COLOMBO: Sri Lanka’s second largest trade partner in SAARC Pakistan has proposed for a new, turnaround level trade between the two countries, Sri Lankan Minister of Industry and Commerce Rishad Bathiudeen said. Pakistani Minister for Commerce Khurram Dastgir Khan has suggested widening the trade with Sri Lanka during a bilateral meeting with Minister Bathiudeen on the sidelines of 14th Session of the UN Conference on Trade and Development (UNCTAD 14) in Nairobi, Kenya on Tuesday.
“Since we have established good relations among us, we should be more aggressive, including in trade. Our analysis is that our two economies do not compete with each other and therefore we can aggressively open up to move from our current “few items trade basket” to a much larger trade scheme,” Minister Khan said during the meeting. “We believe we can start our new rounds with a Mutual Recognition Agreement. We have an opportunity here-Let us walk the talk!”
He said the Pakistan single country exhibition held in Colombo was a great success and generated new trade interest among Pakistani businesses. “We also invite stronger Lankan trade and business delegations to Pakistan so that we can start at B2B levels,” he added. Minister Bathiudeen welcoming the trade expansion offer, assured Minister Khan that Sri Lanka is working to send a strong trade and B2B delegation to Pakistan in the near future.
Noting that the Pakistan Minister’s offer comes at a time when the Unity Government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe is prioritizing international trade as part of proposed economic reforms, Minister Bathiudeen said he will inform the government leaders of the offers including the call for a Mutual Recognition Agreement. “A significant improvement in our bilateral trade has been recorded since the Pakistan Sri Lanka Free Trade Agreement (PSFTA) came into force in June 2005. Still, there appears to be unrealized trade potentials that we can jointly explore. We too believe that it is time to expand our trade basket with Pakistan.”
Total trade between the two countries increased year-on-year by 16% to US$ 370.38 million in 2015 from 2014’s US$ 353 Million, retaining Pakistan’s position as the second largest SAARC trade partner of Sri Lanka, according to the Department of Commerce of Sri Lanka. Sri Lanka’s main exports to Pakistan in 2015 were tea, betel leaves, coconuts, wood and pepper. Among key imports from Pakistan are cotton, Portland cement, medicaments, iron & steel, and beverages including vinegar.
According to the Department of Commerce, a range of new products have penetrated into the Pakistan market from Sri Lanka after the implementation of the PSFTA among them are fresh pineapple, MDF boards, sports goods, tamarind, edible oil, porcelain tableware & kitchenware, and ceramic items. Sri Lanka’s Ambassador and Permanent Representative to the World Trade Organization (WTO) R.D.S. Kumararatne accompanied the Minister during discussions with Pakistani Minister.
