Pakistan eases tariff on three Lankan commodities

Boosting Lanka-Pakistan bilateral trade levels and cooperation ahead of the next JEC meet, Pakistan has eased tariffs on three Lankan commodities it directly imports from Sri Lanka, Ministry of Industry and Commerce sources said. According to the Department of Commerce, Pakistan imports 5,000-6,000 mt of betel leaves annually. Sri Lanka is the largest supplier followed by Thailand, Bangladesh and India.

Pakistan is a large market for Sri Lanka’s betel leaves. Pakistan has reduced Lankan betel import tariff by 35 percent. (In 2010, betel leaves to the value of $ 5.77 million was exported to Pakistan). Pakistan has also reduced tariff on Lankan crude coconut oil by 50 percent and with effect from July, the crude coconut oil duty waiver will be 100 percent. (In 2011, Sri Lanka exported crude coconut oil valued at $ 1.25 million to Pakistan. Earlier, Pakistan agreed to remove crude coconut oil from its no concession list and phase it out in two annual instalments and provide market access for bottle-cooling machines on a margin of preference of 50 percent).

Pakistan High Commissioner Maj Gen Qasim Qureshi said that many opportunities under the Lanka–Pakistan FTA are not fully exploited and it’s time to do so. “Our bilateral trade basket needs to be diversified since it is concentrated around 4-5 major commodities.”

“For example, Pakistan has a big sugar industry but Sri Lanka does not import sugar from Pakistan. Exploring a formal mechanism for interaction of various bilateral Business Chambers to boost trade and more importantly, investments,” he said.

There are 25 BOI projects undertaken by Pakistani investors in Sri Lanka covering garments, chemicals, petroleum, rubber, plastics, leather products, food and beverages, and tobacco.