Pakistan envoy keen on bilateral trade increase

The Bilateral trade between Sri Lanka and Pakistan will increase to US $ one billion from the current US$ 400 million said High Commissioner of Pakistan Maj Gen. Qasim Qureshi at a Sri Lanka Pakistan Bilateral Discussion at the National Chamber of Commerce of Sri Lanka recently.

He said that a major trade imbalance exists between the two countries in favour of Pakistan and added that both countries should explore opportunities to expand trade and investments.

Sri Lanka has enormous potential to increase tea exports to Pakistan which has dropped drastically over the years.

Spice exports and tourism are some of the major areas that Sri Lanka should exploit in enhancing revenue to the country.

Sri Lanka's tea export to Pakistan dipped from 67 percent in 1975 to around 2.6 percent in 2003. Pakistan which had imported a large quantity of Sri Lankan tea in the past, now imports tea from Kenya."Sri Lanka should be more competitive in exports and increase the quantity of value added tea exports" Qureshi said.

The First Secretary Hasan Zaigham said despite the 4600 tariff lines offered to Sri Lanka only around 80 percent of its exports take place using 16 to 17 tariff lines.

There is a huge scope for expansion of exports under the Free Trade Agreement that came to force in 2005 and tariff lines provided to Sri Lanka", Zaigham said.

Sri Lanka maintains cordial ties with Pakistan and both the countries have expresses interest in strengthening economic bonds. Pakistan's GDP rose by four percent to US$ 225 billion in 2012. Pakistan's exports were valued at US$ 25 billion in 2012. Exports from Pakistan increased from US$ 153 million in 2005 to around US$ 300 million in 2012.Exports from Sri Lanka has been fluctuating with around US$ 83 million in 2012.

Pakistan is the second largest trading partner of Sri Lanka in the SAARC region. Sri Lankan exports to Pakistan topped $ 42.97 million from January to June in 2013.

Tea, Rubber and products, coconut, betel leaves/nuts, fruits /vegetables, spices, confectionery herbal/cosmetic products, paints, activated carbon,ceramic, knitted fabrics are some of the major items exported by Sri Lana to Pakistan.

Pakistan inturn exports textile fabrics, rice, cement, pharmaceuticals, dried fish , rice ,potatoes , foodstuffs, sugar , transportation equipment, iron steel, electrical machines and apparatus."There is little diversification of exports despite the FTA between the two countries".

Sri Lanka should promote export tea exports aggressively and exploit the market for row rubber in Pakistan. Sri Lanka's pineapples and cashew are in demand in Pakistan", the Ambassador said. -LF