Businessmen stresses for bilateral trade between Pakistan and Sri Lanka

KARACHI: The real potential of bilateral trade needs to be achieved between Pakistan and Sri Lanka under the Pakistan Sri Lanka Free Trade Agreement (PSFTA), an official said on Thursday.

Sri Lankan Minister of Trade Dr Bandula Gunawardhane said that the PSFTA has contributed moderately to the enhancement of bilateral trade volume.

Gunawardhane who led a Sri Lankan delegation during its visit to the Karachi Chamber of Commerce and Industry (KCCI), said that in 2020, despite the debilitating impact of Covid-19 pandemic on all businesses, Sri Lanka’s total exports to Pakistan reached $74 million, of which $53 million worth of exports or 73 per cent took place under PSFTA.

Sri Lankan trade minister said that Pakistan was the only market for Sri Lankan betel leaves which is mostly associated with the income of the rural population of Sri Lanka.

“We are hopeful that Pakistani government will soon do away with the regulatory duty which adversely impacted the export of betel leaves from Sri Lanka,” he added.

The relations between Pakistan and Sri Lanka date back to the formative years of the two countries as they laid foundation of their friendship in 1948, when the Sri Lankan Prime Minister visited Pakistan. “From historical time onwards, we enjoy and cherish the cordial, close and deep relations of Pakistanis in all aspects of our lives.”

In mid-70s, Pakistan was the largest buyer of Sri Lanka, accounting for 8 per cent of Sri Lanka’s total exports due to high intake of Ceylon tea. Today, Pakistan was the second largest trading partner of Sri Lanka in the SAARC region. “Sri Lanka Pakistan economic cooperation needs to be performing well than in the present context. Therefore, let us join hands for better economic ties between the two countries for greater economic issues,” he added.

Businessmen Group chairman Zubair Motiwala pointed out that although higher number of government dignitaries from both countries including the Prime Ministers were meeting each other, but no progress rectifying the existing FTA between Pakistan and Sri Lanka was taking place.

“I would request my government and also the Sri Lankan government to sit together and revisit this FTA as soon as possible,” Motiwala said.

“Despite being close and very reliable friends, Pakistan’s exports and imports to Sri Lanka were too low which were neither desirable nor acceptable. We have to work on this as there was a great scope for Pakistani goods in Sri Lanka and the trade potential of around $2.5 to $3 billion exists,” he added.

He suggested that the massive amount of goods being exported by India to Sri Lanka including raw materials, can easily be replaced with the same kind of Pakistani products and materials.

“The stitching in Sri Lanka was being done so well that many foreign buyers of Pakistani garments insist that the stitching of finished goods is done in Sri Lanka. Those people sitting on the machines are educated so they understand what the requirement is,” he added.

The BMG chairman said that Pakistan and Sri Lanka were blessed with enormous amount of minerals including gems, gold, copper, petroleum products and almost everything.  Sri Lanka possesses huge raw material for paper industry hence, relevant Pakistani businessmen can set up their paper industries in Sri Lanka but they must be provided single window facility.

He also emphasised on both the governments to have more air and sea linkages to promote tourism sector whereas, frequent visits of business delegations must also take place between the two countries.

Earlier, while welcoming the Sri Lankan delegation, KCCI president Muhammad Idrees pointed out that during 2020, goods exported by Pakistan to Sri Lanka totaled $324.7 million while the imports from Sri Lanka were recorded at $78.9 million.

“The real trade potential is much higher than what the current statistics reveal and we are determined to unlock this potential through concerted efforts and close coordination with Sri Lankan side”, he added.

He said that Pakistan was a huge market for spices which Sri Lankan exporters can explore. One such product is cloves. In 2020, Pakistan imported $9.91 million worth of cloves from other countries whereas, Sri Lanka exported around $15.87 million worth of the commodity to other countries, but trade in this particular commodity does not exist between Pakistan and Sri Lanka.

He also stressed that Sri Lanka should look into importing pharmaceutical products from Pakistan.

“During 2020, Sri Lanka imported Medicaments consisting of two or more constituents worth around $2.14 million from countries excluding Pakistan even though we exported $9.70 million worth of the commodity.”

The KCCI president also invited Sri Lanka to participate in My Karachi Exhibition scheduled to be organised at Karachi Expo Centre from Feb 11 to Feb 13, 2022. It provides an excellent opportunity to businessmen to interact at one place and it is attended by almost one million visitors.

Consul General of Sri Lanka Jagath Abeywarna, Sri Lankan Foreign Ministry director general economic affairs division Prof Dr Saj U Mendis, Pakistan High Commission commercial secretary in Sri Lanka Asma Kamal attended the meeting.

Businessmen Group chairman and former KCCI president Muhammad Zubair Motiwala, president Muhammad Idrees, senior vice president Abdul Rehman Naqi, vice president Qazi Zahid Hussain, former president Majyd Aziz, chairman of sub-committee for fairs, exhibitions and trade delegations Azeem Ahmed Alvi, KCCI managing committee members and others were also present.