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Lanka, Pakistan Business Councils sign MoU:
Target US$ 1b in trade by 2017
by Lalin Fernandopulle
Sri Lanka and Pakistan lost around US$100 million in trade due to the
negative exchange rate in Pakistan and trade diversification by Sri
Lanka to other regions, Political Counsellor for the High Commission of
Pakistan, Hasan Zaigham told the Sri Lanka-Pakistan Business Council (SLPBC)
forum at the Ceylon Chamber of Commerce last week. He said there is a
vast scope for trade and investments in Pakistan for Sri Lankan
entrepreneurs with the favourable political and socio-economic
environment in Pakistan today. Sri Lanka and Pakistan are fast emerging
economies in the region.
However, former Sri Lankan Trade Commissioner to Pakistan, P. D.
Fernando said that both countries have been talking about the potential
for trade and investments for the past 30 years without taking concrete
measures to boost trade. “We have been taking about the potential in
both countries for far too long. There needs to be a genuine discussion
among entrepreneurs of both countries and difficulties arising in
carrying out trade and investments should be brought to the notice of
both governments through the business councils,” he said.
“Both business councils should play a dynamic role to facilitate more
trade between the two countries. Sri Lanka and Pakistan have maintained
cordial relations and mutual cooperation between the two countries have
grown.
“We need to make use of the good relationship to woo investors and
enhance trade. Trade between Sri Lanka and Pakistan dropped from around
US$ 400 million to around US$ 375 million last year due to the drop in
prices of spices and other commodities,” Fernando said.
President, SLPBC, Rohitha Thilakaratne said both councils hope to
increase trade between the two countries to US$ 1 billion within the
next two years. The stage is set for more trade and investments between
the two countries with the increase in weekly flights to Pakistan to
around 10 and the improved political and economic environment in both
countries.
Both countries should grab the opportunities and make full use of the
Free Trade Agreement to enhance trade.
The two business councils signed a trade agreement last week to
promote trade and tourism between SriLanka and Pakistan.It is time now
to convert relations to tangible trade by exploiting the untapped
potential. Sri Lanka should get out of the wrong perception about
Pakistan and focus on the prospects for trade and investments. Today,
Pakistan is one of the largest markets in the region which needs to be
explored. The SLPBC will extend its fullest support to promote trade and
investments between Sri Lanka and Pakistan.
Trade experts said that the product basket of the Sri Lanka-Pakistan
FTA should change and more attention should be paid to joint ventures.
-LF
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