Trade volume between Pakistan, Sri Lanka could exceed $1bn

[Salman]

ISLAMABAD: Sri Lanka Export Development Board (EDB) is quite willing to join hands with the High Commission of Pakistan in Sri Lanka to expand volume of trade between the two countries to further strengthen the long standing commercial ties for mutual benefit.

Janaka Ratnayake, Chairman and Chief Executive of the EDB in a joint press conference on Tuesday at EDB in Colombo with High Commissioner of Pakistan Seema Ilahi Baloch said, “In February 2010, the EDB had to cancel Sri Lanka’s participation at the Expo Pakistan Exhibition at the last moment due to the concerns of the private sector.

The Sri Lanka-Pakistan Business Council incorporated on August 30, 1991, Pakistan-Sri Lanka Business Forum (PSLBF) launched on February 2009, 2005. Pakistan Sri Lanka Free Trade Agreement (PSFTA) came into effect on June 13, 2005 are some of the important milestones in the history of trade relationship between Sri Lanka and Pakistan.

Pakistan is the second largest trading partner for Sri Lanka in the SAARC region. It was the 26th export destination for Sri Lanka in 2010 accounting for nearly 0.7 percent of total exports in value terms while it has been the 10th largest import origin contributing to over 2 percent of total imports in to Sri Lanka in the same year.

According to the Sri Lanka Customs statistics, the value of total trade between the two countries has increased up to $345 million in October 2011 recording a 4.5 percent average growth during this period.

Despite the concessions available under the FTA, Sri Lanka’s exports to Pakistan accounted for less than 1 percent of total exports of the country.

Sri Lanka main exports to Pakistan in 2010 includes sheet rubber, betel leaves, other natural rubber, coconut fresh nuts, desiccated coconut, crepe rubber, pepper, woven fabrics, lentils and tea in bulk.

EDB is ready to carry out a series of promotional activities in Pakistan and Sri Lanka in collaboration with the High Commission of Pakistan in Sri Lanka for the year 2012.

Seema Ilahi Baloch said with collective effort, the trade volume could exceed $1 billion. She said necessary institutional infrastructure in shape of the FTA on goods, Bilateral Investment Treaty and MoU on Customs Cooperation is in place.

She invited Lankan investors to visit Pakistan and explore the countless potential of the country, including geo-strategic location, trained workforce, abundant raw materials, infrastructure, and investor-friendly policies.

She highlighted Pakistani agricultural products provide a cheaper and higher quality alternative to Sri Lankan imports from far-away countries like Australia and South America.