DEPUTY Prime Minister Muhammad Ishaq Dar’s comments on the limited trade within South Asia underscore a critical issue hindering the region’s growth. Despite housing nearly 25 percent of the global population, South Asia accounts for less than 5 percent of world trade, revealing the vast untapped economic potential. As Dar emphasized, the region’s poor integration in trade is the key barrier that must be overcome to unleash new avenues for growth and prosperity.
One of the most compelling reasons for regional trade should be its cost-effectiveness. Given the geographical proximity, trade of essential items can be conducted at lower costs, ensuring that goods are available to the people at reduced prices. This can particularly benefit the masses by making everyday commodities more affordable, improving access to healthcare, food and other products. Beyond cost benefits, regional trade fosters economic cooperation, enhances job creation and stimulates industrial growth. It allows businesses to tap into larger markets, create economies of scale and reduce dependence on distant markets, which can be subject to global economic uncertainties. By collaborating on infrastructure development and shared projects, South Asian countries can create a more resilient and diversified regional economy. However, the persistent obstacle to regional cooperation has been India’s intransigence in making SAARC dysfunctional. With a leadership under Prime Minister Narendra Modi, expectations from India in fostering regional integration are minimal at best. Given this reality, the other South Asian nations must take it upon themselves to enhance intra-regional trade. Countries such as Pakistan, Bangladesh, Sri Lanka, Nepal and others should seek new ways to strengthen their bilateral and multilateral ties. They should actively promote trade pacts and economic alliances among themselves, focusing on their shared interests and common goals. This will yield significant benefits for their peoples—improving living standards, creating new opportunities and fostering long-term regional stability. The time has come for South Asia to look inward and realize its potential. The people of the region deserve better than the status quo; they deserve a future driven by closer trade relations and mutual prosperity.
