ADB decides to create trade block comprising 17 Central Asian countries
All countries including Pakistan are facing barriers in the sponsorship of trade
Islamabad ( Dunya News) - As the President of world s largest economy, Donald Trump, is trying to pull out his country from the trade accord that America has signed in the past like NAFTA, TTP, the Asian Development Bank (ADB) has decided to make multi-literal trade credit, investment (re-guarantee) agency for the creation of new trade blocks in 17 countries of Central Asian states, including Pakistan and India.
The trade block will also make a contract to increase cooperation in investment and financial sectors, though, ADB Executive Board has approved technical and financial assistance. The block includes Pakistan, China, India, Afghanistan, Armenia, Azerbaijan, Bangladesh, Bhutan, Georgia, Kazakhstan, Kyrgyzstan, Maldives, Mongolia, Nepal, Sri Lanka, Tajikistan, Turkmenistan, Uzbekistan.
ADB, modeled closely on the World Bank, and has a similar weighted voting system, revealed that this new trade block would make the able to developing countries to do business at low-cost, short-term and soft conditions, however, excluding China and India, all other countries including Pakistan are facing barriers in the sponsorship of trade and financial facilities while their financial support system is also inhibit for the promotion of commerce and investment.
On the hand, this guarantee agency will also recommend funds for domestic industries in the member states to address their difficulties from multinational and foreign companies business competitiveness.
According to the ADB, this Guarantee Agency will be responsible for implementation of trade, investment and financial sector cooperation in member countries.
