SL-Pakistan trade ties offer profitable prospects: Pakistan HC

Commercial ties between Sri Lanka and Pakistan offer many profitable prospects to businessmen willing to explore new avenues of trade and as such the two countries should look at fully utilizing the potential of bilateral economic cooperation, the High Commissioner of Pakistan Seema Ilahi Baloch said last week. On the occasion of the opening ceremony of the Made in Pakistan Exhibition 2012, she noted that Pakistan offers a good opportunity to Sri Lankan traders where consumers could benefit from its abundant raw materials, developed household electronics industry, fruits and vegetables, sports goods, surgical investments and cement which are all available at competitive prices and with low freight costs.

“Our governments have created a conducive environment for the private sector. We have an FTA, a Bilateral Investment Treaty and an MoU on Customs Co-operation. The question we have to ask ourselves is that with the entire paper framework in place are we fully utilizing the potential of bilateral economic cooperation?” she queried.

However, she noted that it is heartening to see that Pakistan-Sri Lanka trade shows a continuous upward trend since the bilateral trade, which was US$ 255 million in 2008,  has grown up to US$ 390 million in 2011.

“Joint ventures in fisheries, food processing, mineral exploration, handlooms and textile can benefit businessmen of both countries.”
“The timber and furniture sector also offers promise where Sri Lanka can benefit from the trained craftsmen from Pakistan and Pakistan can benefit from the wide varieties of timber in Sri Lanka,” she said.

The High Commissioner further pointed out that there is a strong desire and commitment on both sides to further develop the trade and commercial ties between the two countries and cross the mark of US$2 billion in the coming years and that one of the primary aims to organize the Made in Pakistan single country exhibition is to introduce the diverse goods and commodities being produced in Pakistan to the Sri Lankan consumers.
Sri Lanka is the first country with which Pakistan entered into a Free Trade Agreement for trade of goods in 2005.  While Pakistan listed 206 products as immediate zero duty concession products, Sri Lanka listed 102 products. This FTA is also mindful of Sri Lankan sensitivities and comparative market size, and gave liberal concessions to Sri Lanka in terms of (a) number of items on the negative list; and (b) duty phasing out schedules.