KARACHI – Asian Development Bank (ADB) gives Pakistan an opprtunity toreduce the fiscal deficit and overcome the financial deficit faced by thecountry.

ADB is giving opportunities for Pakistan in Carec program to expand anddiversify its exports to China and central Asian states.

ADB Director Regional Cooperation and Operation Coordination Safdar Pervezsaid there has to be greater awareness in Pakistan about the potentialbenefits of expanding relations and trade with other countries of Carec – aprogram launched two decades back by the Manila-based lender to encourageeconomic cooperation among 11 member countries.

“We feel there is a lot of recognition and ownership already there,” Pervezsaid, speaking at Sustainable Development Policy Institute.

“But, there is always some room to build on that.”

Pakistan joined Carec in 2010 and since then the program has invested about$1.5 billion on projects largely related to building trade and transportconnectivity.

“We have a pipeline of next three years under which we plan to supportPakistan with another $1.7 billion,” Pervez added.

Other Carec members include Afghanistan, Azerbaijan, China, Georgia,Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistanand Uzbekistan.

Pervez said Pakistan today has very high trade deficit and one way to getout of this large trade deficit is to find ways of expanding anddiversifying exports.

Carec envisages corridor development connecting Pakistan, China and CentralAsian states to European markets.

“We see that with the Carec block as a whole Pakistan’s exports have beendeclining,” Pervez said. “We estimate that over the last five years therehas been about 37 percent decline in Pakistan’s exports to these countries,although the potential is large.”

In addition to infrastructure development, ADB is also trying to focus onsoft components, which are to do with trade facilitation, such as improvingrules and regulations for trade, trying to harmonise customs procedures andsystems, promoting concept of single window so that the cost of traction oftrade actually declines.

“These are the areas where we feel that Carec program is among the mostrelevant programs for Pakistan,” the ADB official said. “We are trying toexplore opportunities to get Pakistan closer to other Carec membercountries on issues such as economic corridor development, tourism,education and other areas.”