ISLAMABAD, June 8: More than 550 million people in South Asia live below poverty line due to bad governance and lack of planning, Finance Minister Shaukat Aziz said on Tuesday

He said, the South Asian region offered a tremendous potential for growth through enhanced economic cooperation but called for settling bilateral issues hindering the progress. He said that the governments in the region had failed to exploit the enormous human resource potential.

"We in South Asia failed because of the quality of governance that is not upto the level and not commensurate with the level of talent and expertise of the manpower," Mr Aziz said at the launch of the 4th edition of South Asian Journal, published by the South Asian Free Media Association at a local hotel.

Speaking as chief guest at the launching ceremony, attended by dignitaries and intellectuals, the minister said with the debacle of USSR, Central Asian States came into being forming a major economic bloc including Pakistan, Afghanistan, Iran and Turkey and opening doors for regional cooperation and development.

Citing examples of regional cooperation between western states, Mr Aziz said that European Union was a glaring example where countries had a single currency and where synergies were possible besides various other benefits from joint efforts between neighbouring states leading to strong economic development.

Mr Aziz, referring to Association of South East Asian Nations (Asean) said that passion for economic growth was the reason for success there. "And most of all there are no side issues.

The problem with ECO and Saarc countries is that there are many distractions and side issues that hinder progress and regional development". However, cooperation between Pakistan and Afghanistan was a miracle, the minister said.

"In the case of Pakistan and Afghanistan sky is the limit to progress and the way economic conditions have improved between the two states is a perfect example of success and gradual integration of our economies, he maintained.

He said Pakistan's trade with Afghanistan during the past 18 months has risen to $1 billion from $500 million. He said Pakistan was the first country to open up banks in Kabul and Jalalabad and was making efforts to open branches in Kandahar also. He said improvement of road links would further strengthen these ties.

"Future of Saarc depends heavily on removing trust deficit. The launch of South Asian Journal is a step in that direction bringing South Asia together", the finance minister said.

The guest speakers included Indian Deputy High Commissioner Mr Raghvan, Norwegian diplomat, SAFMA president M. Ziauddin and secretary-general Imtiaz Alam. The South Asian Journal focuses on the recent developments in the region.