Informal trade in South Asia (SA) was estimated at approximately 50% of formal trade within the region.
Trade cost in the South Asian nations is 27% higher than that among the East Asian countries, said Erik Nora, World Bank's senior transport specialist, at an event in Dhaka.
He also said businessmen in the South Asian countries need to spend 88% of their total cost for obtaining, submitting or having trade-related documents, checked or processed by different jurisdictions, during the cross-border trade.
Nora was speaking at the launching program of a World Bank-supported project.
The project titled "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 confirmed a $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.
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%, travel time would reduce by 30%, fatalities would fall by 40% on their project corridor, physical customs inspection would drop to 10% from 25%, and inspection through the red channel would rise to 60%, he added.
Khalid Mahmud Chowdhury thanked the WB for helping Bangladesh, and said when the Access project would be implemented, regional trade would enhance.
Guangzhu Chen said the SA nations are less integrated in the globe in terms of regional trade, as these countries conduct only 5% of their total trade among themselves.
The Access project would enhance regional trade, he added.
