Pakistan to enhance CPEC connectivity with D-8 support

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Pakistan is planning to further strengthen the regional connectivity of the China-Pakistan Economic Corridor (CPEC) with support from Developing Eight (D-8) member nations through rail, road, sea and air linkage.

Pakistani Prime Minister Shahid Khaqan Abbasi, while addressing the 9th D-8 Summit in Istanbul on Friday, said “Connectivity-led growth is a good example of South-South cooperation. We seek similar partnerships with D-8 member states – through road and rail routes, where possible, but also through the stronger air and sea connections.”

“We are also working on energy connectivity projects. Pakistan’s integration into the Eurasian Belt and Road network will provide a firm foundation for Pakistan’s rapid economic development,” he added.

The D-8 is a multilateral group of eight emerging economies in the Muslim world representing different regions. It includes Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey.

The 9th D-8 summit, hosted by Turkey, has the theme of "Expanding Opportunities through Cooperation." Nigerian President Muhammadu Buhari, Azerbaijan leader Ilham Aliyev, Iran’s first Vice President Eshaq Jahangiri and the Vice President of Indonesia Jusuf Kalla also attended the summit.

Turkish President Tayyip Erdogan addresses the opening ceremony of D-8 Summit in Istanbul, Turkey, October 20, 2017. /Yasin Bulbul/Presidential Palace Photo

Abbasi also expressed his displeasure on stalled intra-nation D-8 trade projects, which were planned by the group a decade back. The D-8 nations had set a target of 500 billion US dollars worth of trade by 2018 during the Kuala Lumpur Summit held in 2008.

“It is important for us to fully implement various instruments and agreements aimed at facilitating trade amongst member states, especially those related to preferential trade, small and medium enterprises, customs, simplification of visa matters and civil aviation. This would certainly pave the way for substantial increase in intra D-8 trade,” he said.

Pakistan had held the D-8 organisation’s chair from 2012 onward. It handed over the chair to Turkey during the inaugural session of the summit.

National currency for trade

Turkey’s President Recep Tayyip Erdogan stressed during his address that there is a crucial need to use national currencies in trade among D-8 countries. “If we are to use local currencies for trade within the D-8, our currencies will be rid of the pressures from foreign exchange and the dollar,” he said.

He further elaborated that there is no need to dissolve D-8 economies under the pressure of exchange rates. Trade in national currencies will be much more lucrative for economies of all the eight countries of the group. Erdogan strongly expressed the necessity for member states to bring together their central banks and establish a clearing house.

He also called for greater participation, unity, and expansion among the member states of D-8. "It is unacceptable for the D-8 to stay the same, since, we live in a world where everything is constantly changing," the president said.

Turkish President Tayyip Erdogan and Azerbaijan President Ilham Heydar Oglu Aliyev talk before the opening ceremony of D-8 Summit in Istanbul, Turkey, October 20, 2017. /Yasin Bulbul/Presidential Palace Photo

African Union’s first single market

President of Nigeria, Muhammadu Buhari sought the support of D-8 nations to support African Union efforts to establish its first-ever single market for trade in goods and services.

“In Africa, we are on the threshold of finalizing negotiations to establish the first ever Single Market for Trade in Goods and Services on our continent, in the Continental Free Trade Area for Africa. This will be a win-win for all, including member countries of the D-8,” he said.

Buhari also condemned the forceful attempt, in July last year, to overthrow the legitimate and democratically elected government of Turkey.