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 formally called for the comprehensive revamping and effective implementation of the ECO Trade Agreement (ECOTA). The initiative seeks to elevate intra-regional trade and transform the Economic Cooperation Organization (ECO) region into a more integrated and competitive economic bloc.

Addressing the current economic landscape, Atif Ikram Sheikh noted that the ECO region contributes a mere 4% to global trade, with intra-regional trade volumes hovering at approximately 8.75%. He emphasized that these figures remain significantly below the region’s latent potential, particularly when considering the emphasis Pakistan places on multilateralism and regional cooperation in global affairs.

Strategic Advantages and Existing Barriers

The FPCCI President highlighted that the region boasts substantial economic assets, including extensive hydrocarbon reserves, diverse mineral resources, a demographic dividend of young and skilled labor, and critical transit corridors connecting Asia to Europe. Furthermore, the region’s geographical proximity to major global markets such as China, India, and Russia provides a unique comparative advantage. Despite these strengths, the progress remains stifled by high tariff structures, persistent non-tariff barriers, limited product diversification, challenges in financial settlements, and divergent regulatory frameworks.

The Future of ECOTA

Reflecting on the history of the agreement, which was signed in 2003 and came into force in 2008, Atif Ikram Sheikh noted that the original objective of establishing an ECO Free Trade Area has been hampered by inconsistent tariff schedules and concerns over the equitable distribution of trade benefits. Much like Pakistan’s efforts to enhance bilateral trade with other regional partners, the President stressed that ECOTA must evolve from a document of intent into a functional mechanism. He urged member states to engage in sustained negotiations to create a framework that ensures mutual and equitable benefits.

Proposed Policy Directions

To revitalize the regional economy, the ECO CCI President proposed a multi-faceted approach, which includes:

• A balanced strategy for tariff reduction and product diversification.
• Strengthened mechanisms for trade-related payments and financial settlement.
• Enhanced regulatory transparency and the facilitation of e-commerce and digital trade.
• Investment in regional transport and logistics infrastructure.

Atif Ikram Sheikh further advocated for the strategic deployment of the ECO Trade and Development Bank to bolster trade finance and support large-scale infrastructure projects. As Pakistan continues to advocate for deeper integration, the President maintained that with stronger political commitment and modernized trade facilitation, the ECO region is well-positioned to convert its resource wealth and strategic location into shared economic prosperity.