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By Channa Kasturisinghe

Sri Lanka and Pakistan are likely to commence a second airline service between the two countries in a bid to boost bilateral trade.

Commerce and Consumer Affairs Minister Ravi Karunanayake who met a group of investors from Pakistan in Colombo yesterday said the business communities in both countries were affected due to the absence of an effective air transport service and the prospect of commencing a second airline service was in the 'pipe-line'.

Pakistan is the second largest trading partner in the SAARC region with a turnover of Rs.8,781 million last year. It is a two-fold increase compared to the turnover figures of 1991 that stood at Rs.4,373 million. The two Governments signed a Free Trade Agreement(FTA) recently to further strengthen economic ties.

However, at present Sri Lankan and Pakistani businessmen have to travel between the two countries via Dubai which is a more expensive and time-consuming exercise.

The Pakistan International Airline (PIA), which is the national carrier of Pakistan had to terminate direct air services to Sri Lanka at the end of last year due to the political tension between India and Pakistan. The absence of a second airline has hampered trade and economic ties between the two countries and the issue was discussed between the heads of the two states during the recent visit to Sri Lanka by the Pakistani President General Pervez Musharaf.

Minister Karunanayake said that the Sri Lankan Government was firmly committed to revive the export sector and ready to provide relief to investors.

"The two Governments play the key roles of enablers and facilitators and it is up to the entrepreneurs to make the maximum use," the Minister said.

The two parties discussed ways of promoting textile, IT, oil mills, poultry and plastic industries at the meeting. The Minister pointed out that Pakistan could make use of Sri Lanka for the manufacture of finished garments in the country for re-export.

The Pakistani delegation headed by Danish Mustaq also participated in the Intrad 2002 exhibition and investor forum organised by the National Chamber of Commerce of Sri Lanka.

The Minister speaking at the inauguration ceremony at the BMICH said Intrad 2002 and other related activities would help project Sri Lanka as a service base.

"The number of buyers who participate in this event will have first hand information of the quality, capability and capacity of our exporters. It would particularly benefit the small and medium sector exporters. The policy of the Government is to develop Sri Lanka as the gateway to the neighbouring large markets and also to develop the country as the transit point for business between the east and the west," Minister Karunanayake said.

He said the Government would facilitate the companies which extend their business activities to neighbouring countries such as India, Bangladesh, Singapore and Pakistan by entering into FTAs, Mutual Recognised Agreements, Reducing delays at Customs and Ports.

"Introducing Electronic Data Input (EDI) in the import and export activities, extending the trade commissioner service to new commercial centres, ensuring greater interaction between the government and private sector are some of the measures the Government has taken to facilitate this process," the Minister said.

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