Transit point to exchange goods and services:

Lanka can play lead role in promoting South Asian trade

Dinesh WEERAWANSA reporting from Pakistan

KARACHCHI, Saturday Sri Lanka could play the lead role in promoting trade in the South Asian region, according to many leading businessmen in Pakistan.

President of the Karachchi Chamber of Commerce and founder President of the Pakistan-Japan Business Forum, Majyd Aziz Balagamwala said Sri Lanka is the only South Asian country that could play the lead role to boost trade in the region. He was speaking after the Indo-Pakistan Business Forum concluded at the Sheraton Hotel here.

Pakistani business tycoon Aziz who is also a leading figure in the Pakistan Chamber of Commerce said there is slow progress in trade activities between India and Pakistan due to various obstacles. “There should have been a greater volume of trade between India and Pakistan”. Unfortunately, trade activities between the two countries have not progressed due to various reasons.

“But we are keen to see that Pakistan and India equally benefit through better trading relations. In this scenario, Sri Lanka could play the lead role in strengthening trade not only between Sri Lanka and Pakistan but also in the entire South Asian region,” he said after the closing sessions of the Indo-Pakistan Business Forum, which was attended by many leading businessmen in the region.

Aziz, who holds many responsible and high-profile positions in many business associations and Chambers of Commerce said that Sri Lanka has the capacity and ability to strengthen trade activities in the region due to its good relations with all its South Asian neighbours.

“If India does not want to import anything direct from Pakistan or vice versa, Sri Lanka could play the role of a transit point to exchange goods and services.

“It would be advantageous for Pakistan and India rather than importing similar material from a country outside the South Asian region at a higher price,” he said.

Former President of the Pakistan-Sri Lanka Business Forum and Director of the Pakistan-Russia Business Council, Abdul Rauf Tabani endorsing Aziz’s, views said that Sri Lanka could fast turn out to be a major commercial hub that would promote trade in the South Asian region. Many leading businessmen from the South Asian region attended the Indo-Pakistan Business Forum which rekindled fresh hopes in improved trade relations between the two countries.

Vice President of the SAARC Chamber of Commerce and Industry, Ali Malik said that stronger economic relations among Sri Lanka, India and Pakistan could bring peace and prosperity to the South Asian region. “To do that, both India and Pakistan will have to demonstrate greater political will to foster the process of regional economic cooperation,” he added.

Malik also said that in view of the changed global economic scenario, the leading players of South Asia will have to take the initiative and try to change their mindset, and should not forego the economic benefits in the larger interest of poor masses. “The win-win situation needs to be created to explore untapped potential, which was enormous compared with the current level of trade, which is only $2.5 billion, said Malik, who is also involved in pharmaceutical exports to Sri Lanka. He said that Pakistan would save billions of rupees by redirected imports of items such as chemicals, cosmetics, pharmaceuticals, steel, machinery and equipment and processed food from India and curtail smuggling to a great extent.

Meanwhile, Sri Lanka High Commissioner for Pakistan, Air Chief Marshal (R) Jayalath Weerakkody, in a separate interview with the Sunday Observer, highlighted many obstacles that affect trade activities between Pakistan and Sri Lanka.

“For example, there is a big demand for betel leaves from Sri Lanka due to its superior quality. But betel imports from Sri Lanka, which are subjected to 35 percent duty, will have to compete against the betel leaf which comes to Pakistan through illegal routes. That is a big disadvantage. We are discussing these matters with the Pakistani authorities to overcome such obstacles and strengthen trade ties between the two countries,” the former Air Force Commander turned diplomat said.