Huge potential for Lankans to enter Pakistan - BoI official

Trade between Sri Lanka and Pakistan can double if both countries focus on untapped markets to harvest maximum benefits form the free trade agreement, which was signed early this year.

The annual trade volumes between the two countries are expected to increase specially in tea, textiles and betel leaves areas.

According to a Board of Investment Research Unit official business co-operation of the two countries are likely to play an important role in increasing the present trade volume to double over $ 300 million in the very first year of inception of the FTA.

He said that there is tremendous potential for Sri Lankans to enter the Pakistan confectionery market. There are also openings to export canned fruits, ceramics, electronics and gem and jewellery.

Pakistan's engineering industry is a crucial sector of the fast developing industrial bases.

It has kept pace with the demands of the country's industrial development in the production of light engineering goods, chemical fertilizer, tyres, rubber products, and steel products. Heavy industries such as shipbuilding, sugar and cement plants are increasing in response to local needs and export potential.

"Import of spare parts for the automobile industry is another under utilised area," he said.

Pakistan also produces and exports a wide range of transport equipment, which includes railway carriages with spares, automotive spare parts, bicycles with spares, ships, boats and launches.

Sri Lanka's exports to Pakistan stood at 48 million dollars, up from 38 million dollars in 2003 while Pakistan's exports to Sri Lanka was 97 million dollars in 2004, up from 76 million dollars.

According to an official of the Pakistan High Commission, Sri Lanka would get duty free access to 10,000 tones of tea to Pakistan. "This would boost the tea trade," he said.

The manufacturing and agricultural sectors emerged as the main engines of growth in Pakistan experiencing 7.7% and 5.8% growth rates respectively over the year. (SS)