning, Development and Reforms of the Islamic Republic of Pakistan.


Addressing the Oman Ports Conference, organised by Al Roya Newspaper held at the Grand Millennium Hotel in Muscat on Tuesday, Prof Iqbal termed Oman as a ‘great friend of Pakistan’.


He stressed the unique bonds and common history, geography and kinship that tie both countries, which provide the underpinnings for stronger trade relations between the two economies. “I am greatly impressed by the plans of Oman to develop seaports and logistics for more integration in the region,” Iqbal said.


“The old models of development are being replaced by new challenges. The world has experienced slowdown in growth for many years. There are two responses to counter the slowing down of the world economy. The first response comes from the West, in which their response is ‘to erect walls’.


But there is also an alternate view which is emerging in Asia, and that is the One Belt, One Road initiative, being led by China. Pakistan also has Vision 2025 that synchronises with the thinking behind One Belt, One Road initiative,” said Prof Iqbal.


“The world economy has slowed down. When economies slow down, it means the demand has gone down. In order for the economies to grow, we need to create more demand.


And if demand does not happen in traditional and existing markets, we need to look for new markets and new growth opportunities. And how do we create new markets and new growths opportunities? It is by creating new channels of connectivity, which will create new market that will lead to new demand and eventually lead to new growth.


This is the concept behind the One Belt One Road initiative, in which Pakistan fully subscribe and we have started with mega project China-Pakistan Economic Corridor (CPEC) whose fundamental purpose is to create engines of growth in Asia (South Asia, China and Central Asia), in which Pakistan happens to be located at the intersection. So by developing North, South, East and West corridors, we can create an economic bloc of 3 billion people in the region,” the Minister stated.


The China-Pakistan Economic Corridor is a major component of the One Belt, One Road initiative undertaken by China. More popularly known as OBOR, the modern-day Silk Route, it aims to create the world’s largest network for economic cooperation, trade and financing partnership which will benefit all members. It is envisioned to create connections among regional port hubs, including Duqm in Oman.


“This is the way forward for global growth. Not by building walls but by creating bridges, opening roads of connectivity, through rail, road, air and maritime transportation,” Iqbal pointed out.


“With the OBOR, there will be opportunities to access China and Central Asia, through Gwadar port (in Pakistan) and we envisage that it will link and integrate with all the regional ports to extend this supply chain of goods and services from China, Central Asia, Middle East, and Africa. And therefore there is a need that we must integrate our rail, road, air and maritime infrastructure across Asia and Africa through these networks of connectivity that are being developed in Pakistan.


We are not only working on China-Pakistan Economic Corridor but we are also committed to Central Asia Regional Economic Cooperation (CAREC) that seeks to invest about $38 billion in developing different trade routes in 11 countries in Central Asia (including Pakistan) through which landlocked Central Asian countries will be able to use Gwadar port for global trade, so that shipping industry in the region can integrate with this infrastructure to access Central Asian markets. So these are the opportunities that will bring us together and we must work together to maximise the benefits of these developments for our people, country and region.


Pakistan works towards sustainable and strategic trade partnership with Oman given its geo-strategic importance for trade, investment and relevance to the region,” Prof Iqbal explained.


“By 2050, Asia will contribute 52 per cent of the world’s GDP. So the action in the 21st century is moving towards Asia and as billions of people living here, there will be more demand for electricity, more demand for homes and buildings, which means there will be need to ship more fuel, more construction materials and consumer goods across the region.


Only 20 per cent of the total trade are conducted among the countries of the Indian Ocean countries and the remaining 80 per cent is extra regional.


This shows a great opportunity that in Asia and in this region, there is a tremendous opportunity for growth of intra-region trade. The countries in the region are not trading amongst themselves, they are trading to countries outside the region and we can fill this gap and create lots of opportunities for our people,” he added.


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