Informal trade estimated at 50pc of formal trade in S Asia

Informal trade in South Asia (SA) has been estimated at around 50 per cent of the formal trade within the region, said an official of the World Bank (WB) on Wednesday.
"Trade cost in the South Asian nations is 27 per cent higher than that among the East Asian countries," said Erik Nora, WB Senior Transport Specialist, at a function in Dhaka.
He also said businessmen in the SA countries need to spend 88 per cent of their total cost for obtaining, submitting or having trade-related documents, checked or processed by different jurisdictions, during the cross-border trade.
Mr Nora was speaking at the launching programme of a WB-supported project. The project - "Accelerating transport and trade connectivity in Eastern South Asia (ACCESS)" - will be implemented for simplifying cross-border and regional trades among the South Asian nations.
The WB has confirmed US$ 1.28 billion loan for the project, where it provides $753.45 million to Bangladesh, $275 million to Nepal, and $100 million to Bhutan.
State Minister for Shipping Khalid Mahmud Chowdhury, National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem, Economic Relations Division (ERD) Secretary Sharifa Khan, and WB Vice President Guangzhe Chen spoke at the function, among others.
Mr Erik Nora also said the average speed of trucks and freight vehicles on the roads is only 30 km per hour in many sections of the regional primary road network.
When the ACCESS project would be implemented, the SA regional trade would grow. Besides, freight would increase by 30 per cent, travel time would reduce by 30 per cent, fatalities would fall by 40 per cent on their project corridor, physical customs inspection would drop to 10 per cent from 25 per cent, and inspection through red channel would rise to 60 per cent, he added.
Mr Khalid Mahmud Chowdhury thanked the WB for helping Bangladesh, and said when the ACCESS project would be implemented, regional trade would enhance.
Mr Guangzhu Chen said the SA nations are less integrated in the globe in terms of regional trade, as these countries conduct only 5.0 per cent (of their total trade) among themselves.
The ACCESS project would enhance regional trade, he opined.

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