Ishaq Dar reveals shocking low intra-regional trade in South Asia

In Karachi, on January 11, 2025, Ishaq Dar, who is the Deputy Prime Minister and Foreign Minister of Pakistan, addressed the South Asian Federation of Accountants (SAFA) Conference. He pointed out that South Asia, despite having 25% of the global population, has remarkably low levels of intra-regional trade, which account for less than 5% of the total trade volume. This lack of integration presents significant challenges for economic growth in the region. To address these issues, he emphasized the need to tackle both tariff and non-tariff trade barriers in order to unlock Pakistan's export potential. Mr. Dar suggested that collaboration through preferential trade agreements, improved logistics, and better border management could be effective steps in mitigating these trade barriers. He also highlighted the importance of energy resilience, advocating for shared renewable energy innovations that could help the region move away from fossil fuels. His remarks also touched on the broader theme of regional cooperation in the face of global challenges, including climate change and technological disruptions. Additionally, Dar expressed optimism about Pakistan's potential for renewable energy, stating that it possesses one of the largest untapped renewable resources, particularly in solar, wind, and hydropower. He illuminated the idea that innovations in renewable energy could serve not only Pakistan but the entire South Asian region, promoting a joint effort towards a sustainable future. Furthermore, he acknowledged the significant talent in accountancy within Pakistan, advocating for enhanced export of these services as a key area for economic growth. Dar's comments highlight a critical moment for South Asia, where the pursuit of deeper economic integration is needed not only to enhance trade but also to tackle the pressing energy crisis and create a stable economic environment. He called for regional dialogues to form a unified approach to these challenges and emphasized ongoing governmental reforms in Pakistan aimed at stabilizing the economy and fostering sustainable growth. The discourse at the SAFA Conference represents a unique opportunity for South Asia to come together in pursuit of common goals, with potential long-term implications for the region's economic landscape.