Lanka, Pakistan trade to hit $ 1b soon

by Surekha Galagoda

A high-powered trade delegation from Pakistan were in Sri Lanka recently to further explore the possibilities that exist between the two countries under the Free Trade Agreement signed in June 2005.

Former Vice President, Pakistan Federation of Chamber of Commerce and Industry Arshad Alam lead a 15-member high-powered trade delegation to Sri Lanka. The High Commission of Pakistan arranged for one to one sectoral meetings with interested groups in Sri Lanka while a one-day mini-exhibition was also held at the Galadari Hotel.

Arshad who is also the Chairman of the Pakistan USA Business Council said that Sri Lanka is a good country to do business due to the close proximity and more so now due to the Free Trade Agreement signed between Sri Lanka and Pakistan in June 2005.

The spirit over here has given me hope. At present trade between the two countries is $250mln and we are confident that it can be increased to $one billion in the near future.

Speaking of his company, Leather Connections, he said that the company which is more than 100 years old has three tanneries. "We specialise in leather belts for men and women and our group is engaged in the textile business too. The group turnover is Rs 3.75 billion and we export to 37 countries.

Arshad said that he exported some items in the past to Sri Lanka and added that he came across some serious customers who want to do business with us during this visit".

Marketing Executive of Pak Cutlery Consortium Shakeel Azam said that they started exporting to Italy, Germany and the Middle East directly this year. Earlier we were exporting indirectly to Germany and the Middle East.

Our company has also received an order to supply our products to International chain stores in Germany known as Metro and in France known as Macro. Shakeel said that their products would be available at Arpico showrooms in the coming months and added that they would like to supply direct as they have a special line of cutlery for hotels.

He said that their factory with 250 employees is in Wazirabad, a city famous for manufacturing fine cutlery in the province of Punjab.

Director Marketing Cement Operations of Dewan Cement Operations S.N. Jaffri said that they are interested in exporting cement in bulk, clinker or bagged form to Sri Lanka. At present we manufacture two mln tons of cement and are in the process of adding a new cement line which will add another one mln tons by the end of the year.

The total Sri Lankan market is four million tons and we are trying to get a 5% share. At present we export our cement to Iraq, Dubai, Qatar and Gibuti and are exploring the possibility of exporting our products to India, Sri Lanka and Bangladesh. We started our production in 1985 as a 300,000 tons per annum plant and specialise in manufacturing Sulphate resisting cement.

Marketing Manager of Ameer Industries Nabeel Ahmed Manufacturers and Exporters of salt crystal lamps said that the lamps are a physician in your home. He said that in today's polluted environment there is hardly any place where these salt lamps may not be needed.

You can use these lamps in all closed environments including airconditioned rooms, crowded places such as clubs, cinemas and churches, hotels and restaurants, auditoriums and convention centres, hospitals, clinics and operating theatres, reception centres and waiting rooms as well as gymnasiums, health clubs and massage centres.

He said that the lamps are exported to East and west Europe and are manufactured in the fifth largest city of Pakistan, Gujranwala. At present we manufacture 20 different salt crystal lamps, he said.

CEO Shahpur Industries Mahboob Ahmed, a major exporter of Basmati rice said that he has been visiting Sri Lanka since 1993. When I came in 1993 it was a very small market. Now it is gradually opening up.

With the signing of the FTA in 2005 Basmati rice is specially included in the FTA. Due to the creation of a white collar class in Colombo with a high buying power, the demand for Basmati rice will increase in the near future. At present we export 1,000 tons of rice annually to Sri Lanka. The quantity allocated under the FTA is 6,000 tons per annum and we are hopeful of utilising the allocation this year.

Shahpoor Industries exports to 20 other countries and our company is looking for growth which is balanced with quantity and quality, said Mahboob. Basmati is the world's best rice for cuisine dishes, said Mahboob.

F.A. international representative Aslam Pakhali, importers and exporters of fruits and vegetables said that he has been visiting Sri Lanka for the past 25 years but this was the first time they came with an official delegation.

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