‘FTA helped Lankan exports to Pakistan’

Hiran H. Senewiratne

The balance of trade between Sri Lanka and Pakistan should be brought to a level playing field, which is at present in favour of Pakistan, Former Vice President, Federation of Pakistan Chamber of Commerce and Industry, Arshad Alam said.

At present the total value of trade in both countries is US$ 250 million, which needs to be raised to US $ one billion by moving away from traditional ways of trade patterns, which prevailed for more than 50 years, Alam told the Daily News Business.

More than 15 trade delegates came to Sri Lanka to promote trade between both countries. These trade delegates organised a mini trade show, which exhibited non-traditional items.

Alam came to Sri Lanka with a Pakistan trade delegation to promote trade between both countries. He said Sri Lanka reached a new level in bilateral trade and economic cooperation following the Free Trade Agreement (FTA) in June 2005.

The PSLFTA has helped expand Sri Lankan exports to Pakistan by a significant margin of 60 per cent during 2005-6, thereby reducing the trade gap by 21 per cent in favour of Sri Lanka.

Alam is also the current Chairman of the Pakistan-USA Business Council said the FTA has made it possible to earn a significantly higher profit by trading in commodities included in the 100 per cent duty concessionary lists of Sri Lanka and Pakistan.

The lists of such items will keep growing each year. Since Sri Lanka is an emerging market, its middle class is expanding at an alarming pace.

Therefore, it is important to widen trade by moving away from traditional patterns, he said.