ISLAMABAD, July 25: Trade liberalisation has the potential to spur development and reduce poverty but it can only be materialised if trade policies are geared towards achieving the dual objectives.

This was the crux of a seminar, “Linkages between trade, development and poverty reduction” organised by the Sustainable Development Policy Institute here on Wednesday.

The speakers were unanimous that trade liberalisation in itself did not bring about development and poverty reduction unless it was supplemented and complemented by sound policy making in areas other than trade including human development, social sectors and distribution of income.

They said there were a number of institutional, administrative, legal as well as social obstacles hindering a positive linkage between growth in trade and reduction of poverty.

Economist Dr A. R. Kemal highlighted various aspects of economic policies and suggested coordination among various ministries in framing trade related policies.

He said industrialists would have to improve the quality of their products besides raising the salaries of employees. “If there is more investment in the value addition sector there will be more opportunities for job creations,” he added.

Dr Kausar Ali Zaidi, a section officer at the ministry of commerce, elaborated the trade diplomacy programme of the ministry to increase share in international trade. He said preferential trade arrangements would help increase exports to various countries.

In reply to a question, he said the government did consult all the relevant stakeholders before formulating trade policies because they certainly impacted not just businesses but also people’s well-being and their livelihood.

National programme manger of the UNDP’s Trade-related Initiatives for Human Development, Zubair Faisal Abbasi said trade policies should be somehow linked with overall poverty reduction and growth strategy.

Aftab Alam, a trade policy adviser for Action Aid Pakistan said though the export of certain commodities was increasing but farmers were getting nothing.

He said multilateral trading system, particularly the conclusion of the Doha round, will provide more market access for Pakistani products.

Nadeem Kiani, director Consumers Protection Council, Punjab, said trade should be treated as a means for achieving an end which is human development and poverty reduction. There is no point in promoting trade for its own sake if it does not result in achieving the ultimate objective of raising the level of human resources and thereby reduce poverty.

Dr Sajjad Akhtar, the head of Centre for Poverty Reduction and Income Distribution; Inamul Haq, adviser to the chief minister of Punjab, Dr Aliya Khan, head of economics department at the Quaid-i-Azam University, and Saba Anwar, a staff economist at PIDE, emphasised the fact that the evidence of lowering tariff and opening trade did not automatically result in reducing the number of people living on or below poverty line.

Haroon Sharif, senior adviser on private sector development for UK’s Department For International Development, listed a number of activities that his department was undertaking in cooperation with Pakistan for protecting people against market failures and anomalies and distortions arising from trade liberalisation.

Dr Abid Suleri, acting executive director of SDPI, said the government had not been able to produce a well-rounded policy on international trade let alone the one which results in trade leading to development and poverty reduction.