The South Asia free trade agreement (SAFTA) meeting yesterday in Thimphu focused mainly on prospects and opportunities of trade in services.

The minister for economic affairs, Lyonpo Khandu Wangchuk, said that the growth in trade in services has overtaken industries and agriculture as the largest contributor to GDP in most countries, but it has yet to pick up pace in SAARC countries. Despite the challenges, Bhutan was open to a forward looking system, and the effective way to benefit from a fast globalising world, he said, was to stay prepared to compete in domestic, regional and global markets. “The government is working towards attracting higher inflow of foreign investments,” said Lyonpo Khandu Wangchuk. “Sectors, ranging from tourism, mineral processing and information technology to financial services, are now open to foreign direct investment with foreign holdings allowed up to 70 percent.”

Business professionals and members of SAARC attended the meeting to discuss services under SAFTA and opportunities and constraints to trade liberalisation in South Asia.

The meeting was organised by the SAARC chamber of commerce and industry (SAARC CCI). Its vice-president, Iftikhar Ali Malik, said policy reforms, deregulation of commodity and factor markets, and privatisation of state-owned enterprises were key to enhancing the role of private sector.

Economic affairs ministry’s joint director, Sonam Wangchuk, said that Bhutan enjoyed certain advantages as regards trade and investment, such as, among others, political stability, peace and security, and a clean environment. “Bhutan can nurture and build productive capacity in services,” he said.

Source: Kuenselonline