KARACHI (Special Correspondent) – The President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the ECO Chamber of Commerce and Industry (ECO CCI), Atif Ikram Sheikh, has issued a formal call for the urgent revamping and effective implementation of the Economic Cooperation Organization Trade Agreement (ECOTA). The initiative aims to unlock the significant, yet currently untapped, trade potential within the ECO region, striving to transform it into a highly integrated and competitive economic bloc.

Current Trade Statistics and Regional Potential

Addressing the current economic landscape, Atif Ikram Sheikh noted that the ECO region accounts for a mere 4% of global trade. Furthermore, intra-regional trade currently stands at approximately 8.75%, a figure he described as significantly below the region’s actual capacity. Much like recent discussions surrounding national fiscal challenges, the President emphasized that the region possesses immense economic advantages, including vast hydrocarbon and mineral resources, a demographic dividend of young, skilled labor, and strategic transport corridors linking Asia to Europe. Furthermore, the region’s proximity to major global markets such as China, India, and Russia provides a unique competitive edge.

Barriers to Regional Integration

Despite these inherent strengths, progress remains stifled by structural impediments. The President highlighted that high tariffs, non-tariff barriers, limited product diversification, challenges regarding trade-related payment settlements, and persistent regulatory discrepancies continue to constrain regional commerce. Reflecting on the history of the agreement, he recalled that ECOTA was signed in 2003 and formally entered into force in April 2008 with the objective of establishing an ECO Free Trade Area. However, persistent differences in tariff structures, incomplete product lists, and lingering concerns regarding the equitable distribution of benefits among member states have historically hindered its implementation.

Proposals for Economic Reform

“ECOTA should not remain merely an agreement on paper. We need to address the outstanding issues through sustained negotiations and develop a framework that provides balanced and equitable benefits to all member states,” the ECO CCI President stated. He proposed a comprehensive approach to regional development, including a balanced schedule for tariff reductions, increased focus on product diversification, and targeted investments to bolster competitiveness. Furthermore, he emphasized the necessity of reducing transaction costs, improving regulatory transparency, facilitating e-commerce, and enhancing regional transport and logistics infrastructure.

Leveraging Financial Institutions and Future Outlook

Atif Ikram Sheikh further suggested that member states should better utilize the resources of the ECO Trade and Development Bank to provide critical support for trade finance and regional infrastructure projects. He reaffirmed that Pakistan, as an active member of both the ECO and ECO CCI, would remain committed to initiatives aimed at strengthening regional economic integration. “The ECO region has all the ingredients of a powerful economic bloc. What we need is stronger commitment, practical trade facilitation and a modernized ECOTA to convert our vast resources and strategic location into greater trade, investment and shared economic prosperity,” he concluded.